MGTA01H3 Chapter : Chapter no. 5

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15 Apr 2011

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MGTA01H3 Full Course Notes

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Several forces have combined to spark and sustain globalization: Governments and business see the benefits of exploiting the global market. Competitive pressures: firm must enter foreign markets to keep up with competitors. Three major markets: north america, europe (west+east), asia-pacific. Countries are divided based on their per capita income: high-income (>10065), upper-middle income (3255-10065), low-middle income (825-3255), low-income (<825). Asean (association of southeast asian nations): thailand, vietnam, philippines, singapore, malaysia, No country can produce all the goods and services that its people need. Thus, they require import and export to acquire and trade goods efficiently. Absolute advantage: things that nation makes and sell because others can"t due to natural or industrial handicap. Comparative advantage: things that a nation makes and sells because they choose to due to better efficiency. National competitive advantage: a country will be inclined to engage in international trade when factor of production conditions, demand conditions, related and supporting industries (strength), and strategies,/structure/rivalries are favourable.

Related Questions

35) An economic system will occasionally choose to concentrate its factors of production on producing some products rather than others. Through concentration and specialisation, it can make the chosen products better or more cheaply than other countries can. This is known as: a) b) trade specialisation economic concentration absolute advantage comparative advantage

12) Perfectly competitive markets exist when a) b) there is no particular advantage to being a large supplier capital investment allows one supplier to satisfy much of the market customers demand national brands the government eliminates incentives for private profits d)

The two biggest drawbacks or disadvantages of unrelated diversification are

A)underemphasizing the importance of resource fit and the strong likelihood of diversifying into businesses that top management does not know all that much about.

B)insufficient cash flows to finance so many different lines of business and a lack of uniformity among the strategies of the businesses it has diversified into.

C)volatile sales and profits and making the mistake of diversifying into too many cash cow businesses.

D)the difficulties of competently managing many different businesses and being without the added source of competitive advantage that cross-business strategic fit provides.

E)over-investing in the achievement of economies of scope and the difficulties of achieving a good mix of cash cow and cash hog businesses.