1.

The evolution of the international economy

2. Increase in national income around the world
3. China’s One Belt, One Road and the Connotation of Trump Economics
4. What does an enterprise’s internationalization strategy include?
5. In the process of brand internationalization, backward countries often encounter the
influence of the country of origin effect. What strategies can be adopted?
6. Differences in Domestic and International Business. What impact do these differences
have on international business operations? How do international business managers
respond to these impacts?
7. What types of research on international enterprises can be divided into? The research
content and important research gaps of FDI are: what?.

1. List of result’re:
 Age of Exploration and Colonialism (15th to 18th Century):
 Europe: The Age of Exploration marked a turning point. European
powers leading to the discovery of sea routes. This eventually
culminated in the establishment of extensive colonial empires in Asia,
Africa, and the Americas.
 India and China: Both India and China experienced significant
economic exploitation under colonial rule.
 Industrial Revolution and Imperialism (18th to 19th Century):
 Europe: The Industrial Revolution catapulted Europe into an era of
rapid industrialization and economic growth. European powers used
their industrial might to extract resources from their colonies.
 India and China: These regions saw significant deindustrialization as
they became suppliers of raw materials for European industries
 Post-World War II (Mid-20th Century):
 America: After World War II, the United States emerged as the
dominant global economic power. The Marshall Plan, which aided in
the reconstruction of Europe, played a key role in this ascension.
 Rise of Asia (Late 20th Century to Present):
 Japan: After World War II, Japan rapidly rebuilt its economy and
emerged as a major industrialized natio
 Four Asian Tigers (Hong Kong, Singapore, South Korea, Taiwan):
Asian economies experienced rapid industrialization and economic
growth, known as the Asian Tigers phenomenon.
 China's Reform and Opening (Late 20th Century): In the late 1970s,
China initiated economic reforms under Deng Xiaoping. This led to a
period of extraordinary economic growth and development, making
China the world's second-largest economy.
 India's Liberalization (1990s): In the 1990s, India embarked on a path
of economic liberalization, opening up its markets and experiencing
significant economic growth.
 Shift of Economic Center of Gravity (21st Century):
 Rise of Emerging Asian Economies: The 21st century has witnessed
the continued rise of Asian economies, with China and India at the
forefront. These nations have become major players in international
trade, investment, and technological innovation.
2. These are all significant economic and historical phenomena that have shaped the
course of global economic development :
 Industruain Revolution
The Industrial Revolution was a period of rapid technological, economic, and
social change that began in Britain in the late 18th century and spread to other
parts of the world.
 Capitalization
Capitalism is an economic system characterized by private ownership of the
means of production, market-driven competition, and profit-seeking behavior
 Market Globalization
Market globalization refers to the increasing interdependence and integration
of national economies through trade, investment, and information flows.
 War
Particularly major conflicts like WW1 & WW2, than lead to significant
destruction of physical and human capital, alter production and consumption
patterns, and reshape global political and economic alliances
 Monetary Easing
Monetary easing is a monetary policy tool used by central banks to stimulate
economic activity. It involves buying government securities or other financial
assets to increase the money supply and lower interest rates

3. "One Belt, One Road" (OBOR), also known as the Belt and Road Initiative (BRI), is a
major development strategy and framework proposed by the Chinese government in
2013. Silk Road Economic Belt abbreviation strategies were proposed to promote the
economic integration of Eurasia and even Eurasia and Africa.
Promote Background purpose :
 Resolve China’s overcapacity
 Gain regional economic and trade dominance
 Promote RMB internationalization
 Breaking the US island chain strategy
 Diversified investment with foreign exchange deposits
Substantive Content 5 Links there’re:
 Policy Communication (Economics drivers Politics)
 Facilities connectivity (infrastructure interconnection)
 Unimpeded trade (creating new trade growth points)
 Financial Integration
 P2P Bonds

Trump Economics" refers to the economic policies and approaches implemented

during the presidency of Donald J. Trump. These policies were shaped by Trump's
economic philosophy, which prioritized certain key principles. Here are some of the
connotations associated with Trump Economic
 Trade Taxation, Re-negotiation of regional free trade agreements
 Comprehensively Increase Tariffs on imported products & Withdraw
from TPP
 Re Negotiate NAFTA & Label China a “Currency Manipulator”
 Imposing 35-45% Punitive tariffs on China & Mexico
  Manufacturing Reshoring
 Pressure US Manufactures to move production lines from China,
ASEAN, Mexico, & Another countries back to US
 Organize Ford Motor & Carrier Air Conditioning to move their
production outside
 Big Tax Cuts
 Corporate income Tax reduced from 35% to 15%
 One Time tax of 10% on Corporate overseas profits
 Personal income tax rate from lv 7 to lv 3, MAX rate from 39.8% to
33%
 Fiscal Expansion
 Infrastructure Spending $550 Billion
 Develop Traditional Energy
 Not to participate in Kyoto Protocol
 Reduce Green energy Subsidies

