Globalization & Ethics is a core part of IB Business Management. Revise the key concepts and common mistakes below, then lock them in with the free games.
Key concepts
Power distanceAcceptance of unequal power
IndividualismI vs we — independence vs collective
MasculinityAchievement vs caring values
Uncertainty avoidanceNeed for rules and certainty
Long-term orientationFuture planning vs traditions
IndulgenceFree gratification vs restraint
ExportingSelling abroad from home country
LicensingGranting rights to use IP for a fee
FranchisingSelling brand + system to local owner
Joint ventureShared firm with local partner
Wholly-owned subsidiaryFirm owned 100% in host country
BriberyPayment to gain unfair advantage
MNCFirm with operations in multiple countries
FDIInvestment by firm in foreign assets
Common mistakes to avoid
Questions where students often pick the tempting wrong answer — make sure you know the right one:
Do all businesses aim only to maximise profit?✗ Yes, profit is every business's only goal. ✓ No — aims vary: survival, growth, market share, social aims.
Does a sole trader have limited liability?✗ Yes, sole traders have limited liability. ✓ No — sole traders have unlimited liability for business debts.
Practise Globalization & Ethics — free games
Test yourself with these quick revision games for this topic:
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