Assignment-I International Business

ALLIANCE BUSINESS discipline SUBJECT- planetary DIMENSIONS OF INTERNATIONAL BUSINESS ASSIGNMENT NO. -1 DATE 02/03/11 SUBMITTED TO Prof. M V NARASIMHAN SUBMITTED BY Akshay Shah Answer 1 IMPACT OF governmental TURMOIL IN EGYPT ON GLOBAL BUSINESS Political hullabaloo in Egypt in casting a poll on terra firma financial markets driving up the prices of crude petroleum & food and creating invigorated finds for the shaky world economy in the months ahead. Following argon the impacts of policy-making turmoil in Egypt on ball-shaped transmission line Oil prices reached be week their highest 110 dollar per barrel of raw oil since 2008 & investors interchange off both stocks and bonds of many developing nations, particularly in the halfway east. The turbulence on financial markets shows how semipolitical upheaval in atomic number 53 place- first Tunisia, now Egypt- can set off hard to annunciate reverberations around the world, possibly undermining the global economic recovery. Investors are most hurt-to doe with that other Muslim nations, particularly those of autocratic leadership & vast oil reserves, will soon see their ruling regimes threatened as well. global organizations also trying to monitor more urgent concerns, whats red ink on in Egypt has again reminded world that the world economy is not out of the woods & that things we do not anticipate can have a significant negative effect on global markets & risk sentiment. Beca practise of political & business instability in Egypt- lead with the problems with foreign acknowledge & currency. Economist & Investors all around the world have fear that political developments could disrupt oil exports from Saudi Arabia or other oil silent nations. The greatest threat for global economy- absent a spread of prevalent revolt to other nations in the middle east or beyond is the disruption of shopping through the Suez Canal. In forthcoming days, it will be challenge for government to keep the politica l stability in Egypt, for bland business functioning throughout the world & controlling oil prices which are on their peak. Answer 2 IMPORTANCE OF PROPERTY RIGHTS IN GLOBAL BUSINESS ECONOMY In a legal sense, term holding refers to a resource over which an individual or business holds a legal title that is a resource that it owns.Resource include land, building, equipment, capital, minerals rights, business and bright position. blank space Rights refer to the bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource. Property Rights are important in the global business economy because The philosophy behind nurtureing property rights in the global business economy, as it is reward to the originator of a peeled invention, books, musical theater record, clothes design, restaurant chain and the like for his or her idea & effort.Such property rights are very important stimulus to innovation and creati ve work. They allow An incentive for people to search for novel ways of doing things and they reward creativity. e. g. intend an innovation in automobile industry say a use of non conventional fuel to be used in all kinds of vehicles with maximal efficiency and low cost of fuel. This gives automobile firms an incentive to under sign on the expensive, rugged and time consuming basic research required to generate new fuel. (It can cost $800 million in R & D and take 10 years to set a new fuel in the market) Also economic evidences suggests that high levels of corruption i. e. theft of property rights importantly adulterate the foreign direct investment, level of international trade, & economic harvest rate in a country. By siphoning off profits corrupts politicians & bureaucrats reduce the returns to business investment and hence reduce the incentive of both national and foreign businesses to invest in that country. Because of all the above reasons explained it is important to comfort property rights to benefit innovator, consumers and to promote healthy competition.The protection of intellectual property rights differ greatly from country to country. While Many countries have not bad(p) intellectual property regulations on their books. Now, 188 countries are members of the World Intellectual Property Organization, all of whom have signed international treaties designed to protect intellectual property. Answer 3 CULTURE AT WORK head BY GEERT HOEFSTEDE Of considerable importance for an international business with operations in different countries is a how a societys culture affects the value found in the workplace.Probably the most famous study of how culture relates to value in the workplace was undertaken by Geert Hoefstede. As a part of his ob as a psychologist working for IBM, Hoefstede collected data on employee attitudes and set for more than 1,00,000 individuals from 1967 to 1973. This data enabled him to compare dimensions of culture across 40 countries Hoefstede set-apart into 4 dimensions Hoefstedes Power Distance dimension focussed on how a society deals with the fact That people are unequal in physical & intellectual capabilities.According to Hoefstede, high baron maintain cultures were found in countries that let inequalities grow over time into inequalities of power & wealth. The Individualism versus collectivism dimension focussed on the relationship in the midst of The individual and his or her fellows. Individualistic societies, the ties between individuals were loose and individual achievement and freedom were super valued. In societies where collectivism was emphasized the ties between individuals were tight. Hoefstedes Uncertainty dodging Dimension measured the extent to which different cultures socialized their members into accepting dubious situations & forecasting suspicion. Members of high uncertainty avoidance cultures placed a exchange premium on job security, career patterns, retirement benef its and so on. Lower uncertainty avoidance cultures were characterized by a greater readiness to take risks & less(prenominal) emotional resistance to change. Hoefstedes Masculinity versus Feminity dimensions looked at the relationship between gender & work roles.In masculine cultures, sex roles were sagaciously differentiated and handed-down Masculine Values, such as achievement & effective work of power, determined culture ideals. In Feminine cultures sex roles are sharply distinguished, the little differentiation was made between men & women in the alike job. Hoefstede created on index draw for each of these 4 dimensions that ranged from 0 to c And scored high individualism, high power distance, high uncertainty avoidance, & high Masculinity. He averaged the score for all employees from a given country . g. Power distance 1) Britain 2) Canada 3) US 4) India 5) Indonesia 6) Mexico 35 39 40 77 78 81 Uncertainty 35 48 46 40 48 82 Individualism Masculinity 89 80 91 48 14 30 F rom the above table it shows, western nations such as US, Canada, Britain tally High on the individualism scale & low on the power distance scale. At the other extreme are a base of Latin America (Mexico) and Asia (India, Indonesia) that emphasize collectivism over individualism and score high on their power distance scale. 66 52 62 56 46 69