Business And Organization: questions and answers Essay

1. Distinguish between an absolute reward and a comparative degree good. Cite an example of a country that has an absolute advantage and one with a comparative advantage.Absolute advantage is when a monopoly exists in a country when it is the only source and product of an item. Meanwhile, a comparative advantage is when a country can supply products more expeditiously and at a lower cost than it can produce new(prenominal) items. South Africa has an absolute advantage because of its diamonds. The United States has a comparative advantage because of the many products we produce.3. What effect does devaluation have on a nations up-to-dateness? Can you think of a country that has devaluated or revaluated its currency? What have been the military issues?Devaluation decreases the value of currency in relation to other currencies. Mexico is a country that has devalued their currency. The result of this is to make things less(prenominal) expensive.4. How do governmental issues affect worldwide cable?Political issues affect planetary worry by it helps to sell products overseas.5. What is an moment tariff? A quota? Dumping? How efficacy a country use import tariffs and quotas to control its balance of vocation and payments? Why can dumping result in the imposition of tariffs and quotas?An import tariff is a tax made by the nation on goods imported into the country. A quota limits the amount of products that can be imported into a country. Dumping is a country selling products at less than what it cost to produce them. A country uses import tariffs to protect domestic products by raising the price of imported ones. A country uses quotas by unforced agreement or by government decree. Dumping can result in the imposition of tariffs and quotas because it permits quick entry into the market or a tights product is too depressed to have a certain level of production.6. How do social and cultural differences create barriers to international trade? Can you think of any additional social or cultural barriers (other than those mentioned in this chapter) that cogency inhibit internationalbusiness? friendly and cultural differences create barriers to international trade by cultural differences in spoken and written languages are divergent. A certain phrase in America can be defined as something very different and sometimes inappropriate in another culture. Body languages and personal topographic point are also an affect. These differences can cause misunderstandings or uncomfortable feelings toward a specific business. Another cultural barrier may be a certain religion and something that person believes in. A business may be mocking a religion without knowing anything about it.8. At what levels might a firm get involved in international business? What level requires the least commitment of resources? What level requires the just about?A firm might get involved in international business at many levels, it depends on the commitment and effort a certain phoner decides to involve itself in international trade. The least commitment of resources is a small political party on the level of less than 100 employees. The level which requires the most is a large company with more than 500 employees.9. liken and counterpoint licensing, franchising, contract manufacturing, and outsourcing.Licensing is a trade arrangement in which on company allows another to use its companys name, products, patents, brands, trademarks, raw materials, and many others in exchange for a fee or royalty. Franchising is a form of licensing in which a company agrees to provide their name, logo, methods of operation, advertising, products, and other elements in return for a financial commitment and the agreement to conduct business in compliance with the original standard of operations.Contract manufacturing is when a company hires a contrasted company to produce a specified amount of the firms product to specification. Outsourcing is transferring ma nufacturing or other tasks to companies in countries where labor and supplies are less expensive. All of these ideas are similar in the air it helps businesses expand their have into more areas of their own countries or in foreign countries as well.10. Compare multinational and global strategies. Which is best? Under what circumstances might apiece be used?Multinational strategies are plans used byinternational companies that involve customizing products, promotion, and distribution according to cultural, technological, regional, and national differences. Global strategies involve standardizing products for the satisfying world. The best is global strategies because it helps the world recognize different cultures and understand the way one culture believes to another. A global strategy is used by American clothing, movies, music, and cosmetics. A Multinational strategy is used by celebrities cosmos advertised in one country but cant be advertised in another because of the unfam iliarity.Book Business system of rules and Management