FINAL PAPER

SEMESTER-IV
BBA 2 YEARS

GLOBAL/ INT.
BUSINESS 2021
POSTED TO: DR. AMIR ADAM

HIRA AZHAR
15972
 ANSWER-1:

CHARACTERISTICS OF CULTURE:

LEARNED

PATTERN SHARED

DIVERSE CULTURE CUMULATIVE

IDEATIONAL CHANGES

DYNAMIC

CULTURE IS LEARENED:

If a child is born in the United states but brought to Pakistan after birth, he/ she may not develop
traits of Americans as he will experience Pakistani culture and will learn the same.

CULTURE IS SHARED & TRANSMITTED:

Culture is shared and transmitted as when parents teach their children table manners or when the it
is passed into generations by means of ideas and through language as when the seniors educate
their children about school traditions etc.

CULTURE IS CUMULATIVE:

Each culture worked out problems to find solutions of the basic problems of life and it is passed on
to their children and their children as a cumulative sequence (one after another).

CULTURES IS DYNAMIC & CHANGES:

Cultural changes do happen with the passage of time new cultural traits are added to the customs
and old ones are lost because they seem no longer useful.
CULTURE IS IDEATIONAL:

It is an ideal pattern of behavior which the members are expected to follow.

CULTURE IS DIVERSE:

Culture is a mix of different human cultures. The style of living, language, speaking, wearing,
eating etc. makes up different parts. Culture itself is a system with many mutually interdependent
parts.

CULTURE AS A PATTERN:

Every culture allows a men and women to do something within their prescribed boundaries. It
teaches us pattern as to how one can behave like a husband, wife parent etc.

IMPACT OF CULTURE ON BUSINESS:

Culture is an umbrella under which the attitude of people, their perceptions, all will have different
aspects. Business have a very great impact because of its cultures. Cultures affects HRM, supply
chain, International marketing, operations management, corporate strategies and especially ways
of doing business. Cultures can have both positive and negative impacts on businesses but it is
entirely depending on the management how they lead the teams to make their way towards
achieving their goals.

Business cultures determines the success or failure during the times of changes. In case of mergers
or acquisitions it is the alignment of the organizational culture that depends the success or failure
of the business direction.

Culture basically means “the way things work around”. It includes the values, beliefs, behaviors
and facts that influence people’s behavior on day to day basis. Culture is driven by top
management and is deeply embedded in the company roots enabling the business to grow.

ANSWER-2

Today, emerging markets are the markets with wide potential for the companies and businesses to
grow globally. The rising power of consumers within these markets have produced opportunities
for these emerging businesses and gaining success. On the other hand, despite of such huge
successes of these global firms with huge numbers of consumers many have been affected by the
difference in the nature of business in these emerging markets.

The firms were compelled to be global so as to compete with the emerging markets.

1. It was the need of a firm to leverage its core competencies and products outside their home
market because of the domestic pressure and rising competition.
2. To seek newer markets and segments.
3. To gain better competence then the emerging markets and to stay in the competition for
survival.

“International Markets that ignore emerging markets do so at their own risk.”

ANSWER-3

BALANCE OF PAYMENTS:
 Countries are into trading globally with different countries around the globe. They are into purchasing
of millions & billions and trillions of items, services, goods, merchandise, equipment, assets etc.
These purchases from one country to another is recorded through a double entry accounting system that has
been designed to measure and record the economic transactions between the inhabitant of one country and
inhabitants of all other countries during a particular time.

ITS IMPORTANCE:

Balance of Payments helps the policy makers to understand and gauge the performance of each
country’s
economy in international market so as to check one nation’s economic value with ours. It describes
the competitiveness of the countries with increased economy scale and help the policy makers to devise
strategies accordingly.

1. Balance of payments helps in identifying emerging markets for goods and services.
2. It can signal the danger in business climate.
3. It can indicate the reduction of country’s foreign exchange reserves identifying that country’s
currency may depreciate in future.

ANSWER-4:

THE MARKET PLACES OF ASIA:

Asia is rightly said a business hub for the international business that is a home of more than half of the
world’s population. It has both high- and low-quality products along with skilled and unskilled
Labors.

Japan: Japan after World War II rose to become one of the world’s economic super power. Japan’s
economic success is the result of partnership between Ministry of International trade and industry
(MITI) and its industrial sector. MITI encourages Japanese firms to focus on basic industries (steel
and ship industries) and then turned up into producing automobiles, consumer electronics, house hold
machinery etc.

Australia & New Zealand: Australia and New Zealand are other economic powers in Asia. Australia
has abundant of natural resources including gold, iron ore, and coal and in land intensive agricultural
goods such as wool, beef and wheat which it exports and results in increased GDP. New Zealand on
the other hand exports dairy products, meat and wool.

