INTERNATIONAL BUSINESS BLOCK 2

Question 1

Internationalization-

Answer 1

process by which a company enters foreign market resource constraints see firms often start small and locally, then grow nationally then go to an international scale.

Question 2

Micro Political risk:

Answer 2

actions in a host country that can adversely affect selected foreign operations of a company that does business internationally. Eg: kidnapping, regulations of the industry, threats from terrorists, and taxes

Question 3

Macro political Risk:

Answer 3

a type of political risk that can impact all businesses operating within a country e.g.: changes in monetary policy, shifts in the regulatory or tax regime, and political or civil unrest.

Question 4

How to block trade flows

Answer 4

• Tarrif taxes on products
  non-tariifs eg quotas.technical barriers
• limits to FDI
• Regulations EU-US open skies agreement

Question 5

What are the types of political risk

Answer 5

• legal: tarrifs,regulation,nationalization
• non-legal risks
• corruption

Question 6

What is the current rate of inflation OCT 2023?

Answer 6

5.25%

Question 7

What are the four types of entrepenurs? according to Chell et al

Answer 7

1) Opportunist entrepreneur
2) Realist entrepreneur
3) Administrator
4) Caretaker