13 Jan International
- International trade is the concept of exchange between people or entities in different countries. Theories which are referred to as modern are firm-, or company-, based. Mercantilism was one of the earliest efforts to develop an economic theory. The belief is that trade generates wealth and is stimulated by the accumulation if profitable balances, which a government should encourage by means of protectionism. What is wrong with this theory in today’s world of Business? Are there better forms of trade?
- Using Porter’s four determinants of competitive advantage, describe how a business may use the trade theories to develop its business strategies.
- Why is it important to understand political and legal factors of countries that you want to deal with when trading Internationally?
- What are three factors that impact a company’s decision to invest in a country? What is the difference between vertical and horizontal FDI? Give one example of an industry for each type. How can governments encourage or discourage FDI?
- Identify at least two ways culture can impact a Business. Be specific and PROVIDE EXAMPLES. Explain some of the challenges that could materialize (i.e. decision -making, negotiating, etc.) and generate some ideas on how you would help to resolve the problem in specific ways.
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