Introduction to Business Dersi 2. Ünite Sorularla Öğrenelim

What does balance of trade (BOT) stand for?

Balance of trade (BOT) is the difference between a country’s imports and its exports for a given time period.

In what way does culture affect managers?

Culture can affect how managers lead, hire, and compete in various countries.

When did globalization begin?

Globalization began with the tendency of first industrial firms to market their  goods to other countries during the late 19th century.

What do we mean by tariffs?

Taxes, surcharges, or duties arranged against imported goods are known as tariffs.

What are the critical success factors for MNCs?

• Entering into complex markets to gain new knowledge.
• Recognition and reputation.
• Key strategic partnerships.

What does glocalization stand for?

Glocalization is a kind of synthesis between globalization and local responsiveness.

What is the strategic choice for a global strategy?

The strategic choice for a global strategy is to employ essentially the same strategy in all countries.

What does the theory of international trade suggest?

The theory of international trade suggests that increasing number of countries participating in international trade serves to socio-economic expansion of these countries.

What do ethical values represent?

Ethical values are individuals’ moral judgments about what is right or wrong.

What does import substitution refer to?

Import substitution is an economic policy which defends replacing foreign imports with domestic products.

What is the benefit of adopting the liberal reform policies for Turkey?

It has enabled global trade relations and flow of foreign investments into the country.

What are the meanings of trade surplus and trade deficit?

A country that exports more than it imports has a trade surplus. On the contrary, if a country imports more than it exports has a trade deficit.

When were the liberal reform policies adopted in Turkey?

The liberal reform policies in Turkey were adopted after 1980.

What is the purpose of corporate social responsibility (CSR) projects?

Corporate social responsibility (CSR) projects are a way of building recognition and reputation in a foreign country. It is important to seek for a trustworthy, legitimate, established, and a powerful partner in the target country.

In what way can we say that there is not a strict distinction between national and international competition today?

It is not so meaningful to think about a strict distinction between national and international competition in today’s global economy. A local entrepreneur who owns a small market may anytime face with competitive pressures of international retail chains. There are important facts that should be considered by an organization, which has an intention to compete in international markets: size and production capacity are some of these factors.

In what way does globalization differ than the internationalization process?

Globalization differs than the internationalization process which is basically operating across national borders.

What does cultural relativism refer to?

Cultural relativism refers to the approach that a country’s own unique culture, laws, and business practices determine ethical behavior in a country.

What does international competition refers to?

International competition refers to a complex network of multiple types of relations and interactions.

What does economies of scale stand for?

Economies of scale is the cost advantage that arises with increased output of a product.

What do we mean by emerging markets?

Emerging markets are the transition economies such as Brazil, Russia, India, Mexico, Nigeria, and Turkey that are characterized by high levels of growth despite insufficient infrastructure.

What does exchange rate mean?

Exchange rate is the number of units of one currency that must be exchanged for a unit of the second currency.

What does a multinational corporation (MNC) stand for?

A multinational corporation (MNC) is an organizational form, which has operations in more than two countries, and it consists of a central firm – usually in the home country- and branches or subsidiaries in foreign countries.

What are the basic contributions of global business operations to a firm’s competitiveness?

The basic contributions of global business operations to a firm’s competitiveness are; cost reduction, spread of risk across wider environments, to capitalize core competencies, access to new customers, and valuable natural resources.

What are the purposes of strategic alliances?

Purposes of strategic alliances are: joint research efforts, sharing technology; joint use of production on distribution facilities; and marketing one another’s products and services.

Which strategy options are frequently used to compete in foreign markets?

Following strategy options are frequently used to compete in foreign markets:
• Exporting
• Licensing
• Franchising
• Global Strategy

 What are the issues that need to be considered in multinational competition?

1. Whether to customize products or services in each local market or offer standardized products/ services.
2. Whether to employ the same generic competitive strategy everywhere or modify the strategy for each country.
3. Whether to locate a company’s facilities, distribution centers, and customer services operations for location advantages.
4. How to transfer a company’s resource strengths and capabilities among countries to secure competitive advantage.