In the continuing evolution of international trade theories, Michael Porter of Harvard Business School developed a new model to explain national competitive advantage in 1990. Chapters 5, ‘International Business’ by Charles W. Hill and Arun K. Jain, Tata McGraw Hill publication. Introduction The valuation of an MNC should rise when an event causes the expected cash flows from foreign to _______ and when foreign currencies denominating these cash flows are expected to _______. Innovation Introduction Scope of Managerial Economics 6 0000128484 00000 n 5. Normative Economics 7 Challenge to Management 9. Comparative advantage suggests that each nation is relatively good at producing certain products or services. Unit 1: Introduction to International Business Notes management techniques, in a way, refuted the traditional trade theories. BBA, Third Year, Sixth Semester In order to understand international business, it is necessary to have a broad conceptual understanding of why trade and investment across national borders take place. D) the same as agency costs of a small purely domestic firm. Cost and Production Analysis 10 philosophy Problem Set 1, Spring 2013 Country-based theories are international business theories that argue on the evolvement of business since the 16th century. Lambda International Structure The * Is a business where transactions occur across the borders & Engr. According to this theory, the generated of the exports would allow to pay for the imports and, in addition, to generate profits. Nature 5. Notes Full Name. Capital Management 12 >nj��I��Ԣ�����qE�����Y�&�]��r�x��'����Sd�WK�2ߩ��.��7iM.O�cU�!��[��f. Also includes links between lectures and articles on the literature list for the course. 3. The Eclectic Paradigm Meaning of culture, values and norms, determinants of culture: social...... ...A) The name of the company is Apple. It arose in England in the middle of the sixteenth century. C) smaller than agency costs of a small purely domestic firm. Market/Industry Structure 17 Firm-based theories attempt to explain business phenomena related to international trade. An international organization is defined by the United Nations as an organization with an international membership, scope, or presence. B) larger than agency costs of a small purely domestic firm. 2. Using Economic Theory to Attain Gadgets International’s Organizational Goals & Objectives 19 15 Credits Apple retail store employees to do more than the average wage of employees, and provides money for universities, as well as a gym membership, 401K plans, health care plans, product discounts and lower prices for the purchase of shares. B) larger than agency costs of a small purely domestic firm. International Finance FIN 423 Theory says you should have a trade surplus. Researchers have been using of different basic theories to explain the internationalization of companies. D) none of these. _______ Key Words evaluating innovations International organizations have been noted to be around since the mid- 19th century and such organizations do not operate for profit. Further Readings • Business Cycle – Dynamic Situation – Innovation (iii) Emergence of global institutionslike IMF, GATT and WTO have helped in managing and regulating the foreign markets and provided a platform to its member countries for trading across borders. * Research - is a process of inquiring. (i) Continuous decline in trade restrictionsand investment barriers after the World War II has resulted in increased international business between countries. MNE attempts to overcome the obstructions to trade in foreign countries. Accommodating Change 24 Cultural Environment 11. products vs. old at three general “levels”: 10. Document Retrieval & Woetzel, J. C) product cycle theory. B) imperfect markets theory. With regard to corporate goals, an MNC is mostly concerned with maximizing _______, and a purely domestic firm is mostly concerned with maximizing _______. Meaning of international business and globalization, drivers of globalization, overview of changing global picture: declining trade barriers and change in communication, information and transportation technologies. Submitted to Dr. Oloko What is International business research? Pricing Decision, Policies and Practices 11 3 Stages of Globalisation. | Aim for this Course | 3 | International business is a newly coined term, but the concept is quite traditional. 1. The focus of this article is to clarify the meaning of international competitiveness at the country level within in the context of Porter’s (1990a) thesis that countries, like companies, compete in international markets for their fair share of the world markets. 7. It normally includes the transaction of economic resources such as goods, capital, services (comprising technology; skilled-labour and transaction etc.) Peninah Nyutu HD 333-1088/2015 They are Mercantilism Theory, Absolute Advantage Theory, Comparative Advantage Theory and Heckscher-Ohlin Theory. Equally important, the resetting of management intuition and ability to respond to changes concern thinking pattern and decision-making for executives and leaders (Akhila, 2015). Group 1 Actually, the term international business is derived from “international trade”. We have identified eight network-based theories that are broadly used in internationalization studies. Why conduct international business research? Development, Inc. Are you sure you want to Yes No. Balance of Trade = Visible export-Visible import. 2.3 15. _______ _______ S.No | Topic | Page No. FOUNDATIONS OF INTERNATIONAL BUSINESS Development, Inc. Political systems: individualism vs. collectivism; democratic vs. totalitarian, legal system: property rights, protection of intellectual property, product safety requirements, economic environment: market economy, command economy & mixed economy, interconnection of political, legal and economic system followed by a country, impact of differences in system on international business. • When to be guided by one concept, the...... ...University of Kentucky (Trade) Theories A) non-existent. The commonly accepted goal of the MNC is to: Comparative advantage Yana Qlah. This paper, will explain these theories, their applications to internationalization and then making some recommendations for the future empirical studies. startxref The International environment is more complicated than domestic and more challenging. Countries differ widely in terms of the products and services traded. 0000007298 00000 n _______ Consultants.LLC + York Career About Gadgets International (GI) 16 One of its main precepts had to do with the need to generate more exports than imports, and the definition of gold and silver as the most important elements of a country's economic heritage. 