Podcast
Questions and Answers
What is one of the main aims of the ASEAN Economic Community?
What is one of the main aims of the ASEAN Economic Community?
What does the AEC Blueprint 2025 aim to accomplish?
What does the AEC Blueprint 2025 aim to accomplish?
What role does Enterprise Singapore (ESG) play?
What role does Enterprise Singapore (ESG) play?
Which area is NOT mentioned as a field for collaboration among ASEAN countries?
Which area is NOT mentioned as a field for collaboration among ASEAN countries?
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What is one benefit of good relations between host and home countries' governments?
What is one benefit of good relations between host and home countries' governments?
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What is the primary vision of the ASEAN Economic Community?
What is the primary vision of the ASEAN Economic Community?
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Which index assesses the strength and independence of a country's judiciary?
Which index assesses the strength and independence of a country's judiciary?
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How large is the market size of the ASEAN Economic Community?
How large is the market size of the ASEAN Economic Community?
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How does government intervention impact legal environments for businesses?
How does government intervention impact legal environments for businesses?
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What might an influx of illegal immigrants indicate about host and neighboring countries' relationship?
What might an influx of illegal immigrants indicate about host and neighboring countries' relationship?
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What initiative was mandated by ASEAN Leaders in 1992?
What initiative was mandated by ASEAN Leaders in 1992?
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What is a potential business cost associated with crime and violence?
What is a potential business cost associated with crime and violence?
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Which function does ESG NOT perform?
Which function does ESG NOT perform?
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Which factor would NOT typically be included in assessing a country's legal environment?
Which factor would NOT typically be included in assessing a country's legal environment?
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Why is assessing economic factors crucial for international firms?
Why is assessing economic factors crucial for international firms?
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What could be a consequence of a government severely limiting freedom of the press?
What could be a consequence of a government severely limiting freedom of the press?
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What is the main purpose of the World Trade Organization (WTO)?
What is the main purpose of the World Trade Organization (WTO)?
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Which agreement aimed to abolish quotas and reduce tariffs before the existence of the WTO?
Which agreement aimed to abolish quotas and reduce tariffs before the existence of the WTO?
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How many member countries does the World Trade Organization currently have?
How many member countries does the World Trade Organization currently have?
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What type of financial assistance does the World Bank primarily provide to developing countries?
What type of financial assistance does the World Bank primarily provide to developing countries?
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What was a significant healthcare initiative supported by the World Bank?
What was a significant healthcare initiative supported by the World Bank?
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What is one of the main objectives of the World Bank?
What is one of the main objectives of the World Bank?
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Which agreement reflects Singapore's collaboration with Australia?
Which agreement reflects Singapore's collaboration with Australia?
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What is a method by which the World Bank shares information with various entities?
What is a method by which the World Bank shares information with various entities?
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What is a primary benefit that ESG provided to Singaporean companies in 2023?
What is a primary benefit that ESG provided to Singaporean companies in 2023?
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Why is it important to assess the political factors of a country before other aspects?
Why is it important to assess the political factors of a country before other aspects?
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What outcome is expected from ESG's activities related to overseas projects?
What outcome is expected from ESG's activities related to overseas projects?
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Which aspect is traditionally considered the first in the PESTEL model?
Which aspect is traditionally considered the first in the PESTEL model?
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What might companies believe gives them greater control in international markets?
What might companies believe gives them greater control in international markets?
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Why might a company need to follow its key clients abroad?
Why might a company need to follow its key clients abroad?
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What is a potential requirement set by local governments that could impact a company's operations?
What is a potential requirement set by local governments that could impact a company's operations?
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What perception might consumers have about products based in certain countries?
What perception might consumers have about products based in certain countries?
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What is the primary goal of a Free Trade Agreement (FTA)?
What is the primary goal of a Free Trade Agreement (FTA)?
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How many FTAs had Singapore forged by October 2024?
How many FTAs had Singapore forged by October 2024?
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Which of the following is an example of a bilateral Free Trade Agreement involving Singapore?
Which of the following is an example of a bilateral Free Trade Agreement involving Singapore?
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What is a significant benefit of Digital Economy Agreements (DEAs) for businesses?
What is a significant benefit of Digital Economy Agreements (DEAs) for businesses?
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When did the Digital Economy Partnership Agreement (DEPA) between Singapore, New Zealand, and Chile come into effect?
When did the Digital Economy Partnership Agreement (DEPA) between Singapore, New Zealand, and Chile come into effect?
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What sets the Digital Economy Partnership Agreement (DEPA) apart from traditional FTAs?
What sets the Digital Economy Partnership Agreement (DEPA) apart from traditional FTAs?
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Which Digital Economy Agreement was signed by Singapore and the United Kingdom?
Which Digital Economy Agreement was signed by Singapore and the United Kingdom?
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What is a key focus area of Singapore's strategy in establishing Digital Economy Agreements (DEAs)?
What is a key focus area of Singapore's strategy in establishing Digital Economy Agreements (DEAs)?
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What is a critical factor for manufacturing businesses to consider when planning their supply chains?
What is a critical factor for manufacturing businesses to consider when planning their supply chains?
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Which natural disaster is highlighted as having a significant economic impact on Japan in 2011?
Which natural disaster is highlighted as having a significant economic impact on Japan in 2011?
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What is one consequence of natural disasters on a country’s economy?
What is one consequence of natural disasters on a country’s economy?
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What was the estimated economic cost of the haze crisis in 2015 for Singapore?
