Unit 500 Equivalency Study Sheet

Decent Essays
BUAD 500 Equivalency Exam Study Sheet

International Business

Multiple Choice, True/False, Short Answer Essay, Fill in the Blank, Matching

Books
Either: Wild, Wild, Han, International Business (Prentice-Hall) or Charles Hill, International Business: Competing in the Global Marketplace (McGraw-Hill).

Topics

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 number
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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 monopolies. The markets often result from companies entering into the markets early and gaining first movers advantage, therefore, establishing high barriers of entry.

Mercantilism
The theory suggest that a country must export more than import (surplus in the trade balance). Modern economists, however, suggested that no country can maintain a surplus in the long run. The country that exports more than imports would end up with more money inflow, which in turn would increase demand for foreign products and, therefore,
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There are no costs associated with transporting the goods between countries.
The citizens of the two trading countries have the same needs. 


The main difference between absolute and comparative advantage is that absolute advantage compares efficiency in one country with efficiency in another country. Relative advantage, on the other hand, focuses on comparisons with a country by looking at opportunity costs. The country might have an advantage over another country in producing a product, but still prefer to import it because of high opportunity costs associated with production.

Expanding operations globally – gains and losses for companies and countries

Differences in culture – including context/unspoken language and Hsofstede’s classification

Culture

In the 1870s, the anthropologist Edward Tylor defined culture as “that complex whole which includes knowledge, belief, art, morals, custom, and other capabilities acquired by man as a member of society.” Hofstede defined culture as “the collective programming of the mind which distinguishes the members of one human group from another.” Zvi Namenwirth and Robert Weber define culture as a system of ideas and argue that these ideas constitute a design for

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