Global Business Study Guide Managing in a Global Business Environment Study Guide for FVC1 V4 and D080 V3

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1. What is globalization? Globalization is defined as international integration arising from the exchange of world views, products, ideas, and other aspects of culture. 2. What opportunities to busi... nesses are brought by globalization? Access to New Cultures, The Spread of Technology and Innovation, Lower Costs for Products, Higher Standards of Living Across the Globe, Access to New Markets, Access to New Talent, International Recruiting, Managing Employee Immigration. 3. What are the economic, political, and cultural effects of globalization? Elaborate on each of the aspect. Economic effect-Trade, Investment, Information technology. Trade is a type of economic globalization and a measure of economic integration. On a national scale, it loosely represents the proportion of all production that crosses the boundaries of a country, as well as the number of jobs in that country dependent upon external trade. Investment is all invested capital in the world that is owned by nonnationals. Information technology has become the driving force within the current economy. Every business function and form of communication is handled through a constantly changing IT environment. Political effect-Reduce the importance of nationstates. Nation states is a state in which a great majority shares the same culture and is conscious of it. The nation state is an ideal in which cultural boundaries match up with political boundaries. Some countries that don’t like political integration might create isolation policy. NGOs are non-governmental organizations. NGOs are a subgroup of organizations founded by citizens, which include clubs and associations that provide services to their members and others. Cultural effect-Transmission of ideas, meanings, and values around the world. 4. What are the arguments for and against globalization from country’s perspective? Some argue that globalization is a positive development as it will give rise to new industries and more jobs in developing countries. Others say globalization is negative in that it will force poorer countries of the world to do whatever the big, developed countries tell them to do. 5. What are the different forms of international business? Explain each form. Imports: a good or service brought into one country from another. Exports: a good or service produced in one country then gets marketed to another country. Import-export is the most fundamental and the largest international business activity, and it is often the first choice when the businesses decide to expand abroad as it is the easiest way to enter the market with a small outlay of capital. Licensing is one of the other ways to expand the business internationally. Licensing is the arrangement between a firm, called licensor, allows another one to use its intellectual property such as brand name, copy right, patent, technology, trademark and so on for a specific period of time. The licensor gets benefits in terms of the royalty. The company may choose to sell the products under the licensing when the domestic production costs are too high, strict government regulations, or the company wants to sell and produce standardized products everywhere. Franchising is closely related to licensing. Franchising is a parent company (franchiser) gives right to another company (franchisee) to do business using [Show More]

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