ADMN 417 Study Guide - Spring 2018, Comprehensive Midterm Notes - Canada, International, Free Trade
12 Oct 2018
School
Department
Course
Professor
ADMN 417
MIDTERM EXAM
STUDY GUIDE
Fall 2018
ADMN 417 Review Questions
Unit 1 – Macro-level Influences on International Business
Lesson 1 – Chapter 1 – Globalization
1. Why do firms engage in international business?
Firms engage in international business for a variety of economic and non-economic
reasons:
• expansion of sales
• acquisition of resources
• diversification of customer base and suppliers
• reduction of competitive risk
• personal ambitions or philosophy of founder(s)
• successful business models
• “follow-the-herd” corporate mentality
2. What factors have contributed to the recent expansion of international business activity
worldwide?
The following factors support the recent growth of international business:
• expansion of technology
• liberalization of cross-border trade, workers, and capital development of service
infrastructure
• increase in global competition
• collapse and rise of nation-states
• increased focus on international business by inward-looking political and
economic ideologies
• international experience of corporate executives
3. Identify five conditions that promote the internationalization of firms.
The five conditions that promote a firm’s internationalization are:
• active drive toward expansion
• internal handling of international operations
• extensive functional activity abroad
• large number of countries in which the firm conducts business
• similarities between domestic and international markets.
4. List some factors that retard international business.
The following factors retard international business:
• rivalry among countries
• cross-national treaties
• ethical dilemmas
• socio-political, cultural, and economic differences
• stakeholder activism
find more resources at oneclass.com
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5. Name any five countries in each of the following regions:
a. Africa: Libya, Egypt, Chad, Namibia, Mozambique
b. Asia: Iran, Iraq, China, Russia, Japan
c. Europe: France, Luxemburg, Germany, England, Switzerland
d. North America: Canada, U.S.A., Mexico, Cuba, Nicaragua
e. Oceania: Australia, New Guinea, New Zealand, Fiji, Solomon Islands
f. South America: Chile, Venezuela, Brazil, Argentina, Ecuador
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Unit 1 macro-level influences on international business. Firms engage in international business for a variety of economic and non-economic reasons: expansion of sales, acquisition of resources, diversification of customer base and suppliers, personal ambitions or philosophy of founder(s) successful business models. Identify five conditions that promote the internationalization of firms. Chapter 1: globalization: definition: the growing interdependence of countries and people and businesses around the global or trend toward greater economic, cultural, political, and technological interdependence among nations. International business (crosses 2 or more borders) involves us all, made in china clock, Reputational risk: ethical and lawful behavior from all employees: 1. globalization drivers: falling barriers. Identify the two forces causing globalization to increase. Gatt: general agreement on tariffs and trade, promoted free trade by reducing tariffs: early success tariffs down 35%, then problem with services left out and non-tariff barriers. Imf: international monetary fund; regulate fixed exchange rates. Wto: world trade organization, free flow trade, open new markets: 2.
