Studysheet #2
NOTE: Underlined items on this page are hotlinked to web sites via the Web version of this Studysheet on the instructor’Äôs webpage
SOCIOCULTURAL ENVIRONMENT
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culture shock ethnocentrism high-context vs. low-context cultures Hofstede’Äôs cultural dimensions |
questionable payments conflict of interest |
l. List some prevalent American (U.S.) values, attitudes, beliefs and behavior? How can these influence crossborder
business dealings?
INTERNATIONAL LEGAL ENVIRONMENT
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legal systems political systems extraterritorial enforcement of law bilateral commercial treaties national treatment sovereign immunity expropriation political risk nationalism intellectual property rights |
International Chamber of Commerce (Paris) arbitration clause jurisdiction clause performance requirements for FDI investment climate indicators MNC codes of conduct |
2. What major legal issues pertain to doing business across borders? Describe the international legal framework for
(a) protection of intellectual property, (b) resolution of business disputes, (c) questionable payments
3. From the viewpoint of a host country, discuss the benefits and costs of inward foreign direct investment?
4. What major country/region factors should a company consider when deciding whether and where to expand abroad?
5. List/discuss sources and effects of political risk. How can companies reduce their exposure to political risk?
MODES OF OPERATING ABROAD
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licensing agreement technical aid agreement franchising management contract contract manufacturing turnkey project co-production agreement |
direct investment joint venture consortium strategic alliance branch subsidiary |
6. Distinguish from among alternative modes (forms) of international business; what factors can influence choosing
from among them? Explain.
EXPORTING
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agent and merchant intermediaries export management company (EMC) general trading company U.S. Export-Import Bank (Eximbank) credit risk Vienna Convention (CISG) Foreign Credit Insurance Association (FCIA) shippers export declaration form |
export license bill-of-exchange (draft) export letter-of-credit certificate-of-origin duty drawback types of duty-free zones maquiladora program (Mexico) countertrade |
7. What are some pragmatic reasons to export? What export-related services are available from intermediaries?
List/discuss key sources of export-related information.
TRANSPORTATION/COMMUNICATIONS
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bilateral transportation treaties ocean shipping conferences Chicago Convention on "freedoms of the air" (1944) ’Äúopen skies’Äù agreement |
foreign freight forwarder bill-of-lading common carrier supply-chain logistics |
8. From the viewpoint of a business, list/discuss alternative channels of transportation and communications and some criteria for
choosing from among them.