Which of the following is a characteristic of the American Free Enterprise System?

Private ownership of property and resources

Government control of businesses

Central planning of economic activities

In the American Free Enterprise System, what role does the government play in the economy?

Regulating and protecting competition

Controlling all economic activities

Ensuring equal distribution of wealth

What is the term used to describe the system in which prices are determined by the interactions of buyers and sellers in the American Free Enterprise System?

Equal distribution of resources

Which of the following is a key principle of the American Free Enterprise System?

Limited government intervention

Equal distribution of resources

Government control of all economic activities

What is the term used to describe the idea that individuals are free to choose their own occupations and pursue their own economic interests in the American Free Enterprise System?

Government control of occupations

Which of the following is a benefit of the American Free Enterprise System?

Innovation and technological advancements

Centralized decision-making on advancements

Equal distribution of technology

Government control of innovation

What term is used to describe the idea that prices in the American Free Enterprise System are determined by the forces of supply and demand?

Centralized price determination

American Free Enterprise System

The American Free Enterprise System

Management and Globalization Global Management Why companies go global How companies for global Global Business environments Global Business Types of global business Pros and cons of global businesses Ethnic Challenges for global business Culture and Global Diversity Cultural intelligence Silent language of culture Tight and loose cultures Values and national cultures Global Management Learning Are management theories universal? Intercultural competencies Global learning goals Key concepts of the challenges of globalisation: Global economy Resources, markets and competition are worldwide in scope Internationalisation The process of increasing involvement in international operations Globalization/Deglobalization Glob- the growing interdependence among elements in the global economy The worldwide interdependence of resource flows, product markets and business competition World 3.0 Different views: World flat vs. round Distance is a metaphor that represents the degree of dissimilarities between countries Balancing cooperation in the global Global Management Global management - managing things in different countries Managing business and organizations with interests in more than one country What do we expect from global Managers Knowing how to adapt Knowing the language Global Manager Is culturally aware and informed on international affairs International Business Conducting for-profit transactions of goods and services across national boundaries International Motive Why do firms internatioalize their activities Cheaper labour Labour tax Natural resources Enrolments to do business Clientele Exclusive materials Personal benefits: Taxes Reasons why businesses go global Customers Suppluers Capital During (1993) - 4 motive 1. Market seeking 2. Efficiency Seeking 3. Resource seeking 4. Strategic Asset Seeking Cuervo Cazurra, Narula and un (2015) - 4 motive s Internationalization Motives A company may also explore the opportunities in different markets in order to take advantage and in some cases extend the product life cycle What is a Market Entry Strategy Involves the sale of goods or services to foreign markets but do not require expensive investments Franchising Exporting and importing Involve the sale of goods or services to foreign markets but do Types of market entry strategies Global sourcing Exporting Importing Licensing agreement Franchising Types of Foreign Direct Investment (FDI) strategies: Joint venture Strategic alliance Owned Subsidiary (sometimes called WOS) How to go abroad What conditions will affect the decisions of firms on how to internationalize their activities? During (1978)- Eclectic paradigm OLI model OLI- Ownership, Location and Internalization Advantages Ownership advantages Resources owned by the organization that can be transferred across locations include trademarks, production techniques and processes, managerial skills and other resources not available to the competitors Location Advantages Represent the implications of choosing to produce or to perform activities in a specific location (country or region) Internalization Advantages: The ability to internalize or to incorporate activities that add value to its business Evolution of Concepts- New Elements Although economic factors are certainly important to explain the formation, growth and expansion of firms within and across national borders, they are not sufficient to explain the additional complexity when a firm decides to expand its activities across national borders Economic factors Investigate the economic elements that affect the internationalization of firms Behavioural Elements Explaining the additional challenges (and perhaps opportunities) a firm faces in foreign host countries when compared to indigenous (local) firms Behavioural theories Johanson and Wiedersheim-Paul (1975) and Johanson and Vahlne (1977) Included the psychic Distance concept (beckerman,1956) to explain the internationalization behaviour of firms The Uppsala internationalization model Psychic distance is: the sum of factors preventing the flow of infomatio from and to the market Psychic Distance is a broad concept that includes several elements such as: language, culture, political systems, level of education, level of industrial development Firms behave in a “Risk Averse” manner It means that when the perceived risk goes down, the firm increase its commitment to the foreign market \ The Haier Group Data Strategy Big DATA and Small DATA The use of small data to satisfy individual customers’ needs, however, the book mentions a huge cultural shock at the plant in Camden, south caroline Ex: top down, hard hat colors and hierarchy Culutral Differnces can have a huge impact on the internationalization of firms Kogut and Singh (1988)- Cultural Distance Index First statsical study on the implication of ciltiral distance to the selection of entry mode When investigating in culturally distant countries, foreign firms can choose to partner with foreign firms in order to gain local knowledge and share the risk associated to the investment (higher commitment = higher risk) How Companies Go Global Global sourcing The process of purchasing materials or services around teh world for local use Exporting Selling locally made products in foreign markets Importing Buying foreign made products and selling them domestically Exports correspond to what percentage of Candain GDP What countries