1.Which r the forces driving globalization.?

Driving forces behind globalisation

• Opening up of national markets.

• Cut-back of trade restrictions (e.g. through GATT).

• Speedy and cheaper overcoming of distance, thanks to

technical progress in transport, telecommunication and
information technology (Internet).

• Privatization of state-controlled economic enterprises.

• Liberalization of the international flow of capital.

The forces driving globalization are essentially

these: technology, specifically in IT; capital
(money); and ideas (knowledge). IT makes
 possible the near instantaneous transfer of
funds worldwide. When MAS buys a new 747
jet from Boeing, there is no signed check to be
delivered or mailed. Instead the moment
escrow is closed, the funds are immediately
wired from MAS’s bank in Kuala Lumpur to
Boeing’s in Seattle. Likewise, when a reader in
Malaysia orders my book from Amazon.com in
America, he could use his debit or credit card
to transfer money from his bank to
Amazon.com’s bank. Whether the transaction
is for $50 or $50 million, the same technology
is used at the same transaction cost. Money is
not the only item that can be transferred via
the Internet. More important is the transfer of
ideas. Information is now no longer the
preserve of those in power but diffusely
distributed.

2.Which r diff.modes of operations in IB.?

The oldest mode of international business is foreign trade. A
firm imports its necessary inputs from the cheapest source, while
its exports its output to different countries in order to earn
maximum amount of foreign
 exchange. In this case, no overseas manufacturing is
involved.

The other mode of international business is licensing.

When a firm lacks capital and detailed knowledge about a
foreign market, it allows its technology, patent, trade mark
and other proprietary advantages to be used for a fee by a
licensee or technology importing firm. As compared to
export, this mode requires less time or depth of
involvement in foreign markets. This method is also used
when the host government put restrictions on the inflow of
foreign capital investment.

The third mode is known as management contracting. In

this mode, the company sells abroad a particular resource,
like management skills. The contract is meant for a given
number of years during which the seller of management
skills manages the affaires of the company located in the
host country for a specific fee.

Joint ventures are the fourth mode. They represent a

partnership agreement in which the venture is owned
jointly by the international company and a company of the
host country. Naturally, the joint venture allows the two
firms to apply their respective comparative advantages in a
given project. For example technology and marketing
ability of German firms and raw material availability of
Australia firms have led to joint-venture agreements
 between the two countries.

An international company may acquire existing operations

in a foreign country in order to penetrate the foreign
market. The greatest benefit of this mode is that the
acquiring company does not have to begin operations from
scratch, and so does not have to labor hard to grab the
market. The quantum of investment, however, in this case
is quite large.

OR
Foreign Market Entry Modes

The decision of how to enter a foreign market can have a

significant impact on the results. Expansion into foreign
markets can be achieved via the following four
mechanisms:
• Exporting
• Licensing
• Joint Venture
• Direct Investment

Exporting
Exporting is the marketing and direct sale of domestically-
produced goods in another country. Exporting is a
traditional and well-established method of reaching foreign
markets. Since exporting does not require that the goods
be produced in the target country, no investment in foreign
production facilities is required. Most of the costs
associated with exporting take the form of marketing
expenses.
Exporting commonly requires coordination among four
players:
• Exporter
• Importer
• Transport provider
• Government

Licensing
Licensing essentially permits a company in the target
country to use the property of the licensor. Such property
usually is intangible, such as trademarks, patents, and
production techniques. The licensee pays a fee in
exchange for the rights to use the intangible property and
possibly for technical assistance.
Because little investment on the part of the licensor is
required, licensing has the potential to provide a very large
ROI. However, because the licensee produces and
markets the product, potential returns from manufacturing
and marketing activities may be lost.

Joint Venture
There are five common objectives in a joint venture:
market entry, risk/reward sharing, technology sharing and
joint product development, and conforming to government
regulations. Other benefits include political connections
and distribution channel access that may depend on
relationships.
Such alliances often are favorable when:
• the partners' strategic goals converge while their
competitive goals diverge;
• the partners' size, market power, and resources are
small compared to the industry leaders; and
• partners' are able to learn from one another while
limiting access to their own proprietary skills.
The key issues to consider in a joint venture are
ownership, control, length of agreement, pricing,
technology transfer, local firm capabilities and resources,
and government intentions.
Potential problems include:
• conflict over asymmetric new investments
• mistrust over proprietary knowledge
• performance ambiguity - how to split the pie
• lack of parent firm support
• cultural clashes
• if, how, and when to terminate the relationship
Joint ventures have conflicting pressures to cooperate and
compete:
• Strategic imperative: the partners want to maximize
the advantage gained for the joint venture, but they
also want to maximize their own competitive position.
 • The joint venture attempts to develop shared
resources, but each firm wants to develop and protect
its own proprietary resources.
• The joint venture is controlled through negotiations
and coordination processes, while each firm would
like to have hierarchical control.

Foreign Direct Investment

Foreign direct investment (FDI) is the direct ownership of
facilities in the target country. It involves the transfer of
resources including capital, technology, and personnel.
Direct foreign investment may be made through the
acquisition of an existing entity or the establishment of a
new enterprise.
Direct ownership provides a high degree of control in the
operations and the ability to better know the consumers
and competitive environment. However, it requires a high
level of resources and a high degree of commitment.

