question

The increased internationalization of business requires ______ to have basic knowledge of international business.

answer

All Managers

question

The merging of historical distinct and separate national markets into one huge global marketplace is referred to as the:

answer

globalization of markets

question

An international business

answer

is a business whose activities involve crossing national borders

question

International business really began:

answer

before the time of christ

question

because of the expanding importance of foreign owned firms in local economies, since the 1980s, host governments have made their policies toward these companies:

answer

more liberal

question

according to supporters of the globalization of trade and investment, free trade:

answer

creates more and better jobs, benefits all nations and workers, and does not cause the loss of high paying jobs

question

According to the text, one variable commonly used to measure where and how fast internationalization takes place is:

answer

the increase in foreign direct investment

question

international business differs from domestic business in that a firm operating across borders must deal with (ASK):

answer

the foreign government, the international environment, and the domestic environment

question

In the video clip, "world without borders" the country of haiti has become a haven for:

answer

smugglers

question

unconscious reference to ones own cultural values when judging behavioral actions of others in a new and different environment is called:

answer

self-reference criterion

question

mercantilists believed that:

answer

a nation should have an export surplus and import as little as possible

question

according to the theory of comparative advantage:

answer

a nation should produce the goods at which it is most efficient

question

adam smith claimed:

answer

that market forces, not government controls, should determine direct, volume, and the composition of international trade

question

the theory of factor endowment (heckscher-ohlin theory):

answer

states that a nation will trade goods that can be produced with the production factors/endowment factors that are most abundant

question

the international product life cycle is a theory which explains:

answer

the direction of foreign trade and FDI

question

Porters Competitive Advantage of Nations Theory:

answer

claims that the ability of local firms in a country to utilize the countries resources to gain a competitive advantage is based on demand, factor, substitutes, and strategy, structure, and rivalry

question

to sum up international trade theory, we say that the primary reason for trade is:

answer

the existence of price differentials among nations

question

international business as a discipline is relatively new, international business as a business practice is not

answer

TRUE

question

Major drivers of globalization (essay)

answer

1. Lowering of trade and investment barriers 2. Improvements in technology

question

Purpose of NAFTA is:

answer

to increase trade among all member countries

question

European Union is:

answer

the largest import and export market in the world

question

Video clip in class about regional trading bloc and 3 industries:

answer

CAFTA: dairy, hogs and sugar

question

Supporters of fair competitive argument for protection

answer

want their government to levy an import duty that brings the cost of the imported good up to the cost of the domestically produced good

question

geographic proximity has been a major factor in the formation of trading groups such as:

answer

European Union, Mercosur, NAFTA

question

which countries decided not to join the European Monetary Union?

answer

Great Britain

question

Tariff that stipulates a specific dollar amount per physical unit of import be paid

answer

specific tariff

question

the belief by a society that its culture is superior to all others is called:

answer

ethnocentricity

question

the major forms of economic integration include:

answer

customs union, free trade area, common market

question

in free trade areas, _______ are abolished

answer

tariffs

question

dumping is selling a product abroad for less than:

answer

the cost of production, the price in the home market, and the price to the third country

question

Quotas:

answer

are considered a trading barrier

question

Non-tariff barriers consist of:

answer

quotas, subsidies, and government participation in trade, customs and other administrative procedures

question

subsidies are payments which can be made by:

answer

cash payment, low cost loans, preferred tax treatments, and government participation in ownership

question

political arguments for intervention in market trade include :

answer

saving jobs, national security, retaliation, and human rights

question

Reasons for the collapse of communism are:

answer

neglect of production of consumer goods, goal of gross production, and USSR concentrated on military

question

Ideal capitalism calls for:

answer

all factors of production be privately owned and the government is only to perform those functions the private sector cant

question

Gov. owned companies are said to have advantages over privately owned because Gov:

answer

receive subsidies a d get cheaper financing and Gov. contracts

question

common denominator of terrorist groups has been hatred of existing:

answer

social, economic, and political orders

question

Capitalism

answer

Free enterprise. Ideal capitalism occurs when factors of production are privately owned and gov doesn't interfere unless it has to. United States, Great Britain, France, Germany

question

Communism

answer

Production is owned by the State. labor unions controlled by government considered socialists. China, Cuba, North Korea, Vietnam

question

Socialist countries

answer

Venezuela, Syria, Sweden

question

The quadrupling of word exports in 31 years demonstrated that:

answer

the opportunity to increase sales by exporting is a viable growth strategy

question

WHen firms do their own exporting, which middlemen are options?

