《国际商务》查尔斯英文第九版期末复习重点.pdf

C Chapter hapter 1 globalization 1 globalization What is globalization? T The he globalization of markets.globalization of markets. It refers to the merging of historically distinct and separate national markets into one huge global marketplace. The globalization of production The globalization of production It refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production. Factors of production: (1) land, (2) capital, (3) labor, (4) energy Why china losing their position of global factory? (1) Aging population. The population of the china is aging, which leads china to losing their advantage of cheaper labors that resulting the cost of production in china is going higher. (2) Expensive land. The higher cost of land is another reason that leads to China losing its position of global factory. In the early time, it is free for foreign company to use land in China to build up a factory. But it is not free for them anymore. Because of the increasing price of land, many company are moving their factories to other countries. The differences between the International Monetary Fund (IMF) and World Bank （WB）. The IMF was established to maintain order in the international monetary system; the WB was set up to promote economic development. In a short word, the IMF always gives a hand to the countries in crisis, and it often offers the short-term loan. The WB always loan money to country build their infrastructure with long-term loan. Drivers of globalization D Declining eclining trade and investment barrierstrade and investment barriers International trade occurs when a firm exports goods (2) Downward pressure on the wage rates of unskilled workers; (3) Environmental degradation; (4) The cultural imperialism (帝国主义) of global media and multinational enterprise, which was called “culturally impoverished” The differences between managing an international business and managing a purely domestic business (1) Countries are different (2) The range of problems confronted by managers in an international business is wider and the problems themselves (3) An international business must find ways to work within the limits imposed by government intervention in the international trade and invest system; (4) International transactions involve converting money into different currencies Chapter 2 national differences in political economy political economy to stress that the political, economic, and legal systems of a country are interdependent. Political system: mean the system of government in a nation. It can be assessed according to two dimensions The first is the degree to which they emphasize collectivism as opposed to individualism. Collectivism: refers to a political system that stresses the primacy of collective goals over individual goals. Individualism: refers to a philosophy that an individual should have freedom in his or her economic and political pursuit. The second is the degree to which they are democratic or totalitarian. Democracy: refers to a political system in which government is by the people, exercised either directly or through elected representatives. Totalitarianism: is a form of government in which one person or political party exercise absolute control over all sphere of human life and prohibits opposing political parties. Pure market economy: all productive are privately owned, as opposed to being owned by the state. Pure command economy: the government plans the goods and services that country produces, the quantity in which they are produced, and the prices at which they are sold. Legal system Common law: based on tradition, precedent (先例) Civil law: based on a detailed set of laws organized into codes. Theocratic law: the law is based on religious teachings Property rights and corruption Property rights: refers to the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource. Property rights can be violated in two ways through private action and through public action. Private action: refers to theft, piracy （非法翻印） ， blackmail） （勒索） , and the like by private individuals or groups. Public action and corruption: it occurs when public officials, such as politicians and government bureaucrats, extort （敲诈）income, resources, or the property itself from property holders. Chapter 3 political economy and economic development GNI: is regarded as a yardstick for the economic activity of a country; it measures the total annual income received by residents of a nation. The disadvantage of GNI: GNI per person figures can be misleading because they dont consider difference in the cost of living. To account for the difference in the cost of living, the purchasing power parity(PPP) is referred. It for different countries is then adjusted (up or down) depending upon whether the cost of living is lower or higher than the USA. Human Development Index(HDI): a tool to measure the quality of human life in different countries, which is based on three measures: (1). Life expectancy at birth (a function of health care); (2). Educational attainment (measured by a combination of the adult literacy rate and enrollment in primary, secondary, and tertiary education); (3). Whether the average income, based on PPP estimates, are sufficient to meet the basic needs of life in a country (adequate food, shelter, and health care). Innovation and entrepreneurship are the engines of growth Innovation: new products, new processes, new organization, new management practices, and new strategies. Furthermore, innovations in production and business processes lead to an increase in the productivity