The Case of EuroDisney

Different modes of entry may be more appropriate under
different circumstances, and the mode of entry is an
important factor in the success of the project. Walt Disney
Co. faced the challenge of building a theme park in
Europe. Disney's mode of entry in Japan had been
licensing. However, the firm chose direct investment in its
European theme park, owning 49% with the remaining
51% held publicly.
Besides the mode of entry, another important element in
Disney's decision was exactly where in Europe to locate.
There are many factors in the site selection decision, and
a company carefully must define and evaluate the criteria
for choosing a location. The problems with the EuroDisney
project illustrate that even if a company has been
successful in the past, as Disney had been with its
California, Florida, and Tokyo theme parks, future success
is not guaranteed, especially when moving into a different
country and culture. The appropriate adjustments for
national differences always should be made.

Comparision of Market Entry Options

The following table provides a summary of the possible
modes of foreign market entry:

Comparison of Foreign Market Entry Modes

Conditions
Advantag Disadvanta
Mode Favoring
es ges
this Mode
Exportin Limited sales Minimizes Trade
g potential in risk and barriers &
target investment tariffs add to
country; little . costs.
product
Speed of entry Transport costs
adaptation
Maximizes Limits access to
 required
Distribution
channels close
to plants local
High target scale; uses information
country existing Company
production costs facilities. viewed as an
Liberal import outsider
policies
High political
risk
Import and
investment
barriers Lack of
Minimizes control over
Legal protection
possible in risk and use of
target investment assets.
environment. .
Licensin Licensee may
Low sales
g Speed of entry become
potential in
competitor.
target country. Able to
circumvent Knowledge
Large cultural
trade barriers spillovers
distance
High ROI License period
Licensee lacks
is limited
ability to
become a
competitor.
Joint Import Overcomes Difficult to
 barriers
Large cultural ownership
distance restrictions
Assets cannot be and manage
fairly priced
cultural
High sales Dilution of
distance control
potential
Some political Combines Greater risk than
Venture risk resources of 2 exporting a &
s companies. licensing
Government
restrictions on Potential for Knowledge
foreign learning spillovers
ownership Viewed as Partner may
Local company insider become a
can provide Less competitor.
skills, resources, investment
distribution required
network, brand
name, etc.
Direct Import Greater Higher risk
Investm barriers knowledge than other
ent of local modes
Small cultural
distance market
Requires more
Assets cannot be Can better resources and
fairly priced apply commitment
High sales specialized May be difficult
potential skills to manage the
Low political Minimizes local resources.
 knowledge
spillover
risk Can be
viewed as an
insider

3. which a the cultural factors affecting IB

operations?
Cultural factors affecting international marketing
World markets can also be classified on the basis of the
following:
1.Population- When the population is higher, the bigger is the
market. However, it is
necessary to look into the following.
(a) Age groups and Sex- Different age groups of people, their
taste & interests, preferences along with sexual differences, the
trend of outlook and attitude
people focus and prefer to adopt matters a lot.
(b) Social class or groups- This refers to the economic class of
living and groups
which they belong in the living environment, which also has an
impact for product selling.
(c) Educational background-This refers to the background of the
corresponding
person who is actually involved in international markets, it
doesn't specify anything in the form of an individual acquiring
management degree, it specifies something more in the form of
his/her family and circle of friends including peers with many
people who give support for him to flourish well in international
markets.

(d) Number of households- This gives information about the

total number of
households, the type of household ,nature of household and the
kind of work which is performed in major by the household
which can be identified and used if needed for marketing too in
international levels.
(e) Geographical concentration and differences- This specifies
the concentration of
each and every place on selected products in major amounts
which is
favorable for its market condition and clearly indicates the
differences in choice
of product chosen by each and every country depending on the
demand
condition.
(f) The rate of changes in the above mentioned characteristics-
specifies changes

involved in each of the above mentioned qualities.

2. Gross National Product(GNP)

(a) Rate of growth of the economy- This must be positive

and favorable for growth of the economy.
(b) Standard of living-specifies the quality of living of
people which must improve and give rising standards
which will be the real benefit of international marketing if
 adopted properly efficiently and effectively.
(c) Percapita income

1.which a the political factors affecting IB

operations?

