Week 2: Module 2 Flashcards
What are the two definitions for International Business
- Firms engaging in international activities
- Activity of doing business abroad.
What is an MNE
Multinational Enterprise = company that invests in value-adding activities abroad (Foreign direct investments)
What are emerging markets
Markets that only recently adopted regulatory frameworks to facilitate international trade and that are growing faster than average.
What is GDP
Gross domestic product = the sum of all value added in a country by it’s residents, government and resident firms
What is GNP
GDP + non-resident earnings (people working overseas sending money back home) - money sent overseas by foreigners working in this country
What is purchasing power parity
This metric considers the exchange rates between different countries to adjust for the cost of living. This gives a better view for comparisons
What is the institution-based view on what determines the success of businesses?
From an institution-based view, success depends on formal and informal rules (laws vs culture)
What is the resource-based view on what determines success for businesses?
Success is based on internal resources and capabilities
What is liability of outsidership?
Inherent disadvantage in a market through lack of familiarity
What is Industry 4.0
Digital technologies disrupting supply chains and operations
What is globalization?
Process of creating increasing interdependence between financial, political and social units worldwide. This happens in waves (pendulum swings)
What is the Triad?
Triad is the strong trade network between North America, Europe and Japan.
What is risk management?
Identifying and assessing risks of bad events. This gained importance after financial crisis.
What is an ethnocentric perspective?
Perspective through our own culture. Different cultures may require different approaches.
What is the not-invented-here syndrome
Distrust in external solutions
Cosmopolitans
People who embrace globalization
How should global managers engage non-cosmopolitans
- Integration of global and local thinking
- Engage in discussions with people not in favour of globalization
What is an environment
Everything outside of the company that influences it. Environment is always changing and defines success for a company. Look out for gradual developments
Elements of the Macro-environment
- Technological changes
- Political changes
- Economic changes
- Ecological changes
- Societal changes
Elements of industry/task environment
- Customers
- Suppliers
- Competitors
- Government
- Social interest groups
Technological developments and how to deal with them
Digitalization and technological developments can change business models and processes.
Economic and political developments influencing business models and profitability
- Emerging markets are growing quickly
- Regulations and cross-border control
Politics and economics are often interrelated. Political uncertainty decreases international trade and investments.
Recent socio-cutural developments influencing business success
BLM and Me2. These developments influence thinking about corporate issues.
ecological developments influencing business success
Ecological environment is the natural context we exploit and in which we live