are the major trending partners of Canada Management and Globalization How Companies Go Global Licensing Agreement One firm pays a fee for rights to make or sell another company’s products What are the potential risks associated to licesning The case of new balance in China Franchising A fee is paid for the rights to use another firms name, branding and methods Insourcing Insourcing: refers to local job creation that results from foreign direct investment Types of insourcing Joint ventures: operate in a foreign country through co-ownership by foreign and local partners Strategic alliances: A partnership in which foreign and domestic firms share resources and knowledge for mutual gains Foreign subsidiaries: local operation completely owned by a foreign firm Criteria for choosing a joint venture partner: Familiarity with your firm’s major business String local workforce Values its customers Future expansion possibilities Strong local market for partner’s own products Good Profit potential Sound financial standing Global business environments Legal and poliical systems Trade agreements and trade barriers Regional economic alliances Legal and political systems Differing laws and practices regards Business ownership Negotiation and implementation of contracts Foreign currency exchange Protection of intellectual property rights Counterfeit merchandise Political risk Potential loss in value of foreign investment due to instability and political changes in the host country Political risk analysis (expertise/experience) Forecast political disruptions that threaten the value of a foreign investment Changes in the rules of the game Brexit US Trade Wars-mexico-China Other examples Bolivia, Venezuela, China De-globalization The process of weakening interdependence among nations Trade Agreements and trade Barriers World trade organization Most favourd nation status Tariffs Nontariss barriers (quotes, restrictions, etc.) Protectionism Regional Economic Alliances USMCA (replacment for the NAFTA-North American Free trade Agreement) EU- European Union APEC- Aisa Pacific Economic Copperation ASEAN - Association of Southeast Asian Nationas SADC - Southern Africa Development Community MERCOSUR- Chapter 5- Global Management and Cultural Diversity (part 2) Review Types of global business Global corporation MNE (multinational enterprise) or MNC (multinational corporation) with extensive business operations in more than one foreign country Transnational corporation A global corporation that operates worldwide on borderless basis Some host country complaints about MNCs Host Country companits about MNCs: Excessive profits Interference with local government Domination of local economy Interference with local government Hiring the best local talent Limited technology transfer Disrespect for local customers Examples - War in Ukraine Disruption in global -value chains and increased pressure and interference of MNCs with local government Fertilizer imports in Brazil (one of the major producers of agricultural commodities) We must consider the triple bottom line and the impact in society, the environment and the economy $2.5 billion invest in potash mine in Brazill What about Globalization gap Large multinationals adn industrilizednaitons gaining disporoportinonally form globalization Globalization gap: Large multinational and industrialized nations gaining disproportionally from Globalization Some MNC complaints about host countries MNC Complaints about host countries: Profiit limitations Laws and regulations Overpirce resources Exploitative rules Foreign exchange restriction Failure to uphold contracts Mutual benefits for host countries and multinational companies Mutual benefits for host country and global corporation of MNC: Shared growth opportunities Shared income opportunities Shared learning opportunities Share development opportunities Develop projects together What are some of the ethical challenges for global business Ethincal challenges for global business Child labour Employmnet of children for worl otherwise done by adults Sweatshops Employment of workers at very low wages for long hours in poor working conditions Ex: Nike bad labour prices Unsafe working conditions Corruption Illegal practices that further one’s business interests Corrupiotn of froeign public officials Act makes it illegal for Candain firms and their representatives to engage in corrupt practices overseas Bribes to foreign officials Excessive commissions Non-monetary gifts Sweatshops Conflict materials What is culture Culture : The shared set of beliefs, values, and patterns of behvaiourr common to a group of people Food preferences Values and traditions Language and beliefs Religion Art music Life style Hofstede defines culture as: “The collectiv programing of teh mind distinguishing the members of one group or category of people from others” What is culture shock Culture Shock: Confusion and discoumfert a person experiences in an unfaamiliar culture Stages to adjusting to a new culture Confusion Small vitorires The honeymoon Irritation and anger Reality Cultural Intelligence The ability to adapt and adjust to new cultures What is Ethnocentrism Tendency to consider one’s own culture as superior others Slinet languages of culture Contect Low context High context Space Proxemics Ex: personal space Time Monochronic Polychronic High and low contexts cultures Edward T.Hall (1959) Def: Part of a discourse that surround a word or passage and can throw on its meaning Low context cultures Emphizes communication via spoken or written words Countries like United States, Canada and Germany High context cultures Rely on nonverbal and situational cues as well as on spoken or written works Thailand Malaysia Time Monochronic cultures People tend to do one thing at a time Canda Polychronic cultures Time is used to accomplish many different things at once Egypt Space Proxemics Study of how people use space to communicate In North American people value “personal space’ Many Latin and Asian cultures expect much less personal space Tight and Loose Cultures Cultural tightness-looseness Tight = Strength of norms that govern social behvaviour Japan, Korea, Malaysia Loose = tolerance for any deviation from norms Australia, Brazil, Hungary Values and national cultures (Hofstede) Power distance Uncertainty avoidance Individalism-collectivism Masculinity-femininty Time Orientation Indulgence vs. Restraint Comparative management How management pratices systematically differ among countries and /or cultures Intercultural competencies Skills and personal characteristics that help us be successful in cross cultural situations Global Managers (know how to adapt) Need to successfully apply management functions across interantional boundaries Global Learning goals Not universal Engage critical thinking Look everywhere for new management ideas Always consider culture