Chapter 9: Political & Economic Factors Affecting

International Business
9-2 ASSESSING GLOBAL POLITICAL RISKS
Pg. 279-283
Companies look at the host country’s current or future
political system to assess the political risk. However,
international businesses always face some political risk. If
you operate a Canadian company, foreign customers may
be unable to pay in full and on time because of instability
from currency controls imposed by the government.
Types of Political Risk
A company needs to evaluate all of these issues when
analyzing level of political risk in a country. Companies
must consider the safety of both their products and their
people in unstable political situations.
Risk of General Political Instability: General political
instability may not be considered serious enough to cause
investors to withdraw from a country. However, general
instability risk raises uncertainty about Canadian projects
overseas.
Ownership Risk: when operations are threatened by
government takeover or expropriation, owners may lose
their offshore property. This is referred to as protectionism
and nationalization of business.
Operations Risk: Government policies of the host country
may impede business operations such as finance,
marketing, or property. These policies are known as
operations risk.
Transfer Risk: government policy may adversely affect
currency exchange rates. When policy results in currency
devaluation or economic downtime which can affect a
company’s ability to transfer capital out of the host
country. When a company creates wealth in another
country it may be forced to return a considerable amount
to the country’s government. This process is known as
repatriation of earnings.
Even if a company cannot know in advance the scope of
the risks, if it can predict the possibility of risk, provide for
it, and still project a profit, its venture may be ready for
approval. There are a number of questions that the
company should ask itself:
1. Is terrorism part of the political landscape? Terrorism,
civil unrest, and the overthrow of governments can
seriously affect the international business community.
2. Could extremist groups pose a danger to the general
stability of society?
3. Has there been a withdrawal of freedoms? If the
country’s nationals are treated in this way, foreign
companies doing business there could find themselves
having to conform to restrictive laws. Withdrawal from
freedoms is a signal of unstable government and risk. As
the government tries to protect a weakening hold on
power, it becomes more controlling.
4. What, if any, is the military’s role in government? If it is
in power, how firm is its grasp on power?
5. Is corruption part of the business ethic? Could a
company find itself having to make higher and higher
payments to officials?
6. Could religious or ethnic pressures lead to civil strife
and endanger employees or property?

Evaluating Political Risks

Managers seeking to do business in other countries need
to research and find answers to the following questions
about the political situation in the target or host countries:
What are the chances of political and economic instability
in the host country over the next five years?
What agreements are in place between the Canadian
government and the host government regarding Canadian
investments?
How committed is the current government to the rules of
ownership rights?
When is the next election or how long will the current
government stay in place?
If a new government were to emerge, how would its
platform and ideology change the current state of business
affairs?
Would a new government be likely to propose changes in
policies that would affect the country’s way of doing
international business?
How would changes in government affect the profitability
and safety of an international project?
Consequences of Terrorism
Terrorism tends to occur when least expected and
becomes a greater concern when open borders make it
easier for terrorists to carry out their plans. When a
terrorist attack takes place it not only instills fear into
people but it also has many other negative consequences
on a countries economy and its businesses. Other things
are affected as well like transportation, security and travel.
Evaluating Legal Concerns
Laws and regulations differ from one country to
the next. When doing business in a foreign
country, you must obey the laws from that
country make work safe for workers. They may
make cost greater for business.

5.
2. which a the legal factors affecting IB

operations?

Legal issues for international trade in

services
Different business cultures, legal environments and languages
increase the risk of confusion when you trade internationally. It's
important to have a clear contract.
With trade in goods, attention often focuses on responsibilities
for delivery, set out using internationally recognised Incoterms.
Other issues, such as what is being supplied, are usually
relatively straightforward.
For trade in services, it's almost the opposite. It can be difficult
to specify exactly what services are to be provided, to what
standards. It can be helpful to focus on what the desired
outcomes are - ie what the service should achieve. This can be
part of a service level agreement in the contract. See our guide
on how to manage overseas suppliers.
There are other important legal issues to consider:
• The location of supplier and customer can
vary, affecting which country's regulations
apply. See the page in this guide on delivering
services internationally.
• You need to sort out payment issues such as
choice of currency and protection against the
risk of non-payment. See the page in this guide
on payment for international trade in services.
• You may need to take action to protect your
intellectual property in other countries. See
the page in this guide on international services
and intellectual property.
International trade in tangible products has defence mechanisms
in place under The General Agreement on Tariffs and Trade
(GATT). GATT defines the rules for a complete trading system,
including protection mechanisms, tariffs and trading terms. As
they are universally in use and transparent, they make it easier to
determine where disputes must be settled.
The WTO Agreements also include an agreement on trade in
services - the General Agreement on Trade in Services (GATS).
The European Union (EU) Services Directive will remove many
barriers and open the internal market within the EU to service
businesses established in a member state. As of 2010, those in
certain service sectors will be able to access new cross-border
opportunities and enjoy less restrictive access to EU markets.

6.Explain elements of economic

environments.? Explain features of economy?
Totality of economic factors, such as
employment, income, inflation, interest rates,
productivity, and wealth, that influence the
buying behavior of consumers and firms.

Elements of economic environment

Economics environment refers all economics

surroundings that influence organization
activities.It consists of economic parameters.It is
concerned with the nature and direction of
economy in which the organizations
operate.
Important elements of economic development are :

1. Economic systems :Economic system

determines the scope of private sec tore ownership
of the factors of production and market forces.The
model of economic system are:

• A) -Free market economic :This system is based

on private ownership of the factors of production.
Profit serves as the driver of economic engine.The
competitive market mechanism guides business
decisions.There is freedom of choice.Individual
initiative is encouraged.

• B) -Centrally planned economy :This system is

based on police ownership of the factors of
production.The economy is centrally
planned.Controlled and regulated by the
government.There is no consumer
sovereignty.Police enterprises play a dominant
role.

C) -Mixed economy :This system is a mix of free

market and centrally planned economics.Both
public and private sectors coexist.The public sector
ha ownership and control of basic industries
including utilities.The sector owns agriculture and
other industries but is regulated by the state.

2. Economic policies :Policies are guidelines for

decision making and action.Economic policies of
the government significantly influence and guide
organizations.

