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Questions and Answers
What are the primary drivers of international business?
Which of the following is a benefit of international business? (Select all that apply)
Globalization only benefits developed countries.
False
What is the primary difference between domestic and international business?
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Which of the following are criticisms of globalization? (Select all that apply)
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What are some risks in global business?
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The spread of technology is one of the basic activities in _____
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Which institution is mentioned as a source for international finance?
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Study Notes
Introduction to International Business
- International business involves cross-border transactions of goods, services, and resources.
- Key drivers include globalization, advancements in technology, and trade liberalization.
- Major components encompass international marketing, investments, foreign exchange management, and obtaining financial support from global institutions like IMF and World Bank.
Scope of International Business
- Encompasses management of international human resources and cultural diversity.
- Involves international strategic management and logistics for global production networks.
Differences between Domestic and International Business
- Environmental Factors: International businesses face diverse legal systems and political entities.
- Logistics: Complications arise due to tariffs and quotas in international markets.
- Human Resources: Recruitment and management strategies must adapt to varying cultural norms and laws.
- Competition and Strategy: Different competitive landscapes and strategic approaches are required.
Globalization
- Defined by investment flows (especially foreign direct investment), technological dissemination, and the availability of educated workforces.
- Encourages stronger institutions and a unified global market.
Benefits of Globalization
- Increases competitive strength of domestic industries while improving consumer welfare through access to a wider range of products.
- Promotes advanced technology, foreign investment opportunities, and cost reduction in production leading to growth and expansion.
Criticisms of Globalization
- Potential threats to domestic industries and job security, resulting in higher unemployment rates.
- Claims of undermining democracy and contributing to economic instability are common.
Myths about Globalization
- Understanding misconceptions surrounding globalization can clarify its actual impacts and realities in international trade dynamics.
Risks in Global Business
- Political and regulatory risks can affect operations in foreign markets.
- Cultural and managerial risks require sensitivity to local customs and practices.
- Exchange rate, credit, transport, and market risks can influence profitability and sustainability.
Issues in Global Business
- Organizational aspects and resource allocation present challenges across borders.
- Strong leadership and strategic plans are necessary to navigate the complexities of global operations.
Future of Globalization
- Engaging in export production and welcoming foreign investment is seen as vital for economic growth in developing nations.
- Globalization continues to evolve, shaping the modern economy and influencing future trade relations.
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Description
This quiz covers the fundamentals of international business, including its key drivers and major components. Explore topics such as globalization, international marketing, and the management of diverse human resources in a global context. Understand the differences between domestic and international business environments.
