Final: chapter 15, 16 + ADDITIONAL STUFF Flashcards

1
Q

PROPERTIES OF MARKET ECONOMY?

A
  • all productive activities are privately owned
    -supply and demand determines price and production
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2
Q

command economy?

A

gov controls allocation of resources and prices

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3
Q

WHAT IS:

Deregulation

Privatization

Legal systems

A

Deregulation:
removing legal restrictions to free up the markets and help with establishing private firms.

Privatization;
Tranfsers of ownerships of state property INTO private hands

Legal systems:
the way we protect property rights be it state or privately owned.

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4
Q

IMFB: What is the “ATTRACTIVENESS” benefits of doing business in a country LONG TERM (3)

A

-size of the market
- present wealth (ppp) of the consumers in that market
- likely future wealth of the consumers

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5
Q

IMFB: Economic risk vs Political Risk

A

Ecnomic: likelihood of economic travesty within that business environment of that country

Political: Likelihood that political forces will cause some fuckshit with your business in that country like war or something

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6
Q

IMFB: How do you determine the overall attractiveness of a country as a potential market (what factors?)

A

balancing: Costs, risks, and benefits associated with doing business with that country

This includes all spheres evaluated like political or economic:

you dont wanna be doing business with chinese sweatshops if your firms policy is sustainability and american patriotism

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7
Q

Name one ethical dilemma in doing international business

Should international firms adhere to the same policies as home country or host country?

A

certain countries do fucked up shit like slave labour

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8
Q

*WHAT ARE THE 6 DETERMINANTS OF CULTURE (SLEd PEcR)

A

-social structure
-language
-education

political
economic
religion

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9
Q

*WHAT ARE THE 4 DETERMINANTS OF PORTER’S DIAMOND (COMPETATIVE ADVANTAGE)

A

porters diamond explains why some countries are better making and selling products than others (competative advantage)

  1. Factor Endowments
    • When a country has a lot of skilled people to make stuff
  2. Firm Strategy, Structure and rivalry
    • when companies have a rivalry, their forced to out innovate each other and create the best products
  3. Related and Supporting Industries
    • strong network of supporting industries = better efficiency
  4. demand conditions
    greater demand conditions= greater incentive for output
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10
Q

*Instruments of Trade Policy (9)
AdVIL TAnS

A
  • AdMINISTRATIVE POLICIES

-VOLUNTARY EXPORT RESTRAINTS

  • IMPORT QUOTAS

-LOCAL CONTENT REQUIREMENTS

-TARRIFS

-AnTI DUMPING POLICIES

-SUBSIDIES

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11
Q

what are the effects government intervention in trade?

A

TRADE BARRIERS AND FIRM STRATEGY;
- raise costs of exporting products to a country
- VERs limit ability to serve countries
- local content requirements suck
- subsidy requirements

POLICY IMPLICATIONS:
- Internations lobby for free trade
- government protection beckfire
-production activties in optimal locations

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12
Q

What are the 5 Determinants of Ethical Behaviour? (DOLUP)

A
  • Decision Making Process
  • Organization Culture
  • Leadership

-Unrealistic performance Goals

  • Personal Ethics
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13
Q

what 5 factors should be evaluated when deciding a market to enter

A
  • International marketing objectives and policies
  • goal volume of foreign sales
  • how many countries/ markets to enter

-types of countries

evaluate each market

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14
Q

VERTICAL vs HORIZONTAL FDI

A

VERTICAL: business acquires a complementary business in another country
EX: APPLE; designed in California, manufactured in China, Batteries from Africa

HORIZONTAL:
establishing the same exact type of business and operations in another country:
EXAMPLE: McDonalds

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15
Q

Enterprise Valuation pyramid (top to bottom)

A

Enterprise Value
- Profitability
►reduce costs
► add value and raise prices

  • Profit Growth
    ►see more in existing markets
    ►enter new markets
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16
Q

4 Ps of marketing: Product integration (4)

A
  • Product Core
  • product Adoption
  • Product management
  • Product Branding
17
Q

4 Ps of marketing: Place integration (Distribution strategy) (3)

A
  • Distribution channels
  • Wholesale
  • Retail
18
Q

4 Ps of marketing: Promotion integration (communication strategy) (5)

A
  • Advertising
    -Publicity
    -Mass media
    -Social media
    _sales Promotion
19
Q

4 Ps of marketing: Price integration (Pricing strategy) (4)

A
  • value
    -demand
    -costs
    -retail price
20
Q

How can one increase reliability in global production and supply chain management?

A

By
Lowering cost of VALUE CREATION

Reducing PRODUCTION AND AFTER SALE SERVICE COSTS

21
Q

What 3 factors should be evaulated when deciding WHERE TO PRODUCE

A

COUNTRY factors
TECHNOLOGICAL factors
PRODUCTION factors

22
Q

what are the HIDDEN COSTS of FOREIGN LOCATION PRODUCTION (4)

A
  • high employee turnover

-shitty craftsmanship

-shitty quality

-shit productivity

23
Q

Describe some of the “Country Factors” in the production discussion

Are they concentrated production favoured or decentralized production favoured?

A
  • differences in political economy

-differences in culture

-differences in factor costs

-trade barriers

-location externalities

-exchange rates

24
Q

Describe some of the “Technological Factors” in the production discussion

how are they concentrated production favoured or decentralized production favoured?

A

-Fixed costs

-minimum efficient scale

-flexible manufacturing technology

25
Q

Describe some of the “Production Factors” in the production discussion

Are they concentrated production favoured or decentralized production favoured?

A
  • Value to weight ratio
  • serves universal needs or not
26
Q

What is the difference between Concentrated Production and Decentralized Production?

A

Concentrated: Centralizing production/manufacturing to a single or few large locations

Decentralized:
dispersing manufacturing across several locations

27
Q

What is kind of work relationship is a good hack for profitability lowkey according to science?

What 4 thingdems revolve around “PEOPLE”

A

good HR practices and Good strategy = higher profits

PEOPLE
► Incentives and Controls

► Structure

► Processes

►Culture

28
Q

What are the 3 types of staffing policies

What do they entail

what type of strategy is best to employ these tactics with?

A

Ethnocentric
Home Staff in Host country
→ International

Geocentric
Hire based on qualifications, not location
→ global standardization & Transnational

Polycentric
Hire locally
→ Localization

29
Q

ADVANTAGES/DISAVADVANTAGES: ethnocentric staffing

A

ADVANTAGES:
►qualified managers in host nation
►unifies culture

DISADVANTAGES:
►cultural myopia
► resentment in host country

30
Q

ADVANTAGES/DISAVADVANTAGES: Polycentric Staffing

A

ADVANTAGES:
►no myopia
►inexpensive

DISADVANTAGES:
►limits career mobility
►isolates HQ from foreign subsidiaries

31
Q

ADVANTAGES/DISAVADVANTAGES:
Geocentric Staffing

A

ADVANTAGES:
►uses HR efficiently
►build strong culture and informal management

DISADVANTAGES:
►National immigration policies may limit implementation
► Expensive