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EDUCATION



IBUS1101
Week 1-5
期末冲刺班（期中前知识点回顾）
精华笔记，唤醒记忆





TUTOR: HEY
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TUTOR 自我介绍：HEY
我已经在课上做了自我介绍。
1. 现在所处的大学阶段是？
2. 所学专业是？
3. 所教授科目取得怎样的成绩？优势是什么？
4. 您的教学风格是这么样的？
5. 平时有什么兴趣爱好？
6. 有哪些亮眼的实习经历？
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1.点【 参会者】
2.点【 举⼿ 】 即可与⽼师实时互动
3.问题被解答了还可以【 ⼿放下】
红圈处输⼊问题提问
红圈处输⼊问题提问
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课程目录



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Week 1


考点 1.1 Globalisation definition
⚫ Interaction and integration among people, companies, and governments worldwide
全球人员，公司和政府之间的互动和整合
OZON.RU 俄罗斯网购公司的例子，你们还记得么?

考点 1.2 Main Idea
• No Matter Where You are in the world, you can have the best opportunities you deserve 无论您身在何
处，都可以拥有应得的最佳机会
• Think about Boeing 波音
• Get the best parts form the cheapest firms, no matter where they are located
• Make the Aircraft at the best location
• Sell to best customers, no matter where they are located
• Get Money in the Currency you want and park in best banks, no matter where they are located
• All in All: Globalisation means borders do not matter 总而言之：全球化意味着边界无所谓
The Flat world Hypotheses
平坦世界的假设

考点 1.3 How global we are




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考点 1.4 World 3.0 世界 3.0
• We are not global, we are not local 我们不是完全的国际化，也不是完全的本土化
• World 3.0: we are still very much local and domestic, at the same time, world is trying to get connected->
gradually and slowly
• International Business (IB) is hard, challenging- doing business cross-border is hard 困难重重-跨境经营很难
• World 3.0: countries are domestic, different, opportunities to do business with other countries, great
opportunities to exploit if we know IB
• World is domestic, national differences and lots of opportunities to exploit if we know IB.

Pankaj Ghemawat 的访谈
What does World 3.0 look like? What’s the vision?
• World 1.0: national borders
• World 2.0: national borders faded away, whole world=one giant country
• World 3.0:
◆ sensible middle ground
◆ International interactions matters AND border effects still very large
◆ Introduce policies such as trade policies CHAFTA, Transpacific partnerships
◆ Possibility of useful actions to improve things

世界 1.0：国界
世界 2.0：国界逐渐消失，全世界=一个大国
世界 3.0：
• 明智的中间立场
• 国际互动很重要，边界影响仍然很大
• 介绍贸易政策 CHAFTA 中澳自由贸易协定 ，跨太平洋伙伴关系等政策
采取有益行动改善事物的可能性











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Week 1 Reading 讲解
READING 名字：Why the world isn’t flat
作者： Pankaj Ghemawat
年份：2007

• Globalization has bound people, countries, and markets closer than ever, rendering national borders
relics of a bygone era—or so we’re told.
• But a close look at the data reveals a world that’s just a fraction as integrated as the one we thought
we knew.
• In fact, more than 90 percent of all phone calls, Web traffic, and investment is local.
• What’s more, even this small level of globalization could still slip away.
• Globalisation level the imbalance between large and small, rich and poor
• L. Friedman’s bestselling book The World Is Flat.
• Friedman asserts that 10 forces—most of which enable connectivity and collaboration at a distance—
are “flattening” the Earth and leveling a playing field of global competitiveness, the likes of which the
world has never before seen.
• Globalisation has pros and cons
• World is not completely connected for all parts, similar to World 3.0 viewpoint






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Week 2 Distance and Frictions 各国和文化之间的 距离和摩擦



考点 2.1 Does distance always matter
• What if countries are similar?
• Name 2 countries that are similar?
• 美国和加拿大的例子
• 文化相似：宗教，语言，价值观
• 政府政策相似：北美自由贸易协议： 由美国、墨西哥和加拿大三国签署/ 没有额外的税：类似 TARIFFS
• 地理位置很近、入境也免签
• 经济相似：国家平均收入和人民的消费能力相似
• 课上案例：GANONG 巧克力

