International Business Essay

Review Questions2.- Why is it important for you to topic world-wide caper? * Almost any large organization you hunt for entrust have international operations or be touched by the global economy. * You start your have business, you may find yourself implement foreign-made materials or equipment, competing with foreign, and perhaps even selling in foreign markets. * lionise pace with your future competitors.5.- What is portfolio investment?* Foreign portfolio investments (FPI) be purchases of foreign fiscal assets (stocks, bonds, and certificates of deposit) for a purpose other than control. An example of portfolio investment is the purchase of 1,000 shares of Sonys common stock by a Danish pension fund.6.- What are the basic reasons for the recent growth of international business activity? * in that respect are two broad reasons strategic imperatives, which motivate globalization, and environmental changes, which hasten it.Questions for Discussion5.- What are some of the differences in skills that may exist amid managers in a domestic sloshed and those in an international fuddled?Domestic firm* Local workers.* Legal system.* Local supply.International firm* Languages.* Currency* Cultures and new markets.CHAPTER 02Review Questions2.- How do differences in income levels and income distribution among countries reach international business?The most important piece of information requisite by international business people about a sphere is its income level because it provides clues to the purchasing power of residents. One important source of income statistics is the innovation Bank, which divides the worlds countries into high-income, middle-income, low-income categories.4.- What is keiretsu?* Japanese industry is controlled by large families of coordinated companies, that is typically centered on a major Japanese entrust. The bank takes primary responsibility for meeting the keiretsus financing needs. Members are overly protected from hostil e takeovers by an elaborate system of cross-ownership of shares in which keiretsu members own shares in one anothers companies.8.- How did import substitution policies pertain the economies of Brazil and Argentina? * The companies must pay high prices for domestically produced inputs than do their foreign competitors. The government must subsidize these firms and oftentimes nationalize them to economize urban jobs. The high costs of doing this are passed on to taxpayers and to consumers through higher prices, but over time the government runs a budget deficit. The closure is inflation and destruction of middle-class savings. The continent is still plagued, however, by an inability to create policies that bridge the chasm between the rich and the poor. The lack of economic and physical bodyly mobility has trapped generation of South Americans in poverty and despairs and created political imbalance in many a(prenominal) of their countries.Questions for Discussion3.- Ethnic t ies, old colonial alliances, and share languages appear to affect international trade. Why might this be so? If true, how does this affect international business strategies regarding which markets to enter? * Its easier to do business with people who have same culture, religion, language, and is better for companies to get into these markets first.CHAPTER 03Review Questions1.- take out the four different types of legal systems with which international business must deal. * popular law is based on the cumulative wisdom of judges decisions on individual cases through history. These cases create legal precedents, which other judges use to decide similar cases. * Civil Law is based on a codification, or detailed listing, of what is and is not permissible. * Religious Law is based on the officially established rules governing the faith and practice of a finical religion. * Bureaucratic Law the legal system is communist and in dictatorships is often described as bureaucratic law.9.- What is the impact of differing accounting standards on the international capital market? * Comparing the financial reports of firms from different countries is exceedingly complex, do it more difficult for international investors to assess the performance of the worlds business.10.-What is political risk? What forms can it take?* Political risks are many changes in the political environment that many adversely affect the survey of a firms business activities. * Forms * Ownership risk, in which the quality of a firm is threatened through confiscation or expropriation. * operate risk, in which the ongoing operations of a firm and/or the recourse of its employees are threatened through changes in laws, environmental standards, tax codes, terrorism, build up insurrection, and so forth. * Transfer risk, in which the government interferes with a firms ability to shift funds into and out of the country.Questions for Discussion2.- What is the impact of agile enforcement of intellect ual property rights on the world economy? Who gains and who loses form rigid enforcement of these laws? * The impact vigorous enforcement of intellectual property rights on the world economy will be very benefits for development countries but for poor countries it will be a big economic problem because they have a habit to live with piracy products, and the familiar economy cant pay for medium cost products like dvd, books, music, etc. * The real authors create companies will gain and mafias of piracy will lose because they live of that kind of work.