4. Market selection, customer value brand positioning, entry into the international
market model, value chain analysis, industrial value chain development and the
strategy of each value unit and the required resources and capabilities, product and
service adjustment, supply chain management analysis, cultural adaptation, regulatory
risk assessment, talent training partnership, education and training, system
introduction, tracking and feedback, long-term development.

Overseas market entry mode:

 Trader/sales subsidiary
 Technology licensing
 Franchise
 Contract manufacturing
 Whole plant output
 Management contract
 Indirect investment
 Joint venture
 Acquisition and merger
 Direct factory construction

5. When a brand from a more developed country expands into less developed or
"backward" countries, it can face challenges related to the country of origin effect.
This effect refers to the perceptions and associations that consumers in the target
market have about products or services based on their country of origin. To overcome
this, companies can adopt several strategies:
 Partnering with Local Influences or Endorsers
 Offering Value and Affordability
 Establishing Strong Distribution Channels
 Educational Marketing
 Investing in Local Talent & Employment
6. The differences’re:
v
Domestic International
Boundaries Operates within Single Operates across Mult
Country Countries
Currencies Currency of the domestic Involves dealing with
country is used. multiple currencies
Legal Systems Operates under a single legal Engages with various legal
system systems across different
countries
Cultures Typically operates within a Involves navigating diverse
single cultural context cultural norms, customs,
languages, and business
etiquette in different
countries
Resources Utilizes local resources and involve sourcing inputs,
factors of production labor, and raw materials from
available within the country. multiple countries to
optimize production and cost
efficiency.
Skill & Requires knowledge of the Demands a broader skill set
Knowledge local market and consumer and including cross-cultural
preferences communication

Responses By International Business Managers:

 Market Research & Analysis
Conduct thorough market research to understand local conditions, customer
preferences, and regulatory requirements
 Risk Management Strategies
Implement risk management strategies, including hedging against currency
fluctuations and having contingency plans
 Adaptive Marketing and Branding
Continuously monitor and adapt marketing and branding strategies to resonate
with local consumers.
 Stratregic Alliances & Partnerships
Form strategic alliances or partnerships with local businesses to leverage their
knowledge

7. 12 types of research on international enterprises:

 Global Business Environment
 Internationalization
 Entry Mode Decisions
The strategic choices a company makes regarding how it enters a new market,
such as exporting, franchising, joint ventures, mergers and acquisitions, or
establishing wholly-owned subsidiaries
 International Joint Venture
An agreement between two or more companies from different countries to
collaborate on a business venture, allowing them to leverage each other's
strengths and resources in a foreign market.
 Foreign Direct Investment
The investment made by a company in a foreign country, typically involving
the acquisition of a physical presence like a subsidiary or production facility.
 International Exhange
 Transfer of Knowledge
The process of sharing and leveraging knowledge, skills, and technologies
across borders within a multinational enterprise.
 Strategic Alliances and Networks
 Multinational Enterprises
 Subsidiary HQ relations
Concerned with the relationship and coordination between the subsidiary of a
multinational enterprise and its headquarters, ensuring alignment with the
overall corporate strategy.
 Subsidiary & Multinational Team Management
 Expatriate Management
1. The evolution of the international economy
The starting point of the previous trade was the Silk Road across the Eurasian continent, which
caused the economic upgrading of neighboring countries, and in 1453, the European economy
took off, the sea power economy arose, the New World was discovered, the European
disease was spread, the aborigines died, and the black Africans were sold as commodities to
the Americas as slaves, the gold standard balanced the trade deficit, the opium poppy was
planted, and opium was sold to China.

In the 20th century, the climate caused crop failures, agricultural loans could not be
recovered, the financial industry and the stock market in the United States were affected, the
Great Depression was the gold standard, the gold standard collapsed, beggar-thy-
neighbor protectionism rose, and the supranational organization emerged in World War II

World Market Rotation: Europe, North America, Asia, World Factory Rotation: North
America
, Northeast Asia, Southeast Asia

2. The world's national income has increased

Industrial Revolution: Mechanical production replaces manual labor, scientific and technological
innovation improves efficiency, large-scale production is quickly put into the market,
international trade expands, and rural people migrate to cities to provide labor.