answer

Manufacturing agents, distributors, retailers, trading companies

question

Firms from which countries are major investors in U.S:

answer

Industrialized nations of Europe

question

Supplying overseas markets - exporting and production - essential to most US corporations

answer

TRUE

question

Magnitude of International trade and how it has grown relates to one fourth of everything grown is now exported

answer

TRUE

question

Main aspects of culture include:

answer

education, language, aesthetics, religion

question

to create a sustainable competitive advantage the international company should try to develop competencies that:

answer

create value for customers for which they are willing to pay

question

the planning method that has become more popular is:

answer

iterative planning (combination of top down and bottom up)

question

Theft of trade secrets:

answer

is becoming increasingly challenging as companies become more physically distributed

question

________ permits a firm to expand internationally with a minimum of cash outlay and little special expertise

answer

exporting

question

Turnkey project includes:

answer

plan design, technology supply, supply of raw material, and personnel training (NO LAND)

question

Mcdonalds, KFC and Subway are:

answer

Franchising

question

__________ is the combination of old and new machinery

answer

Technological dualism

question

Two main problems for companies not exporting:

answer

Preoccupation with American Market and reluctance to be involved with new, unknown, operation

question

2 most important things firms must do with objectives

answer

Quantify and Communicate

question

in clip, CREATOR COMPANY used what mode of entry for popcorn product?

answer

exporting

question

Small companies (30 employees or less) would never export due to limited resources

answer

FALSE

question

Foreign direct investment essay

answer

The investing company may make its overseas investment in a number of ways - either by setting up a subsidiary or associate company in the foreign country, by acquiring shares of an overseas company, or through a merger or joint venture.

question

Two forms of FDI:

answer

1. Green field investment 2. Mergers and acquisitions

question

Marketers must:

answer

know market, satisfy customer needs, and price goods and services accetably

question

Total product is:

answer

what customer buys, that includes the physical product, brand name, accessories and service. also includes warranty, instructions and package

question

Generally, consumers require ____ adaptation that industrial products meet the demands of the world market

answer

greater

question

Buyers of _____ usually act on the same motives worldwide.

answer

luxury products

question

services are easier to market globally than:

answer

consumer products

question

Need to change color of packages when selling a product in a new market is:

answer

cultural differences

question

Qualifications of manager in overseas operation include:

answer

bicultural and bilingual, knowing domestic and international business practices, and having more and different skills than domestic managera

question

Expatriate failure happens because:

answer

Spouse doesn't adjust, employee doesn't adjust, immaturity and emotional problems

question

consumer needs vary between countries due to cultural differences and:

answer

level of economic development

question

across the world, consumer taxes and preferences are becoming more:

answer

cosmopolitan

question

what limits a countries ability to use same marketing message worldwide?

answer

cultural differences

question

Expatriate employee salary:

answer

is usually within the range of employees in same level at home company

question

_______ should be seen as the final link in an integrated, circular process with completion of term abroad and reintegration into national organization

answer

repatriation

question

_____ is the activity that controls the transportation of physical materials through value chain such as procurement through production

answer

logistics

question

under a ___ system, parts enter the manufacturing process immediately.

answer

quick time

question

What system has a drawback that leaves a firm without a buffer stock of inventory?

answer

Just in time

question

One way the improved quality control reduces costs is that it lowers the warrant costs and time associated with fixing defective products.

answer

TRUE

question

Outsourcing production of services has become a trend recently.

answer

TRUE

question

Purpose of countertrade is to:

answer

carry out trade wholly or partially in goods rather than money

question

biggest downside of countertrade is:

answer

defective goods

question

export credit insurance overs two types of risk:

answer

1. commercial risk 2. political risk

question

UNICEF

answer

urged international companies to adopt child labor codes

question

Reasons for sourcing globally include:

answer

lower price, product availability, firms operation and attitude

question

Eprocurement problems include:

answer

Cant be isolated from companies business system and it exposes company to security issues.

question

total quality management:

answer

control of quality in all areas of production, not just inspection and quality control in production and all suppliers

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