INTERNATIONAL BUSINESS AND TRADE BSBA BE 2A

DARREL VILLAFLORES SAYNO

Forum 1

Why do firms internationalized?

Firms go international because it has more opportunities and seek for growth of marketing
sales. They wants to increase thier costumers and production through foreign competitive,
internationally competition is fastest of growing market and sales because of progressive
economies and higher number of customers with higher demand in product and services.

FORUM 2

1. What are the main characteristics of born global firms?

 In order to get a competitive advantage in the market, newly established

multinational companies frequently conduct commercial operations abroad. These
businesses' primary characteristics are that they frequently target numerous nations
and are generally multinational in scope. They also often possess less financial and
human resources than multinational companies that dominate worldwide
commerce and investment.

2. What drivers and causes of globalization have allowed born global firms such as Instagram to
internationalize at or near their founding?

 The strength of Instagram is its dynamic and visually beautiful interface. Born
multinational companies aim to get competitive advantage from their resources.
According to the case study, Instagram's goal is to swiftly reach a large number of
worldwide markets. Despite having little human and financial resources, they were
nevertheless able to do this. The world's transition toward a more visual form of
communication, which appeals most to those who enjoy taking images and sharing
their daily experiences with friends and family online, and its cutting-edge
technology are congruent. The globalization plan of Instagram was therefore
successful.

3. What advantages do you think a young company can gain by entering international markets
soon after its founding?

 Access to new markets, which opens up the possibility of building or gaining a new
client base, is perhaps one of the many benefits of entering foreign markets early
on in your organization. Increase business growth as a result of your greater
audience reach, competitive advantage, and trained workforce. However, it will be
much risky and expensive for a freshly created firm because the business has just
recently been founded. Therefore, it is essential that, in addition to being aware of
its benefits, you are as well-conscious of its dangers and drawbacks before entering
an international market.
Forum 3

1.) Describe culture and cross-cultural risk.

 CULTURE RISK - Culture risk refers to the behaviors and attitudes of a society's
members as well as the knowledge, values, and beliefs that a group of people
has when working toward a shared goal. Governments, non-profit organizations,
private and public entities are all subject to culture risk. A risk that is
appropriately and logically taken by a group of individuals will be rewarding for
both the individual and the group. Effective cultural risk would be this. Culture
risk is an area that is constantly open to improvement.
CULTURE - The identification of a society's standards and way of life is done
through its culture. This phrase describes the misconceptions and cultural
prejudices that exist between individuals from various backgrounds. This
disturbs and disturbs the environment of the workplace. This discrepancy could
have an impact on productivity and efficiency. Ignoring this distinction might
hinder job progress and harm your company's reputation.

2.) Describe the characteristics of high- and low-context cultures.

 High context - describes cultures or groupings where members have long-

lasting, deep relationships. Since most people have interacted with one another
for years, they are generally aware of how to act and think, hence many
components of cultural behavior are implicit. Most likely, the best example of a
high context setting is your family.
High Context
- Less verbally explicit communication, less written/formal information
- More internalized understandings of what is communicated
- Multiple cross-cutting ties and intersections with others
- Long term relationships
- Strong boundaries- who is accepted as belonging vs who is considered an
"outsider"
- Knowledge is situational, relational.
- Decisions and activities focus around personal face-to-face relationships, often
around a central person who has authority.

Low context - refers to cultures where individuals frequently form relationships, but
these interactions are either temporary or have a specified purpose. To ensure that
newcomers entering these communities understand how to act, it may be necessary to
openly state cultural behavior and values.
Low Context
- Rule oriented, people play by external rules
- More knowledge is codified, public, external, and accessible.
- Sequencing, separation--of time, of space, of activities, of relationships
- More interpersonal connections of shorter duration
- Knowledge is more often transferable
- Task-centered. Decisions and activities focus around what needs to be done, division
of responsibilities.
3.) What are the two major perceptions of time and how does each affect international
business?

 Monochronic - rigid orientation to time in which the individual is focused on

planning, schedules, punctuality, time as a resource, time is linear, "time is
money".

ex. the US has acquired a reputation for being hurried an impatient; the word
"business" was originally spelled "busyness".

Polycronic - a flexible, non-linear orientation to time in which the individual

takes a long-term perspective and is capable of multi-tasking, time is elastic,
long delays are sometimes needed before taking action.

punctuality per se is relatively unimportant, time commitments are flexible,

relationship are valued, future-orientated performance targets- 10 years,
lifetime employment.

FORUM 4

1.) Why should ethical behavior be a part of a manager’s everyday activities?

- In every industry, a company's reputation is influenced by the actions of all personnel,
particularly the management. A manager should constantly act morally to preserve a
positive reputation for both themselves and the business. When a manager represents the
firm poorly, the company loses value. In addition, our environment tends to shape who we
are as people. The management seeks instruction from the general workforce. If a
management acts unethically, their staff will probably do the same. The business suffers
when this takes place. Because stakeholders in a company have a reputation to uphold,
those stakeholders who may have managers who are acting unethically may choose not to
invest in their businesses, which would lower stock prices, damage the reputations of those
businesses, and ultimately put the manager’s job at risk. A manager with a poor reputation
will have trouble getting hired by other businesses. Most managers who conduct
unethically will decrease the efficacy and efficiency of commerce and manufacturing. As a
result, the corporation performs worse, which is followed by a worsening of the nation's
quality of living, wealth, and well-being. Managers and individuals in general should
understand that acting unethically has an impact on many people's lives in addition to
their own. Overall, there are a lot of good reasons for a manager to behave ethically.

2.) Describe typical ethical problems that firms encounter in international business.
- some of the most prevalent ethical problems in global business include outsourcing,
working standards and conditions, workplace diversity and equal opportunity, child labor,
trust and integrity, supervisory oversight, human rights, religion, the political arena, the
environment, bribery and corruption.