International Business
The American College
Chapter 5
Question No 1:
Describe the four basic levels of international business activity.Do you think any organization will achieve the fourth level?Why or why not.
Question No 2:
For each of the four globalization strategies, describe the risks associated with that strategy and the potential returns from that strategy. __________________________________
Answer for question No 1:
The four general levels of international business activity are:
1. Domestic business
2. International business
3. Multinational business
4. Global business.
Domestic Business: Is the one that acquires all of its resources and sells all of
its products ot services within a single country.(8/143)
Interational business: Is the one that is based primarily in a single country
but acquires some meaningful share of its resources or revenues (ot both)
from othe countries. (8/143)
Multinational business: The one that has a worldwide marketplace from
which it buys raw mateials, borrows money, and manufactures its products
and to which it subsequently sells its prducts.(8/143)
Global business: Is the business that transcends national boundaries and is not
committed to a single home country.(8/143)
In my opinion there is no opportunity for a business to achieve this
level of Iinternationalization.The reason is that all business in all over the world are
controled by the government which are committed.There is no way for a business
which is spread-out in all over the world with high revenues and big profits not to
be controlled by noone.
Answer for question No 2:
The four globalization strategies are the followng:
1. Importing and exporting
2. Licensing
3. Strategic alliances
4. Direct investments
In all of those strategies there are many risks and of course many efforts.In
Importing/exporting,the main risk is that, the products are not adapted to
local conditions, and
Chapter 5
Question No 1:
Describe the four basic levels of international business activity.Do you think any organization will achieve the fourth level?Why or why not.
Question No 2:
For each of the four globalization strategies, describe the risks associated with that strategy and the potential returns from that strategy. __________________________________
Answer for question No 1:
The four general levels of international business activity are:
1. Domestic business
2. International business
3. Multinational business
4. Global business.
Domestic Business: Is the one that acquires all of its resources and sells all of
its products ot services within a single country.(8/143)
Interational business: Is the one that is based primarily in a single country
but acquires some meaningful share of its resources or revenues (ot both)
from othe countries. (8/143)
Multinational business: The one that has a worldwide marketplace from
which it buys raw mateials, borrows money, and manufactures its products
and to which it subsequently sells its prducts.(8/143)
Global business: Is the business that transcends national boundaries and is not
committed to a single home country.(8/143)
In my opinion there is no opportunity for a business to achieve this
level of Iinternationalization.The reason is that all business in all over the world are
controled by the government which are committed.There is no way for a business
which is spread-out in all over the world with high revenues and big profits not to
be controlled by noone.
Answer for question No 2:
The four globalization strategies are the followng:
1. Importing and exporting
2. Licensing
3. Strategic alliances
4. Direct investments
In all of those strategies there are many risks and of course many efforts.In
Importing/exporting,the main risk is that, the products are not adapted to
local conditions, and
Bibliography: Griffin 8th edition Management Ricky W. Griffin Texas A&M University Houghton Mifflin Company Boston New York