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Principals#1
| Question | Answer |
|---|---|
| What are 4 Risks of International Business | 1,Cross-Cultural Risk (different cultur and mentality) 2,Country Risk (instable country, bureaucracy, government problems,..) 3,Currency Risk (inflation, taxation, instability,..) 4,Commercial Risk (weak partner, media risk,..) |
| Who conducts International Business | all the types of business of all the countries |
| Why do firms internationalize (6) | 1,lower costs and higher profits 2,market diversification 3,new ideas 4,international growth 5,foreign partners 6,find new costumers |
| What is the diffence between Globalization & Internationalization | Globalization= macro trend of economic interconnectedness Internationalization= tendency of companies to deepen their international business systematically |
| How is global factory characterised (2) | 1,fine-slice its activities to optimal location around the world 2,high flexibilityy & prosteprity in volatile economy |
| What is the smile curve | That less and most complex value adding operation start in one country |
| How did covid influenced Globalization | Covid Pandemic has increase nationalists tendencies like proctionism and had negative effect on globalization |
| What are 6 classic theories why do countries trade | 1,Mercantilism 2,Absolute Advantage Principle 3,Comparative Advantage Principle 4,Factor Propotions Theory 5,International Product Life Cycle Theory 6,New Trade Theory |
| Describe Mercantilism Theory (4) | 1, theory of maximizing exports & minimizing impots (trade surplus) 2,mercantilism may harm countries that import 3,mercantilism also harm constumers, it may lead to inflation and higher prices 4,invated about 1500 |
| Describe Absolute Advantage principle (4) | 1,Adam Smith 1776 2,country should mainly produce products where they have absolute advantage 3,and import where not and not to waste ressources on them 4,critic ... absolute price is not important, but relative |
| Discribe comparative advantage principle (4) | 1,David RIcardo, 1817 2,countries may concentrate on products where they have relative efficiency 3,foundation for logic for free trade 4,critic .. importance of national ressource |
| What is International Business (2) | 1,all commercial activities, across national borders 2,all value-adding activity in international market |
| What can be Cross-Cultural risks (4) | 1,cultural differences 2,negotiation patterns 3,decision-making styles 4,ethical practices |
| What can be Currency-Financial Risks (4) | 1,currency exposure 2,asset valuation 3,foreign taxation 4,inflationary & transfer pricing |
| What can be Commercial Risk (5) | 1,weak partner 2,timing of entry 3,cyber risk 4,social media risk 5,poor execution of strategy |
| How globalization & internationalization correlate | Globalization makes internalization easier |
Created by:
semester1.IBWL
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