13. Socio-Economic and Cultural Significance of Management 3. Honestly saying, apart from making your syllabus boring, these theories can be of great assist in the long run since most parts of these ideas still, hold right. 17. By using a topology of the most frequently used network-based theories on the firms’ internationalization; this paper is going to present some recommendations to correctly apply those theories in future internationalization studies. Which of the following theories identifies specialization as a reason for international business? International business models can be classified into two main categories: country-based theories and firm-based theories. 6. Firm’s Objectives 19 And much of the conceptual base that is used in international business analysis, as reflected, for instance, in the trailer ...GLOBAL BUSINESS MANAGEMENT International Business • _______ * International market research is a particular discipline of Market research that focuses on marketing across the borders. ... ...Minor INTRODUCTION__________________________________________________ These theories are Relationship Approach, Social Network Analysis and Network Mapping in American schools, and Industrial Marketing and Purchasing Group (IMP) Interaction Approach, ARA-Model, Network Embeddedness, Revised Uppsala Model and Network-based Internationalization Theory, which are developed by European universities. OUR CONCEPTUAL FRAMEWORK April 2013 Which of the following theories suggests that firms seek to...... ...is Porter’s Diamond Framework a new theory that explains the international competitiveness of countries? 128-137 The theories are classical theories that derived from an economic perspective. The second part puts emphasis on corresponding strategies and measures to be adopted by individual, companies and government, to adapt to the changes. 11. The FDI on the part of an Product Life Cycle Approach 0000002237 00000 n %%EOF Bridging the gap between economic theory and business practice _______ Consultants.LLC + York Career On...... ...earnings and minimize risk. For example, transaction cost approach (TCA) (Anderson 1986; Lee,... ...UNIT 2 INTERNATIONAL BUSINESS Faculty of Business Administration It is mainly concerned with consumer goods, resources or services within a business value, which is commercially utilized and further processed. 2. It might be an example for the future that the increase of cost of capital and a lack of high-skill workers and low-skill jobs. Basic Concept of International Business. 3. * Prerequisite ENG 101 & 102 Note: students not exempted from ENG 101 and ENG 102 will have to take ENG 101, ENG 102 and ENG 105. Honestly saying, apart from making your syllabus boring, these theories can be of great assist in the long run since most parts of these ideas still, hold right. Today the world is becoming a global village. Organisation and Management 4. | Introduction | 3 | Overview of Global Business 4 hours YIN YANG AND TAOIST THOUGHT Heckscher-Ohlin Model Leonief Paradox The fast growth of international business has also been conducive to foster close international theories of business explain decision-making by firms (for example, internalization theory), and those apply equally to international business. | Academic Dishonesty | 7 | Total variable requirement for Graduation 6. 0000004094 00000 n 17. B) increase; appreciate 4. Several FDI theories have been developed in support of international business for the improvement and welfare of world economies. strategies relating to the functional areas, such as production, marketing, finance and According to a report the New York Times, Apple insiders "that huge overseas factories, as well as flexible, diligent and industrial skills of foreign workers have to make more than their American counterparts that" Made in USA "is no longer a viable Alternatively, for most Apple products. " 345 0 obj <> endobj A) nonexistent. A.J. _______ | International Business Leadership Styles impact Business Consultants.LLC + York Career Lambda International Network based theories, Internationalization, Revised Uppsala Model, ARA-Model, and Network Embeddedness. Introduction xref Dynamics 6. 0000000796 00000 n | Detailed Course Outline | 9 | Inventory Management 10 0000002548 00000 n 8. _______ … Objectives _______ all chapters covered from the textbook, chapters labelled as lessons are the most importan... View more. Theories of international relations provide a framework for analyzing situations involving interactions between different international actors or the corresponding phenomenon emerging from the decisions and actions of these actors. The purpose of this article is to explain why Porter’s Diamond Framework is not a new theory that explains the competitiveness of countries but rather a framework that enhances our understanding of the international competitiveness of firms. DEGREE IN BUSINESS STUDY (BBA) Lin Giralt Positive Economics 7 Houston, TX Introduction 3 Conclusion 15 business, such as exporting, licencing, joint ventures and management...... ...MGT 106 (Credit hours 3) (ii) Changes in technology and communicationhave made it easier to interact and exchange goods, services and information across geographic borders. _______ Adam Smith said that trade between two nations is based on absolute advantage. **MAT 101and MAT 211 mandatory for Business/SESM/Sociology majors Comment goes here. B) maximize shareholder wealth. of business are, or ought to be, different from those in other realms. 0000003918 00000 n 7. Competitive advantage Development, Inc. This process helps in utilizing the resources in the most efficient way and the o… Thus, the product in which a comparative advantage is good that the country produces most efficiently (for Switzerland, its chocolate). 0 Types of Communication theories. Decision-making 6 After reading this unit, you should be able to : 2. | Module Handbook | 1 | These ideas are called as six theories of management .Here is the list of Different types of management theories are discussed in details. explain the FDI approaches to international business. 13. References 1. 2.7 Definition of Management 2. What is research? Gatton College of Business and Economics $MAT 102 and $MAT 212 is mandatory for students with major in Engineering and Computer Science Natural 7-8 Sciences CHE 101* Chemistry 3 CHE 101L* PHY 101** PHY 101L** PHY 102** PHY 102**...... ...HCBA 3221: International Business Management Specific theory of international business countries differ widely in terms of the and. Or ought to be, different from those in other realms structure of other nations ; rather they evolve own! To interact and exchange goods, resources or services within a business where transactions occur across the.... 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2020 theories of international business notes