Quiz 3: Sociocultural Forces

Business

This case is about international institutions such as the UN. UN weaken the power of nation-states is the topic of concern and need to discussed in detail. United Nations can be described as intergovernmental organization that maintain international security and peace, achieve international co-operation, develop friendly relations among different nations and become centre for harmonization among nations. No, the international institution such as UN has not weakened the power of nation-states because of the following reasons: • In order to keep working with international trends, nation-states have only transferred a small proportion of their economic decision-making power. It does not mean that nation-states have weakened in terms of power by UN. • UN has facilitates the national culture combination and exchange among different nation-states. UN hasn't weakened nation-states, instead helps in promoting different cultures in the world.

Use of International Institutions: Setting Up a Company in Africa Except for the regional institutions that do not include Africa, every institution could help. And the regional institutions that do not include African countries, such as Mercosur, might be a surprising source for networking that connects somehow to African resources. Chinese institutions and the ADB might be useful since China has so much investment in the energy sector in Africa. The Organization for Economic Cooperation and Development (OECD) would be an excellent place to start research into country site selection. Other international organizations such as the African economic integration groups/trade groups and the World Trade Organization (WTO) might also provide information regarding site selection, financial restriction and political issues.

Informal cognitive institutions can be described as the institutions that use shared ideas in order to define reality with the help of conceptual framework which is less explicit. The characteristics of informal cognitive institutions are as follows: • The informal cognitive institutions use shared ideas in order to define reality with the help of conceptual framework which is less explicit. • They work shared set of assumptions or schemas that helps in shaping our meaning-giving. They are special significance to international business manager because of the following reasons: • It limits the choices of the decision-maker by simplifying the external environment. • It helps in establishing rules; ways of thinking, ways of acting that achieve compliance through social norms, shared assumptions and forces. It helps in establishing rules of the game.