Tutorial 2 Answers

Tutorial 2 Answers - T utorial 2 Answers 1 Critical...

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Tutorial 2 Answers 1. Critical Thinking & Discussion Questions (Textbook, p45): 1 - 5 1. Describe the shifts in the world economy over the last 30 years. What are the implications of these shifts for international businesses based in Great Britain? North America? Hong Kong (SAR)? The world economy has shifted dramatically over the past 30 years. As late as the 1960s, four facts described the character of the global economy. US dominance in the world economy and world trade US dominance in the world foreign direct investment picture The dominance of large, multinational US firms in the international business scene Roughly half of the globe—the centrally planned economies of the Communist world—were off-limits to Western international businesses All of these characteristics have changed. Although the US remains the world’s dominant economic power, its share of world output and world exports have declined significantly since the 1960s. The changing characteristics of the world economy favour a region like Hong Kong. Hong Kong as part of China is well located with easy access to markets in Japan, South Korea, Indonesia and other Asian markets. Hong Kong has a vibrant labour force, established industry and commercial infrastructure that can compete on par with the industrialised nations of the world. The decline in the influence of the US and Britain on the global economy provides opportunities for companies in Hong Kong to aggressively pursue export markets and foreign investment opportunities.
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2. ‘The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in smaller firms.’ Evaluate this statement. The rise of the mini-multinationals suggests there are global opportunities even for small firms. Staying attuned to international markets is not only important from the perspective of seeking profitable opportunities for small firms; it can also be critical for long-term competitive survival. Firms from other countries may be developing products that, if sold internationally, may wipe out small domestic competitors. Scanning international markets for the
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This note was uploaded on 04/30/2011 for the course BUSS 3003 taught by Professor Kentwilson during the Three '11 term at South Australia.

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Tutorial 2 Answers - T utorial 2 Answers 1 Critical...

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