intro Flashcards
(221 cards)
what are the types of business activities
- Innovation
2.Operation
3.Marketing
4.Finance and Accounting
5.Human resource management
what are 2 levels of approach organisation’s structure and sub-systems
- Systems Approach
2.Contingency approach
What is the focus of Systems Approach
It focuses on organisation’s internal aspects, neglecting varying backgrounds.
What is the focus of Contingency approach
It focuses on organisation’s adaptation to its external environment, emphasising the impact of environmental changes on design and management style.
What are cross-boarder economic activities
Various types of economic interactions and transactions that take place between individuals, businesses, and governments across different countries. These activities involve the movement of goods, services, capital, and resources across national borders.
What is foreign direct investment and how is it connected to cross-boarder economic activities
Foreign Direct Investment (FDI) is when a company from one country makes lasting investment in a business in another country. It’s a deeper involvement than just buying and selling across borders. Cross-border economic activities can involve various transactions between countries, but they might not include this level of long-term ownership and influence. FDI is like a more serious and committed form of cross-border business engagement.
What are the 4 levels in which types of business activity are shaped in context which they operate
1.Strategical level
2.Organisational level
3.Environmental level
4.Business in context level
what are MNEs
MNEs = multinational enterprises. These are firms engaging in foreign direct investment
what are emerging economies
Countries that are in the process of becoming more advanced economically. These nations are moving from being less developed to more developed, experiencing growth and improvements
what are BRIC countries
These are Brazil, Russia, India and China - 4 largest emerging markets, housing over 80% of the world’s population but contributing only 26% to global GDP.
what is GDP
Gross Domestic product - sum of value added by resident firms operating in economy
what is GNP
Gross national product = GDP + income from non-resident sources abroad
what is GNI
Gross national income, conceptually similar to GNP
what is PPP
Purchasing Power parity - equal amount of goods and services different currencies can purchase.
what are two views that determine success and failure of firms around the world?
- Intsitution-based view
2.Resource-based view
what is institution-based view about
It is about how a firm’s international performance is shaped by various formal and informal rules (culture,norms,values) across countries, emphasising the external environment of the firm.
what is resource-based view about
It is about its unique internal resources and capabilities, concentration on the internal environment.
what does liability of outsidership mean
It is disadvantage of outsiders (foreign companies) over insiders (domestic companies), caused by lack of familiarity.
Why Globalisation is causing fear of developing countries?
It causes fear due to competition and potential cultural erosion by MNEs,issues like job losses, wage pressure, environmental concerns
Who are cosmopolitans
people who embrace cultural diversity and see professional and personal opportunities of globalisation
what are institutions
Formal and informal rules of the game
what are Institutional Frameworks
formal and informal institutions (rules) guiding individual and form behaviour.
what are some types of formal institutions
Laws, regulations
what are informal institutions
rules which are not formalised but do exist, like norms and values