GLOBAL BUSINESS ENVIRONMENTS MNI3701 Revision Slides (Part One)

1.Introduction The purpose of these revision slides is to provide: Exam preparation tips Details on the format of the examination Basic overview of the study material There are 14 slides (including the cover page) in this section.

Contents: 1. Introduction 2. Exam Preparation Tips 3. Format of the examination 4. Overview of the Study Material 5. Conclusion

2. Exam Preparation Tips Draw up a revision timetable and stick to it. Work through the assignments and tutorial letters. Use the study guide to help you when revising the prescribed book. Ensure that you arrive at the exam venue on time. The exam is on 19 November, 2 pm. Stay calm and focused during the exam.

3. Format of the examination The examination counts a total of 70 marks which is calculated as follows: Section A consists of 20 compulsory multiple choice questions. (20 marks) Section B consists of 3 essay-type questions worth 25 marks each. You need to answer two of the three questions. (50 marks)

4. Basic overview of the study material (Part One: Chapters 1 – 5) 4.1 Globalisation Define globalisation Drivers of globalisation Evolution of MNEs Born-global firms International trade theories Role of MNEs in the world economy

4.2 The global political, legal and technological environment The PESTEL model The political environment (Role of the State) The legal environment (legal systems; contracts; international law; investment strategies) The technological environment Environmental factors (Climate change; etc)

4.3 The global economic environment The importance of the economic environment Economic integration (global; regional; bilateral) Customs union; common market Effects of economic integration on trade Benefits of economic integration (trade creation and trade diversion) Trade Blocs(Background; objectives; characteristics; governance; implications)

4.3 The global economic environment (contd) Free Trade Agreements (advantages and disadvantages) The implications of regional trade blocs and trade agreements for South African businesses.

4.4 The economic and investment environment The importance of the economic environment Classification of the economic systems (market/command/mixed) Levels of economic development Measures of economic activity (GNI; GDP; PPI) Economic classification of countries (Developed; Less Developed; Developing)

4.4 The economic and investment environment (contd.) Macroeconomic issues: Economic growth; inflation; CPI; PPI; implications for international business; BOP – characteristics; composition; external debt; privatisation; innovation and entrepreneurship.

4.5 The cultural environment The meaning and implications of culture The characteristics of culture The elements of culture (Political philosophy; economic philosophy; social structure; religion and ethical systems; language and communication) The levels of culture (national; business and organisational)

4.5 The cultural environment (contd) Culture and the workplace (Hall’s low context high context approach; Ronen and Shenkar’s cluster approach; Hofstede’s cultural dimensions; Trompenaar’s cultural parameters) Culture and competitive advantage Culture and business ethics Cross-cultural literacy Culture and entrepreneurial orientation

5. Conclusion Revise the above slides in conjunction with Chapters 1 – 5 of the prescribed textbook. Chapters 6 – 13 of the prescribed textbook will be covered in Part Two of the revision slides. Goodluck with your studies!!!