Int'l Business Management, Chapter 2
Chapter 2
Review-Questions:
1. Describe the U.S. role in the world economy.
The United States take up an influential position in the world economy. As the largest economy of the world and with the third largest population, the United States are responsible for 24 % of the world’s GDP. They are also contributing 1/10 to the world’s exports and 1/8 to the world’s imports. Moreover, the U.S. dollar serves as invoicing currency for many international transactions.
Because of their political stability, the U.S. attract flight capital as well as long term FDI and is also the headquarter of 27 % of the world’s largest corporations.
2. How do differences in income levels and income distribution among countries affect international businesses?
Countries are grouped according to their income level in high-, middle-, or low-income countries by the world bank. This classification gives international businesses clues about whether to enter a foreign market. Countries with a high income level attract international businesses whereas low income countries do not, because their infrastructure is poorly developed and consumer demand is low.
3. What role did MITI serve in the Japanese economy?
The Ministry of International Economy, Trade and Industry guided Japan’s corporate elite to follow certain production and investment strategies by means of formal and informal power.
4. What is a keiretsu?
Keiretsu describes large families of interrelated companies, that the Japanese industry is controlled by and that are centered on a major Japanese bank. Since they supply each other, it is hard for foreign companies to penetrate the domestic market. Besides, there is a system of cross-ownership of shares which prevents other hostile firms taking over keiretsu member’s companies.
5. Who are the four tigers? Why are they important to international businesses?
Singapore, South Korea, Hong Kong and Taiwan are also called the Four Tigers, because after
Review-Questions:
1. Describe the U.S. role in the world economy.
The United States take up an influential position in the world economy. As the largest economy of the world and with the third largest population, the United States are responsible for 24 % of the world’s GDP. They are also contributing 1/10 to the world’s exports and 1/8 to the world’s imports. Moreover, the U.S. dollar serves as invoicing currency for many international transactions.
Because of their political stability, the U.S. attract flight capital as well as long term FDI and is also the headquarter of 27 % of the world’s largest corporations.
2. How do differences in income levels and income distribution among countries affect international businesses?
Countries are grouped according to their income level in high-, middle-, or low-income countries by the world bank. This classification gives international businesses clues about whether to enter a foreign market. Countries with a high income level attract international businesses whereas low income countries do not, because their infrastructure is poorly developed and consumer demand is low.
3. What role did MITI serve in the Japanese economy?
The Ministry of International Economy, Trade and Industry guided Japan’s corporate elite to follow certain production and investment strategies by means of formal and informal power.
4. What is a keiretsu?
Keiretsu describes large families of interrelated companies, that the Japanese industry is controlled by and that are centered on a major Japanese bank. Since they supply each other, it is hard for foreign companies to penetrate the domestic market. Besides, there is a system of cross-ownership of shares which prevents other hostile firms taking over keiretsu member’s companies.
5. Who are the four tigers? Why are they important to international businesses?
Singapore, South Korea, Hong Kong and Taiwan are also called the Four Tigers, because after