ECON_Chapter 3: American Free Enterprise

The Columbian Exchange was the widespread exchange of animals, plants, culture, disease, people, and ideas that began between European countries and their colonies in North and South America. The Spanish came to the Americas in search of gold and other riches. The Europeans wanted to convert the Native Americans to Christianity/Roman Catholicism. Spain had the greatest impact on the culture of Latin America. Sugarcane was a crop that was grown in the Caribbean that required a lot of land and labor. Native populations died out largely due to diseases that they had no natural immunity to before the arrival of Europeans. When the Native populations died out, African slaves were brought over to work. Two cultural elements in Latin America that resulted from the Columbian Exchange were language - Spanish, and religion - Roman Catholicism/Christianity. Environmental Issues Deforestation is the clearing of forests for human demands such as farmland, timber, and mining. The Amazon Rainforest in Brazil is one area experiencing major deforestation. Hurricanes can damage the economies in the Caribbean and Central America by keeping tourists away. Economy The three economic indicators used to determine the Human Development Index (HDI) are: life expectancy, literacy rate, and GDP per capita. Higher literacy rates, GDP per capita, and life expectancy are associated with more developed countries, while lower literacy rates, GDP per capita, and life expectancy are associated with less developed countries. The three sectors of the economy are primary/agriculture (e.g. rancher), secondary/manufacturing (e.g. table factory), and tertiary/services (e.g. teacher). A single product economy is when a country depends on just one product for almost all of its jobs, like the Caribbean Islands depend on tourism. Three disadvantages of a single product economy are: having to import other goods/resources, facing competition from other countries for the same product, and if the product fails, the economy is ruined which could restrict access to goods/resources. A free enterprise/market economy is when individual people and businesses make all economic decisions. A command/communist economy is when the government makes all basic economic decisions. Cuba has a communist economy where the government controls all aspects of the economy.

Anglo American Colonization Definition Quiz (free response)

Juneteenth is an important holiday in American history. It honors the day in 1865 when enslaved people in Texas found out they were free. This day marked a major milestone on the path to ending slavery throughout the U.S. On June 19, 1865, Major General Gordon Granger of the Union army arrived in Galveston, Texas. He informed the enslaved people of Texas about the Emancipation Proclamation. The Emancipation Proclamation was a speech made by President Abraham Lincoln two years earlier, on January 1, 1863. It stated that enslaved people in many of the southern states were now free. President Lincoln gave this speech during the height of the Civil War. But by the time the Union soldiers made it to Texas, the Civil War had ended. It took over two years for this message to reach the people still enslaved in Texas! More than 250,000 people celebrated their newfound freedom on June 19. Soon after, many of these freed people decided to migrate to northern states to start a new life. But they continued to celebrate Juneteenth year after year and to share this holiday with their community. In 1872, a group of formerly enslaved people raised money to buy 10 acres of land near Houston, Texas. They named this land ‘Emancipation Park’. To this day, many Americans celebrate Juneteenth in this park to remember their history. Texas also holds a special parade to celebrate this day. Thousands of people participate and enjoy learning and celebrating African American culture and history. They fly the Juneteenth flag. The Juneteenth flag has a white star that symbolizes freedom and new hope for African Americans. Juneteenth is a day to remember the triumphs and struggles of African Americans. Even though enslaved people in Texas learned of their freedom on Juneteenth, they still faced violence, discrimination and inequality. That is why Juneteenth celebrations are so important to many Americans. Juneteenth recognizes the hardships of gaining freedom and the importance of remembering Black history in the United States.

