BUS D-270

Maslows Hierarchy

- All employees are at different stages and so are countries

Importance of IB study

- Competitive advantage which leads to gains

Portfolio Investment

- Non Controlling

Ethnocetric

- act like home

Strategic alliance

- an international organization, asset bassed, sharing and exchanging assets

Geocentric

- blend of two

Rule of law

- common law or civil law

Future orientation

- focused on bonuses and pay

FDI

- foreign direct investment, we have control

low context

- get to the point

High context

- has implicit meeting and focused on relation ships

Systematic risk

- impacts everyone

Procedural risk

- impacts some company's, industries Process not targeted

Globilization

- interdependence between different companies and countries

Legal Systems Preferred By Biz.

- law of land

Offsoarcing

- moving business that's driven by costs

Distributive risk

- shifts responsibility, targeting someone

Rule of man

- some one in power makes decisions

Intellectual property

- stuff you make out off your ideas Different countries have different view on how to protect them

Outsourcing

- take business process to another country, moving to another organization, covering Achilles heal

International business

- the actual transactions, part of global business

Catastrophic risk

- things blown up, like the gaza strip

Criticisms Of Globalization

- widens gap, mixes culture

How People Live Today?

12% "full" 37% "flawed" 14% "hybrid" 37% "authoritarian"

4 types of data

Accurate Somewhat accurate Inaccurate Its there but don't know it

types of law

Common Law... (tradition/precedent) Example: United States and United Kingdom Civil Law... (established rules) Example: Germany, France, Japan Theocratic Law... (religious precepts) Examples: Iran and Pakistan Customary Law... (wisdom) Mixed Law... (hybrid)

What Is Culture?

Common Patterns... everyday life Shared... folkways, laws, habits, customs, etiquette, fashions, etc. Unspoken... for granted, no deep though Learned... gradually from ancestors, parents, teachers, media, etc. System... meanings and behaviors - "get things done"

Types of culture

Cultural defusion Cultural collision Cultural shock Imperialism

Complexity... requires understanding

Culture - what it is Causes - how it changes Behaviors - what to expect Adapting - succeeding globally

p.e.s.t.

Encouraged... POLITICAL Resources... ECONOMICS Opportunity... SOCIAL Capability... TECHNOLOGY

law system preferred by business

Freedom... to apply company strategy Transparency... know "rules of the game" Fair... no corruption - can get things done Stability ... know what to expect Important ... can voice interests/concerns Rule of Law ... protection - accountability

Power Distance - Leader/Subordinate

High: autocratic or paternalistic style Low: consultative style

Y theory

How well you generate trust with others Ability to educate people Who what when how Tied to why Have others understand you and help others Help people see how to avoid pain

Why Bother Studying International Business?

Involves Most Companies... either engage or compete with Its Different... vs. domestically Varying Options... best way of conducting business may differ by country Career Decisions... understanding helps choices Government Policies... insight on what to support

Collaborative (ASSET):

Joint Ventures; Licensing; Etc.

How to appeal to people and be successful

Lower risk at same reward Increase reward at same risk

Information Processing:

Monochromic - Sequential (N. Europe) Polychromic - Mutli Task (S. Europe)

Economic Freedom Index

Personal Choice Freedom Exchange Compete Protection Property Personally Source: Frazer Institute

Types of political risk

Systematic risk Procedural risk Distributive risk Catastrophic risk

Drivers of China's growth

Take down government influence of business

Forces Driving Globalization

Technology... developing and adoption Trade Liberalization... cross-border Services... supporting growth Consumers... pressures Competition... advantages Politics... changing objectives Cooperation... cross-national IMF; EU; NAFTA, Etc.

Y Theory.

Trust Cause and effect Facts Education, insight Decision behavior wiifm

who has most host investments

US

Strategies For Change

Value system Cost benefit analysis Resistance to much change Participation Reward sharing Opinion leadership Cultural wedges Timing Learning abroad

Although there are different views about the purpose of a political system, most analysts agree that an essential task of a political system is to ________. A) integrate the different elements of a society into a functioning unit B) allocate scarce resources among competing users C) develop reasonable attitudes and outlooks within the population D) protect individuals within the country from foreign threats

a

In a democracy, ________. A) citizens have the right to participate in the decision - making process B) the opportunity to truly participate in the political process is restricted to a select few C) the court system is directly supervised by the political system D) the rights of the individual are merged with the state

a

Skinner Electronics plans to expand into foreign markets. Top executives want the firm to focus only on locations where the rule of law prevails. Which of the following should most likely be considered by Skinner? A) wealthier, westernized countries B) developing, non- Western countries C) emerging economies experiencing rapid growth D) countries inclined toward totalitarian- style government

a

Polycentrism-

act like local

Cultural diffusion-

adopted from outside, watching American movies from other cultures

Core learning from high school

all about team work and relationship what people think about us is more about how they feel when they are around of us

when to utilize trust strategically

all the time doctors show file folders because it shows trust

A ________ law system is based on tradition, judge -made precedent, and usage and assigns a preeminent position to existing case law as a guide to dispute resolution. A) theocratic B) common C) customary D) civil