What was the estimated economic cost of the haze crisis in 2015 for Singapore?
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What is a potential social impact of extreme weather changes as mentioned?
What is a potential social impact of extreme weather changes as mentioned?
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Which of the following best describes the concept of environmental impact in a business context?
Which of the following best describes the concept of environmental impact in a business context?
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What is one effect of tougher environmental regulations on businesses?
What is one effect of tougher environmental regulations on businesses?
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How might extreme weather patterns affect transportation costs?
How might extreme weather patterns affect transportation costs?
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Study Notes
Introduction to International Business and Globalization
- International business (IB) is any commercial transaction between two or more countries.
- It involves the trade of goods, services, technology, capital, and knowledge across national borders.
- Private businesses aim to make profits, while government goals might not always be profit-driven.
Why Companies Engage in IB
- Sales Expansion: Companies seek additional revenue from foreign markets.
- Example: US SMEs (small and medium-sized enterprises) account for 98% of US exports. Other large companies like Boeing and Intel also generate major sales from exports.
- Resource Acquisition: Companies source resources or components from other countries for better prices or availability.
- Example: Apple assembles iPhones in China due to cost-effectiveness and local expertise.
- Risk Reduction: Diversifying operations across countries helps mitigate risks from economic fluctuations.
- This involves selling in countries with varying business cycles.
- Counteracting competitors' advantages in different markets.
Relationship Between IB and Globalization
- Globalization represents the widening and deepening of interdependent relationships among people from different nations.
- It involves the elimination of barriers to the flow of goods, services, capital, technology, and people.
- Globalization results in the integration of world economies.
- Example: A quarter of global production is now sold internationally, compared to only 7% in 1950.
International Trade Theories
- Theory of Absolute Advantage: Countries should specialize in producing goods they can produce most efficiently. This allows them to sell these goods at cheaper prices than other countries.
- Theory of Comparative Advantage: Countries should specialize in producing goods that they can produce relatively more efficiently than other goods compared to other countries. This will lead to overall global efficiency gains.
Trade Theories
- Trade theories help policymakers and companies determine what products to import/export.
- What are the quantities?
Trade Barriers
- Tariff-based: Taxes levied on goods entering or leaving a country (e.g import tariffs).
- Non-tariff-based: Measures which influence prices or quantities (e.g quotas or licenses).
- These barriers include subsidies, quotas, and licensing requirements.
Global Challenges and Opportunities
- High Interest Rates: Rising interest rates impact economic growth and consumer spending.
- China's Economic Difficulty: China's economy experiences significant challenges.
- Geopolitical Tensions: Global conflicts can cause economic disruptions.
Global Challenges and Opportunities - Resource Acquisition
- Opportunities in the U.S.: The U.S. has opportunities in resource acquisition.
- Adoption of Artificial Intelligence (AI): AI is becoming essential for growth.
Impact of Globalization
- Positive Impacts: Declining trade barriers, increased wealth, job creation, lower prices for goods and services, and increased consumer choices.
- Negative Impacts: Environmental degradation, homogenization of cultures, widening income inequality, and threats to national sovereignty.
Importance of International Business
- Companies need IB to flourish in the present globalized world in order to survive.
- Example: Singapore's success relies on developing overseas markets due to its small domestic market.
Economic Considerations
- Potential as Market: Market size, spending power, market characteristics, and distribution channels.
- Potential as Production Base: Labor force size, cost, skills, and availability of raw materials, and infrastructure.
- Economic Growth: GDP growth rate, rate of inflation, and unemployment.
- Future Development Potential: Investment opportunities and outlook for future growth factors.
Technological Factors
- Competitive Advantages: Technological advancements foster innovation, and improve efficiency.
- Access to R&D: Improved partnerships/cooperation with international research institutions.
- Operational Efficiency: Improved productivity/cost savings with advanced tech.
- Skilled Workforce: Countries with advanced tech have more skilled workers.
Socio-Cultural Factors
- Businesses must consider different cultural values and customs.
- Communication factors and sensitivities (e.g., language, religious practices).
- Manners, customs, and cultural aesthetics may differ worldwide and affect product marketing/acceptance and firm survival.
Cultural Differences
- Different cultures have various elements that should be considered when engaging in global business dealings.
- Language: Spoken and unspoken, nuances, communication styles.
- Religion: Religious practices affect beliefs and daily routines; Understanding and respecting religions is critical.
- Manners and Customs: Cultural norms should be understood.
- Aesthetics: Cultural ideas of beauty and taste affect product design, packaging, and marketing.
Environmental Considerations
- Environmental Regulations: Countries have varying environmental laws affecting businesses in different ways e.g. carbon emissions.
- Resource Availability: Access to natural resources greatly impacts businesses’ operations.
- Natural Disasters and Climate Change: Understanding risk levels in countries is crucial to mitigating potential harm.
Political Factors
- Stability of Host Government: How stable are the local governments?
- Social Stability: The state of unrest (e.g strikes, riots etc).
- Relationship Between Governments: This represents the stability and potential for conflict between countries.
- Legal Environment: Understanding legal issues, and any laws e.g regarding intellectual property is critical for a company.
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Description
Test your knowledge about the ASEAN Economic Community (AEC) and its objectives with this quiz. Explore key concepts like the AEC Blueprint 2025, the role of Enterprise Singapore, and other collaborative areas among ASEAN nations. Perfect for anyone looking to deepen their understanding of ASEAN's economic integration.