of labor and capital, which further boosts economic growth rates. Entrepreneurs first commercialize innovative new products and processes, and entrepreneurial activity provides much of the dynamism(活力) in an economy. The factors that innovations and entrepreneurship need: 1. Market economy; 2. Strong property rights; 3. Democratic political system; 4. Geography(地理), education, and economic development. States in transition The political economy of many of the worlds nation-states has changed radically since the late 1980s. two trend have been evident: First, a wave of democratic revolutions swept the world; Second, there has been a strong move away from centrally planned and mixed economies and toward a more free market economic model. The spread of democracyThe spread of democracy Three main reasons account for the spread of democracy: First, many totalitarian regimes failed to deliver economic progress to the vast bulk of their populations. Second, new information and communication technologies, including satellite television, internet have reduced a states ability to control access to uncensored(未经审查的) information. Third, in many countries the economic advances of the past quarter century have led to the emergence of increasingly prosperous middle and working classes who have pushed for democratic reforms. The nature of economic transformationThe nature of economic transformation The shift toward a market-based economic system often entails a number of steps: 1. Deregulation; 2. Privatization; 3. Creation of a legal system to safeguard property rights. I Implicatmplicati ions ons of of changing political economy (for managers)changing political economy (for managers) Benefits 1. Size of economy; 2. Likely economic growth； 3. First-mover advantages: advantages that accrue to early entrants into a market; 4. Late-mover disadvantages are the handicaps that late entrants might suffer. costs 1. Corruption(贪污、腐败)； 2. Lack of infrastructure; 3. Legal costs. risks 1. Political risks: social unrest/ anti-business trends; 2. Economic risks: economic mismanagement; 3. Legal risks: failure to safeguard Property Rights. Chapter 4 difference in culture What is culture?What is culture? Complex whole which includes knowledge, belief, art, morals, law, custom, and other capabilities acquired by man as a member of society. Values: Abstract ideas about what a group believes to be good, right, and desirable. Norms: The social rules and guidelines that prescribe appropriate behavior in particular situations. Norms can be subdivided further into two major categories: folkways and mores. Folkways are the routine conventions of everyday life, which includes rituals(礼仪) and symbolic behavior. More are norms that are seen as central to the functioning of a society and to its social life. Society: A group of people who share a common set of values and norms. The cultural norms and value system includes: 1. Religion; 2. Political philosophy; 3. Economic philosophy; 4. Education; 5. Language; 6. Social structure S Social ocial structure structure Social structure refers to its basic organization, which can expend into two dimensions: First, the degree to which the basic unit of social organization is the individual, as opposed to the group. Second, the degree to which a society is stratified into classes or castes(等级)。 Individual and groups A group is an association of two or more individuals who have a shared sense of identity and who interact with each other in structured ways on the basis of a common set of expectations about each others behavior. AD Disadvantage: 1. The lack of loyalty and commitment to an individual company; 2. Difficult to build teams within an organization to perform collective tasks, which raise the costs of doing business. AD and disadvantage of group: AD: 1. Creates a strong incentive for individual members of the group to work together for the common good. 2. Help managers and embers to perform their jobs effectively and achieve cooperation with others. Disadvantage: 1. Discourage managers and members from moving from company to company; 2. Lack of dynamism(活力) and entrepreneurship. S Social ocial stratificationstratification Social strata typically defined on the basis of characteristics such as family background, occupation, and income. Although all societies are stratified to some degree, they differ in two related ways: First, they differ from each other with regard to the degree of mobility between social strata; Second, they differ with regard to the significance attached to social strata in business contexts. Social mobility：the extent to which individuals can move out of the strata into which they are born. Class consciousness: a condition where people tend to perceive themselves in terms of their class background, and this shapes their relationships with members of other classes. Which religious and ethical system are benefit for the development of economy? Why? Around the world, the religion and ethical system that are benefit for the development of economy is the Protestantism and Confucianism. Because the Protestantism emphasize on the frugality(节俭) and hard work and wealth creation. So the follower of the Protestantism will work to create wealth, but they also focus on frugality which are the pusher of economic growth. As for the Confucianism, its central values are loyalty, reciprocal(相 互的) obligations, and honesty in dealing with others. All the rules will improve the dealing environment and stimulate the growth of economy. Hofstedes dimensions of culture:Hofstedes dimensions of culture: 1. Power distance; 2. Individualism versus collectivism; 3. Uncertainty avoidance; 4. Masculinity versus femininity; Ethnocentrism: is a belief in the superiority of ones own ethnic group or culture. Chapter 8 foreign direct investment(FDI) Two main forms of FDI: 1. Greenfield investment: which involves the establishment of new operation in a foreign country. 