Planned Economy and Quick Study
CHAPTER 1: GLOBAL BUSINESS ENVIROMENT
Quick Study 1 (p. 34)
1. Q: Define the term international business, and explain how it affects each of us.
A: International business is any commercial transaction that crosses the borders of two or more nations. International business involves each of us every day. We consume goods that originate outside our borders or that contain components made abroad. We also consume services, such as a news broadcast or music entertainment, that are sent to us from abroad.
Quick Study 2 (p. 36)
1. Q: Define globalization. How does denationalization differ from internationalization?
A: Globalization is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. It is a trend characterized by denationalization (in which national boundaries are becoming less relevant), and is different from internationalization (which refers to cooperation between national actors).
2. Q: List each benefit a company might obtain from the globalization of markets.
A: Globalization of markets refers to convergence in buyer preferences in markets around the world. Potential benefits for companies include: (1) reduced costs by standardizing marketing activities, (2) market opportunities abroad if home market is small or saturated, and (3) levels an income stream by letting international sales offset domestic sales for a company selling a global seasonal product.
Quick Study 3 (p. 43)
1. Q: What two main forces underlie the expansion of globalization?
A: The two forces underlying the expansion of globalization are: (1) falling barriers to trade and investment, and (2) technological innovation.
4. Q: What factors make some countries more global than others?
A: Four factors make a country more global: (1) political engagement, (2) technological connectivity, (3) personal contact, and (4) economic integration. The seven most global countries according to
Quick Study 1 (p. 34)
1. Q: Define the term international business, and explain how it affects each of us.
A: International business is any commercial transaction that crosses the borders of two or more nations. International business involves each of us every day. We consume goods that originate outside our borders or that contain components made abroad. We also consume services, such as a news broadcast or music entertainment, that are sent to us from abroad.
Quick Study 2 (p. 36)
1. Q: Define globalization. How does denationalization differ from internationalization?
A: Globalization is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. It is a trend characterized by denationalization (in which national boundaries are becoming less relevant), and is different from internationalization (which refers to cooperation between national actors).
2. Q: List each benefit a company might obtain from the globalization of markets.
A: Globalization of markets refers to convergence in buyer preferences in markets around the world. Potential benefits for companies include: (1) reduced costs by standardizing marketing activities, (2) market opportunities abroad if home market is small or saturated, and (3) levels an income stream by letting international sales offset domestic sales for a company selling a global seasonal product.
Quick Study 3 (p. 43)
1. Q: What two main forces underlie the expansion of globalization?
A: The two forces underlying the expansion of globalization are: (1) falling barriers to trade and investment, and (2) technological innovation.
4. Q: What factors make some countries more global than others?
A: Four factors make a country more global: (1) political engagement, (2) technological connectivity, (3) personal contact, and (4) economic integration. The seven most global countries according to