INTB 1203 EXAMINERS SET ANSWERS AND
QUESTIONS SET A+
✔✔2 dimensions political systems can be assessed - ✔✔1. collectivism vs.
individualism
2. democratic vs. totalitarian
✔✔T/F: it is possible to have a democratic society that emphasizes a mix of collectivism
and individualism - ✔✔True
✔✔T/F: there is a global trend of societies shifting from individualism toward collectivism
- ✔✔False
✔✔Mixed economy - ✔✔combines aspects of command and market economies
✔✔3 main types of legal systems around the world - ✔✔1. Common law
2. Civil law
3. Theocratic law
✔✔often forms the basis of a firm's comparative advantage - ✔✔Intellectual property
✔✔World's triad of innovation and scientific research - ✔✔Europe, North America,
Japan (world is spikey)
✔✔Overall Attractiveness: Costs - ✔✔corruption
lack of infrastructure
legal costs
✔✔Overall Attractiveness: Benefits - ✔✔size of economy
likely economic growth
✔✔Overall attractiveness: Risks - ✔✔social unrest
economic mismanagement
, failure to safeguard property rights
✔✔MDMP: Individualism - ✔✔reliance on reason and reasoning, personal survival and
self-preservation
✔✔MDMP: Altruism - ✔✔focus on the overall well being of society (Ghandi)
✔✔MDMP: Pragmatism - ✔✔focus on the circumstantial specifics & potential outcomes
(may sacrifice principles to produce results) (pinto case)
✔✔MDMP: Idealism - ✔✔life is governed by regulations & values (Luke skywalker)
✔✔Theodore Levitt - ✔✔preferences are becoming globalized, firms should push
products that appease the global market vs. individual markets
✔✔The World isn't Flat (Ghemawat)
(Distance Still Matters) - ✔✔the hurdles to globalization, (geography, culture
differences, home bias, nationalism, sovereignty) are stronger than mainstream opinion
formerly believed
✔✔2 primary drivers of interdependent WORLD ECONOMY - ✔✔1. Markets
2. Production
✔✔C.A.G.E. (Ghemawat)
Distance still matters - ✔✔1. Cultural Distance
-different religion, norms, values
-(hard for TV, foods, cars, electrical appliances, wines)
2. Admin Distance
-no shared monetary system, institutional weakness
-( hard for electricity, drugs, farming, aerospace, oil, mining)
3. Geographic Distance
-physical remoteness, size of country, differences in climates
-(hard for cement, glass, fruit, financial services)
4. Economic Distance
-difference in natural resources, human resources, infrastructure
(hard for cars, garments, insurance, home appliances)
✔✔ Globalization - ✔✔trend away from distinct natural economic units and toward one
huge global market
QUESTIONS SET A+
✔✔2 dimensions political systems can be assessed - ✔✔1. collectivism vs.
individualism
2. democratic vs. totalitarian
✔✔T/F: it is possible to have a democratic society that emphasizes a mix of collectivism
and individualism - ✔✔True
✔✔T/F: there is a global trend of societies shifting from individualism toward collectivism
- ✔✔False
✔✔Mixed economy - ✔✔combines aspects of command and market economies
✔✔3 main types of legal systems around the world - ✔✔1. Common law
2. Civil law
3. Theocratic law
✔✔often forms the basis of a firm's comparative advantage - ✔✔Intellectual property
✔✔World's triad of innovation and scientific research - ✔✔Europe, North America,
Japan (world is spikey)
✔✔Overall Attractiveness: Costs - ✔✔corruption
lack of infrastructure
legal costs
✔✔Overall Attractiveness: Benefits - ✔✔size of economy
likely economic growth
✔✔Overall attractiveness: Risks - ✔✔social unrest
economic mismanagement
, failure to safeguard property rights
✔✔MDMP: Individualism - ✔✔reliance on reason and reasoning, personal survival and
self-preservation
✔✔MDMP: Altruism - ✔✔focus on the overall well being of society (Ghandi)
✔✔MDMP: Pragmatism - ✔✔focus on the circumstantial specifics & potential outcomes
(may sacrifice principles to produce results) (pinto case)
✔✔MDMP: Idealism - ✔✔life is governed by regulations & values (Luke skywalker)
✔✔Theodore Levitt - ✔✔preferences are becoming globalized, firms should push
products that appease the global market vs. individual markets
✔✔The World isn't Flat (Ghemawat)
(Distance Still Matters) - ✔✔the hurdles to globalization, (geography, culture
differences, home bias, nationalism, sovereignty) are stronger than mainstream opinion
formerly believed
✔✔2 primary drivers of interdependent WORLD ECONOMY - ✔✔1. Markets
2. Production
✔✔C.A.G.E. (Ghemawat)
Distance still matters - ✔✔1. Cultural Distance
-different religion, norms, values
-(hard for TV, foods, cars, electrical appliances, wines)
2. Admin Distance
-no shared monetary system, institutional weakness
-( hard for electricity, drugs, farming, aerospace, oil, mining)
3. Geographic Distance
-physical remoteness, size of country, differences in climates
-(hard for cement, glass, fruit, financial services)
4. Economic Distance
-difference in natural resources, human resources, infrastructure
(hard for cars, garments, insurance, home appliances)
✔✔ Globalization - ✔✔trend away from distinct natural economic units and toward one
huge global market
