BUSI 311 QUESTIONS AND ANSWERS EXAM LATEST
UPDATE.Buy Quality Materials!
Transaction Cost
the cost associated with economic transactions or, more broadly, the costs of doing
business
Corporate Social Responsibility
Approach that an organization takes in balancing its responsibilities toward different
stakeholders when making legal, economic, ethical, and social decisions. A business
concern for society welfare. Institution Based view = formal institutions governing CSR
in home/host countries. Informal norms, values, cultures governing CSR. Resource
based View = VRIO
Resource-based view
firm-specific resources and capabilities. the tangible and intangible assets a firm uses to
choose and implement its strategies
Licensing
A business arrangement in which one company gives another company permission to
manufacture its product for a specified payment
Benefits of FDI to Host Countries
1. Capital Inflow can help improve a host countries balance of payments
2. technology can create "technology spill overs" (technology diffused from foreign firms
to domestic firms) - this often creates demonstration effect - sometimes called the
contagion (or imitation) effect - the reaction of local firms to rise to the challenge
demonstrated by MNE'S through learning and imitation
Civil Law
A legal tradition that uses comprehensive statutes and codes as a primary means to
form legal judgments.
Foreign Direct Investment (FDI)
investment in, controlling and managing value added activities in other countries ( >
10%)
Value Chain
a stream of activities from upstream to downstream that add value (coffee example)
What determines the success of global business
Institution based view: formal and informal rules of the game. Resource based. view:
firm specific resources and capabilities.
Cost of FDI to Home Country
1. Capital outflow
2. job loss
Totalitarianism (dictatorship)
System in which one person or party exercises absolute political control over the
population (china)
Ethnocentrism
perceiving your own culture, ethics, and norms as "natural, rational, and morally right"
UPDATE.Buy Quality Materials!
Transaction Cost
the cost associated with economic transactions or, more broadly, the costs of doing
business
Corporate Social Responsibility
Approach that an organization takes in balancing its responsibilities toward different
stakeholders when making legal, economic, ethical, and social decisions. A business
concern for society welfare. Institution Based view = formal institutions governing CSR
in home/host countries. Informal norms, values, cultures governing CSR. Resource
based View = VRIO
Resource-based view
firm-specific resources and capabilities. the tangible and intangible assets a firm uses to
choose and implement its strategies
Licensing
A business arrangement in which one company gives another company permission to
manufacture its product for a specified payment
Benefits of FDI to Host Countries
1. Capital Inflow can help improve a host countries balance of payments
2. technology can create "technology spill overs" (technology diffused from foreign firms
to domestic firms) - this often creates demonstration effect - sometimes called the
contagion (or imitation) effect - the reaction of local firms to rise to the challenge
demonstrated by MNE'S through learning and imitation
Civil Law
A legal tradition that uses comprehensive statutes and codes as a primary means to
form legal judgments.
Foreign Direct Investment (FDI)
investment in, controlling and managing value added activities in other countries ( >
10%)
Value Chain
a stream of activities from upstream to downstream that add value (coffee example)
What determines the success of global business
Institution based view: formal and informal rules of the game. Resource based. view:
firm specific resources and capabilities.
Cost of FDI to Home Country
1. Capital outflow
2. job loss
Totalitarianism (dictatorship)
System in which one person or party exercises absolute political control over the
population (china)
Ethnocentrism
perceiving your own culture, ethics, and norms as "natural, rational, and morally right"
