Ch. 1 iPhone assembly in China

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Ch. 1 iPhone assembly in China 100% This activity is important because as a manager in an international company, you may be asked to identify the optimal production location for a product. To do th ... is, you will need to understand the advantages & disadvantages of a global production strategy & the challenges & opportunities associated with foreign production. The goal of this exercise is to demonstrate your understanding of globalization, the drivers of global production, & how the globalization process affects companies & their employees. Ch. 1 Click & Drag 100% 1.) Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries have established these institutions to address the global issues that span their borders. The functions of these organizations have been established in international treaties. International businesses need to be aware of the functions of these organizations as they can have a profound impact on trade & commerce. 2.) Since WWII, globalization has been driven by 2 major factors: the decline in barriers to the free flow of goods, services, & capital, & technological change. Business has fueled these trends & has been the beneficiary of these trends. 3.) Some fairly dramatic changes have taken place in the demographics of the global economy over the past three decades. Several factors have played a significant part in shaping this change. 4.) Many influential economists, politicians, & business leaders think that a shift toward a more integrated & interdependent global economy is a good things. There is evidence to support Producers Who/What is The Environment Consumers Workers More markets to sell in (a global market provides more opportunities to sell products) Arguments for Tougher laws lead to lower pollution rates (when countries gain more wealth they are more likely to enact stricter laws for pollution control) More products to choose from (Companies are able to ship their products anywhere in the world which means there are more products to choose from) Development of better skills (Employees have access to better training & skill development which might result in higher wages) Can go bankrupt due to competition (Companies that enter the foreign market possibly face greater competition) Lack of adequate regulations causes abuse (Advanced nations manufacturing facilities to less developed countries where regulations are not in place) Don’t know how products are made (There are no global standardization regulations & products made in another country may not be adequately or safely made) Loss of jobs due to competition (When entering the global market, competitive forces may equate to a loss of jobs) Quiz 1 100% 1.) As a result of globalization, we have been moving toward a world in which 2.) Which of the following best exemplifies the globalization of markets? 3.) Seeking to lower overall costs, a South Korean car manufacturer sources many of the parts for its cars from other Asian countries. This practice demonstrates the 4.) Why was the World Trade Organization established? 5.) Canadian company Yummy Snacks exports a number of products to consumers in Peru, Chile, and Argentina. According to this information, Yummy Snacks is most likely involved in 6.) Office Plus, a U.S.-based company, has invested resources in business activities in New Zealand. This is an example of 7.) Which of the following is most likely to be the reason behind the decline in the U.S. share of world output in 2014? 8.) What was the motivation for non-U.S. firms to begin investing across national borders in the 1970s? 9.) Green Cleaners Inc., a U.S.-based company that specializes in environmentally-friendly cleaning supplies, has production facilities in Poland and Spain. Based on this information, Green Cleaners can be classified as what type of enterprise? 10.) According to globalization opponents, which of the following is a disadvantage of globalization? Ch. 2 Bribing Public Officials 100% This activity is important because as a manager, you must be able to understand & function in countries with different legal systems. Practices that are considered illegal in some countries may be perfectly legal & even a normal part of doing business in others. As a manger, you must be able to identify how to best navigate these differences. The goal of this exercise is to demonstrate your understanding of the challenges associated with differing legal systems & how those differences impact business practices in the country & the attractiveness of the country as a market or a destination for investment. Property Rights & Corruption 100% When looking at a country as a market or investment, the international business must consider the country’s legal system. In that assessment, the firm needs to understand the differences Private Action Ch. 2 Quiz 100% 1.) An individual’s right to do something may be restricted on the grounds that it runs counter to “the good of society” when the political system emphasizes 2.) Those who believe socialism can be achieved only through revolution and totalitarian dictatorship are called 3.) Which of the following is true about individualism? 4.) A form of government in which political power is monopolized by a party, group, or individual that governs according to religious principles is called what type of totalitarianism? 5.) Which of the following is true of countries with a market economy? 6.) In Nerumbia, all businesses are owned by the state. The Nerumbian government plans production, fixes commodity price, and also gives directions on investments to ensure they benefit the nation as a whole and not only a few individuals. What type of economy has Nerumbia adopted? 7.) In a pure command economy, the prices at which goods and services are sold are planned by the: 8.) Vintage incorporated is going to do business with a company that is located in Pabul Republic, a common law country. The companies have agreed to draft the business contract in the Pabul Republic. Since the contract will be drafted under a common law framework, which of the following best characterizes the contract? 9.) The United Nations Convention on Contracts for the International Sales of Goods (CIGS) was introduced to 10.) ABC Medical Corporation has developed a new medication to treat a rare disease. Which type of legal protection grants ABC medical corporation exclusive rights for a defined period to the manufacture, use or sale of the new medication? This brief video examines Japan’s meteoric rise as an economic powerhouse, which at one point was second to the United States. After experiencing this phenomenal growth, Japan’s economy eventually collapsed because of the stock market downturn, which subsequently led to a series of economic chain reactions from which Japan has yet to recover. The shift toward a market-based economy leads to economic growth & progress, but also leads economies to face greater risks. It entails a number of steps including privatization, deregulation, & creation of a legal system to safeguard property rights. Video 1.) Japan & other market-based economies enjoy economic growth, but also face greater risks due to 2.) In 1989 Japan was an economic superpower, it was the second-largest economy. 3.) As economies move toward greater privatization, there is a greater likelihood of facing the phenomenon that Japan faced due to the stock market collapse. Privatization transfer assets from state to private owners. 4.) Deflation occurs when consumers expect prices to be lower tomorrow than today. 