Key economic policies influencing organization

are :
A) Monetary policy-It is concerned with money
supply,inflation rates,interest rates and credit
availability.It influences the level of spending
through interest rates.Cheap money reduces
cost,dear money increase cost.Interest rates cost
of capital.Foreign exchange rates affect imports
and exports.

B)Fiscal policy :It is concerned with the use of

taxation and government expenditure to regulate
economic activity.Tax on income,expenditure and
capital influence business decisions.

C)Industrial policy :It is concerned with industrial

licencing location,incentives,facilities,foreign
investment,technology transfer and
nationalization.
3.Economic conditions :They indicate the health of
the economy in which the organization operate.The
factors affecting economic conditions are :
• State of economic development :An economy
can be least developed developing and
developed.Organizational activities are
influence by the stage of economic
development.
• Income :The level of employment affect
expenditure,saving and investment.They
together influence the economic conditions of
organization.
• Employment:The level of employment affects
organization.It determines availability and of
labour.
• Business cycle :The stages of business cycle
can prosperity,rescission and recovery .They
affects the health organization.
• Influence :It is rise in price level.influences
costs,price and profit of organization.
4. Regional economic groups :They promote
cooperation and free trade among members by
removing tariff and other restrictions.They provide
opportunities to member countries and threats to
non-member counties.Example are:
• SA ARC :South Asian Association for Regional
Cooperation.
 • ASIAN :Association of South East Asian Nations.
• EU :European Union.
Features..
What are the features of a mixed economy
A mixed economy employs features of both
Government/Planned economy and a Free market. Thus, it has
features of both. It has 2 sectors. Public and Private. The public
sector, being the government, takes care of public services that
private businesses cannot afford to finance e.g street lighting,
public transportation, law and order, public healthcare, defence
and the Jusicial system. Their motive is social welfare. The
private sector however is owned,controlled and managed by
individuals, whose motive is profits. Examples include private
owned companies and private schools.
Basically, a mixed economy is a free market economy with
government intervention thrown in. They control some aspects
of the economy while indiviuals control the rest.
in a mixed economy ,there is the gain of low general price level
which ultimately lead to increased production and which may
generate more employment capacity.

Capitalism And Its Features?

Capitalism is an economic and social system in
which capital, the non-labour factors of
production(also known as the means of
production), is privately owned means individuals
and private firms are sole owner of all firms and
means of production. The owners are free to use
their property for making profits. In this economy,
employers are free to choose their employee and
employees are free to choose their employers.
For Example:- All countries of Europe like France,
Germany, Russia, Italy, Singapore, Malaysia as well
as Japan, Brazil, America follow capitalism

… Its a social and economic system where means

of production are privately owned and labor is paid
in wages. There is no interference from the
government but the government's role stops at
making policies which can enable the market to
operate freely.In capitalism the forces of demand
and supply determine the allocation of resources.
Profit is the driving engine in i capitalistic economy
7.What r the economic impact of MNE on society..?
To survive, a company must satisfy different groups, refereed as
stakeholders. These include stockholders, employees, customers,
and society at large. In the short term, the aims of these groups
conflict. Stockholders want additional sales and increased
productivity, which will result in higher profits and a higher
return on investment. Employees want additional compensation.
Customers want lower prices. Society at large would like to see
increased corporate taxes or corporate involvement in social
functions. In the long term, all of these aims must be achieved
adequately or none will be attained at all because each
stakeholder group is powerful enough to cause the company's
demise.
Although the management teams of multinational enterprises
(MNEs) must be aware of these various interests, they serve
them unevenly at any given period. At one time, most gains may
go to consumers; at another, to stockholders. Making necessary
trade-offs is always necessary at a corporation's domestic
environment. However abroad, where corporate managers are
relatively unfamiliar with customs and power groups such as
trade unions, the problem is choosing the best alternative can be
compounded; this is particularly true if dominant interests differ
among countries.
The effects of MNEs on growth and employment are not a
necessarily a zero-sum game among countries. Classical
economists assumed production factors were at full
employment; consequently, a moment of any of these factors
existing abroad would result in an increase in output abroad and
a decrease to that at home. Even if this assumption was true, the
gains in the host country might be greater or less than the losses
in the home country. Thus, the argument that both the home and
host country may gain from Foreign Direct Investment rests
partly on the assumption that resources are not necessarily fully
employed and partly on the industry specific and complementary
nature of capital and technology.
The relationship between multinational enterprises (MNEs) and
societies has generated so many allegations and controversies
that it is impossible to examine all of them at once. A number of
them deal not so much with whether international business
should take place, but most of them rather focus on certain
practices. But in theory, host countries may take completely
restrictive or laissez-faire positions toward MNEs. In actuality,
their policies fluctuate over time but are seldom completely
restrictive or completely laissez-faire. Currently, countries such
as Bhutan and Cuba are close to the restrictive end, and
countries such as the United States and the Netherlands are near
the laissez-faire end of the continuum. However, countries
between these extremes have policies with varying degrees of
restrictions as they attempt to attract investment and receive the
most benefit from them.
8. what are the trade patterns theories for
international trade and business.?
Intl. Trade Theory - Mercantilism
countries should export more than they
import - balance of trade surplus - result
in more gold & silver for governments
trade conducted by governments led
consolidation of power
trade with colonies
– import less-valued raw materials
– export more-valued manufactured goods
views trade as zero-sum game
Intl. Trade Theory -
Absolute Advantage
proposed by Adam Smith
countries differed in their ability to
produce different goods efficiently and
should specialize in the production of
goods they can produce more efficiently
views trade as a positive sum game
countries will benefit from trade if they
have an absolute advantage in one
product
Intl. Trade Theory -
Comparative Advantage
even if a country has an absolute
advantage in both products it should
specialize in production of that good in
which it has a comparative advantage
proposed by Ricardo
4
Assumptions Comparative Advantage
Full employment
2 products and 2 countries only
Ignores role of technology and
marketing
Perfect competition
Mobility of resources
Transportation costs ignored
Max efficiency - countries produce
goods for other reasons