The Four Tigers: The four tigers of Asian Markets are South-Korea, Taiwan, Hong Kong and
Singapore. The four tigers are referred to as emerged markets of this Era. South Korea has been
exporting electronical machinery worldwide with reliability and durability. Taiwan, has been one of
the largest contract manufacturers who produce mobile phones, laptops, and other electronics goods
for firms like Apple, Cisco, Nokia, Sony, Dell, Intel, and Hewlett-Packard.

Singapore, is into high value-added activities such as oil refining and chemical processing and high-
Tech industries like computers and biotechnology.

China, has been a super power in the newly emerged markets who has gained market share to the
maximum. China has a hard-working labor, low cost and reliable products like Mobile accessories,
electronic machinery, automobiles, households and what not.

PAKISTAN’S ROLE IN ASIA:

 As far as Pakistan is concerned Pakistan has also a wide role to play as it has huge exports of Cotton,
rice, sugar, fish, fruits, vegetables, textiles, leather and sport goods and it is right to say that Pakistan
surely plays and important role in the market places of Asia.

ANSWER-5:

Individualism: It focusses on the rights of the individual person. An individualist is motivated by

rewards and benefits.

 Focuses on independence.
 Focuses on I.
 Privacy is valued.
 Low context communication

Collectivism: It focusses on the rights and goals of the group. A collectivist is motivated by group
goals.

 Focuses on WE.
 One is never alone.
 High Context communication.
 Equality based rewards.

ANSWER-6:

MULTINATIONAL CORPORATIONS:

A multinational corporation (MNC) or multinational enterprise is an organization that owns or

controls production of goods or services in one or more countries other than their home country. It can also
be
referred as an international corporation.

ADVANTAGES OF MNC’S ON HOST COUNTRY:

1. The investment level, employment level, and income level of the host country increases due to the
operation of MNC's.
2. The industries of host country get latest technology from foreign countries through MNC's.
3. The host country's business also gets management expertise from MNC's.
4. The domestic traders and market intermediaries of the host country gets increased business from
the operation of MNC's.
5. MNC's break protectionism, curb local monopolies, create competition among domestic
companies and thus enhance their competitiveness.
6. Domestic industries can make use of R and D outcomes of MNC's.
7. The host country can reduce imports and increase exports due to goods produced by MNC's in
the host country. This helps to improve balance of payment.
8. Level of industrial and economic development increases due to the growth of MNC's in the host
country.

DISADVANTAGE OF MNC’S ON HOST COUNTRY:

1. MNC's may transfer technology which has become outdated in the home country.
2. As MNC's do not operate within the national autonomy, they may pose a threat to the economic
and political sovereignty of host countries.
 3. MNC's may kill the domestic industry by monopolizing the host country's market.
4. In order to make profit, MNC's may use natural resources of the home country indiscriminately
and cause depletion of the resources.
5. A large sums of money flows to foreign countries in terms of payments towards profits, dividends
and royalty.

ANSWER-7:

Religious beliefs and practice can strongly influence what consumers buy (or don’t buy), when they
shop, and how they conduct business.  It is important for marketers to understand the influence of
religion on consumer culture in the markets where they operate, so that their marketing activities can be
appropriately ssensitive. Failing to respect religious beliefs or cultures can seriously undermine the
reputation of a company or brand. At the same time, marketers who are attuned to the impact of religion on
local culture can find great advantage in aligning marketing messages and promotional opportunities to
religious practice.

For example, all the major world religions observe holidays that include feasting and gift giving. These
festival seasons tend to be prime shopping seasons as well, such as the Christmas season in Western
cultures, or Ramadan in Muslim cultures. Religious beliefs lead to sensitivities about certain products: in
the Hindu religion, cows are considered sacred and people refrain from eating beef. Observant Jews and
Muslims consider pork unclean, and they consume only kosher or halal meats, respectively. Many
religions eschew alcohol, for example, devout Sikhs, Muslims, Mormons, Buddhists, and Southern
Baptists all refrain from drinking.

ANSWER-8

ETHICS: An individual’s personal beliefs about whether a decision, behaviour, or action is right or
wrong.

ETHICAL BEHAVIOR: behaviour that conforms to generally accepted social norms.

UNETHICAL BEHAVIOUR: behaviour that does not conform to generally accepted social norms.

ETH

How an organization treats its employees:

 Hiring best people

 Provide ample opportunity for skill and career development.
 Offer compensation & benefits.
  Respect personal rights.
 Dignity of employees.

Mana
firm needs to recognize local, country-specific ethical norms in its treatment of employees, but it
must also be prepared to contend with international comparisons as well.

How employees treat the organization:

 Conflict of interest
 Secrecy and confidentiality
 Honesty and Integrity.

How employees and organization treat other economic agents:

 Customers
 Competitors
 Stockholders
 Suppliers
 Dealers
 Labor Unions

Behaviors that may be subject to ethical ambiguity: advertising and promotions, financial disclosures, order
and purchasing, shipping and solicitations, bargaining and negotiation, and other business relatio