Honduras is a Central American nation bordered by Nicaragua, Guatemala, and El Salvador. The Caribbean Sea forms its northern coastline. The Pacific Ocean borders a small southern strip of land. Almanaque Nombre oficial: República de Honduras Área total: 112.090 km2 Población: 9.038.741 Ciudad capital: Tegucigalpa Moneda: lempira Lenguas: español, dialectos amerindios Early History Explorer Christopher Columbus came to Honduras in 1502 on his fourth trip to the New World. As was the case in North America, Honduras, in Central America, had been home to many native indigenous groups including the Sumu and Lenca. Some estimates suggest an indigenous population of up to 2,000,000 before the Europeans arrived. Among these indigenous groups were the Maya. Their civilization spread from the Yucatán area of Mexico to Honduras’ ancient city of Copán. Spain’s conquest of Honduras began in 1525, but it was not easy. It took until 1539 to fully conquer it. There were conflicts with the native population, who were forced into labor. Many died from disease and abuse. Others were enslaved and sent to the Caribbean islands. In addition, there were pirate attacks and in-fighting among the Spaniards. Phawat/Shutterstock Gold and silver deposits were discovered in Honduras in the 1530s, attracting more settlers. By the mid-16th century, mining was an important industry, mainly in the towns of Gracias and Comayagua. More native labor was needed, taking its toll on the dwindling indigenous population. As a solution, enslaved Africans were introduced in the 1540s. This was well before 1619, when enslaved Africans first arrived in Jamestown in the American colonies. The 17th century was filled with conflicts, primarily between the Spanish and the British. Britain wanted to establish colonies on the Caribbean coast of Honduras. They eventually seized the coast with help from the native Sambo and Miskito peoples. However, Spain later regained control. Independence In the early 1800s in Honduras, resentment toward Spain grew. One reason was that Honduras was subject to more taxes to help pay for conflicts that were happening between Spain and France. Other Spanish colonies were also increasingly resentful toward Spain. In 1776 in North America, the 13 colonies banded together to declare their independence from Britain. Similarly, Honduras joined other Central American provinces. Together, they declared independence from Spain on September 15, 1821. Honduras briefly became a part of Mexico, but in 1823, it became independent from Mexico. It then joined the United Provinces of Central America. This included other former Spanish colonies: Costa Rica, El Salvador, Guatemala, and Nicaragua. But the federation did not last, partially due to divisions in political beliefs. In 1838, Honduras declared its independence from the federation. By the early 1900s, the United States had economic interests in Honduras. American fruit corporations like the Standard Fruit Company and United Fruit Company began investing in Honduras to export bananas. To protect American investments, the United States became more involved in Honduras’ political affairs. When Nicaragua appeared to threaten the stability in Honduras, US President Taft sent forces to Honduras to protect American interests. The Great Depression caused economic havoc in the United States and elsewhere. In Honduras, this meant economic problems and political turmoil. During this time, General Tiburcio Carías Andino was elected president, in 1932. He worked to strengthen the military and pay off Honduran debt. Yet he also worked to gather and maintain his own power. He changed the constitution so that he could extend his term in office as president until 1949. His advanced age and pressure from the United States forced him to allow free elections in 1948. General Francisco Morazán In 1823, Honduras joined the United Provinces of Central America. In 1830, Tegucigalpa-born General José Francisco Morazán was elected president of the federation. He remained president until just before the federation disbanded in 1840. aalezk/Shutterstock Morazán favored liberal policies and the reduced power of the church. Morazán was a self-educated man. He recognized the importance of education and the need for schools in Honduras. He believed that girls and boys should have an equal opportunity for education. During his presidency, he tried to make improvements in education. He opened schools that were free to attend. In addition to improving education, he established a system of trial by jury. It was based on the Livingston Code, created in Louisiana. This was a set of reforms to the system of legal punishment. Today, Honduras celebrates the Day of the Honduran Soldier on October 3, Morazán’s birthday. This holiday honors Morazán for his fight for democracy, liberalism, and the nation. Modern Honduras The last half of the 20th century was a political rollercoaster. There were various coups (government takeovers), conflicts, and changing leaders. Starting in 1963, Honduras was primarily led by military governments. This continued for almost 20 years. In 1969, Honduras fought a four-day war with El Salvador. The conflict was over immigration and the shared border. Though the war was brief, the two nations didn’t sign a peace treaty until 1980. With the election of president Roberto Suazo Córdova in 1981, Honduras returned to a civilian government. In the 1980s Honduras was tangled in conflicts of Nicaragua and El Salvador, partly because of the United States. Nicaraguan Contras, who wanted to overthrow the Sandinista government in Nicaragua, were using US-approved bases in Honduras. The United States was also running training camps in Honduras for Salvadoran forces facing their own civil war. This sparked anti-American protests and a desire to reduce the US presence in Honduras. Over the next few decades, Honduras continued to experience political instability. In 2009, President Manuel Zelaya was removed from power by a military coup. People were upset because he called for a referendum to change the constitution. The international community condemned this coup. As a result, Honduras cut diplomatic ties with several countries. In 2010, the United States recognized President Porfirio Lobo Sosa as a democratically elected leader. He was followed by Juan Orlando Hernández in 2014. However, protests in 2015 called for his resignation over claims of campaign fraud. In 2017, Orlando Hernández was re-elected in a disputed election.

