INTERNATIONAL BUSINESS REVISION

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CHAPTER 1: Globalization
1. What is globalization?
Concept
2. Forces driving globalization?

3. Match the organization/agrement with its purpose

a. World Bank-3 1. safeguard the region's econom
and political stability
b. The General Agreement on Tariffs 2. promote peace, its values and
and Trade (GATT)-4 well-being of its citizens
c. International Monetary Fund (IMF)-5 3. provide financing for national
economic development efforts.
d. European Union (EU)-1 4. promote free trade
e. The Association of Southeast Asian Natio5. regulate fixed exchange rates a
(ASEAN)-2 enforce the rules of the
International monetary system
4. Catagorize the following key points into 2 groups - Pros & Cons of globalization
a) fuels efficiency and greater production that raises consumer income
b) destroys developed-country jobs that are moved to developing countries
c) lowers wages, job security, and employee morale and loyalty in developed
nations
d) promotes labor market flexibility that quickly shifts workers to where they are
needed
e) outsources sorely needed jobs to developing nations that elevate living
standards
 f) may actually strengthen labor rights
g) exploits developing-nation workers in outsourced service jobs
h) reduces the bargaining power of labor.

5. What is international business? Key players in International Business?

IB: promote exchange services, resources, technology, people
Key players: bond global firm

6. Motivations for companies to penetrate other foreign markets? Give a specific

example in reality
Increase sale, profit, reduce risk

CHAPTER 2: Cross-Cultural Business

1. Match the terminology with its definition
1. Culture-E a. A group of people who share a unique way of life
within a larger, dominant culture
2. Subculture-A b. The tendency to view one’s own culture as superior
to others
3.Ethnocentricity-B c. What a culture considers “good taste” in the arts,
the imagery evoked by certain expressions, and the
symbolism of certain colors.
4. Aesthetics-C d. Intense or irrational dislike or fear of people from
other countries
5. Xenophobia-D e. Set of values, beliefs, rules, and institutions held by
a specific group of people

2. What is “Social mobility”? What is “Social stratification”?

Social mobility: Ease with which individuals can move up or down a culture’s
“social ladder.”

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Social stratification: process of ranking people of social classes

3. Differentiate “Class system” and “Caste system”

Class system: ppl can move rank

Caste system:

CHAPTER 4: Economic Development of Nations

1. Differentiate between “capitalism” and “communism”?

CHAPTER 5: International Trade Theory

1. Differentiate between “absolute advantage” & “comparative advantage”
Absolute advantage: concept the amount of goods
Comparative advantage:
2. Differentiate between “trade deficit” & “trade surplus”
Trade deficit: import >>export
Trade surplus: export>> import
3. What is “first-mover advantage”?
first-mover advantage
EG: Amazon
4. What is “mercantilism”?
Mercantilism : The theory, high eposit on trading
CHAPTER 7: Foreign Direct Investment(chapter summary)
1. Why FDI occurs?

2. What are some management issues involved in FDI?

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3. Government intervention in FDI:
o Reasons intervention by the host country?
o Reasons intervention by the home country?

CHAPTER 8: Regional Economic Integration

1. How many levels of regional economic integration?

Regional Economic Integration (Regionalism): Process whereby countries in a

geographic region cooperate to reduce or eliminate barriers to the
international flow of products, people, or capital.
● A free trade area is the lowest extent of national integration

• Political union is the greatest.

• Each level of integration incorporates the properties of those levels that
precede it.
2. For & Against Brexit? (Reasons)
For Brexit

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Against Brexit: Economic cost(explain specific), complexity, national unity

3. What is “Bregret”?

CHAPTER 9: International Financial Markets

1. Explain the importance of the international capital market

2.

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2. What is Stock? Bond? Currency hedging? Currency arbitrage? Currency
speculation?

CHAPTER 10: International Monetary System

Differentiate between “fixed exchange-rate system” & “free float system”

CHAPTER 11: International Strategy and Organization(*)

1. Differentiate between “Multinational strategy” & “Global strategy”
Multinational startegy: company will have difference strategy feature, serve
different market
Global strategy: standard

2. Discuss “Corporate-level strategies”

(mind map)
3. Discuss “Business-level strategies”
CHAPTER 12: Analyzing International Opportunities

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1. Identify the main sources of secondary market research data.

2. Describe common methods used to conduct primary market research.


CHAPTER 13: Selecting and Managing Entry Modes
1. Describe how companies use exporting, importing, and countertrade.

2. Describe the different types of contractual entry modes.

3. Describe the various kinds of investment entry modes, then discuss the
pros & cons for each type.
(Case study)
CHAPTER 14: Developing and Marketing Products
1. Differentiate between “push strategy” & “pull strategy”. Give examples for
each type.

2. What is “dual prricing”?

CHAPTER 15: Managing International Operations

1. Describe the elements to consider when formulating production
strategies.

2. Identify the key production matters that concern managers (Total quality
management (TQM), International Standards Organization (ISO) 9000
certification, & Just-in-time (JIT) manufacturing)

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3. Conditions for companies to “reinvest” or “divest”?