2. Second involves acquiring or merging with an existing firm in the foreign country. A Acquisition cquisition VS greenfield investmentVS greenfield investment The AD of acquisition: 1. Quicker to execute than greenfield investment; 2. Foreign firms are acquired because those firms have valuable strategic assets ： brand loyalty, customer relationship, trademarks or patents, distribution system, production systems, and the like. 3. The home firms believe they can increase the efficiency of the acquired unit by transferring capital, technology, or management skills. Benefit of greenfield investment: 1. First-mover advantage; 2. Bigger market; 3. Tight control; 4. Avoid cultural confliction or some indeed need adjustment in the operational structure. WWhy hy foreign direct investment?foreign direct investment? The limitations of exporting： 1. Transportation costs; 2. Trade barriers; The limitations of licensing: 1. May give away valuable technological know-how to a potential competitor; 2. Does not give a firm tight control over manufacturing, marketing, and strategy in a foreign company that may be required to maximize it profitability; 3. The competitive advantage are often not able to licensing. S Some theory ome theory about FDI:about FDI: 1. Oligopoly: an industry composed of a limit number of large firms; 2. Multipoint competition: two or more competitors encounter each other in different regional markets, national markets; 3. The product life cycle; 4. The eclectic(折中) paradigm(理论)： 1. Location-specific advantages: the advantages that arise from utilizing resource endowments(资源禀赋) or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets; Benefits and costs of FDIBenefits and costs of FDI Host-country benefits 1. Resource-transfer effects: FDI makes a positive contribution to a host economy by supplying capital, technology, and management resources; 2. Employment effects: FDI brings jobs to host country; 3. Balance-of-payments effects: Balance-of-payments accounts: track both its payment to and its receipts from other countries; Current account: tracks the export and import of goods and services; 1. The FDI is substitute for imports of goods and services, the effect can be to improve the current account of the host countrys balance of payments; 2. Inward FDI by foreign firms has been a major driver of export-led economic growth in a number of developing and developed nations. 4.effect on competition and economic growth It will provide better services, such as telecommunications, retailing etc. Host-country costs 1. Adverse effect on competition The foreign firms may have greater economic power than local firms, and the foreign firms may acquire more and more competitors, which will reduce the level of competition in that market that create monopoly power for the foreign firms, reduce customers choice, and raise price. 2. Adverse effects on the balance of payment 1. The initial inflow FDI must be subsequent outflow of earnings from foreign subsidiary to its parent companies; 2. The foreign firms import its inputs from abroad greatly, which will debit the host-countrys current account balance of payment. 3.national sovereignty and autonomy Some countries worry that FDI is accompanied by loss of economic independence. H Homeome- -country benefitscountry benefits 1. The home-countrys balance of payment will benefit from the inflow of foreign earnings; 2. Employment effect: the foreign subsidiary will create demand for home-country exports; 3. Home-country MNE learns valuable skills from its subsidiary and transfer its back to parent companies. H Homeome- -country costscountry costs 1. The balance of payment will suffer from the initial capital outflow required to finance; 2. The current account of the balance of payment suffers if its purpose of the foreign investment is to serve home market from a low-cost production location; 3. The current account of the balance of payment suffers if the FDI is a substitute for direct exports. Chapter9 regional economic integration L Levels evels of economic integrationof economic integration 1. Free trade area(FTA): all barrier to the trade of goods and serves among member countries are removed; 2. Customs union: eliminates the trade barriers between member countries and adopts a common external trade policy; 3. Common market: has no trade barriers to trade between member countries, includes a common external trade policy, and allows the production factors to move freely between members; 4. Economic union: free flow of products and factors of production between member countries, and the adoption of a common external trade policy, but it also requires a common currency, harmonization(和谐、统一) of members tax rate, and a common monetary and fascial policy. 5. Political union: a central apparatus(机构) coordinates the economic, social, and foreign policy of the member states. Chapter13 the strategy of international business Strategy: the actions that managers take to attain the goals of the firm. Profitability: the rate of return that the firm makes on its invested capital（ROCE） 。 S Strategytrategy and the firmand the firm V Value alue creationcreation S Strategic trategic positioni