Chapter 01 - Globalization
Understand what is meant by the term globalization.
Recognize the main causes of globalization.
Describe the changing nature of the global economy.
Explain the main arguments in the debate over
Chapter 02 - National Differences in Political Economy
National Differences in Political Economy
1. Understand how the political, economic, and legal systems of countries differ.
2. Explain what determines the level of economic develop
Chapter 03 - Differences in Culture
Differences in Culture
1. Explain what is meant by the culture of a society.
2. Identify the forces that lead to differences in social culture.
3. Identify the business and economic implications of d
Culture Diff erences
Within The Dominican Republic there are several cultural differences that would have to
be taken into consideration. One of the main barriers is the language. Even though Dominican
Republic is a popular tourist destination th
What Is Globalization?
Globalization - the shift toward a more
integrated and interdependent world
The world is moving away from selfcontained national economies toward an
interdependent, integrated global
in Political Economy
What Is A Political Economy?
Political economy of a nation - how the
political, economic, and legal systems of a
country are interdependent
they interact and influence each other
they affect the level o
Why Is Free Trade Beneficial?
Free trade - a situation where a
government does not attempt to influence
through quotas or duties what its citizens
can buy from another country or what they
can produce and sell to anot
Why Is The Foreign
Exchange Market Important?
The foreign exchange market
1. is used to convert the currency of one country
into the currency of another
2. provides some insurance against foreign
exchange risk - the
What Is FDI?
Foreign direct investment (FDI) occurs
when a firm invests directly in new
facilities to produce and/or market in a
the firm becomes a multinational enterprise
FDI can be in the form of
What Is Ethics?
Ethics - accepted principles of right or wrong that
the conduct of a person
the members of a profession
the actions of an organization
Business ethics - accepted principles of right or
What Is The International
The international monetary system refers to the
institutional arrangements that countries adopt to
govern exchange rates
A floating exchange rate system exists when
The Global Capital
Why Do We Have
Capital markets bring together investors and
investors - corporations with surplus cash, individuals,
and non-bank financial institutions
borrowers - individuals, companies,
What Is Regional
Regional economic integration - agreements
between countries in a geographic region to
reduce tariff and non-tariff barriers to the free
flow of goods, services, and factors o
The Strategy of International
What Is Strategy?
A firms strategy refers to the actions that
managers take to attain the goals of the
Firms need to pursue strategies that
increase profitability and profit growth
What Are The Main
Production Issues For Firms?
International firms must answer five interrelated questions
1. Where should production activities be located?
2. What should be the long-term strategi
How Do Cultural Differences
Affect International Business?
Understanding and adapting to the local cultural
is important international companies
cross-cultural literacy - an understanding of how
cultural differences acro
The Organization of
Organizational architecture is the totality of a
firms organization including
1. Organizational structure
the formal division of the organization into subunits
11/9/89 wall coming down see and think of world as single flat plane walls down and windows
up because 5 mos later windows operating system was shipped out
8/9/95 mt. view calif. Netscape went public
o Netscape browser was first commercial brows
Thomas Friedman World is Flat Position Paper
The flattening of the world as described by Thomas Friedman does not mean that the world is
flat geographically but that the changes that are happening through technology is what is
Chapter 12 Questions
Industrial and Commercial Bank of China
1. ICBC felt it was necessary to issue equity in markets outside mainland China because of the other
banks around that were doing their IPO sales and how their shares were large
Chapter 17 Questions
1. Amazon wanted the Kindle to have the magic combination of low price, high functionality, high
reliability, and design elegance. It used what the best prices and where the technology was available that
Chapter 1 Discussion
1. One of the benefits of Apple outsourcing the iPhone to foreign countries is that the cost and quality of
factors of production are better. This allows for the company to cut down on production costs so that it
Chapter 18 Questions
1. Dominos sticks with its traditional home delivery model in the countries where it is not the norm
and I believe that it is wise for them to do so. It separates them from their competitors and gives them a
Chapter 4 Questions
1. Modern Saudi culture was shaped by the al Saud clan who made a pact with Abd-al-Wahhab.
There was a strict Islam that Wahhab practiced and believed in that was one of the main
influencers. They were also influenced
Chapter 3 Questions
Revolution in Egypt
1. The Mubarak regime had many issues within it that caused it to collapse. The Mubarak
government was very corrupt and help billions of dollars in offshore accounts. The country itself
also had the
Chapter 11 Questions
Currency Trouble in Malawi
1. Malawi had many reasons for their currency troubles. In 2004 when economist Bingu wa Mutharika
became president he boomed the economy with a 7 percent growth per year between 2005 and 201
Billabong Case Questions
1. The fall of the Australian dollar against the US dollar benefits Billabong because it makes the products
be cheaper in US dollars and this causes the market to create more of a demand.
2. The rise of the Austra
Case 2 Summary
NAFTA and Mexican Trucking
NAFTA is the North American Free Trade Act and went into effect in 1994. It was supposed to
allow trucks that delivered goods from the United States to Mexico, and vice versa, to cross the border