BUAD Exam Study Guide Essay
Multiple Choice, True/False, Short Answer Essay, Fill in the Blank, Matching
Either: Wild, Wild, Han, International Business (Prentice-Hall) or Charles Hill, International Business: Competing in the Global Marketplace (McGraw-Hill).
The worldwide transition to globalization
Globalization if the process of integration and interconnectedness among economies. The process is characterized by declining trade barriers, increasing (cost and profit driven) collaborations, shrinking distances (due to advancements in communication technologies) and so forth. It’s a shift toward a more integrated and interdependent economy. Globalization has a …show more content…
Cultural relativism-ethics reflects culture. When in Rome do as Romans do.
The Righteous moralist-using the ethics and behavioral norms of the native country when operating in a foreign country.
The Naïve Immoralist-if other companies in a foreign country behave unethically, it’s OK for the company to behave unethically as well. Trade theory, including theories of comparative advantage, Heckscher-Ohlin theory, Porter’s theory of competitive advantage, new trade theory
The Product Lifecycle Theory
The theory suggests that early in their life cycle most products are produced in and are exported from the country where they were developed. With time, however, other nations engage in the production and distribution of the product. As a result, the product might be imported back to the country of its original production.
New Trade Theory
The theory states that in some cases countries specialize in the production and distribution of certain products not because of the differences in factors of production, but because in certain markets there can only be a limited number of firms. These markets are known as natural