International Business

Assignment 1

Name : Chitra Windayasari

NIM : 01619190091

CASE: The Globalized Business of Sports

1-1. Professional athlete A is a star, and professional athlete B is an average player. How
has the globalization of professional sports affected each of these both positively and
negatively?

Answer:

Positive Side

 Athlete A :
 Professional sports has become huge in some countries  the athletes are
paid very well, so the star athlete will benefit from a large salary.
 Online Media and TV Fan Base  International Exposure
 Appearance / Success / Personality  Contracts to Endorse Product (Global
Brand)

 Athlete B :
 The average player will still have the opportunity to play elsewhere in the
country where they can make enough or maybe a more than enough to pay
living expenses.
 While playing in another country, the average athlete may gain the skills
needed where they can eventually return to their native country and play in
their national sports league.
 More exposure because of Media.
 Sport organizations seeking foreign players = better opportunities = better
trainers

Negative Side

 Athlete A :
 Need to continually improve because the average players who are getting
professional experience elsewhere can improve and compete with the star
athletes in their own national leagues.
  Follow money (away from home country)
 Not entirely focus on trophy / medal
 Anyone can be purchase

 Athlete B :
 For the average player who is in another country, they will have cultural
challenges to overcome while they are in an unfamiliar place, and they will
have to be far away from family and loved ones while they play their sport
in another country.
 Higher level of competition globally
 No contracts = No extra money

1-2. As you read the chapter, identify and show an example of each international mode of
operations that is illustrated in the globalization of professional sports.

Answer:

 Forces Driving Globalization and IB

Professional sports have become a global phenomenon. The competition level is
higher, and sports fans get to enjoy more variety and higher competition levels
amongst athletes.
 Physical Factors – Geographic Influences
Some countries can fare better in Summer Olympics because of their climate.
 Institutional Factors – Political policies
A nation’s policies can influence how and if international business takes place. For
example, after the United States and Cuba severed diplomatic relations, Cuban
baseball players had to defect from Cuba in order to join U.S. professional teams.
 Institutional Factors – Behavioral Factors
Although professional sports are spreading internationally, the rules and customary
way to play may differ as well as the popularity of specific sports differ among
countries. For example, in the U.S., a baseball game will continue until there is a
winner, but in Japan, the baseball game will end in a tie if neither team is ahead
after 12 innings. The book states that the Japanese value harmony more than
competition, whereas the U.S. values competitiveness more. Another example is in
tennis, where the game is played on hard courts in the U.S. and Australia, on clay in
France, and on grass in England.
 Institutional Factors – Economic Forces
Non-U.S.-born players are making up an increasing number of MLB players. This
is because higher incomes in the U.S. and Canada enable major league teams to
offer salaries that are attractive to players in countries like the Dominican Republic.
Having major league baseball teams in the Dominican Republic does not make
economic sense because too few people there would be able to afford tickets.