3.9.3 Assessing internationalism

Question 1

What is internationalism?

Answer 1

Business operating on an international scale

Question 2

What are the 5 biggest uk exports?

Answer 2

1. Machines
2. Gems

3.Vehicles

4 Pharmesuticles

5 Oil

Question 3

Reasons for international trades expansion

Answer 3

1. More efficient transport of goods
2. larger global population
3. Better global economy

Question 4

What is a trading block

Answer 4

An agreement with a group of countries that promote free trade between members

Question 5

Benefits of a trading block

Answer 5

Free trade
Protects them,
good relationships between countries

Question 6

Limitations of trading blocs

Answer 6

doesnt benefit all countries equaly

Question 7

What is protectionism

Answer 7

countries looking to protect their own countries business,
with tariffs, quotas, embargos (Banning trade with a country)

Question 8

What are the methods of entering international markets

Answer 8

Direct investment - investing abroad
Alliance - partnering with a foreign business
Licensing - giving rights to sell
Exporting - producing domestically to sell abroad

Glocalisation

Question 9

Benefits of acting in many countries

Answer 9

Higher sales (your increasing the amount of possible people who can buy your product likely increasing the amount of sales)

Question 10

The drawback of acting in many countries

Answer 10

could mean high tariffs in certain places
you could spread your operation too thin and go out of business
finance

Question 11

What is an MNC

Answer 11

MULTI NATIONAL CORPORATIONS
A business in several countries (Multinational operations)

Question 12

benefits of a MNC

Answer 12

lower cost of production
access to more sales as there are more people
boost domestic economy
provide jobs for locals

Question 13

drawback of MNC

Answer 13

difficult to manage
may have to change the product (mc Donald’s maharajah mac rather than the big mac)

send profits back to home country’s
often pay low wages

Question 14

impacts MNC have on the local community and economy

Answer 14

job creation
working condition
bring in foreign currency
better pay

Question 15

factors to consider when assessing a countries market

Answer 15

size of gdp and gdp growth
disposable income
competitive rivalry
infrastructure
political stability
ease of doing buissness

Question 16

factors to consider when assessing a country as a production location

Answer 16

infrastructure
minimum wage
government incentives
import tax
national resources
strength of currency
economic conditions
cost to rent

Question 17

pressures of operating internationally

Answer 17

spread to thin
hard to manage all locations
growth
pressure to lower costs

Question 18

what is the difference between ofshoring and reshoring

Answer 18

off shoring - moving jobs to other countries
reshoring - going back to your origin country

Question 19

benefits of off shoring

Answer 19

cheepe tax
lower minimum wage to cut costs

Question 20

drawbacks of offshoring

Answer 20

lack of flexibility
could mean your spread to thin

investment required
have to learn new market (time)

Question 21

reshoring advantages

Answer 21

you know the market
could have benefits

Question 22

disadvantages of re shoring

Answer 22

adapt to domestic laws
cost of moving back
changes in market

Question 23

what is the Bartlett and Ghoshal matrix

Answer 23

how to manage an international buissness and the pressure of having one

Question 24

what are the stages of the bartlett and ghoshal matrix

Answer 24

1. Global strategies
2. Transitional strategies
3. International strategies
4. multi domestic strategies

Question 25

What is the definition of glocalisation

Answer 25

adapting your product to meet different cultural differences

Question 26

benefits of glocalisation

Answer 26

respect culture
good PR
locals feel understood and needs met

Question 27

drawbacks of glocalisation

Answer 27

you have to adapt your product everywhere which can be expensive and time consuming
new location may want the og product

Question 28

factors to consider when operating internationally

Answer 28

how much money they have
if they can increase production
amount of staff needed

minimum wage
tax
domestic laws

Question 29

(Operating internationally) what are the impact on functional areas

Answer 29

marketing - cultural differences
finance - currencies
operations - transport + distribution
human resources - recruitment/ firing