E1 - Chapter 1

Question 0

Five forms of trading arrangements in the global business environment

Answer 0

Free trade area
Customs union
Common market
Economic union
Political union

Question 1

What does Bric stand for

Answer 1

Brazil
Russia
India
China

Question 2

Characteristics of emerging economies (6)

Answer 2

Large rapid growth
Huge population
Large rural area
Farming to city work
Building large cities
FDI

Question 3

Advantages of free trade (5)

Answer 3

Society richer
Competitive advantage
Reduce conflict
Entrepreneurship
Higher standards

Question 4

Criticism of free trade (5)

Answer 4

Locked into specific product
Undermines national culture
Jobs are exported
National security
Carbon footprint

Question 5

Alternatives to free trade (2)

Answer 5

Balanced trade

Protectionism

Question 6

Evolution of trade (4)

Answer 6

Mercantilism
Absolute advantage
Comparative advantage
Competitive advantage

Question 7

Use of porters diamond and the four corners

Answer 7

Where should an organisation locate to gain a competitive advantage
FSSR (firm, strategy, structure, rivalry)
Factor condition
Demand conditions
Related and supporting industries

Question 8

What are the major developments that have led to globalisation (6)

Answer 8

Reduce trade barriers
Internet
Financial services
Cheaper labour
Production efficiencies
Transportation

Question 9

What are the two types of FDI

Answer 9

Brown field

Green field

Question 10

How have emerging economies benefited from FDI

Answer 10

Economic growth
Developing infrastructure
Learning
Employment

Question 11

Purpose of Hofstede model and the five dimensions of culture

Answer 11

Used when learning about the culture of different countries
Power distance
Uncertainty avoidance
Individualism and collectivism
Masculinity and femininity
Time orientation

Question 12

Purpose of COX model and the three types of competences

Answer 12

Used to see if a company should outsource
Core - never outsource
Complementary - should
Residual - should

Question 13

Purpose of Quinn and Hilmer model and the three tests

Answer 13

To decide whether non core activities should be outsourced
Competitive advantage
Vulnerability
Reduce risk with structured arrangements

Question 14

Benefits and drawbacks of Outsourcing (3)

Answer 14

Benefits - specialist skills, cheaper, relive burden

Drawback - diffulcty of managing, rigidity, hard to revert