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Questions and Answers
What is the primary focus of international business transactions?
What is the primary focus of international business transactions?
Which of the following is NOT an example of an international business form?
Which of the following is NOT an example of an international business form?
What is the primary characteristic of an ethnocentric international orientation?
What is the primary characteristic of an ethnocentric international orientation?
Which of the following is an element of the SLEPT framework?
Which of the following is an element of the SLEPT framework?
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What is culture, according to the definition?
What is culture, according to the definition?
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What is NOT a characteristic of culture?
What is NOT a characteristic of culture?
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What is the first level of culture?
What is the first level of culture?
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What is a key aspect of cultural transmission?
What is a key aspect of cultural transmission?
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Study Notes
International Business (IB)
- IB transactions involve devising and carrying out business activities across national borders to satisfy individual and organizational objectives.
- IB forms include export/import trade, contract manufacturing, licensing, franchising, joint ventures, M&A, and turnkey operations.
International Orientations (EPRG Framework)
- Ethnocentric: home country and market experience are considered superior, with similarities seen in foreign countries, and local business strategies are extended globally.
- Polycentric: each host country is unique, with differences in foreign markets, and strategies are adapted differently for each market.
- Regiocentric: the world is divided into regions, with similarities and differences seen within regions, and strategies are integrated within but not across regions.
- Geocentric: the world is becoming smaller, with similarities and differences seen in home and host countries, and a global approach is taken with local adaptations.
Environment of International Business
- SLEPT formula:
- Social and cultural factors
- Legal factors
- Economic factors
- Political factors
- Technological factors
Culture in International Business
- Culture is the collective programming of the mind that distinguishes one human group from another, including systems of values.
- Culture is learned, shared, interrelated, and transmitted across generations.
- Key aspects of culture:
- Shared motives, values, beliefs, identities, and interpretations of significant events
- Resulting from common experiences of collective members
- Transmitted across age generations
- Culture has structure and is integrated, with changes in one part bringing changes in another.
Levels of Culture
- Universal level
- Collective level:
- Wider cultural environment:
- Supra-culture: shared by nations with similar economic systems, development, ethnic roots, religion, etc.
- Macro-culture: shared by people of the same nationality, origin/country of residence (national culture)
- Elements include:
- Values, attitudes, moral codes, religion, aesthetics, art, tastes, symbols, places, language (verbal/non-verbal)
- Tradition, manners, and customs (dress code)
- Social interactions and institutions
- Education, technology, and material culture
- Elements include:
- Wider cultural environment:
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Description
This quiz covers the cultural aspects that influence international business transactions and orientations, including forms of international business and the EPRG framework.
