STUDY GUIDE - EXAM 1
STUDY GUIDE - EXAM 1 BUSN 3304
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This 4 page Study Guide was uploaded by Eva Garza on Sunday September 27, 2015. The Study Guide belongs to BUSN 3304 at University of Texas at El Paso taught by Dr. Laird R. Smith in Fall 2015. Since its upload, it has received 114 views. For similar materials see Global Business Environment in Business at University of Texas at El Paso.
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Date Created: 09/27/15
CHAPTER 1 Emerging Economies BRIC Brazil Russia India and China Sometimes BRICS Brazil Russia India China and South Africa Triad North America Western Europe and Japan Group of 20 Argentina Australia Brazil Canada China France Germany India Indonesia Italy Japan South Korea Mexico Russia Saudi Arabia South Africa Turkey United Kingdom and The European Union One fundamental question and two core perspectives in the study of global business Question What determines the success and failure of rms around the globe First Core Perspective An InstitutionBased View An institutionbased view suggests that the success and failure of rms are enabled and constrained by institutions By institutions we mean structures that de ne the rules of the game Doing business around the globe requires intimate knowledge about both formal rules such as laws and informal rules such as values that govern competition in various countries 1 Institutional framework or the formal and informal institutions that govern individual and rm behavior in that country 2 Formal institutions or formal rules of the game include laws and regulations 3 Informal institutions or informal rules of the game include cultures ethics and norms Second Core Perspective A ResourceBased View The institutionbased view suggests that the success and failure of rms around the globe are largely determined by their environments Three Views on Globalization A new force in recent times A longrunning historical evolution A pendulum swinging between extremes CHAPTER 2 Explain the concept of institutions and their key role in reducing uncertainty Institutions formal and informal policies popularly known as quotthe rules of the gamequot 0 Key role To reduce uncertainty by in uencing individuals and rms decision making by signaling which conduct is legitimate and acceptable and which is not 0 Two core propositions underpinning an institutionbased view of global business 1 Managers and rms rationally pursue their interests and make choices within the formal and informal constraints in a given institutional framework In situations where formal constraints are unclear or fail informal contraints will play a larger role in reducing uncertainty and providing constancy to mgrs and rms 0 Basic differences between democracy and totalitarianism plus the four versions of totalitarianism 1 2 Democracy people elect leadersto govern Totalitarianism dictatorship one person has power Totalitarianism Communist centers on a communist party Cuba North Korea China Rightwing intense hatred of communism one party backed by the military restricts political freedom arguing that such freedom would lead to communism South Korea Philippines Taiwan all now democracies Theocratic the monopolization of political power in the hands of one religious party or group lran Saudi Arabia Tribal one tribe or ethnic group monopolizing power and oppressing other tribes or ethinic groups Rwanda 0 Differences in Civil Law Common Law and Theocratic Law Systems 0 Legal system rules of the game on how a country s laws are enacted and enforced Civil law derived from Roman law and strengthened by Napoleon s France it is the oldest most in uential and most widely distributed law around the world 0 Common law shaped by precedents and traditions English in origin based on previous judicial decisions 0 Theocratic law based on religious teachings 0 Importance of property rights and intellectual property rights 0 Intellectual property intangible property that results from intellectual activity such as books videos and websites 0 Intellectual property rights rights associated with the ownership of intellectual property Property rights are very important because they protect the rights of businesses and their products and intellectual rights 0 Differences Market Economy Command Economy and Mixed Economy 0 Market economy characterized by the quotinvisible handquot of market forces 0 Command economy all factors of production are government or stateowned and controlled and all supply demand and pricing are planned by the government 0 Mixed economy characterized by elements of both a market economy and a command economy CHAPTER 3 0 De ne what culture is and articulate its four main manifestations Culture The collective programming of the mind distinguishing the members of one group or category of people from others 0 Language English is the dominant language in global business 0 Religion Shared set of beliefs and ideas that cannot be proven but are expected to explain natural and human things 0 Social Structure The hierarchical arrangement of individuals into social categories strata such as classes castes or divisions within a society 0 Education Can be used to maintain a social strati cation or to break down social barriers Ethnocentrism To perceive one s own culture ethics and normas as natural rational and morally right Lingua Franca A global business language the preferred language in business transactions is english
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