Answer the follllowing in short..

1 GATT
General Agreement on Tariffs and Trade. Treaty organization
affiliated with the United Nations whose purpose was to
facilitate international trade. The primary actions of the
organization were to freeze and reduce tariff levels on various
commodities. GATT was created in 1947, and was originally
intended to become a part of the International Trade
Organization (ITO); however, the ITO failed to be created, so
the GATT was left as an independent organization. In 1994,
GATT was superseded by the WTO.

OR

The General Agreement on Tariffs and Trade

(GATT) was first signed in 1947. The
agreement was designed to provide an
international forum that encouraged free trade
between member states by regulating and
reducing tariffs on traded goods and by
providing a common mechanism for resolving
trade disputes.GATT membership now includes
more than 110 countries.

The General Agreement on Tariffs and

Trade (typically abbreviated GATT) was
negotiated during the UN Conference on Trade
and Employment and was the outcome of the
failure of negotiating governments to create
the International Trade Organization (ITO).
GATT was formed in 1949 and lasted until
1993, when it was replaced by the World Trade
Organization in 1995. The original GATT text
(GATT 1947) is still in effect under the WTO
 framework, subject to the modifications of
GATT 1994

2. NAFTA
The North American Free Trade Agreement or NAFTA is an
agreement signed by the governments of Canada, Mexico, and
the United States, creating a trilateral trade bloc in North
America. The agreement came into force on January 1, 1994. It
superseded the Canada-United States Free Trade Agreement
between the U.S. and Canada. In terms of combined purchasing
power parity GDP of its members, as of 2007[update] the trade bloc
is the largest in the world and second largest by nominal GDP
comparison.
The North American Free Trade Agreement (NAFTA) has two
supplements, the North American Agreement on Environmental
Cooperation (NAAEC) and the North American Agreement on
Labor Cooperation (NAALC
North American Free Trade Agreement
(NAFTA)

Implementation of the North

American Free Trade Agreement
(NAFTA) began on January 1,
1994. This agreement will
remove most barriers to trade
and investment among the
United States, Canada, and
Mexico.
Under the NAFTA, all non-tariff barriers to
agricultural trade between the United States and
Mexico were eliminated. In addition, many tariffs
were eliminated immediately, with others being
phased out over periods of 5 to 15 years. This
allowed for an orderly adjustment to free trade
with Mexico, with full implementation beginning
January 1, 2008.
The agricultural provisions of the U.S.-Canada Free
Trade Agreement, in effect since 1989, were
incorporated into the NAFTA. Under these
provisions, all tariffs affecting agricultural trade
between the United States and Canada, with a few
exceptions for items covered by tariff-rate quotas,
were removed by January 1, 1998.
Mexico and Canada reached a separate bilateral
NAFTA agreement on market access for
agricultural products. The Mexican-Canadian
agreement eliminated most tariffs either
immediately or over 5, 10, or 15 years. Tariffs
between the two countries affecting trade in dairy,
poultry, eggs, and sugar are maintained.
3.Influence of language on culture and
International business?
How language influences culture
Language is the most important thing that we need. If wedon't
know any language no one can speak and no one can hear. This
is Language Which gives us Identity.
Language is the most important thing which gives us identity.
Which helps us in every way, but no problem weather they
speak Chinese Urdu whatever but they themselves achieve a
culture and language. It is language which solves our every
problem if language was not there we might not be able to solve
those problems that we are having. Thanks. Also without
language our culture would be the same and there won't be much
difference and the there will no longer be a beauty of learning if
there isn't nothing else to learn about in this world because
language is how we communicate with each other and is how
god helped a long ago slave. Long ago a man was constructing a
palace for his dreadful king when they thought they were almost
done the greedy king wanted it to be bigger. So they ran away
when the king saw them he ordered them to stop, but they didn't
listen then when they were trapped by the guards all the king
had to do is tell his man to slay them and they were dead. But
then write out of no where everyone starts talking different
languages and the guards didn't know what to do with them so
they couldn't kill them and the prisoner escaped along with the
rest of the slaves god made different language and saved many
life's

