International Business (lectures)
Balance of payments
It has to balance (zero). In theory, it should always be zero, but in real life, it does not always balance.
A current account surplus of goods and services exceed imports. The currency here is likely to rise.
A current account deficit means imports of goods and services are greater than exports. The US has a great debt. You often have to borrow in this case, if you do not have a savings. It can be easy to borrow one time, but eventually you have to pay the money back that you have borrowed, plus interest. The value of the currency of the given country will fall, and therefore it can be more difficult to export goods to other ...view middle of the document...
Name of product. When Coca-Cola wanted to enter the market in China, they had to find a way to spell the word Coca-Cola, so it sounds something like the brand in the US, but they had to think about the meaning of the word in China, because every letter has its own meaning.
Workplace. Decentralized. More formal way of addressing people, like in Greece. Say first or last names.
Hofstede: Individualism vs. collectivism
* Work alone vs. work in groups
* Uncertainty avoidance
* Masculinity vs. femininity
* Attitudes towards time, persistence status in society, “face”, respect for traditions, gifts and favors.
Low or high context of communication. Example. US: The meeting starts at 5, then it starts at five. India: The meeting starts at 5, then it depends on if it’s a work meeting or a meeting at someone’s house.
Video clip with Circus
Intercultural negotiation video
Negotiation between a U.S. jeans sales manager (Michael) and his potential contract with a Japanese buyer (Norio)
Michael talks too fast about the contract, whereas Norio rather wants to build/establish a relationship.
Differences in culture. Negotiation takes longer in other countries compared to the US.
Polychronic and monochromic time. In the US, we like to have a list, monochromic time.
US, task orientation. Other parts of the world, Japan, relationship orientation.
Non-task sounding (high context).
Direct vs. indirect communication. Michael was being very direct.
Comfort with silence.
Currency and foreign exchange rate (read up on this)
Translation: Read up on these
The Japanese yen has getting stronger compared to the US dollar. Look at the slides.
Spot rate: The current relationship between two currencies.
Each transaction is two currency.
Know the different currencies for the exam.
Law of one price: Exchange...