Basic Concepts Flashcards
1
Q
International Business
A
- An internationalised firm engages in international trade or investment
- IB is concerned with transactions of all kinds across national boundaries to satisfy the objectives of individuals and organisations
2
Q
Why do firm’s seek to internationalise?
A
- Growth through market diversification
- Higher profits and margins
- Gain new ideas on products/services etc
- Better serve customers
- Be closer to supplier
- Develop EOS
- Confront international competitors
3
Q
Business environment
A
- Cultural environment
- Social environment
- Political environment
- Legal environment
- Technological and innovation
- Financial
4
Q
IB and risks
A
- Cross cultural risk
- Country risk
- Commercial risk
- Currency risk
5
Q
Globalisation
A
Referes to the shift towards a more integrated and interdependent world economy
6
Q
Institutional perspective
A
- Formal and informal rules of the game
- Doing business around the globe requires intimate knowledge about formal and informal rules of doing business
- Formal rules are requirements to treat domestic and foreign firms as the same
- Informal rules are culture, norms and values
7
Q
Resource based view
A
- Insituation based view which views performance as determined only by external environments has its limitations
- Resource based view focuses on firms internal resources and capabilities
- Liability of foreigness infers the more a firm’s origin shifts from the host environment, the less the firm has experience in the host country
