Ajman University

for
Science and Technology Net work

International business
Course number.4710060

Student name: Hessa Juma

I.D: 201311685
H.W # 1

Chapter ( 1 )
Q1:

Why do some industries become global while others remain local or regional?

Some industries become global industries for several reasons:

- Leverage core competencies.
- Get resources and supplies.
- Seek new markets.
- Better compete with Rivals.
And those which remain local are because they always try to do things in the same way
like domestic markets everywhere. That is reason they fails to become global industries.

Q2: What is the impact of the Internet on international business? Which companies and
which countries will gain as Internet usage increases throughout the world? Which will
lose?
Today, the Internet breaks down the barriers that arise when interacting with clients and
employees of companies,enables firms to reach around the world farther , faster , deeper
and cheaper .Which makes the international business in such diverse industries as
banking , consulting , education and retailing more possible.
The countries and companies which are using the internet to improve their services well
gain but the companies which are not well lose because their services and clients well stay
limited.

Q3: What are some of the differences in the skills that may exist between managers in a
domestic firm and those in an international firm?
Every manager has to have a wide range of skills to truly be successful. These skills are
plan, control, organize and lead but an international manager has to go further than that.
He has to be:
1. More curious and outgoing in order to understand the wealth of information to
better manage an international firm.
2. Comfortable with change and uncertainty.
3. Able to connect well with people from diverse culture.
4. Knowledgeable about cultural, legal, political and social differences among
countries.

A Boom in Bangalore
Q1: Why has India been able to build a thriving software industry? What are the countrys
advantages in this market? What are the countrys disadvantages?
India has been able to build a thriving software industry due to:
1- Good educational system which has enabled India to produce a large number of well and highly
qualified software engineers.
2- Indias low labor cost.
3- Government facilities.

The countrys advantages in the market:

1- Made industry a powerful force for modernizing Indians economy.
2- Improved Indias economy inform of increased GDP through foreign direct investments.

The countrys disadvantages in the market:

1- India's lack of infrastructure and low standard of living make it difficult for programmers to remain
working in India and the economic policies have failed to fully utilize the increasing talent from the
University graduates which has led to increased brain drain or influx of It experts into America and
the European countries, this high influx may affect Indias economy negatively in the long run.
2- The rapid growth has overwhelmed the city's infrastructure causing water shortage, disruptions in
power supplies and nightmarish commutes
3- Salaries of Indian programmers are rising because of heightened demand for their talents so
India's labor cost advantage has been eroding which may cause a labor shortage.

Q2: What is the likely impact on the Indian economy if its software industry continues to
grow?
Salaries of Indian programmers are rising because of heightened demand for their talents so India's labor cost
advantage has been eroding which may cause a labor shortage .If so the boom may end in Bangalore, and
firms may shift their software development and BPO activities to other countries.

Q3: Given the predicted shortage of qualified workers, what can India do to ensure that its
software and BPO industries remain competitive?
1- Attract experts by increasing the salaries in domestic firms.

2- Determining years of work outside the country.

3- Imposition of taxes on workers outside the country.