Capitalization market: The stock and bond market is open, investment diversification and risk
diversification, market constraints encourage the enhancement of enterprise value, diversified
investment to obtain funds, and stimulate entrepreneurship and innovation.

Globalization: International trade is increasing, transnational investment is increasing,

knowledge and technology are disseminated, global resource allocation is optimized, cultural
exchanges and tourism are growing rapidly.

War: Post-war reconstruction, allowing the economic growth of countries that assist other
countries, stimulating scientific and technological innovation in order to stimulate military
technology, post-war demand has become more large-scale consumption, large-scale
infrastructure restoration provides employment opportunities, and the international economic
status is improved.

Monetary easing: low interest rates promote investment and consumption, the central bank
buys government and corporate bonds to increase the supply of funds in the financial system,
stimulate corporate financing, and low interest rates encourage exports and reduce the burden
of debt.

3. China's Belt and Road Initiative and the connotation of Trump's economics

The Belt and Road Initiative: Divided into the Road and the Maritime Silk Road, the integration
of Eurasian and African economies, the resolution of China's overcapacity, the acquisition of
natural resources, the expansion of international influence, the internationalization of the RMB,
the elimination of the US island chain strategy, and the diversification of foreign exchange
reserves.

Trump Economics: Raising tariffs to withdraw from the TPP, China is regarded as a currency
manipulator, imposing penalties on China and Mexico, returning U.S. manufacturing lines to the
United States, reducing individual and corporate tax rates, reducing environmental subsidies,
developing shale oil and easing exports, infrastructure investment to create jobs, improving U.S.
economic growth, and reducing the trade deficit.

4. What are the contents of the company's internationalization strategy?

Market selection, customer value brand positioning, entry into the international market model,
value chain analysis, industrial value chain development and the strategy of each value unit and
the required resources and capabilities, product and service adjustment, supply chain
management analysis, cultural adaptation, regulatory risk assessment, talent training
partnership, education and training, system introduction, tracking and feedback, long-term
development.

Overseas market entry mode: 1. Trader/sales subsidiary 2. Technology licensing 3. Franchise 4.

Contract manufacturing 5. Whole plant output 6. Management contract 7. Indirect investment 8.
Joint venture 9. Acquisition and merger 10. Direct factory construction

5. In the process of brand internationalization, backward countries often encounter the influence
of the source country effect, and what strategies can be adopted

The importance of brand naming, obtaining international certification standards, participating in

more competitions to gain popularity, looking for strategic customers, emphasizing quality
innovation and other advantages, and entering the strategic market, changing the face, and
buying the brand directly.

6. differences in domestic and international business, what are the impacts of these differences
on the operation of international enterprises, and how do international business managers
respond to these impacts?

Cross-border: Freight rates and high volatility should be priced in a strategy, and customs tariffs
should be paid attention to the selection of production location or logistics strategy.

Currency exchange: Conversion costs should be priced strategies, and exchange risks should be
diversified investment or hedging strategies such as futures.

Regulations: Operating costs should be tailored to local conditions, and any opportunity
indicator is the choice of operational project.

Culture: Market preference should do a good job in market spread arbitrage or study the
product life cycle, and apply appropriate asset management strategies to employee needs.

Production resources: Ease of availability makes the choice of location of the operation very
important, and the cost can rely on the international division of labor.

Technical knowledge: The cost of human resources also depends on the international division of
labor.

7. What are the 12 types of research on international firms, and what are the important research
gaps?

1.Global Business Environment 2.Internationalization 3.Entry Mode Determination

4.International Joint Ventures 5.FDI FDI 6International Exchange7.Knowledge Transfer8.Strategic
Alliances and Networks9.Multinational Enterprises10.Relationship between Subsidiaries and
Headquarters11.Management of Subsidiaries and Multinational Teams12.Expatriate
Management
Research gaps:

3. Entry mode determination: Most research focuses on prediction versus consequences, and
topics such as measurement, description, and process of entry patterns appear to be potential
areas of research that have not received the attention of top management journals.

4. International Joint Ventures: The consequences of employees, industries, and companies

(beyond survival or performance) are potential areas of study that have not yet been addressed
by top management journals.

5. FDI: The timing of FDI (the nature of the company/industry/country FDI life cycle) is a
potential area of research that is rarely covered by leading management journals.

7. Knowledge Transfer: International barriers to knowledge transfer are a potential area of study
that is not often addressed in top management journals. The transfer of knowledge in joint
ventures will be slower.

10. Relationship between subsidiaries and headquarters: There is less research on the
performance of subsidiaries