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