Ganong 案例的弊端：
• Culture: Iron intake, packaging problem, 2 different production lines to cater for differences
• Administrative: FDA regulations 食品安全检测 and border checks
• Geography: Far from High demand regions
• Economic: Exchange rates 汇率的问题













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考点 2.2 CAGE Distance Framework
The CAGE distance framework
Cultural Distance Administrative
Distance
Geographic
Distance
Economic
distance
External
distance
(bilateral/plurilat
eral/multilateral
attributes)
-Different languages
-Different ethnicities/lack of
connective ethnic or social
networks
-Different religions
-Differences in national work
systems
-Different value, norms and
dispositions 不同的价值，规范和
性格
-Lack of colonial
ties 缺乏殖民关系
-Lack of shared
regional trading
bloc 缺乏共享的区
域贸易集团 /贸易
圈
-Lack of common
currency
-Different legal
system
-Political hostility
政治敌对
-Physical distance
-Lack of land
border
-Differences in
climates (and
disease
environments)
-Differences in
time zones
-Differences in
consumer
incomes
-Differences in
availability of:
• Human
resources
• Financial
resources
• Natural
resources
• Intermediate
inputs
• Infrastructure
• Supplier/distr
ibution
structure 供应
商/分销商
• Complement
s
• Organisation
al capabilities
组织能力

Main Business Implication：
Liability of Foreignness 外商劣势:
• A foreign firm is at disadvantage against local firms due to cross-national distance 外商劣势：是指外国企业在东道国经营时因
外来者身份而具有的内在劣势。
• Differences in CAGE
• Competitive disadvantage of foreign firms

可乐的案例：Understand and respect distance
The Global Coke
• Coke is global
• Brand management disaster 品牌经营的失败
• Ignored CAGE distance
• Ignore local unique cultures 忽略当地文化
• Cultural imperialism 文化帝国主义
• Solution: adopt Coke to each culture e.g. Local campaigns: I love Africa,
• Africa: transport Coke with shoulders
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Reading





Reading 1: Differences and the CAGE Distance Framework

• CAGE distance framework, which is used to identify and prioritize the differences between
countries that companies must address when developing cross-border strategies
• The CAGE distance framework disaggregates distance or difference into four major
categories: Cultural, Administrative, Geographic, and Economic.
• Cultural distance: Culture can be defined as the collection of beliefs, values, and social norms—the
unwritten, unspoken rules of the game—that shape the behavior of individuals and organizations.
Cultural distance encompasses differences in religious beliefs, race/ethnicity, language, and social
norms and values. Societies even differ in their social attitudes toward market power and globalization
in ways that have important effects, both formally via regulation and informally, on how businesses
operate.4 Interestingly, Walmart’s four profitable markets share linguistic, religious and ethnic
similarities or, at least, ties through large diaspora.
• Administrative distance: Historical and political associations between countries—colonial links, free
trade agreements, the tenor of current relationships—profoundly affect economic exchange between
them—which is the same as saying that differences along these dimensions matter a great deal. So,
of course, do administrative attributes specific to a particular country such as autarchic policies or
weak institutions and high levels of corruption. In the Walmart example, note that two of the
profitable countries, Canada and Mexico, partner with the United States in a regional free trade
agreement, the North American Free Trade Agreement (NAFTA). And a third profitable ―country as
classified by Walmart, Puerto Rico, is officially an unincorporated territory of the United States.
• Geographic distance: The geographic dimension of distance involves more than just how far two
countries are from each other: other attributes to be considered include contiguity, a country’s
physical size, within-country distances to borders, access to the ocean, topography, and even time
zones. Exhibit 2-1 makes it clear that the capital city of each of Walmart’s four profitable ―countries‖
is geographically closer to Walmart’s headquarters than the capitals of any of the unprofitable ones;
in addition, Canada and Mexico share a common land border with the United States.
• Economic distance: Consumer wealth and income and the cost of labor are the most obvious (and
related) determinants of economic distance between countries. Others include differences in
availability (or lack) of resources, inputs, infrastructure and complements, and organizational
capabilities. It seems a bit harder for Walmart to do well in poorer countries—although the number
of data points is very limited. Note, however, that economic distance has not been entirely or even
primarily a liability for Walmart. The company saves more money by procuring merchandise from
China—exploiting economic distance, particularly in terms of labor costs—than it makes from its
entire international store network. We will return to such strategies in section 5, which discusses
arbitrage.




