IBUS 410- Midterm Review

Globalization * Definition: interdependent, integrate * Production- factors of production- land labor capital * Endowment theory * Lower overall cost * Markets- merging markets * Economies of scale * Institutions * Drivers- decline in barriers, tech changes * Implications: * Lower barriers: optimal location * Tech changes: lower costs * 4 trends in changing demographics * MNE- types of companies involved * Democratic politics, free market economies

The World Is: * Prusak- distinguish information from knowledge (difference) * IMPORTANT- the issue of access to info- but no knowledge * Ghemawat- 10% presumption, factors of time zones, languages, proximity shows that distance does matter, the world isn’t flat

Opportunities & Challenges of globalization for managers * Differences of managing international vs. domestic * Boeing: benefits of globalization maximize efficiency of production but actually caused problems; lack of planning, communication, not simple for this industry (knowledge intensive industry) better for in house

Localization * Standardization is ending, consumers are diverse- customization for local * Data analysis & innovation * Centralized vs localized * SWOT analysis

National Differences * Political economy- system of gov. Political, economic & legal influence each other. Collective vs individualism * Economic system- three types: market command, mixed * Legal system- rules that regulate behavior, three types

- CAGE framework & implications to managers
- The world is spiky

* Culture- definition, implications of differences, social culture in work place * Values, norms * Determinants of culture (6) * Hofestede dimensions: power distance,