Page 73 - DMGT545_INTERNATIONAL_BUSINESS

International Business

notes l z Technology has removed the global barriers like distance, time etc thanks to the latest
technological developments like Internet, e-mail, video conferencing, cell phone etc that
plays a major role in international business.

4.5 keywords

Expert System: It is a specialized application that performs tasks that would normally be done
by a human.
Skimming Price: The charging of a high price in order to gain maximum revenue conducted
under conditions of product uniqueness and inelastic demand patterns.
Sourcing: A decision to have certain components in the value chain manufactured out of the
country often called the “make of buy” decision.
Standardization: Same goods or services marketed in either product, distribution or advertising
form, unchanged in any country.
Standardized Plans: A uniform planning system applied globally, based on economics of scale
and consumer uniformity.

Strategic Business Unit: A self contained grouping of organizations, products or technologies
which serve an identified market and competes with identified competitors.

4.6 review Questions

1. What are the features of technology?

2. What is the technology implication of business?
3. What are the benefits of technology in management and decision-making?
4. “Technology has drastically reduced time between conceiving an idea and implementing
that idea”. Comment.
5. List the various communication tools used in international business.

6. What are the effects of technology on strategy and competition?
7. Explain the concept of diffusion of technology.
8. Describe the different phases of technological cycle.
9. How is possible to transfer technology from one country to another?
10. “Superior technology used by the business firms has resulted in improved quality of
producing goods, improved efficiency by automation and mechanization.” Comment.

answers: self assessment

1. E-mail, internet, cell-phone 2. Hardware, Software, procedures
3. Traditional, electronic 4. Technology
5. MIS 6. Transaction Processing System

7. Companies 8. Implementing
9. Global village 10. Diffusion
11. Project team 12. Development of Technology

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