1 Differences and the CAGE
Distance Framework
Pankaj
Ghemawat
Week 2
2 Distance Still Matters Pankaj
Ghemawat
2001 Week 2
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Applications of the CAGE Distance Framework 此 CAGE 模型的运用
The CAGE framework, once it is taken down to the industry level, lends itself to a very broad array of applications.
1. Making Differences Visible 了解各国之间的文化差异
2. Understanding the Liability of Foreignness 外商劣势：是指外国企业在东道国经营时因外来者身份而具有的
内在劣势。
3. Assessing Natural Owners and Comparing Foreign Competitors 评估一个企业和国外竞争对手的区别
4. Comparing Markets and Discounting by Distance 比较市场和按距离打折

Reading 2: Distance Still Matters

• Companies routinely exaggerate the attractiveness of foreign markets, and that can lead to expensive
mistakes. Here’s a more rational approach to evaluating global opportunities.


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还有 PAGE 5 那个图



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Week 3 National Cultures 民族文化


考点 3.1 Define culture
• The Collective Programming of the Mind
The software of brain to make sense of the world
What is the Right Way?
What is “THE” Way?
• Challenge: The Tacit Nature of culture 挑战：文化的默契性质

Cracking the software
• Hofstede
• IBM Survey
• Values, Attitudes and Behaviors
• 例子：中西文化的差异、中西文化对养老院的看法

考点 3.2 Hofstede’s cultural dimensions 霍夫斯泰德文化维度理论：
1. Collectivism 集体主义 VS individualism 个人主义
2. Power distance 权力距离
3. Masculine vs femininity 男性化与女性化
4. Uncertainty avoidance 不确定性的规避
5. Short term orientation （monumentalism） VS Long term orientation (flexhumility) 长期取向与短期取向
6. Indulgence VS restraint 自身放纵与约束

1. Collectivism 集体主义 VS individualism 个人主
义
• Individualism: society where individual
achievement is important, think of themselves,
responsible for themselves e.g. Reward systems
2. Power distance (PD) 权力距离
• Hierarchy
• E.g. How meetings work differently for high and
low PD?
• 其他例子
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• Collectivism: think about the group e.g. Group
reward, issue: social loafing
• 维度是衡量某一社会总体是关注个人的利益还
是关注集体的利益。个人主义倾向的社会中人
与人之间的关系是松散的,人们倾向于关心自己
及小家庭;
• 集体主义倾向的社会则注重族群内关系,关心大
家庭,牢固的族群关系可以给人们持续的保护,而
个人则必须对族群绝对忠诚。

指某一社会中地位低的人对于权力在社会或组织中不平
等分配的接受程度。各个国家由于对权力的理解不同,
在这个维度上存在着很大的差异。
例子：澳洲/欧美人不是很看重权力,他们更注重个人能
力。
而亚洲国家由于体制的关系,注重权力的约束力。


3. Masculine vs femininity 男性化与女性化
注意：这个不是针对男性化和女性化！！！！
• Masculine society: professional achievement,
competition, get ahead of each other
• Feminine society: quality of life, have good
relationships, friends and fun
• 维度主要看某一社会代表男性的品质如竞争
性、独断性更多,还是代表女性的品质如谦虚、
关爱他人更多,以及对男性和女性职能的界定。
男性度指数(MDI :Masculinity Dimension Index)
的数值越大,说明该社会的男性化倾向越明显,男
性气质越突出;反之,则说明该社会的女性气质突
出。

