BUSI 311 QUESTIONS AND ANSWERS EXAM LATEST
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global business
Defined in both parts of International Business: Its cross border activies & domestic
business activities
Institution Based View (the strategy tripod)
focusing on the environment, informal and formal aspects of industry
Resource Based View (the strategy tripod)
focuses on the internal factors: things we already have and how can a business use this
to get ahead
Industry Based View (the strategy tripod)
focuses on competitive forces affecting an industry: external opportunities & threats
Unified Framework for Global Business
Institution and resource-based view helping us answer the fundamental question: what
determines the success/failure of firms around the globe.
Multinational Enterprise (MNE)
a firm that engages in foreign direct investment *** not the exchange or trading of
supplies (example: opening your own manufacturing plant elsewhere in a foreign
country)
Foreign Direct Investment (FDI)
Investment in, controlling, and managing value-added activities in other countries
Gross Domestic Product (GDP)
adding consumption, investments, government spending, exports - imports
Purchasing Power Parity (PPP)
A conversion that determines the equivalent amount of goods and services that different
currencies can purchase
Base of the pyramid
Economies where people make less than $2000 a year per capita
Deglobalization
The process of weakening economic interdependence among countries
Emerging Economy
a term that has gradually replaced the term "developing country" since the 1990s
Expatriate Manager
a manager who works in a country other than his or her home country
Global Mindset
ability to "connect the dots" globally
International Premium
A significant pay raise when working overseas.
Liability of Foreigness
The inherent disadvantage that foreign firms experience in host countries because of
their non-native status.
Triple Bottom Line
A business strategy that includes social, economic, and environmental criteria - that
satisfies the demands of all stakeholders groups
, Institutional transitions
Fundamental and comprehensive changes introduced to the formal and informal rules
of the game that affect firms as players.
The Institution Based View
suggests that the success and failure of firms are enabled and constrained by
institutions (example: the school, marriages, public school system, health care systems)
Formal Institutions
Laws, regulations, and rules REGULATORY
Informal Institutions
norms, cultures, ethics NORMATIVE & COGNITIVE
Totalitarianism
A form of government in which the ruler is an absolute dictator (not restricted by a
constitution or laws or opposition etc.) Closed autocracy & elected autocracy
Authoritarianism
A political system in which a small group of individuals exercises power over the state
without being constitutionally responsible to the public. Elected democracy & liberal
democracy
Ecocentrism - Informal Institutions
A self centred mentality by a group of people
Cultural relativism - Informal Institutions
Extremists Believe there is no right or wrong
Theocentrism - Informal Institutions
there is an objective right/wrong
Culture Components - Informal Institutions
1. Language - Lingiu Franca 2. Religion 3. Social Structure
Cultural Intelligence
the ability to understand and respond appropriately to different cultural contexts and
situations
The 3 Facets to Cultural Intellegence
1. Awareness 2. Knowledge 3. Skills
Cultural Differences
1. Context 2. Cluster 3. Dimension Approaches
Ethics
A system of moral principles, standards and norms of conduct that govern individual
firm behaviour
Shifting Ethics?
When confronting ethical challenges, five broad strategic responses:
1. Reactive; Obstructive
2. Defensive;
3. Accommodative;
4. Proactive;
5. Market (What will make us the most money).
Context Approach
High Context- Focuses on more than just the words
Low Context- Focuses on what is being said word for word: FACE VALUE
UPDATE.Buy Quality Materials!
global business
Defined in both parts of International Business: Its cross border activies & domestic
business activities
Institution Based View (the strategy tripod)
focusing on the environment, informal and formal aspects of industry
Resource Based View (the strategy tripod)
focuses on the internal factors: things we already have and how can a business use this
to get ahead
Industry Based View (the strategy tripod)
focuses on competitive forces affecting an industry: external opportunities & threats
Unified Framework for Global Business
Institution and resource-based view helping us answer the fundamental question: what
determines the success/failure of firms around the globe.
Multinational Enterprise (MNE)
a firm that engages in foreign direct investment *** not the exchange or trading of
supplies (example: opening your own manufacturing plant elsewhere in a foreign
country)
Foreign Direct Investment (FDI)
Investment in, controlling, and managing value-added activities in other countries
Gross Domestic Product (GDP)
adding consumption, investments, government spending, exports - imports
Purchasing Power Parity (PPP)
A conversion that determines the equivalent amount of goods and services that different
currencies can purchase
Base of the pyramid
Economies where people make less than $2000 a year per capita
Deglobalization
The process of weakening economic interdependence among countries
Emerging Economy
a term that has gradually replaced the term "developing country" since the 1990s
Expatriate Manager
a manager who works in a country other than his or her home country
Global Mindset
ability to "connect the dots" globally
International Premium
A significant pay raise when working overseas.
Liability of Foreigness
The inherent disadvantage that foreign firms experience in host countries because of
their non-native status.
Triple Bottom Line
A business strategy that includes social, economic, and environmental criteria - that
satisfies the demands of all stakeholders groups
, Institutional transitions
Fundamental and comprehensive changes introduced to the formal and informal rules
of the game that affect firms as players.
The Institution Based View
suggests that the success and failure of firms are enabled and constrained by
institutions (example: the school, marriages, public school system, health care systems)
Formal Institutions
Laws, regulations, and rules REGULATORY
Informal Institutions
norms, cultures, ethics NORMATIVE & COGNITIVE
Totalitarianism
A form of government in which the ruler is an absolute dictator (not restricted by a
constitution or laws or opposition etc.) Closed autocracy & elected autocracy
Authoritarianism
A political system in which a small group of individuals exercises power over the state
without being constitutionally responsible to the public. Elected democracy & liberal
democracy
Ecocentrism - Informal Institutions
A self centred mentality by a group of people
Cultural relativism - Informal Institutions
Extremists Believe there is no right or wrong
Theocentrism - Informal Institutions
there is an objective right/wrong
Culture Components - Informal Institutions
1. Language - Lingiu Franca 2. Religion 3. Social Structure
Cultural Intelligence
the ability to understand and respond appropriately to different cultural contexts and
situations
The 3 Facets to Cultural Intellegence
1. Awareness 2. Knowledge 3. Skills
Cultural Differences
1. Context 2. Cluster 3. Dimension Approaches
Ethics
A system of moral principles, standards and norms of conduct that govern individual
firm behaviour
Shifting Ethics?
When confronting ethical challenges, five broad strategic responses:
1. Reactive; Obstructive
2. Defensive;
3. Accommodative;
4. Proactive;
5. Market (What will make us the most money).
Context Approach
High Context- Focuses on more than just the words
Low Context- Focuses on what is being said word for word: FACE VALUE