OR
Language can influence culture in a variety of ways. It can
influence the way a community perceives the world, and can
create community through the use of varying languages and
dialects in different areas. It can both influence the way a society
interacts with the world, and create a cultural identity separate
from the rest of the world.
Language is composed of four major categories. For our
purposes, there are two that are the most important. These are
words, and grammatical constructs. The words in a language are
continuously evolving. The meaning of words can change over
time, new technologies can come into being, and slang is an
ongoing process. For example, the word "dashboard" at one time
meant the board on a sleigh that protected the occupants from
the snow that was kicked up by dashing horses. The word
"Internet" has made its way into virtually every language.
Twenty years ago the group of letters in "bling" had no meaning.
Vocabulary can be a way for the young to separate themselves
from their elders, and reinforce their understanding of the world.
The words in a language also affect how an individual perceives
the world. As a child develops, having the words please" and
"thank you" in their day-to-day speech teaches them valuable
social behavioral skills. Speech is a primary way of teaching
children about their culture.
Cultures whose language lack words relating to modern society
may have difficulty understanding the behavior of people whose
lives are dominated by these concepts. If you have never heard
of blue tooth, how can you understand the behavior of someone
wandering around talking to himself?
So do grammatical constructs influence thought? The Sapir-
Whorfian Hypothesis posits that it does. This hypothesis has
been widely discredited, and is no longer taken seriously by
linguists.
Cultural identities can be created by the language that is used,
and entire societies may define themselves based on the
language and dialect they speak. As one goes from north to
south through the Americas, the Spanish language becomes
more and more like Castilian Spanish, the Spanish spoken in
Spain. Those who speak Castilian Spanish are frequently
considered more sophisticated and intelligent than those who
speak more informal dialects.
Another example is the country of Belgium. Most of its citizens
speak either Belgian or French. The speakers of both languages
feel that they are very different and better than those who speak
the other language. Their identity is determined by the language
they speak. One result of this is Belgium's recent inability to
maintain a cohesive government.
The effect of language on culture, of differentiating and uniting
groups of people, is more profound than most people realize.
Not only does the specific vocabulary reflect the culture, the
language or dialect spoken can also both define and separate
cultures

