MNB3701 LATEST SUMMARY

MNB3701 LATEST SUMMARY Chapter 1: Globalisation and international business: 1.1 Explain what is globalisation? Globalisation is a process leading to greater interdependence and mutual awareness among economic political and social units in the world, and among actors in general. 1.2 Explain implications of the globalisation for business? • Think global • Think local • Integrate your global and local knowledge • Communicate effectively with those who are not in the global jet set Ethnocentric perspective= World through the lens of one's own culture. Not invented here syndrome= the tendency to distrust new ideas coming from outside of one's own organisation or community. 1.3 Identify one fundamental question and two core perspectives that provide a framework for studying the global business field. Fundamental question= what determines the success and failure of firms around the globe? Institution based view= formal and informal rules of the game. Institution based to view suggests that success and failure of firms are enabled and constrained by the different rules of the game. Some formal rules of the game, such as the requirements to treat a domestic and foreign firms as equals, would enhance the potential odds for foreign firms success. Informal rules such as culture, norms and value