IBUS 3510 Lecture Notes - Lecture 1: Newly Industrialized Country, New Development Bank, Absolute Advantage
3 May 2017
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In most cases you cannot increase the price or you will lose market share, thus decreasing the price is the main goal. Exam q what are two drivers of globalization: reduce trade barriers, technological advancements. Multiplier effect government spending can actually increase gdp. Experience curve effect (repetition leads to efficiency) Compare & contrast: ethnocentric approach manager hired from domestic country, polycentric approach hires local nationals in host country, the best candidate is hired regardless of nationality. Third (cid:272)ou(cid:374)try = a(cid:374)y other that is(cid:374)"t ho(cid:373)e or host. Cultural myopia- failure to see/understand other counties cultures. Global institutions- why do we need them and what are their main functions: (moodle) Wto goals- ex) to reduce usa agricultural subsidy. Overall goal is to reduce barriers and make sure rules are followed. Know arguments for and against trade- ex) domestic producers lose, while domestic consumers gain. Samulesons critic- min wage in developed countries is going down.
