Business Explain: International Business

Showing posts with label International Business. Show all posts

The textbook states that leadership can be a root cause of unethical behavior. Explain how this can be and if you agree.

Leaders help establish the culture of an organization, and the set the example, rules and guidelines that others follow as well as the structure and processes for operating both strategically and in daily operations. The book says that whenever a manager or a leader is acting out from the ethical standards, then the employees will behave in the same manner as their superior.

I agree with this statement because I have seen it happen at my own workplace. Once a manager acts out of line then the employees see this as an opportunity to act up or to not care what the manager thinks.

List and contrast the advantages and disadvantages of Individualism versus Collectivism.

Some of the advantages with individualism: High level of entrepreneurship, According to Aristotle communal property receives little care, whereas property owned by and individual receives the best care.

Also individual achievement is more common. The disadvantages: Can create a lack of company loyalty, competition between individuals in a company instead of team building, less ability to develop a strong network of contacts within the firm.

Advantages of Collectivism: Discourages job switching between firms, encourages lifetime employment systems, and leads to cooperation in solving business problems. Disadvantages: Might suppress individual creativity and initiative, an individuals rights may be restricted on the grounds that it runs counter to "the good of society" or to "the common good."

Milton Freidman stated in his famous article in the New York Times in 1970 that "the social responsibility of business is to increase profit." Do you agree or disagree? Explain your position.

I agree and disagree with this statement. I do agree that a business needs to increase profits as one of their primary objectives. However, I also believe that the consumer's needs should be taken into consideration. The purpose of a business is about providing goods or services to the people.

How would business practices in an Islamic country differ from business practices in a Christian country?

The differences between these two countries would be significant. In an Islamic country, their would be different roles for men and women. Mostly with men running everything. You also have to take into account things like holidays or proper etiquette to them. A Christian country would be more free in what roles people can play and more lenient on the etiquette. There is more free trade than an Islamic country where they may only sell to people who are from their same stewardship.

What are the implications for international business of differences in the dominant religion or ethical system of a country?

Differences in the dominant religion of a country affects relationships and attitudes towards business. First off, there needs to be an established cultural sensitivity as to not upset a countries relationship toward that firm.

Next, religious beliefs can greatly affect a country's relationship with a firm. For example, if a company is beating its competitor it's usually seen as an achievement in the US, but in a different country with a different religious background, this may be seen as showing a lack of compassion or disrupting the society.

The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms. Evaluate this statement.

I disagree with this statement because of the rate globalization is increasing with. In today's society, individuals in small firms need to be looking at the big picture and plan on going outside their boundaries. Also with the technological advancements we see today, it increases the opportunities to go multinational.

What is the relationship among property rights, corruption, and economic progress?

Property rights are the legal rights over the use to which a resource is put and over the use made of any income that may be derived from the resource. They way they relate with corruption comes in two forms: Private and Public action. Private action comes in the form of thievery or piracy, and public action comes in the form of legally; excessive taxation or illegally; bribery.

When these corruptions occur, it reduces foreign direct investment, the level of international trade, and the economic growth rate in a country. That's how economic progress relates.

Free market economics stimulate greater economic growth, whereas state-directed economies stifle growth. Explain.

First off, Free Market Economies are privately owned and production is determined by the interaction of supply and demand. State-directed Economies are not privately owned and are controlled by the government which plans the goods and services that are to be produced, the quantity, and the price. Going with the free market economy, private ownership also encourages vigorous competition and economic efficiency.

It also ensures that entrepreneurs have a right to the profits generated by their own efforts. This gives people an incentive to search for better ways of serving consumer needs. This constant improvement in product and process that results from such an incentive has been know to have a major positive impact on economic growth and development.

In a state-desired economy, there is very little incentive to control costs and be efficient because they cannot go out of business. Also, the abolition of private ownership means there is no incentive for individuals to look for better ways to serve consumer needs. Instead of growing, these markets tend to stagnate.

Briefly explain which of the four organizational structures is appropriate for each of the MNE strategic choices.

International division this is typically used when firms first expand abroad, often engaging in a home replication strategy. Geographic area structure organizes the MNE according to different geographic area so the localization strategy would be appropriate.

Global product division structure this structure supports the global standardization strategy by assigning global responsibilities to each product division.

Global matrix lightens the disadvantages associated with both geographic area and global product divisions structures which is why this structure supports the goals of the transnational strategy.

What are the two primary means to set up a WOS?

One way to set up a WOS is to establish greenfield operations. This means to build new factories and offices from scratch. The other way to establish a WOS is an acquisition. The advantage of this is it adds no new capacity and results in faster entry speed.

How does the carnage of the highway support a service industry?

Mediccal, police, administrative, legal, insurance, automotive repair, and funeral - stand equipped to handle the direct and indirect consequences of accident injuries.
Traffic accidents create economic demands for these services running into the billions

What are the two primary means to set up a WOS?

What is international business? What are the primary reasons that companies engage in international business?

Answer: International business is all commercial transactions—private and governmental—between two or more countries. Private businesses undertake such transactions for profit; governments may or may not do the same in their transactions. These transactions include sales, investments, and transportation.

Firms engage in international business for three main reasons.

1. To expand sales—The number of people and the amount of their purchasing power are higher for the world as a whole than for a single country, so companies may increase their sales by reaching international markets.

2. To acquire resources—Manufacturers and distributors seek out products, services, and components produced in foreign countries.

3. To minimize competitive risk—Many companies enter into international business for defensive reasons. They want to counter advantages competitors might gain in foreign markets that, in turn, could hurt them domestically.