Language in International Business

The way that we use language reflects cultural preferences for
some types of communicative behaviour while discouraging
others. Culture will affect, for example, the extent to which we
speak loudly and animatedly or quietly, whether we use lots of
"I" statements, whether we choose very explicit language or
whether we are indirect. Intercultural, or cross-cultural,
pragmatics is the contrastive or comparative study of such
communicative norms aiming to reach a better understanding of
the cultural value or values that underpin them and it is a field
we can all learn from.
When we help prepare managers to relocate we might usefully
consider the role of communicative styles as part of the
familiarisation process. The awareness raising could involve
styles of communication: for example, the very explicit
language used by low-context cultures--speaker-based cultures--
as opposed to the imprecise and ambiguous language favoured
by high-context cultures--hearer-based cultures.
Situation or context also dictates language choice. In linguistics
various terms have been coined for certain types of key
expressions that are related to specific contexts or situations.
These conversational routines/prefabricated
expressions/politeness formulae/situation-bound utterances
could well be useful in raising clients' awareness about the
relationship between language and culture. In essence, they are
expressions whose linguistic meaning is distorted because of the
role they have in a specific situation: linguistic meaning versus
use. When a British English speaker asks the question: how are
you, s/he doesn't expect a lengthy reply about the state of the
respondent's health. If an American says "let's get together some
time", s/he may be saying no more than "goodbye". If a
Japanese speaker says "yes" in a meeting, it is as well to
understand that this is the politeness dictated by the situation and
in no way indicates agreement or an undertaking to act.
If we consider the language area of agreeing, as another
example, we might note how agreement is in fact signalled not
so much by overt language use as by certain types of language
'behaviour' and by accompanying gesture and body language.
The overall message is a combination of unspoken signals and
carefully chosen words. Merely voicing agreement is not enough
to tell you that somebody really is in agreement. This is because
to express open disagreement could be difficult for all kinds of
cultural reasons. In a very hierarchical society, it would be
unwise to express open disagreement to a superior. In a group-
oriented culture, it would be difficult to disagree if the group as
a whole was going in the opposite direction.
In fact someone who is really in agreement is likely to take off
into other types of linguistic behaviour such as asking questions,
summarising, echoing, and perhaps offering to do something to
take the matter further. There will also be aspects of gesture and
expression that reinforce this. The problem for the listeners is
that by relying on the explicit meaning of the message alone,
they are likely to misinterpret apparent agreement, for the sake
of politeness, as wholehearted agreement.
Asking questions, is another communicative activity to look. By
questioning we may be seeking to influence the hearer in ways
beyond the apparent intention of seeking information. We can
ask questions:
• to show we are actively listening to what someone has to
say in order to encourage them to elaborate and expatiate;
• to draw timid or less confident people into a conversation
(open ended questions);
• to interrogate (yes/no questions).
Yet, if we really want to gain information, then techniques for
eliciting, such as re-formulation or invitations to explain further
are likely to be more effective than direct questions. People may
become defensive or resentful if questioning techniques are too
obtrusive. Activities are needed to help the international
business person use questioning techniques more effectively and
match them to an appropriate communicative strategy.
Alerting clients to the potential for misunderstanding, for giving
and taking offence, for having progress frustrated, through not
knowing the cultural norms of language use is surely a field
those training managers to work across cultures should not
neglect.
4. which are behavioral practices affecting
business?
5.Why dose companies care about ethical
behavior?
ETHICS AND THE CHALLENGE OF ETHICAL
BEHAVIOR
The imperatives of day-to-day organizational performance are
so compelling that there is little time or inclination to divert
attention to the moral content of organizational decision-making.
Morality appears to be so esoteric and qualitative in nature that
it lacks substantive relation to objective and quantitative
performance. Besides, understanding the meaning of ethics and
morality requires the distasteful reworking of long-forgotten
classroom studies. What could Socrates, Plato, and Aristotle
teach us about the world that confronts organizations
approaching the twenty-first century? Possibly a gap in
philosophical knowledge exists between organizational
executives and administrators of different generations. Yet, like
it or not, there has and will continue to be a surge of interest in
ethics.
The word "ethics" is often in the news these days. Ethics is a
philosophical term derived from the Greek word "ethos"
meaning character or custom. This definition is germane to
effective leadership in organizations in that it connotes an
organization code conveying moral integrity and consistent
values in service to the public. Certain organizations will
commit themselves to a philosophy in a formal pronouncement
of a Code of Ethics or Standards of Conduct. Having done so,
the recorded idealism is distributed or shelved, and all too often
that is that. Other organizations, however, will be concerned
with aspects of ethics of greater specificity, usefulness, and
consistency.
Formally defined, ethical behavior is that which is morally
accepted as "good" and "right" as opposed to "bad" or "wrong"
in a particular setting. Is it ethical, for example, to pay a bribe to
obtain a business contract in a foreign country? Is it ethical to
allow your company to withhold information that might
discourage a job candidate from joining your organization? Is it
ethical to ask someone to take a job you know will not be good
for their career progress? Is it ethical to do personal business on
company time?
The list of examples could go on and on. Despite one's initial
inclinations in response to these questions, the major point of it
all is to remind organizations that the public-at-large is
demanding that government officials, managers, workers in
general, and the organizations they represent all act according to
high ethical and moral standards. The future will bring a
renewed concern with maintaining high standards of ethical
behavior in organizational transactions and in the workplace.
Many executives, administrators, and social scientists see
unethical behavior as a cancer working on the fabric of society
in too many of today's organizations and beyond. Many are
concerned that we face a crisis of ethics in the West that is
undermining our competitive strength. This crisis involves
business-people, government officials, customers, and
employees. Especially worrisome is unethical behavior among
employees at all levels of the organization. For example, a
recent study found that employees accounted for a higher
percentage of retail thefts than did customers (Silverstein, 1989).
The study estimated that one in every fifteen employees steals
from his or her employer.
In addition, we hear about illegal and unethical behavior on
Wall Street, pension scandals in which disreputable executives
gamble on risky business ventures with employees' retirement
funds, companies that expose their workers to hazardous
working conditions, and blatant favoritism in hiring and
promotion practices. Although such practices occur throughout
the world, their presence nonetheless serves to remind us of the
challenge facing organizations.
This challenge is especially difficult because standards for what
constitutes ethical behavior lie in a "grey zone" where clear-cut
right-versus wrong answers may not always exist. As a result,
sometimes unethical behavior is forced on organizations by the
environment in which it exists and laws such as the Foreign
Corruption Practices Act. For example, if you were a sales
representative for an American company abroad and your
foreign competitors used bribes to get business, what would you
do? In the United States such behavior is illegal, yet it is
perfectly acceptable in other countries. What is ethical here?
Similarly, in many countries women are systematically
discriminated against in the workplace; it is felt that their place
is in the home. In the United States, again, this practice is illegal.
If you ran an American company in one of these countries,
would you hire women in important positions? If you did, your
company might be isolated in the larger business community,
and you might lose business. If you did not, you might be
violating what most Americans believe to be fair business
practices.
The effective management of ethical issues requires that
organizations ensure that their managers and employees know
how to deal with ethical issues in their everyday work lives.
Therefore, organizational members must first understand some
of the underlying reasons for the occurrence of unethical
practices.
Some of the factors that may be emphasized in different ethical
climates of organizations are (Hunt, 1991; Schneider and
Rentsch, 1991):
* Personal self-interest
* Company profit
* Operating efficiency
* Individual friendships
* Team interests
* Social responsibility
* Personal morality
* Rules and standard procedures
* Laws and professional codes
6. ethical dilemmas and business practices

