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Chaper1: Introduction (7 (7.2 Ways to Shape Ethical Decisions (Utilitarian…

- - - - helps you take stock of an organization’s internal characteristics—its strengths and weaknesses—to formulate an action plan that builds on what it does well while overcoming or working around weaknesses
      - Similarly, the external part of SWOT—the opportunities and threats—helps you assess those environmental conditions that favor or threaten the organization’s strategy
      - understanding of a company’s SWOT will help you better assess how international business factors should be accounted for in the firm’s strategy
- - - - Example some companies have three-part mission statement, one is Social and Environmental, another isProduct mission, and a third is Economic mission
    - - Importer: A person or organization that sells products and services that are sourced from other countries.
      - Exporter: A person or organization that sells products and services in foreign countries that are sourced from the home country.
      - Beyond importing and exporting, some organizations maintain offices in other countries; this forms the basis for their level of foreign direct investment.
      - Foreign direct investment: The investment of foreign assets into domestic structures, equipment, and organizations.
      - In some cases, these foreign offices are carbon copies of the parent firm; that is, they have all the value creation and support activities, just in a different country. In other cases, the foreign operations are focused on a small subset of activities tailored to the local market
- - - - Many people consider globalization a modern phenomenon, but according to Friedman, this is its third stage.
      - Globalization 1.0 - Columbus’s discovery of the New World and ran from 1492 to about 1800.
      - Globalization 2.0 - From about 1800 to 2000, was disrupted by the Great Depression and both World Wars and was largely shaped by the emerging power of huge, multinational corporations.
      - Globalization 3.0 - Major software advances have allowed an unprecedented number of people worldwide to work together with unlimited potential.
  - - - Culture. Generally, cultural differences between two countries reduce their economic exchange.
        Culture refers to a people’s norms, common beliefs, and practices. Cultural distance refers to differences based in language, norms, national or ethnic identity, levels of trust, tolerance, respect for entrepreneurship and social networks, or other country-specific qualities.
      - Administration. administratively similar countries trade much more with each other. Administrative distance refers to historical governmental ties, such as those between India and the United Kingdom. This makes sense; they have the same sorts of laws, regulations, institutions, and policies
      - Geography. This is perhaps the most obvious difference between countries. You can see that the market for a product in Los Angeles is separated from the market for that same product in Singapore by thousands of miles. Generally, as distance goes up, trade goes down.
      - Economics. Economic distance refers to differences in demographic and socioeconomic conditions. The most obvious economic difference between countries is size .
      - Note1: when CAGE differences are small, there will likely be a greater opportunity to see business being conducted across borders.
      - Note2: CAGE analysis also requires examining an organization’s particular industry and products in each of these areas
      - Example
        
        culture, how culturally sensitive the products are.
        
        administration, whether other countries coddle certain industries or support “national champions.”
        
        geography, consider whether products will survive in a different climate.
        
        economics, such issues as the effect of per capita income on demand.