International Business and Globalization Chapter 1

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Questions and Answers

What has enabled fans to watch top players and teams in nearly any sport from almost anywhere on earth?

Satellite television broadcasts

Why do sponsors and advertisers pay top dollar to be associated with professional sports?

To increase their global brand recognition

How have successful teams generated more revenue?

By selling merchandise both domestically and internationally

How have teams and leagues sought income opportunities outside their home countries?

By seeking foreign investors Signup and view all the answers

How do professional teams find and develop talented athletes?

Through international recruitment Signup and view all the answers

What has the globalization of professional sports allowed professional athlete A to achieve?

Forsake home country allegiances for higher salaries Signup and view all the answers

What is a challenge of pursuing global interests?

Conflicting with national interests Signup and view all the answers

Why do companies engage in international business?

To expand sales and acquire resources Signup and view all the answers

What is a consequence of globalization?

Increasing income inequality Signup and view all the answers

What is a primary objective of international business?

Expanding sales Signup and view all the answers

What is a benefit of globalization?

Providing unprecedented opportunities for firms to profit Signup and view all the answers

What is a consequence of income inequality?

Stress and insecurity Signup and view all the answers

What is the core concept of globalization?

The widening and deepening of interdependent relationships among people from different nations Signup and view all the answers

What is international business?

Consists of all commercial transactions between two or more countries Signup and view all the answers

Why do managers need to take into account international business?

To set their operating strategies and practices in a global context Signup and view all the answers

What is a characteristic of international companies?

Having a diverse and complex operating environment Signup and view all the answers

What is an advantage of understanding international business?

Making more informed decisions, such as where to work and what governmental policies to support Signup and view all the answers

What is a challenge in understanding globalization?

It is a difficult concept to measure Signup and view all the answers

What influences how and if international business takes place?

Government leaders Signup and view all the answers

What determines how earnings are taxed by all jurisdictions?

International law Signup and view all the answers

What can managers study to better understand interpersonal norms of people in foreign countries?

Anthropology, psychology, and sociology Signup and view all the answers

What explains why countries exchange goods and services?

Economic forces Signup and view all the answers

What provides analytical tools to determine the impact of foreign operations on home and host countries?

Economic forces Signup and view all the answers

What affects a firm's foreign operations?

The ways in which laws are enforced Signup and view all the answers

What is the key characteristic of a multinational enterprise?

Willingness to consider markets and production sites anywhere in the world Signup and view all the answers

What is the primary impact of geographic barriers on business operations?

Difficulty in transportation, communications, and distribution channels within a country Signup and view all the answers

Which of the following is an example of a demographic influence on international business operations?

Differences in population density and age distribution Signup and view all the answers

What is the main purpose of examining institutional factors when implementing international strategies?

To assess the impact of laws, politics, and economy on business operations Signup and view all the answers

Which of the following is NOT a type of factor that affects a company's ability to operate abroad?

Financial factors Signup and view all the answers

What is the primary benefit of having a manager who is knowledgeable about geography?

Ability to determine the location, quantity, quality, and availability of natural resources Signup and view all the answers

Study Notes

Globalization and International Business

Globalization is the widening and deepening of interdependent relationships among people from different nations.
International business consists of all commercial transactions between two or more countries.
IB activities, including sales, investments, and transportation, create global connections between supplies and markets.

Impact of Globalization on Professional Sports

The globalization of professional sports has far-reaching effects, including:
- Satellite television broadcasts allowing fans to watch top players and teams from anywhere on earth.
- Professional teams scouring the world to find and develop talented athletes.
- Players forsaking home country allegiances in pursuit of higher salaries.
- Increased revenue from sponsorships and merchandise sales.

Factors Affecting International Business Operations

Understanding the environment and operations relationship is crucial for international companies.
Making non-business decisions, such as choosing where to work and what policies to support, requires knowledge of IB.

The Study of International Business

Companies engage in international business to:
- Expand sales and increase market potential.
- Acquire resources, such as products, services, and components, to improve competitiveness.
Multinational enterprises (MNEs) take a global approach to foreign markets and production.

Factors Affecting Ability to Operate Abroad

Physical factors:
- Geographic influences, such as uneven distribution of resources and geographic barriers.
- Demographic influences, such as population density, education, and age distribution.
Institutional factors:
- Political policies, such as government leaders' influence on IB.
- Legal policies, including business law and international agreements.
- Behavioral factors, such as cultural norms and interpersonal relationships.
Economic forces:
- Understanding why countries exchange goods and services.
- Analyzing the impact of foreign operations on home and host countries.
- Determining the effect of economic policies and conditions on domestic and foreign firms.

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