Uncertainty avoidance 不确定性的规避
• 注意：和投资风险无关
• Innovation
指一个社会受到不确定的事件和非常规的环境威胁时是
否通过正式的渠道来避免和控制不确定性。回避程度高
的文化比较重视权威、地位、资历、年龄等,并试图以
提供较大的职业安全,建立更正式的规则,不容忍偏激观
点和行为,相信绝对知识和专家评定等手段来避免这些
情景。回避程度低的文化对于反常的行为和意见比较宽
容,规章制度少,在哲学、宗教方面他们容许各种不同的
主张同时存在。

Short term orientation （monumentalism） VS Long
term orientation (flexhumility) 长期取向与短期取向
维度指的是某一文化中的成员对延迟其物质、情感、社
会需求的满足所能接受的程度。这一维度显示有道德的
生活在多大程度上是值得追求的,而不需要任何宗教来
证明其合理性。长期取向指数与各国经济增长有着很强
的关系。20 世纪后期东亚经济突飞猛进,学者们认为长
期取向是促进发展的主要原因之一。

. Indulgence VS restraint 自身放纵与约束
维度指的是某一社会对人基本需求与享受生活享乐欲望
的允许程度。Indulgence(自身放纵)的数值越大,说明该
社会整体对自身约束力不大,社会对任自放纵的允许度
越大,人们越不约束自身。-此为最新添加的维度。


People VS nation
• Brain Chemistry determines individual personalities
• Not all brains are same in a nation
• Opportunists e.g. South Korea
• Oppressed: e.g. Low PD, have own ideas but work in high PD country+ need to obey
• Expats: does not match with society




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考点 3. 3 Cultural Pitfalls
• Pitfall #1 is Ethnocentricity
• Must recognize cultural differences before
forming judgements
• Need for adjustments on personal and
organisational levels
例子：日本人和美国人的文化差异
Pitfall 2: Stereotyping
• Continuous refinement of the first best
guess
• Better than a shot in the dark
• Diversity within culture
例子：Donald Taylor Experiment

考点 3.4 Ethnocentricity 民族优越感
• See world from your own lens
• Think your way of culture is the right way
• People should do your way e.g. Asian students in US/Australia education system
• “my way of doing things is the best”

考点 3. 5 Culture matters
When culture doesn’t matter:
• When Standardization is high
Airline Industry
• Where rules and practices are set globally
Sports

考点 3.6 Cultural Diversity 多元文化
• Recognise the diversity
• Avoid 2 pitfalls of culture
• Provide an initial idea to avoid immediate mistakes
• A process of continuous learning and adjustment
• Need to move from culture to individuals with experience
例子：creativity and innovation: diverse
Factory and manual: same culture

Reading：National Cultural Differences and Global Business








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•
Reading：National Cultural Differences and Global Business
• culture shall be defined as a set of shared values, assumptions, beliefs, morals, customs and other
habits that are learnt through membership in a group, and that influence the attitudes and behaviors
of group members. 文化应定义为一组共同的价值观，假设，信念，道德，风俗和其他习惯，这些
价值观是通过加入小组成员而学到的，并且会影响小组成员的态度和行为。
• Three implications of this definition.
1. First, culture is defined as a group-level phenomenon. From this perspective, cultures exist at many different
levels, including organizational functions or business units, organizations, industries, regions, and nations.3 This
note focuses in particular on national culture and the role of cultural differences across countries rather than
other cultural groups because this level of culture is particularly relevant for global businesses.
2. Second, the definition implies that culture is acquired through a process of socialization rather than innate
文化是通过社会化过程而不是先天获得的. Shared values, assumptions and beliefs 共同的价值观，假设和信念
are learned through interactions with family, teachers, officials, experiences, and society-at-large. In this respect,
Geert Hofstede speaks of culture as a process of “collective programming of the mind.”
3. Third, it is this collective programming that determines what is considered acceptable or attractive behavior. In
other words, cultural values provide preferences or priorities for one behavior over another. 文化价值观提供了
一种行为相对于另一种行为的偏好或优先次序

