TUTORIAL QUESTIONS (INTRODUCTION TO INTERNATIONAL BUSINESS)

QUESTION 1
Distinguish ‘globalisation’ and ‘internationalisation’ (LO1)
Expected answers:
Globalisation:
- “ … the shift toward a more integrated and interdependent world economy …”
- “… the tendency toward an international integration of goods, technology,
information, labour and capital or the process of making this integration
happen …”
- “… adopted strategies that operated as if the entire world (or major regions of
it) were a single entity; such an organization sells the same things in the same
way everywhere …”
- “… The widening set of interdependent relationships among people from
different parts of the world …”
Intrnationalisation:
- “ … a process on how firms gradually intensify their activities in foreign market
… ” (Johanson & Wiedersheim-Paul, 1975; Vahlne & Wiedersheim-Paul, 1973)
- “ … performance of trade and investment activities by firms across national
borders …” (Cavusgil et al., 1979)
- Specific country/firm assessments to do business in one or more countries
- Processes (design and development) that enables easy localisation to take
place
(Facilitator/lecturer to accept any suitable answers given by students)
QUESTION 2
Read the articles attached and answer the following questions:
a) What are the benefits to Boeing of outsourcing manufacturing of components of
the aircraft to firms based in other countries?
Expected answers: Accept any possible answers from the article
b) What are the costs and risks to Boeing of outsourcing manufacturing of
components of the aircraft to firms based in other countries?
Expected answers: Accept any possible answers from the article
c) In addition to foreign subcontractors and Boeing, who else benefits from Boeing’s
decision to outsource component part manufacturing assembly to other nations?
Expected answers: Accept any possible answers from the article
d) Who are the potential losers in Boeing’s decision to outsource component part
manufacturing assembly to other nations?
Expected answers: Accept any possible answers from the article

QUESTION 3
Differentiate the roles of International Monetary Funds and the World Bank (LO3).
Expected answers:
IMF:
- To maintain order in the international monetary system
- IMF is perceived as lender of last resort to nations whose economies are in
turmoil and whose currencies are losing value against those of other nations
The World Bank:
- To promote economic development
- WB is less controversial than IMF as it focused more on making low-interest
loans to cash-strapped govts. of poor nations that wish to undertake
significant infrastructure investments
(Facilitator to accept other possible answers)

QUESTION 4
Explain the roles of WHO and its connection to the UN (LO3)
Expected answers: Lecturers to accept any possible answers