Spectacular - Spektakulär Unexpected - Oväntad A moment of truce - Ett vapenstillestånd Push the limits - Tänja på gränserna Free climber - Fria klättrare Descriptions - Beskrivningar Get a rush from - Få en kick från End up face to face with sharks - Sluta ansikte mot ansikte med hajar Crawling - Krypande Chalk powder - Kritpulver Pouch around your waist - Påse runt din midja On purpose - Med avsikt Seek thrills - Söka spänningar Accomplish my dreams - Uppnå mina drömmar Comes at a cost - Kommer med ett pris Permission - Tillstånd Achievements - Framgångar Fallen from heights - Fallit från höjder Fallen into a coma - Hamnat i koma Stiches - Stygn Target - Mål Reaching his goal - Nå sitt mål Retell - Berätta om Ordinary people - Vanliga människor Uncommon - Ovanlig On American soil - På amerikansk mark Hijacked - Kapat The outcome - Resultatet The public - Allmänheten Structural engineer - Byggnadsingenjör Port - Hamn Witnessing - Vittna Make it down the stairwell - Ta sig ner för trapphuset A roaring sound - Ett brölande ljud Take cover - Söka skydd Crouched down - Hopkrupen The walls cracked open - Väggarna sprack upp Underneath - Under Fall unconscious - Förlora medvetandet In the rubble - I rasmassorna Unaware of - Omedveten om Devastating moment in history - Förödande ögonblick i historien The mobile network is down - Mobilnätverket ligger nere Commit crimes - Begå brott Throughout history - Genom historien Path - Väg Whiny voice - Gnällig röst Wearing him down - Slita ner honom Long for - Längta efter Thumping - Dunkande Spiked with a deadly dose of poison - Spetsad med en dödlig dos gift Gone through with it - Genomfört det Constant nagging - Ständigt gnäll Infidelity - Otrohet Carved - Skuren Perform on the big stages - Uppträda på de stora scenerna Unrealistic demands - Orealistiska krav Something fishy is going on - Något skumt pågår Offered a reward - Erbjöd en belöning Downfall - Fall Accomplice - Medbrottsling Undoubtedly - Utan tvekan Board a ship - Stiga ombord på ett skepp Suspense - Spänning Trip on a wire - Snubbla på en tråd Invention - Uppfinning Customs officer - Tulltjänsteman Extraordinary - Extraordinär Nearly - Nästan The entire population - Hela befolkningen Cease to exist - Upphöra att existera Great courage - Stort mod Goodwill - God vilja A little bit of humanity - Lite mänsklighet In the midst - Mitt ibland Lose faith in - Förlora tro på Snowflakes - Snöflingor Turn the doorknob - Vrida dörrknoppen Shelter - Skydd Gesture towards the cabin - Gesta mot stugan Pale - Blek Commotion - Uppståndelse Medic - Sjukvårdare Ease up the tension - Minska spänningen Extend his hand - Sträcka ut sin hand Painkillers - Smärtstillande Supper - Kvällsmat Foolish - Dum Establish - Etablera Drop a nuclear bomb - Släppa en kärnvapenbomb The Great Plague - Den stora pesten Civil rights - Medborgerliga rättigheter Underline - Understryka Keen on - Angelägen om

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