• Hofstede’s cultural dimensions：
• Collectivism 集体主义 VS individualism 个人主义
• Power distance 权力距离
• Masculine vs femininity 男性化与女性化
• Uncertainty avoidance 不确定性的规避
• Short term orientation （monumentalism） VS Long term orientation (flexhumility) 长期取
向与短期取向
• Indulgence VS restraint 自身放纵与约束
• Applications
• Observable Cultural Indicators
















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Week 4. International trade and national competitiveness
国际贸易与国家竞争力


4.1 Introduction
• 本章节和经济有关
• World 3.0: problems of globalization, hard to go outside home country border
• Lecture 1-5: understand how the world around us works and problems across countries
• Lecture 4 and 5: problems created intentionally by people and government -> make IB hard

考点 4.2 Definition of free trade 自由贸易
• Trade：2 parties/2 firms do an exchange
-barter system 易货贸易/ currency
• International Trade: most trade with USD, usually multinational corporations (MNC)/exporting firms
• E.g. Malaysian firm and Australian firm

Why nations trade?
World 1.0: Are there Nations/Communities/Tribes who do not Trade with outside world?
北韩的例子
Why Nations Trade?
• The Need Argument 需求: Asymmetric Distribution of the Factors of Production
• Efficiency Argument 效率







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4.3 Trade theories 贸易理论


Enabling Free Trade by Agreements
⚫ Free Trade Agreements 自由贸易协定
⚫ NAFTA 北美自由贸易协定、CHAFTA 中澳自由贸易协定
⚫ Custom Unions 关税同盟
⚫ European Union
⚫ GATT and WTO 世贸组织
⚫ GATT in 1948 after WW2, signed by 23 nations
⚫ Encourages Free Trade
⚫ Seek to remove barriers to Free Trade by removing or reducing Tariffs and Subsidies 寻求通过取消
或减少关税和补贴来消除自由贸易壁垒


Major Impact: Global Value Chains 全球价值链





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考点 4.4 Barriers to Free Trade 自由贸易的阻碍因素
• Why we are not at World 2.0?
• Natural Factors: Transportation Costs and rough terrains
• Drastically coming down but still substantial
• 阿富汗、俄罗斯的例子
• History: Difficulty in moving or closing industries, even inefficient ones
• Resistance against reduction of government support and even privatisation 反对减少政府支持甚至私
有化
• Lead to Subsidies to local industries and Tariffs on imports 导致对当地产业的补贴和进口关
税
• Political motives of satisfying some people at the cost of other people
• 其他例子：China and India mercantilism 中印重商主义, short run: lose jobs, long
run: find jobs in more efficient industries
• Trust in international relations
• -Political Economy
• International Economics is Political Economics
• Use of Quota and Tariffs to reward and punish other nations

考点 4.5 Fair Trade 公平贸易
注意：FAIR TRADE 和 FREE TRADE 是不一样的意思。千万别混淆！！！
• MNC： double standards in free trade
1) New firm come, urge government to protect local industry
2) Go overseas, lower tariffs, shouldn’t protect industry
E.g. Samsung 三星
• Fair Trade: 星巴克、苹果、FOREVER NEW 的例子
• Backlash:
◆ Unequal distribution of wealth
◆ Clear winners and losers
◆ Issues: no proper protocols, human rights, issue of liability
• Counter argument?
• Consumers want cheap price + good conditions
• Free trade: market efficiency, capitalism 资本主义, but is it fair trade?

考点 4.6 Developed world and free trade 发达国家与自由贸易
• Free Trade 还有例子
• Donald Trump (DT): Free Trade VS Fair Trade
◆ “We cannot have free and open trade if some countries exploit the system at the expense of others”
◆ “We support free trade, but it needs to be fair and reciprocal.”
◆ “Unfair trade undermines us all”
◆ DT against IP theft, industrial subsidies, pervasive state-led economic planning
-> distort global markets and harm business and markets
“如果某些国家以牺牲其他国家的利益来，我们将无法实现自由和开放的贸易”
“我们支持自由贸易，但它必须公平和对各国互惠互利。”
“不公平贸易破坏了我们所有人”
防止知识产权盗窃，工业补贴，国家主导的广泛经济计划
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->扭曲全球市场，损害商业和市场

