GMS 724 Study Guide - Final Guide: Niche Market
11 Nov 2018
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Chapter 1 - Why International Business Differs from Domestic
Business- Part 2
Behavioural Factors
• The related disciplines of anthropology, psychology, and sociology can help
managers better understand different values, attitudes, and beliefs
o In turn, such understanding can help managers make operational
decisions abroad
• Although professional sports are spreading internationally, the popularity of
specific sports differs among countries
o Interestingly, these differences affect the way the U.S. film industry treats
sports as subject matter
o As a rule, U.S. producers spare no expense to ensure that movies
generate the greatest possible international appeal (and revenue)
o When it comes to sports-themed movies, however, they typically cut costs
o Why? Because people in one country are usually lukewarm about other
countries' sports, and moviemakers see little point in spending extra
money trying to attract foreign audiences and revenues with these films
• We should also point out that sports rules sometimes differ among countries
o The Japanese do care about U.S. baseball, but Japanese culture values
harmony more than U.S. culture does, whereas U.S. culture values
competitiveness more than the Japanese do
o This is reflected in different baseball rules: A game in the United States
continues until there is a winner, while Japanese are content with a tie if
neither team is ahead after 12 innings
Economic Forces
• Economics explains why countries exchange goods and services, why capital
and people travel among countries in the course of business, and why one
country's currency has a certain value compared to another's
o The percentage of non- U.S.-born players on major-league rosters has
been increasing
• Economics also helps explain why some countries can produce goods and
services for less
o Economics provides the analytical tools to determine the impact of an
international company's operations on the economies of both host and
home countries, as well as the impact of the host country's economic
environment on a foreign firm
The Competitive Environment
• In addition to its physical and social environments, every globally active company
operates within a competitive environment
Document Summary
Chapter 1 - why international business differs from domestic. Behavioural factors: the related disciplines of anthropology, psychology, and sociology can help managers better understand different values, attitudes, and beliefs. In turn, such understanding can help managers make operational decisions abroad: although professional sports are spreading internationally, the popularity of specific sports differs among countries. In addition to its physical and social environments, every globally active company operates within a competitive environment: the key competitive factors in the external environment of an international business: product strategy, resource base and experience, and competitor capability. Company resources and experience: other competitive factors are a company"s size and resources compared to those of its competitors, a market leader, for example---say, coca-cola---has resources for much more ambitious international operations than a smaller competitor like. Royal crown: royal crown sells in about 60 countries, coca-cola in more than 200.
