International Business and Trade: The World Is Flat
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Questions and Answers

Who is the American journalist, author, and columnist who wrote the book 'The World Is Flat, A Brief History of the Twenty-First Century'?

  • Steve Jobs
  • Richard Branson
  • Bill Gates
  • Thomas Friedman (correct)

    • What is the main reason for the flattening of the world according to Thomas Friedman?

  • Government support for trade
  • Increased job security
  • Advancements in technology (correct)
  • Globalization 1.0

    • What was the historical event that triggered Globalization 1.0?

  • Pre-World War 1 (correct)
  • Cold War
  • Post-World War 1
  • Industrial Revolution

    • What was the role of the British Navy during Globalization 1.0?

    <p>Global governance</p> Signup and view all the answers

    What was the impact of Globalization 1.0 on citizens and companies?

    <p>It fractured the fortunes of both competitive and non-competitive citizens and companies</p> Signup and view all the answers

    What was the result of advancements in data transmission during the flattening of the world?

    <p>Information travel time decreased</p> Signup and view all the answers

    What is the name of the book that Thomas Friedman wrote about his experiences during his trip to Bangalore, India?

    <p>The World Is Flat, A Brief History of the Twenty-First Century</p> Signup and view all the answers

    What was the impact of processing speeds on computing power during the flattening of the world?

    <p>Processing speeds increased exponentially</p> Signup and view all the answers

    What is one of the main benefits of 'uploading' in the digital age?

    <p>Having access to community-developed software for free</p> Signup and view all the answers

    What is the primary difference between outsourcing and offshoring?

    <p>Offshoring involves moving entire operations to another country, while outsourcing involves delegating tasks to another company locally</p> Signup and view all the answers

    What is the main advantage of supply chaining?

    <p>It enables collaboration among suppliers, retailers, and customers to create value during production and distribution</p> Signup and view all the answers

    What is the term for when a small or mid-sized company provides services to a large supply chain without prohibitive expense?

    <p>Insourcing</p> Signup and view all the answers

    What is the main benefit of 'informing' in the digital age?

    <p>Universal access to knowledge, information, and research</p> Signup and view all the answers

    What is the term for business operations that go beyond national borders?

    <p>International business</p> Signup and view all the answers

    What is the result of wireless connectivity?

    <p>Work is no longer tethered to a hard-wired connection</p> Signup and view all the answers

    What is the main benefit of workflow software?

    <p>It enables collaboration while working remotely</p> Signup and view all the answers

    What is the primary characteristic of a multinational company?

    <p>It has branches, offices, or production facilities in more than one country, adapting to each local market.</p> Signup and view all the answers

    What is the primary goal of international business?

    <p>To create greater opportunities for international business.</p> Signup and view all the answers

    What is an example of a nonfinancial gain in international business?

    <p>Corporate social responsibility.</p> Signup and view all the answers

    Why is it important to study international business?

    <p>It comprises a large and growing portion of the world's total business.</p> Signup and view all the answers

    What is a characteristic of a transnational company?

    <p>It has invested in foreign operations and gives decision-making powers to each individual foreign market.</p> Signup and view all the answers

    What is an example of a global company?

    <p>Adobe.</p> Signup and view all the answers

    What is the primary reason for implementing foreign exchange restrictions, trade blocs, and trade barriers?

    <p>To protect their own country's economy</p> Signup and view all the answers

    What is a benefit of participating in international business for developing countries?

    <p>Access to latest technology and rapid industrial development</p> Signup and view all the answers

    What is a challenge faced by international businesses?

    <p>International restrictions imposed by governments of different countries.</p> Signup and view all the answers

    What is a characteristic of international business?

    <p>It involves the exchange of goods, services, and other resources such as people, intellectual properties, and/or contractual assets or liabilities.</p> Signup and view all the answers

    What is a characteristic of international business operations?

    <p>Large-scale production and global marketing</p> Signup and view all the answers

    What is an example of economy integration in international business?

    <p>A company utilizing resources from multiple countries</p> Signup and view all the answers

    Which countries dominate the international business?

    <p>Developed countries like the USA, Japan, and Europe</p> Signup and view all the answers

    What is the primary goal of market segmentation in international business?

    <p>To cater to the demands of consumers in different market segments</p> Signup and view all the answers

    Why do developing countries open their economy to foreign investments?

    <p>To gain access to foreign capital, technology, and employment opportunities</p> Signup and view all the answers

    What is a benefit of international business for countries?