Ethical dilemma is a complex situation that

will often involve an apparent mental conflict
between moral imperatives, in which to obey
one would result in transgressing another. This
is also called an ethical paradox since in
moral philosophy, paradox often plays a
central role in ethics debates.
ethical dilemmas: Ethical dilemmas, also known as moral
dilemmas, have been a problem for ethical theorists as far back
as Plato. An ethical dilemma is a situation wherein moral
precepts or ethical obligations conflict in such a way that any
possible resolution to the dilemma is morally intolerable. In
other words, an ethical dilemma is any situation in which
guiding moral principles cannot determine which course of
action is right or wrong.
Examples
1. One well-known and frequently discussed
example of an ethical dilemma was offered by
Jean-Paul Sartre. Sartre asks us to imagine a
young man who lives with his mother; he is her
only happiness in life. But the young man lives
in occupied France during World War II and
feels obliged to fight in the war. What does the
young man do? Another dilemma is a situation
in which three family members are being held
captive. The captives give one the choice of
which of the other two will die. If there is no
choice, they all will be killed.
Moral Uncertainty
2.Some moral dilemmas are the result of
uncertainty about the kind of actions one
should take to achieve the best outcome. This
can be because the future results of each
decision are unknowable or because facts that
can influence certain outcomes are not
available. For example, if Sartre's young man
 knew he would help turn the war effort around
and that he would survive it to return to his
mother, he'd be better equipped to make a
decision. But he cannot know this, so his
situation remains uncertain.
Self-Imposed Dilemmas
3.Sartre's young man is the result of a self-
imposed dilemma; he projects two obligations
upon himself that cannot be reconciled. Self-
imposed moral dilemmas are the result of two
actions one feels one must take that cannot be
reconciled with each other.
World-Imposed Dilemmas
4.World-imposed ethical dilemmas are of the
type described in the second example, where a
family member must choose which of two other
members must die. He is not instigating the
decision; it is being forced upon him from the
outside, and he is bound by it to make a
decision.
Prohibition Dilemmas
5. Ultimately, ethical dilemmas require choices,
and merely refraining from action can be a
moral decision. In some moral dilemmas, one
must choose whether to disobey a particular
prohibition, such as a law, when compliance
results in immoral consequences. In this case,
 inaction is obeying the law, but the result is
morally reprehensible.

Business practices: Methods, procedures,

processes, and rules employed or followed by a
firm in the pursuit of its objectives.
6.product life cycle theory

Theory that recognizes four separate developmental stages in the

life span of a product, with each stage characterized by its own
distinct marketing opportunities and restraints. In a product's
introductory stage, growth is slow, with minimal profits, since
consumers' purchases have merely been on a trial basis. If the
product is successful, it goes into a growth stage, where its
growth rapidly expands by new market entries, improved
distribution channels, and shrewd pricing strategies. A maturity
stage follows, where sales and profits stabilize. Finally, the
product goes into a decline, where sales and profits decrease.
The product life cycle theory states that a typical product's life
cycle follows the form of an S-shaped curve, although some
products may have a very rapid growth stage or an immediate
decline. Also, some mature products can have their life cycle
reversed. For example, when baking soda was launched, it was
used only for cooking and quickly reached the maturity stage of
its life cycle. When it was discovered that baking soda
deodorized refrigerators, however, the product's sales soared and
its new use put it back in the growth stage of its life cycle.

The Product Life Cycle (PLC) is based upon the biological life
cycle. For example, a seed is planted (introduction); it begins to
sprout (growth); it shoots out leaves and puts down roots as it
becomes an adult (maturity); after a long period as an adult the
plant begins to shrink and die out (decline).
In theory it's the same for a product. After a period of
development it is introduced or launched into the market; it
gains more and more customers as it grows; eventually the
market stabilises and the product becomes mature; then after a
period of time the product is overtaken by development and the
introduction of superior competitors, it goes into decline and is
eventually withdrawn.
The Product Life Cycle (PLC) is based upon the biological life
cycle. For example, a seed is planted (introduction); it begins to
sprout (growth); it shoots out leaves and puts down roots as it
becomes an adult (maturity); after a long period as an adult the
plant begins to shrink and die out (decline).
In theory it's the same for a product. After a period of
development it is introduced or launched into the market; it
gains more and more customers as it grows; eventually the
market stabilises and the product becomes mature; then after a
period of time the product is overtaken by development and the
introduction of superior competitors, it goes into decline and is
eventually withdrawn.
However, most products fail in the introduction phase. Others
have very cyclical maturity phases where declines see the
product promoted to regain customers.
Product Life Cycle Video

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Strategies for the differing stages of the
Product Life Cycle.
Introduction.
The need for immediate profit is not a pressure. The product is
promoted to create awareness. If the product has no or few
competitors, a skimming price strategy is employed. Limited
numbers of product are available in few channels of distribution.
Growth.
Competitors are attracted into the market with very similar
offerings. Products become more profitable and companies form
alliances, joint ventures and take each other over. Advertising
spend is high and focuses upon building brand. Market share
tends to stabilise.
Maturity.
Those products that survive the earlier stages tend to spend
longest in this phase. Sales grow at a decreasing rate and then
stabilise. Producers attempt to differentiate products and brands
are key to this. Price wars and intense competition occur. At this
point the market reaches saturation. Producers begin to leave the
market due to poor margins. Promotion becomes more
widespread and use a greater variety of media.
Decline.
At this point there is a downturn in the market. For example
more innovative products are introduced or consumer tastes
have changed. There is intense price-cutting and many more
products are withdrawn from the market. Profits can be
improved by reducing marketing spend and cost cutting.
Problems with Product Life Cycle.
In reality very few products follow such a prescriptive cycle.
The length of each stage varies enormously. The decisions of
marketers can change the stage, for example from maturity to
decline by price-cutting. Not all products go through each stage.
Some go from introduction to decline. It is not easy to tell which
stage the product is in. Remember that PLC is like all other
tools. Use it to inform your gut feeling.
8.World trade organization

What is the WTO?

The World Trade Organization (WTO) is the
only global international organization dealing
with the rules of trade between nations. At its
heart are the WTO agreements, negotiated and
signed by the bulk of the world’s trading
nations and ratified in their parliaments. The
goal is to help producers of goods and services,
exporters, and importers conduct their
business.