b

A system of ________ law sets the framework for the system of government and defines the authority and procedure of political bodies to establish laws and regulations. A) criminal B) constitutional C) civil D) commercial

b

Logan Electronics has a production facility in Bolivia. Recently, the firm was taxed at a significantly higher rate than a local electronics company. Which type of political risk is Logan most likely experiencing? A) systemic B) procedural C) distributive D) catastrophic

b

The march toward greater political freedoms and more expansive civil liberties, beginning in the 1970s, strongly fueled a sense of ________. A) less predictable operating conditions for companies B) the inevitability of democracy C) different rules for domestic versus international competition D) weaker property rights

b

Which of the following is most likely a true statement regarding the rule of law? The rule of law is a hallmark of ________. A) a totalitarian government B) a democratic government C) societies that place ultimate power in the hands of one person D) countries that are considered "partly free"

b

Which of the following statements referring to intellectual property rights and violations is INCORRECT? A) Richer countries claim looser regulation of intellectual property rights will hinder innovation. B) Companies can register a global patent, trademark, or copyright through the World Trade Organization (WTO). C) The International Anti-Counterfeiting Coalition estimates international trade in counterfeit products at $600 billion a year. D) Developing markets claim tougher regulation of IPRs will slow, if not halt, their economic development.

b

________ political risks arise from political actions, such as public corruption or a partisan judicial system, that interfere with transactions between sellers and buyers and that can significantly raise the costs of getting things done. A) Systemic B) Procedural C) Catastrophic D) Distributive

b

responsible for behavior

be acceptable before you are different

A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens. A) customary B) common C) civil D) theocratic

c

Countries often use local content regulations to determine the proportion of the product that must be made in the local market versus made outside of the local market in order to ________. A) maximize product safety B) ensure a cultural fit C) favor domestic companies D) relieve production pressures on local companies

c

Proponents of ________ argue that individual interests are not as important as the welfare of the group. A) pluralism B) capitalism C) collectivism D) individualism

c

The distinguishing feature of political ideologies along the political spectrum is ________, with some emphasizing its primacy and others opposing it. A) capitalism B) socialism C) freedom D) liberalism

c

The pushback against democracy has powered a rise in totalitarianism, a situation that is likely to include which of the following? A) increasing adoption of the principles of the rule of law B) growing demands worldwide for greater fairness and justice in legal proceedings C) increasing adoption of the principles of the rule of man D) suppression of state- control in the direction of legal activities

c

Which of the following is a true statement about China? A) The Chinese government's shift from communism to capitalism has led to an increase in FDI. B) China attracts FDI because the government has eliminated elaborate bureaucracies. C) The Chinese government manipulates market activities for political purposes. D) China lacks an educated pool of employees due to slowly developing industrialization.

c

Which of the following types of political risks often is caused by ethnic conflict or civil disorder and includes those random political developments that adversely affect the operations of all companies in a country? A) systemic political risk B) procedural political risk C) catastrophic political risk D) distributive political risk

c

Floating Subsidiary Concept -

cannot please everyone, mom and dad example

Floating subsidiary concept-

cant please everyone, make a choice

Collaborative culture

challenging to get better ideas

Cultural collision-

clash of cultures

Cultural shock-

come back from another country and not understanding old culture

Select the correct order, going from low to high total impact on an MNE, of the following types of political risk: (1) procedural political risks, (2) systemic political risks, (3) distributive political risks, (4) catastrophic political risks. A) 3, 2, 1, 4 B) 1, 2, 3, 4 C) 2, 3, 4, 1 D) 2, 1, 3, 4

d

The ________ of a country specifies the rules that regulate behavior, the processes by which laws are enforced, and the procedures used to resolve grievances. A) political system B) political philosophy C) philosophical orientation D) legal system

d

Which of the following is most likely a characteristic of a "partly free" country, such as Guatemala, Kenya, or Malaysia? A) strict religious constraints B) fair election procedures C) respect for civil liberties D) weak rule of law

d

________ refer(s) to the creative ideas, innovative expertise, or intangible insights that give an individual, company, or country a competitive advantage. A) Proprietary goods B) Exclusive ownership C) Restrictive goods D) Intellectual property

d

Driver of decisions

emotion avoiding a bad experience

cooperative culture

everyone gets a long

Now orientation

focused on now

Imperialism-

forced culture

Laissez Faire

hands off specifically government, free market, capitalism

why companies engage in IB

increase sales, diversify risk, acquire resources

tension

no tension- everyone is friends unhealthy tension- yelling healthy tension- debate aggressively but friends

Maslow's Hierarchy

s.e.a.s.p 54321

SWOT-

stregths weaknesses opportunities and threats

why is democracy softening

the economy is failing due to banks people lost trust its not intuitive to ask the government for help but people get scared

what helps creat change

tie to value system tie to cost reward liquidity leadership HELP OTHERS UNDERSTAND WIIFM

Totalitarianism

total government control over everything Theocratic- religion controls

y theory...

trust facts understand wiifm connect who what when where how with WHY