考点 4.7 National Competitiveness
The fight for national competitiveness 争取国家竞争力
➢ Nations strive to upgrade
➢ Economies of Scale 规模经济
➢ Path Dependence and network effects 路径依赖以及网络效应
➢ Arguments for protecting infant industries 保护婴儿产业的论点/保护主义
➢ Tariffs 关税 and also supply cartels

At the cost of global efficiency
➢ How Nations become competent?
Why fail?
• Government not good in identifying good business sectors
• Political concerns
• Corruption
Why Successful in South Korea?
• Strong work ethic and overtime
• Government keeps monitoring closely and demand results
• Take harsh actions if fail

FROM COMPARATIVE ADVANTAGE TO COMPETITIVE ADVANTAGE
• Achieving national competitiveness
• Choose Appropriate Businesses
• Offer them support via
Fiscal Policies 财政政策
Relevant education and human capital 相关教育与人力资本
Infrastructure 基础设施
Industrial Clusters 产业集群 etc. 例子：美国的硅谷
• Can Governments identify appropriate business sectors 商业部门?


National competitiveness:国家竞争力
• developed countries have good MNC 发达国家有很好的跨国公司
• protect firms （protectionist policies 保护主义政策） from new companies in South Korea and China etc.
• developing countries i.e.. China, Brazil etc.
-> how can we upgrade ourselves to be more competitive? 我们如何提升自身竞争力？
-government and public sector partnerships
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-Support and protect local firms e.g. Taxes + create own industry
-> all fail except for South Korea
-free trade VS trade barriers

Where WTO fits when nations collide?
WTO: only make recommendations + fines
-Subsidies for local firms: Brazil- Canada Aircraft Dispute
-Indirectly protecting local businesses: Sea Turtle Dispute
-Clash of Values: GMO Food 转基因食品 in Europe

综上所述，我们还处于世界 3.0 的阶段


考点 4.8. World 3.0
• Ease of Trade but substantial barriers remain
• Silent Winners but Vocal Losers
• Security issues
• Globally integrating value chains, along with trade wars
• Firm-led Trade, supported by home country governments
• 例子：中国国企 (Government run firms have efficiency problems)
• Foreign Firms and exporters still face discriminations

考点 4.9 Who are us and who are they?
Which is an American Firm?
Firm A: Started from US, employs an American CEO and Board of Directors
Firm B: Started from Japan, employs a Japanese CEO and Board of Directors
Firm A employs 90% of workforce overseas, 100% production outside US and keeps all profits in tax heavens
Firm B offers thousands of jobs to US, has several research collaboration with US universities, operate many factories
in US
• Disconnect between firm competitiveness and national competitiveness
• Changing Loyalties: From National Loyalty to Blocks of transnational shareholder
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1 Whatever happened to free
trade?
Bob
DavisandJon
Hilsenrath
2017 Week 4
2 A warning sign from global
companies
Matthew J.
Slaughter and
Laura D’andrea
Tyson
2012 Week 4
3 The Competitive Advantage
of Nations
Michael E.
Porter
1990 Week 4
4 The New Rules of
Globalisation
Ian Bremmer 2014 Week 4
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Week 5 Political and Legal Risk 政治和法律风险



考点 5.1 Country Risk 国家风险
国家风险（Country Risk）指在国际经济活动中，由于国家的主权行为所引起的造成损失的可能性。 国家风险是国
家主权行为所引起的或与国家社会变动有关。

Criteria for country selection
1. Market Attractiveness 市场吸引力
• How big is the market?
• How rich is the country?
2. Distance (Cultural, Administrative, Geographic, Economic etc.)
3. Country Risk 国家风险
• No idea when this country behave in a way which will destroy a business
• Negative consequences for our problem
Know which country to enter, which country to avoid

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POLITICAL RISK
考点 5.2 Political Risk 政治风险
考点 5.3 History of Political Risks 政治风险的历史
• Russian Revolution 1917
• German WWI

