chapter 1

Question 1

what does international management involve?

Answer 1

international management involves:
-applying management concepts and techniques in a multinational environment
&
-adapting management practices to different economic, political, and cultural contexts

Question 2

what are the features of a multinational corporation?

Answer 2

a multinational corporation has:
- operations in more than one country

• international sales
• mixed nationalities between managers and owners

Question 3

list and explain the key players in international business

Answer 3

1. MNCs: a business that has direct investments abroad in multiple countries
2. Small business and Entrepreneurs: small companies and individuals becoming increasingly active in international trade and investment
3. Born Global Firms: firm adopts a global perspective and engages in international business from or near its inception ex. amazon, ebay, ppl could buy things anywhere from the world (minimal restrictions in going global)

Question 4

what is globalization

Answer 4

globalization is the political, economic, social, cultural, and technological integration among countries around the world

Question 5

what hastens globalization? List and define.

Answer 5

globalization is hastened by offshoring and outsourcing:

• offshoring: process by which companies undertake some activities at offshore locations instead of in their countries or origin
• outsourcing: subcontracting or contracting out of activities to external locations instead of their countries of origin

Question 6

what are the 2 main drivers of globalization?

Answer 6

fallen barriers of trade and technology

Question 7

What are the types of globalization? list and define

Answer 7

• globalization of markets: convergence in buyer preferences in markets around the world
• globalization of production: dispersal of production activities worldwide to minimize costs or maximize quality

Question 8

pros of globalization?

Answer 8

wealth, jobs, technology, lower prices, and availability of goods

Question 9

cons of globalization?

Answer 9

offshoring of business service jobs to lower-wage countries, growing trade deficits, slow wage growth, and environmental/social impacts

Question 10

Global and economic integration levels

Answer 10

free trade area -> customs union -> common market -> economic union -> political union

Question 11

what are one of the trade patterns of nations?

Answer 11

high income nations tend to trade within themselves, but have a slight change where high nations are starting to trade with lower income nations

Question 12

What is a foreign direct investment (FDI)

Answer 12

investment in property, plant, or equipment in another country