International management

What does International Business Management refer to?

It refers to how companies operate across national borders.

Why is International Business Management important?

It is important for resource seeking, efficiency seeking, market seeking, and knowledge seeking.

What are the two main components of globalization?

Globalization of Markets and Globalization of Production.

What has happened to average tariffs since 1950?

They have fallen significantly and are now at 4%.

What does market liberalization do?

It opens markets to foreign direct investment (FDI).

What technological innovations have facilitated globalization?

Steam ships, railroads, telegraphs, the internet, and air transportation.

What are the four basic motivations for international business?

Resource seeking, efficiency seeking, market seeking, knowledge seeking.

How has globalization changed the nature of MNCs?

It has led to the emergence of international, multinational, global, and transnational firms.

What is culture?

A system of values and norms that are shared among a group of people.

What are values in the context of culture?

Abstract ideas about what a group believes to be good, right, and desirable.

What does individualism vs. collectivism refer to?

The degree of mobility between social strata in a culture.

What are Hofstede’s Six Dimensions of Culture?

Power Distance, Individualism vs. Collectivism, Uncertainty Avoidance, Masculinity vs. Femininity, Long-Term vs. Short-Term Orientation, Indulgence vs. Restraint.

What defines high-context cultures?

Cultures that are relational, intuitive, collectivist, and contemplative.

What is the political economy of a nation?

It refers to how the political, economic, and legal systems of a country are interdependent.

What are the types of political systems?

Democratic and totalitarian systems.

What characterizes a market economy?

All productive activities are privately owned and determined by the interaction of supply and demand.

What does the legal system govern?

It governs behavior and includes laws such as contract law and intellectual property rights.

What is the purpose of tariffs?

To protect domestic producers by increasing consumer prices.

What is an import quota?

A direct restriction on the quantity of goods that may be imported.

What are anti-dumping duties?

Designed to punish foreign firms engaging in dumping to protect domestic producers.

Why do governments intervene in international trade?

To protect jobs, national security, and consumers, and to retaliate against unfair practices.

What is NAFTA?

North American Free Trade Agreement, established to eliminate trade barriers between the U.S., Canada, and Mexico.

What is the European Union (EU)?

A political and economic union of member states in Europe with common policies.

What is the main advantage of regional economic integration?

Access to more goods at lower prices and increased employment opportunities.

What are the disadvantages of regional economic integration?

Trade diversion, loss of sovereignty, and barriers for non-members.

What role did the GATT play in international trade?

It was a multilateral agreement to liberalize trade established after WWII.

What is the primary function of the WTO?

To provide a global platform for trade negotiations and dispute resolution.

What is globalization?

The shift toward a more integrated and interdependent world economy.

What influences behavior and culture in many parts of Asia?

Confucianism.

What impacts do cultural differences have on communication?

They affect the style and effectiveness of communication between different cultures.