MONEY Never SLEEPS: The OIL Game
• Spread of Multinationals to risky governments for oil and natural resources
• Independence and establishment of new firms

The new rules of 1949 china
• Don’t kill the goose that lays the golden eggs
• Ruling through harsh policies
• Penalising businesses over western policies

• Battle
• Bombs and Burgers
• McDonalds in Russia 案例

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考点 5.4 Political Risks of Today
考点 5.5 Political risk explained

• When Governments fight, MNCs suffer
• 80% Terrorist attacks on US firms
• Impact of US-China conflicts on KFC and McDonald
• Even friends fight for their economies
• Political Espionage 政治间谍

Disruption in global value chains 全球价值链中的破坏
• Military Generals Conquering Industries
• Global Aluminium Industry and Military Coup in Guinea
• You can be in your home country and still face risks!!

考点 5.5 Political risk explained
What is Political Risk?
• Political Actions by governments Against foreign businesses such as
• Unwarranted scrutiny/Discrimination
• Confiscation of properties
• Usually not specified in written laws but on discretion of foreign governments 通常没有成文法规定，
但由外国政府酌情决定
• Particularly High with sudden changes in governments
• Democracy or Dictatorship 民主或专政

Direct Impact on MNC
• From Private property to public goods in Lenin Era
Indirect Impact on MNC
• Currency Exchange Rates or foreign treaties
• Terrorism

What determines Political risk?
• Type of Governments
• From democracies 民主 to Dictatorships 专政
• Are democracies really less risky?
• Institutions 建制 Versus Individuals
• Individuals: The Trade-off between Risk and Rewards 个人：风险与回报之间的权衡

• National Philosophies
• Relevant for all businesses: Perception of Businesses in a Society
• Relevant for MNC: Free Trade Versus Protectionism Versus National Interest 自由贸易 vs 保护主义 vs
国家利益
• Globalisation Winners and losers 全球化的赢家和输家
Easy to shift blame on free trade, MNC, foreign countries


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考点 5.6 What about developed economies
• Developed economies may act like developing countries on face of trade wars
• BREXIT and Trump Election
• Espionage on Business
• Samsung and Huawei
• Now WeChat and Tiktok


Governments taking actions could be problematic for foreign businesses.
政府采取行动对外国企业可能会造成问题。


考点 5.7 Legal Risk 法律风险
What is Legal Risk?

• Legal Risk: Laws exist but not for your advantage
• Quality of Laws
-Good for Business or Not
-Counterfeiting laws in China
• Transparency: How much government interested in enforcing the law?
• Clear law: everyone knows what it means
-> if not: might favour local business
美国法庭针对国外企业审判的例子
• Liability of foreignness 外商劣势

• Enforcement
• How a 20% profit in Georgia turned into $300 million per year losses
• Consistency and Neutrality
• Discrimination and Bias
• McDonald in Beijing
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• Government power to overnight change laws
• Summing up: A tale of Joint Venture expropriation 征收 in China


考点 5.8 How to respond
Ability in IB is to address risk in a market, and know how to respond to IB risk, create good non-market strategies
Understand and forecast risk 了解和预测风险
How good can you evaluate risk in a market?
E.g. 美国以前是 low risk，现在呢？
欧洲的例子

Massive product recalls VS massive exits after a terrorist attack or coup/revolution 在恐怖袭击或政变/革命后，大规
模产品召回 VS 大规模撤离
Oil spills VS accusation of human rights violation
What happened to Walmart and Nike

Other Tactics
• Be Part of Community: ENI in Brazil and Kazakhstan
Transfer Old Technologies, employee labour and train suppliers 转让旧技术，员工劳动力和培训供应商
例子：意大利的 ENI 公司

• Partner with Locals and governments
Move from analysts to locals
向 ENI 学习
Fair Trade：act as part of community and take care of everyone in supply chain
Shareholders 股东 VS stakeholders 利益相关者
• Buy Insurance
• PR Campaigns
Culturally appropriate wordings

Reading






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