p.13
Trade Intervention and Protectionism
What is protectionism aimed at?
To protect national industries.
p.5
Limitations of Comparative Advantage
What aspect of competition is overlooked by Comparative Advantage?
Non-price competitiveness.
p.3
Absolute Advantage Theory
What is the main premise of Absolute Advantage Theory?
All countries can gain by engaging in free trade, which is a positive sum game.
p.11
Global Business Environment
What is the primary focus of the article by M.W. Hansen et al.?
The transition from Local Value Chains to Global Value Chains.
p.4
Comparative Advantage Theory
What does opportunity cost refer to in the context of Comparative Advantage?
The cost of forgoing the next best alternative when making a decision.
p.2
Mercantilism and Trade Concepts
What does a trade deficit indicate?
Imports exceed exports (-ve).
p.12
Global Business Environment
What is vertical specialization in the context of trade?
A trend where production processes are divided across different countries.
p.1
Global Business Environment
What is the focus of Week 02 in the MOD007191 course?
Global Business Environment and International Strategy.
p.14
Global Business Environment
What is a key characteristic of how MNCs operate?
MNCs operate across multiple countries, adapting to local markets.
p.5
Limitations of Comparative Advantage
What can negate the benefits of Comparative Advantage?
Transport costs may outweigh any comparative advantage.
p.10
Modules of Business Operation
What are support activities in a Value Chain?
Activities that assist primary activities, including firm infrastructure, human resource management, technology development, and procurement.
p.4
Comparative Advantage Theory
What is the basis of Comparative Advantage Theory?
Relative costs of production.
What are the benefits highlighted in New Trade Theory?
Gains from specialization and economies of scale.
p.3
Absolute Advantage Theory
What is the effect of countries specializing in production?
World output increases and surpluses can be traded.
p.11
Global Business Environment
What challenges might companies face when shifting to Global Value Chains?
Cultural differences, regulatory issues, and supply chain complexities.
What advantage do firms with first mover advantages have in New Trade Theory?
They develop economies of scale and create barriers to entry for other firms.
p.3
Absolute Advantage Theory
What should countries specialize in according to Absolute Advantage Theory?
Producing the goods in which they are most efficient, or have an absolute advantage.
p.12
Global Business Environment
How have communication costs affected trade in the last 30 years?
Reduction of communication costs has facilitated trade.
p.14
Modules of Business Operation
What is one strategy MNCs use to manage operations in different countries?
They often decentralize decision-making to local subsidiaries.
p.9
Operational Challenges in Business
What is a challenge associated with labor in operations?
Costly or unskilled labour.
p.10
Modules of Business Operation
What are the primary activities in a Value Chain?
Inbound logistics, operations, outbound logistics, marketing and sales, and service.
p.11
Global Business Environment
What does a Local Value Chain emphasize?
Production and distribution within a specific local context.
p.10
Modules of Business Operation
How does the Value Chain help businesses?
By identifying areas for improvement and competitive advantage.
p.1
Global Business Environment
What is the significance of understanding the global business environment?
It helps in formulating effective international strategies.
p.12
Global Business Environment
What has contributed to the increase in trade efficiency in the last 30 years?
Reduction of transportation costs.
p.11
Global Business Environment
What is a key characteristic of Global Value Chains?
Integration of production and distribution across multiple countries.
p.14
Operational Challenges in Business
How do MNCs benefit from economies of scale?
By producing goods in large quantities, reducing costs per unit.
p.6
Product Life Cycle Management
What are the different types of Product Life Cycles?
Various types exist, but specifics are not provided in the text.
p.2
Mercantilism and Trade Concepts
What does a trade surplus indicate?
Exports exceed imports (+ve).
p.11
Global Business Environment
What are some benefits of transitioning to Global Value Chains?
Access to larger markets, cost efficiencies, and enhanced competitiveness.
p.14
Global Business Environment
What role does technology play in MNC operations?
Technology facilitates communication and coordination across global operations.
p.10
Modules of Business Operation
What is the Value Chain?
A model that describes the full range of activities required to create a product or service.
p.13
Trade Intervention and Protectionism
What is one reason for trade intervention?
To protect national interests, such as defense.
p.8
Modules of Business Operation
What module focuses on the movement of goods?
Haulage and Storage (Distribution).
p.6
Product Life Cycle Management
What can happen to a product after it reaches a peak in revenue?
It may become stagnant or start decaying.
p.14
Operational Challenges in Business
Why is cultural understanding important for MNCs?
It helps in effectively marketing products and managing local teams.
p.10
Modules of Business Operation
What is the goal of analyzing a Value Chain?
To enhance efficiency and effectiveness in delivering value to customers.
p.4
Comparative Advantage Theory
What indicates that a country has a comparative advantage in producing a good?
If its opportunity cost in producing that good is lower.
p.2
Mercantilism and Trade Concepts
What is the primary focus of mercantilism?
To maximize exports and minimize imports.
p.6
Product Life Cycle Management
What strategic actions can be taken when a product starts to decay?
Revitalise, reshape, or discard the product.
p.9
Operational Challenges in Business
How can the quality of resources impact operations?
Lower quality of resource can hinder production and efficiency.
p.9
Operational Challenges in Business
What infrastructure issue can affect business operations?
Infrastructure/Distribution.
p.5
Limitations of Comparative Advantage
What can governments do that affects Comparative Advantage?
Governments may restrict trade.
p.5
Limitations of Comparative Advantage
What type of advantage does Comparative Advantage measure?
Static advantage over dynamic advantage.