    <p>Earning through surplus exports in foreign markets</p> Signup and view all the answers

    What is a result of developed countries dominating the international business?

    <p>High-quality products at low costs</p> Signup and view all the answers

    Why do businesses depend on government policies in international business?

    <p>To operate successfully in a sensitive business environment</p> Signup and view all the answers

    What is one of the benefits of expanding sales globally?

    <p>Access to a larger market with higher purchasing power</p> Signup and view all the answers

    Why do companies seek out foreign resources such as capital and technology?

    <p>To acquire resources that are not available in their home country</p> Signup and view all the answers

    How do companies minimize risks associated with business cycles in international business?

    <p>By operating in multiple countries with different business cycles</p> Signup and view all the answers

    What is one of the challenges of international business?

    <p>Cultural differences between countries</p> Signup and view all the answers

    What is one of the problems of international business?

    <p>Differences in the marketing infrastructure</p> Signup and view all the answers

    What is the impact of differences in the currency unit on international business?

    <p>It affects the profitability of companies</p> Signup and view all the answers

    Study Notes

    Introduction to International Business and Trade

    • Thomas Friedman, an American journalist, author, and columnist, is known for his book "The World Is Flat" which shares insights on the flat world from his experiences in Bangalore, India.

    The World Is Flat

    • The book highlights the idea of a "flat world" where job security is affected by globalization and technology has flattened the world, making it a global neighborhood.
    • Friedman met with CEOs of companies in India to understand how business has changed, and learned that technology advancements and increased computing power have made information travel around the world in seconds.

    Globalization 3.0

    • Globalization 1.0 was pre-World War 1, launched by a drop in trade costs with the use of steam and mechanical power.
    • There was no global governance, and little domestic policy to help share the gains and pains of international arbitrage in goods.
    • The internet created a platform for connectivity, and the web made information sharing possible.

    Ten Flattening Forces

    • Workflow software enabled collaboration and remote work.
    • Uploading provided free access to community-developed software.
    • Outsourcing involved performing specific functions or tasks at a lower cost.
    • Offshoring moved entire operations to a different location with lower labor costs and taxes.
    • Supply chaining involved collaboration among suppliers, retailers, and customers to create value during production and distribution.
    • Insourcing allowed small and mid-sized companies to provide services to large supply chains without prohibitive expense.
    • Informing provided universal access to knowledge and information.
    • Wireless connectivity created a mobile society, allowing work to be done remotely.

    International Business

    • International business involves the production or distribution of goods or services beyond country borders.
    • It is described as a transition towards a more collective and blended global economy, creating greater opportunities for international business.
    • It includes commercial negotiations, exchanges of goods and services, and transfers of resources such as people, intellectual properties, and contractual assets or liabilities.

    Importance of Studying International Business

    • It comprises a large growing portion of the world's total business.
    • All companies are affected by global events and competition.

    Differences of Multinational, Global, and Transnational Companies

    • Multinational companies have branches, offices, or production facilities in more than one country and focus on adapting products and services to each individual local market.
    • Global companies have a niche in multiple countries, but the product or service offerings and processes are the same in each country.
    • Transnational companies have invested in foreign operations, have a central corporate facility, and give decision-making, R&D, and marketing powers to each individual foreign market.

    Nature of International Business

    • International restrictions, such as foreign exchange, trade blocs, and trade barriers, can affect international business.
    • Benefits to participating countries include getting richer and more developed, receiving foreign capital, latest technology, rapid industrial development, and employment opportunities.
    • Large-scale operations involve production and marketing of goods and services on a global scale.
    • Integration of economies involves utilizing labor, resources, finance, and establishments of other countries.
    • Developed countries dominate international business due to their large financial capacity, best technologies, and large research and development centers.
    • Market segmentation involves producing goods according to the demand of consumers of different market segments.
    • International business is highly affected by political environment, changes in economic policies, and upgrades in technologies.

    Goals of International Business

    • Expand sales by catering to potential markets and increasing sales.
    • Acquire resources such as capital, technologies, and information.
    • Minimize risk by seeking out foreign markets and reducing swings in sales and profits.

    Problems of International Business

    • Political and legal differences.
    • Cultural differences.
    • Economic differences.
    • Differences in currency units.
    • Differences in language.
    • Differences in marketing infrastructure.
    • Trade restrictions.
    • High costs of distance.
    • Differences in trade practices.

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    Lesson-1-Introduction-to-International-Business.pptx

    Description

    This quiz covers the concept of international business and trade, highlighting the ideas presented by Thomas Friedman in his book 'The World Is Flat'.

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