Premium Essay

International Business

In: Business and Management

Submitted By 44444
Words 350
Pages 2
Section A:

1) What is international business? What are the primary reasons that companies engage in international business?

Answer: International business is a term used to collectively describe all commercial transactions private, governmental, sales, investments, exports and imports in and out of the country to any other country around the world. 1- To diversify sources of sales and supplies. 2- To acquire resources. 3- To minimize competitive risk. 4- To expand sales.

2) In a short essay, identify and explain three competitive factors that influence international businesses.
Answer: Consumers know about and want foreign goods and services, governments are removing international business restrictions, Competition has become more global.

Section B:

1) What is the difference between a monochronic and polychronic culture? How do such cultural differences affect business practices for international firms?

Answer: Monochronic cultures like to do just one thing at a time. They value a certain orderliness and sense of there being an appropriate time and place for everything. They do not value interruptions. They like to concentrate on the job at hand and take time commitments very seriously.

Polychronic cultures like to do multiple things at the same time. A manager's office in a polychronic culture typically has an open door, a ringing phone and a meeting all going on at the same time.

2) What is the difference between a polycentric, ethnocentric, and geocentric approach to international management? What key factors should a firm consider before adopting one of these approaches?

Answer: Polycentric approach to international management is the policy involved hiring and promoting employees who are citizens of the country that host and operates the company.
Ethnocentric approach is best used when teams from a certain home country...

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