16 Questions
What is the primary focus of international business transactions?
To satisfy objectives of individuals and organizations across national borders
Which international orientation views each host country as unique and approaches the markets differently?
Polycentric
What does the SLEPT formula represent in the context of international business?
Environmental factors affecting international business
What is culture, according to the definition provided?
The collective programming of the mind which distinguishes the members of one human group from another
Which of the following is a characteristic of culture?
It is shared by all members of a social group
What is the first level of culture?
Universal level
What is an example of an international business transaction?
Exporting goods to another country
What is the primary difference between a polycentric and a regiocentric orientation?
Recognition of regional similarities and differences
Which international business transaction involves the transfer of ownership and control of a company from one country to another?
Mergers and Acquisitions (M&A)
According to the EPRG framework, which international orientation approach sees similarities and differences in a world region and integrates its strategy within regions?
Regiocentric
Which of the following environmental factors is most closely related to the values and customs of a society?
Social and cultural
What is the primary characteristic of an ethnocentric international orientation?
Sees similarities in foreign markets
Which of the following is an example of a turnkey operation?
A foreign company builds a factory and hands it over to a local firm
What is the primary difference between a geocentric and a regiocentric international orientation?
Geocentric sees similarities and differences globally, while regiocentric sees similarities and differences in a world region
Which level of culture is shared by all members of a society?
Universal level
What is the primary function of licencing in international business?
To allow a foreign company to use a technology or brand
Study Notes
International Business (IB)
- IB involves transactions across national borders to satisfy individual and organizational objectives
- Forms of IB: export/import trade, contract manufacturing, licensing, franchising, joint ventures, M&A, turnkey operations
International Orientations (EPRG Framework)
- Ethnocentric: home country experience is superior, similar to foreign countries, extension of local business strategy
- Polycentric: each host country is unique, adaptations of strategy in each foreign market
- Regiocentric: world consists of regions, similarities and differences in regions, integrated strategy within regions
- Geocentric: world is getting smaller, similarities and differences in home and host countries, global approach with local adaptation
Environment of IB (SLEPT Formula)
- Social and cultural factors
- Legal factors
- Economic factors
- Political factors
- Technological factors
Culture
- Collective programming of the mind that distinguishes one human group from another
- Includes systems of values, learned, shared, interrelated ways of understanding, deciding, and communicating
- Components of culture: shared motives, values, beliefs, identities, and interpretations of significant events
- Characteristics of culture: learned, shared, intergenerational, symbolic, structured, adaptive
Levels of Culture
- Universal level
- Collective level:
- Supra-culture: shared by nations with similar economic systems, ethnic roots, religion, etc.
- Macro-culture (national culture): shared by people of the same nationality, origin/country of residence
- Elements: values, attitudes, moral codes, religion, aesthetics, art, tastes, symbols, language, tradition, manners, customs, social interactions, education, technology, material culture
International Business (IB)
- IB involves transactions across national borders to satisfy individual and organizational objectives
- Forms of IB: export/import trade, contract manufacturing, licensing, franchising, joint ventures, M&A, turnkey operations
International Orientations (EPRG Framework)
- Ethnocentric: home country experience is superior, similar to foreign countries, extension of local business strategy
- Polycentric: each host country is unique, adaptations of strategy in each foreign market
- Regiocentric: world consists of regions, similarities and differences in regions, integrated strategy within regions
- Geocentric: world is getting smaller, similarities and differences in home and host countries, global approach with local adaptation
Environment of IB (SLEPT Formula)
- Social and cultural factors
- Legal factors
- Economic factors
- Political factors
- Technological factors
Culture
- Collective programming of the mind that distinguishes one human group from another
- Includes systems of values, learned, shared, interrelated ways of understanding, deciding, and communicating
- Components of culture: shared motives, values, beliefs, identities, and interpretations of significant events
- Characteristics of culture: learned, shared, intergenerational, symbolic, structured, adaptive
Levels of Culture
- Universal level
- Collective level:
- Supra-culture: shared by nations with similar economic systems, ethnic roots, religion, etc.
- Macro-culture (national culture): shared by people of the same nationality, origin/country of residence
- Elements: values, attitudes, moral codes, religion, aesthetics, art, tastes, symbols, language, tradition, manners, customs, social interactions, education, technology, material culture
This quiz covers international business transactions that involve trade, contracts, and investments across national borders. It also explores the EPRG framework and its different international orientations.
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