Class 3 - Globalization

Front 1

When you think about international environment analysis, what are the main things you should think about?

Back 1

with cultural aspects, local taste is also very important (e.g. walmart being too clean in Indonesia or the Boots pop music full volume in Thailand)

Front 2

What's the difference between management IN and OF culturally different environments?

Back 2

Management in is more the approach (e.g. ethnocentrism, things to consider) whereas management of is more the interactions, human resources decisions, language, etc

Front 3

1. Define culture
2. List the characteristics of culture (6).
3. Define stereotypes

Back 3

1. see above
2. Characteristics of culture include:
1. learned
2. shared
3. transgenerational
4. symbolic
5. patterned
6. adaptive
3. Stereotypes are assumptions about collective properties of a group that are applied to a particular member of that group

Front 4

How does culture affect all business functions(1) and managerial approaches(2)?

Back 4

#1
- Marketing: variation in attitudes and values requires firms to use different marketing mixes
- HR: evaluation of managers
- Production and Finance: attitudes towards authority and attitudes towards change
#2 - see above

Front 5

What are the sociocultural components to culture? Give an example of each.

Back 5

1. Aesthetics: art, music
2. Attitudes and Beliefs: attitude toward time, toward achievement and work, towards change
3. Religion: responsible for man attitudes / beliefs that shape behavior. (work ethic, authority, festivities, conflicts)
4. Material Culture: human-made objects (what people make, how, and why) and technology
5. Education: literacy rate, schools, per capita spend on education, educational mix (intl's b-schools), brain drain, reverse brain drain, women's education, disparities WITHIN a country
6. Spoken language: demarcate cultures, resort to english for technical words, saying disagreeable things, how your slogan changes, unspoken language
7. Societal Org: kinship, age, gender, free association,

Front 6

What is the importance of technology as part of the material culture to international companies?

Back 6

Information Technology Era - internet economy

Consumption - different degrees in the use of automation in different countries

Front 7

What are the implications for international business for
1. country's political, economic, and legal environment
2. country's attractiveness

Back 7

Front 8

1. What is an international economic analysis

2. What are the sources for economic information

3. What are some economic issues for IB?

Back 8

1. an analysis performed by a firm when it enters overseas markets - should provide data on both actual and prospective markets
2. reports from central or internatinoal banks, chamber of commerce, UN or worldbank, etc
3. see above

Front 9

1. What are the key economic forces?

2. What are the different kinds of economic systems (4) - explain each

Back 9

1. see above
2.
- Market Economy: supply and demand determine economic decisions (e.g. USA)
- Mixed Economy: gvt controls important sectors and can influence economic activity, generous welfare systems (e.g. most western european countries)
- Centrally planned/command economy: all economic resources are owned by the get (e.g. Cuba, China)
- Economies in a state of transition: deregulation, legal changes, privatization, (some central asia republics)

Front 10

1. When thinking about the general economic framework (which is one of the key economic forces on the prior slide), what are the 2 kinds of conditions we consider?
2. Explain each. (what are they and what are they important for)

Back 10

1. Demand Conditions and Factor Conditions
2. Demand conditions: critical for market-seeking investments. Market potential is determined by
composition of home demand (nature of buyer needs)
size of home demand
growth of home demand
internationalization of demand
Factor Conditions: are inputs to the production process (HR, physical resources, knowledge, capital, infrastructure). These are especially critical for the production of goods.

Front 11

1. When we analyze the macro-economic situation, what are the things we must consider?

2. How does a company measure the importance between variables?

Back 11

1. GNI, PPP, Income Distribution, Private Consumption, Unit Labor Costs, Other variables (debt, FOREX, Interest rate, inflation)

2. The importance of each variable depends on the activity required to develop in a country

Front 12

1. What are the measures for national production? Explain each.

2. What are the exclusions?

Back 12

Front 13

What is PPP?

Why is it a useful measure?

Back 13

Front 14

What is income distribution?

Back 14

Front 15

What is private consumption?
What are unit labor costs?

Back 15

Front 16

1. How do foreign debt and exchange rates affect the firm abroad?

2. What are broader conceptions of development?

3. What is Human Development Index?

4. What model do we use for an economic analysis of the industry?

Back 16

1. See above

2. Amartya Sen says that development should be assessed by material output measures and is an economic and a political process that requires "democratization".

3. The Human Development Index is a function of life expectancy, PPP to meet basic needs)

4. Porter's 5 Forces

Front 17

Provide a summary for this section

Back 17