Cabico, Camille R.

ECON 3210
BS ENTREP 3 First Term Examination: Part 2

1. How cultural differences impact international business?

Answer:
 Culture is that the ideas, customs, and social behavior of a selected
person or society. It affects everything we tend to do from the approach
we tend to raise our children to the approach we tend to do business.
Therefore, recognizing however culture will have an effect on international
business are a few things that ought to be understood to avoid
misunderstandings between colleagues and purchasers, and additionally
to create positive that companies square measure presenting themselves
to their new market within the best approach they will. After we are
operating with folks from an equal, or similar, culture, it’s these shared
rules that assist in giving us structure and agreement in the way to set
about doing things, whether or not that’s however we tend to
communicate, run conferences or talk terms. 

However, after we got to work with somebody from a special

culture, the foundations might not be an equal. Once operating in very
multicultural surroundings or with another culture, the private challenges
are often several. After we stumble upon cultural variations, and square
measure unable to recognize and alter them, our responses are
emotional. This will have a damaging impact on several factors together
with sense of well-being and confidence. Not having the ability to manage
cultural variations may be a common reason cited for failing international
business assignments. Operating with folks from completely different
cultures will gift many cognitive challenges. Two straightforward samples
of this square measure the ideas of your time and relationships. Time
conscious professionals will see timing in alternative cultures as
amateurish or maybe disrespectful. They don’t appreciate that within the
culture they're operating with punctuality may be a way more nuanced
concept. In some cultures, its relationships before business were in
others, business initial. Sometimes those cultures that square measure
time aware square measure less relationship oriented. They will see every
other’s priorities incorrectly, the relationship-driven culture sees the task-
driven culture as impersonal, unfriendly and fair, where the task-driven
culture is seen as not taking business serious enough, outlay an
excessive amount of time on schmooze and breaching the road between
personal and skilled matters. Doing business with folks from completely
different cultures may also have an effect on a lot of sensible aspects of
labor. Several of those don't essentially translate into alternative cultures,
which may cause challenges.
 So, as we are able to see culture can have an effect on
international business in many ways. In essence, after you have two or a
lot of differing views, opinions, assumptions or presumptions close, the
result are often negative thanks to a scarcity of understanding between
the two.

2. Describe the types of economic systems.

Answer:
 Any system that involves the mechanism for production, distribution, and
exchange of products except consumption of the products and services at
intervals the various entities may be classified as a financial set-up. the
varied forms of economic systems and their classifications broadly
speaking follow the ways by which implies of ownership are established.
Economic systems are complicated within the fact that they place
confidence in several folks returning along within the market,
driving provide and demand.

These are broad types of economic systems however can capture

the various varieties that exist within the world nowadays. the traditional
financial set-up, subsistence is that the main driver for economic trades,
while profit isn't the most motive. Instead, this system depends on
communities and the cohesion between them to produce and sustain one
another. A command economic system, alignment own the suggests that
of production, so can, therefore, shift it to wherever they see match. as an
example, if the nation’s alliance wishes to begin creating additional steel,
they'll move staff from a construction site and transfer them to a mill. The
capitalist financial set-up is wherever the suggests that of production is
closely held and controlled by non-public enterprise instead of the
government. under this kind of economic system, government involvement
is sort of non-existent – aside from imposing law and legal contracts. The
mixed economy is one among the foremost common types of economic
systems within the world nowadays. A mixed economy extends on the far
side simply mixed management of the suggests that of production,
however additionally governments involvement through regulation and
different types of intervention. Subsidies, tariffs, and quotas are some
interventionist tools than several economic system nations such.

3. Why do governments intervene in trade?

Answer:

 Governments erect trade barriers and intervene in alternative ways in

which prohibit or alter trade. Protectionism refers to trade and investment
barriers applied with the aim of defensive domestic markets and
industries. Tariffs and nontariff trade barriers square measure the most
instruments of economic policy. A tariff could be a tax obligatory by
 government on foreign merchandise. Tariffs have fallen over time,
however several high in several countries. Nontariff trade barriers are
government policies or measures that prohibit trade while not imposing an
immediate tariff or duty. Governments undertake intervention to realize
many goals, including: to get revenue, to realize policy goals, and to guard
or support the nation's citizens or private firms. In theory, once a
government initiates a tariff program, the extra prices saddled upon the
affected things discourages imports, that successively impacts the
balance of trade.

4. How does political aspects affect international businesses?

Answer:

 Political aspects in international business results from varied factors that

may negatively have an effect on a company’s financial gain or complicate
its business strategy. Government actions, like confiscating a company's
assets, create it troublesome to accumulate finance, which may have an
effect on the power of a company’s offer chain to support production.
Alternative political events might mean an organization are unable to
convert foreign currency, export or import product and provides, or shield
in-country assets. Varied political factors have an effect on the
international factors. Political factors like changes in tax rates, policies and
actions of presidency, political stability of country, foreign trade laws etc.
affects the operating of a global business. Lack of political stability within
the country directly impacts the operations of business. Also, varied tax
policies and government initiatives typically hinders the enlargement of
business in alternative countries. Thus, effective political atmosphere of
business influences the expansion of business.

5. How does legal aspects affect international businesses?

Answer:

 Legal factors are external factors that ask however the law affects the
method businesses operate and customers behave. Legal factors will
decide whether or not or not there's a business behind merchandising an
exact product perhaps drugs, or sharp objects, and might additionally
have an effect on the mechanisms through that a corporation stocks their
inventory or interacts with the client. Legal factors relate to the legal
setting of the country within which firm operates. Totally different laws
prevail in several countries and international business companies ought to
abide by the laws of every country. Laws with reference to age and
incapacity discrimination, wage rates, employment and setting laws affects
the operating of business companies. Beside this, numerous international
loaning agencies affects the legal culture and dealing policies of firm. They
play a giant half when deciding however businesses operate and what
profits they receive, further as however customers behave. Examples
embody the legality of pyramid schemes, and laws governing importation
and exportation.