5.) The Japanese government has tried to stimulate the economy by cutting interest rates to zero. 6.) The major cause/causes of the economic problems that Japan faces is/are the low birthrate and more retired people. Ch. 3 Click & Drag 100% The Changing World The modern business environment has been shaped by political & economic events. Rapid growth & change in many areas have been typical in the past two or three decades. In the midst of growth & change, some trends have emerged as the drivers of change. Political & economic trends have different dynamics. The international business manager needs a clear vision & understanding of world events & the markets & countries in which he or she operates. Putting current events into the historical context provides the manager with ability to distinguish anomalies from trend events. The same vision & understanding offer the manager insights into timing & opportunity. The transformation of the political economy of the world’s nations has been driven by a wave of democratic revolutions & the strong move toward a more free market economic mode. International business managers must assess the attractiveness of specific locations. Countries have democratic regimes, market-based economic policies, & strong protection of property rights are more likely to attain a high & sustained growth rate. These countries are attractive locations for international business. Spread of market-based systems (States choose their levels of partcipation in the economic system. The number of centralled planned New world order (The end of the Vold War economies--centralled planne dby the state--is ushered in a "new world order") declining. Privatization (Privatization is a way to stimulate growth & efficiency by offering private investors the incentive of profits. Privazation can mean increases in productivity, entering new markets, & leaving losing ones. Spread of democracy (Sub-Saharan Africa was the poorest region in the world for decades but democratic reform has allowed it to revel in an Deregulation (markets move more freely & annual growth rate of 5% over the past decade) private enterprise grows in a supportive enviroment) Evaluating Country Attractiveness Managers in international businesses will need to evaluate the attractiveness of a country as a market or location for a facility or investment. Knowing how to think about events & situations will help the manager make the evaluation. Countries with democratic regimes, market-based economic policies, & strong protection of property rights are more likely to attain high & sustained economic growth rates, & are thus a more attractive location for international business. The benefits, costs, & risks are associated with the political, economic, & legal systems of the country. The overall attractiveness of a country depends on balancing the benefits, costs, & risks. First-mover advantages (You see an opportunity to establish a strong market presence before your competitors, & you will be able to set product standards) Middle-class population growth potential (You are looking at a country's population growth. You are concerned not only about the total population, but also about the growth of the middle class & its consumers.) Free market economy (Property tights seem to be well protected as part of a total system that shows few signs of state control of key sectors) Bribe Payments (Political entities in the government expect to receive what may be considered bribes, in order to be able to get the necessary business licenses & permits.) Infrastructure issues (Distribution systems are not well developed, & youmay have to create your own. While this could create a competitive advantage, it is expensive to set up.) Resolving contract disputes (The laws on business practices are evolving, but you see potential problems in ensuring contract disputes are resolved fairly.) Unexpected political change (The current leader of the country has been in power for decades, but his health is failing. Social unrest may affect the leadership transition, & there are several opposition groups.) Economic uncertainty (Social unrest has been triggered by rising prices for food & essentuiials. The government, which already has a large debt burden, may need to borrow more.) States in Transition The geopolitics of the world have—in general—been good for international business since the late 1980’s. The world, however, is dynamic. Despite the general trends, terrorism & other changes make it imperative that international business managers understand the risks & realities in any market, nation, or region he or she is considering as an investment or market. The international business manager must understand what is driving unrest, change, transition, & risk. Why change is taking place is as important as where it is taking place. The political economy of many of the world’s nation states has changed dramatically over the past quarter century. Two major trends have been the wave of democratically elected governments & the strong move away from centrally planned & mixed economies to a more free market economic model. Totalitarianism failure (Brutal regimes have found citizens protesting, Fukuyama (a noted author suggests rebelling, & at times removed the the war of ideas may be at an end, & leaders of the country.) liberal democracy will be the way of the future. It is a vision of a harmonious world.) New information technologies (Citizens no longer rely on the state for news & messages. They are finding ways to communicate with each other directly.) Huntington (A noted author Emergence of middle & working envisioned a world split into different civilizations with different value classes (Once citizens experience new systems & ideologies. This vision freedoms that come with increasing suggests a world hazarfous to prosperity & dispassioante business w/ global terrorism.) enforcement of contracts, they push for democratic reform. Dereuglation (Price controls are repalced by supply & demand. Restrictions on private enterprise are removed, & restrictions on foreign investment & trade are eased.) Privatization (The economy & former statemonopolies must be opened to competition. Governance must also change from state to private owners & managers.) Legal system proercting property rights (Private property rights must be protected, & an enforcement mechanism put into place. Commercial codes must be improved, & courts must be made effective.) Ch. 3 Quiz 1.) Which of the following statements is true of the gross national income (GNI)? 2.) Which of the following is a measure of economic development that allows for a direct comparison of living standards in different countries? 3.) The present base for the adjustment of purchasing power parity is the cost of living in 4.) Which index was developed by the United Nations to measure the quality of human life in different nations? 5.) Which of the following is one of the three measure used to determine the Human Development index (HDI) of a country? 6.) Rajiv purchased an invention from a group of researchers & was the first to commercialize the innovative new product. According to the information, 7.) The spread of democracy among countries is most likely to lead to 8.) The Surbeel Republic exercises tight control over prices & output, prohibits private enterprises from operating in most sectors of the economy, & severalty restricts foreign direct investment & international trade. Based on this information, the Surbeel republic is likely against 9.) The government of Kimmurak is selling state-owned assets such as TeleKimmurak, a state-owned telecommunications enterprise, to private investors. This is an example of 10.) ABC Company is hesitant about entering Ukraine, because the country has been experiencing social unrest in recent years. Based on this information, what type if risk is ABC Company trying to avoid? [Show More]

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