International Business UTD 2014 – Flashcards
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Which of the following is NOT a reason why global business should be studied?
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Business conducted outside the confines of any one country is on the decline
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What defines the field of global business more than anything else?
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• Global business is fundamentally about not limiting yourself to your home country but treating the entire global economy as your potential playground. Overall, the focus on the globe defines the field of global business (or IB) more than anything else
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More than half of the world GDP growth in recent years comes from
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emerging economies.
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An institutional framework is made up of:
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Formal and informal institutions that govern individual and firm behavior. .
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The following is defined as "fundamental and comprehensive changes introduced to the formal and informal rules of the game that affect organizations as players."
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Institutional transition
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The following had been embraced throughout Central and Eastern Europe and the former Soviet Union until the late 1980s.
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Communist totalitarianism
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Political risk is associated with political changes that may negatively impact domestic and foreign firms. Which statement about political risk is correct?
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Totalitarian countries often experience wars, riots, and protesters, chaos, and breakdowns. As a result, these countries often suffer from a high level of political risk, which is a risk associated with political changes that may negatively impact domestic and foreign firms
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Civil law can be best described by which of the following statements?
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Civil law was derived from Roman law and strengthened by Napoleon's France. Relative to common law, civil law has less flexibility, because judges only have the power to apply the law.
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A pure market economy characterized by the "invisible hand" of market forces is noted by:
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Is noted in 1776 by Adam Smith in The Wealth of Nations
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The "division of labor" thesis was first advanced by:
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Adam Smith
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Which of the following countries can be defined as a high-context culture?
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High context countries are: China, Korea, Japan and Arab.
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Which of the following set of clusters includes ALL countries?
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Huntington Civilizations
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Which of the following dimensions does NOT accurately describe the majority firms in the United States?
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Power distance
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Which of the following is the law enacted in 1977 that bans bribery to foreign officials?
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The Foreign Corrupt Practices Act (FCPA) was enacted by the US Congress in 1977.
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The greatest weakness in the fight against eradicating corruption is:
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Not having FCPA-type legislation institutionalized and enforced in every country.
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The following is an individual's ability to understand and adjust to new cultures.
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Cultural Intelligence
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The view in global business which deals with external opportunity threats is also called:
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SW OT= Opportunities and Threats
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A global business perspective that deals with internal strengths and weaknesses is also called:
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The resource-based view deals with firm's internal strength and weakness.
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Observable and easily quantified assets are:
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Tangible resources and capabilities assets such as Finance, Physical and Technological
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Assets hard to observe and difficult to quantify are:
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Intangible resources and capabilities assets are : Human, innovation and, Reputational
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Which of the following is NOT a tangible asset?
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Human, innovation and reputational.
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Which of the following is NOT an intangible asset?
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Financial, physical and technological
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A chain of activities used in the production of goods and services that add value is a(n):
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Value Chain...
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An examination as to whether a firm has the resources and capabilities to perform a particular activity in a manner superior to competitors is:
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Benchmarking
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The point at which an industry-specific activity becomes common across industries and the need to keep it proprietary no longer exists is also called:
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Firm specific
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Turning over an organizational activity to a domestic firm is also called:
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onshoring or inshoring
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Which of the following are the four focal points of the resource-based view?
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VRIO. V=value, R=rarity, I=imitability, O=organizational
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The difficulty of identifying the causal determinants of successful firm performance is also called:
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Casual ambiguity
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The combination of resources and assets that enables a firm to gain a competitive advantage is also called:
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Complementary assets
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Which of the following is the implication for action based on the information in this chapter?
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• Mangers need to build firm strength based on the VRIO framework • Relentless limitation or benchmarking, while important, is not likely to be a successful strategy • Managers need to build up resources and capabilities for future competition • Students need to make themselves into "untouchables" whose jobs cannot be easily outsourced.
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The theory of absolute advantage is:
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A theory that suggests that under free trade, each nation gains by specializing in economic activities in which it is the most efficient producer
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The factor endowment theory is identified as:
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The extent to which different countries possess various factors of production such as labor, land, and technology.
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Factor endowments, which refer to the natural and human resource repertoires, were noted by:
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Heckscher-Ohlin
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The national competitive advantage (AKA the diamond theory) of industries depends on:
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Four aspects that form a diamond when diagrammed. 1. Country factor endowments 2. domestic demand conditions 3. Firm strategy, structure, and rivalry 4. Related and supporting industries
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The birth of modern economics and the forerunner of the free trade movement are strengths and influences of:
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the theory of absolute advantage
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Which of the following is the first theory to incorporate dynamic changes in patterns of trade?
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Product life cycle theory
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Which of the following is comparative advantage strength?
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• More realistic guidance to nations (their firms) • Interested in trade but having no absolute advantage • Explains patterns of trade based on factor endowments
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What determines the success and failure of a firm's exports around the globe?
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A firms ability adapt to change, understand the innate differences of all the different cultures they wish to market to, and constantly innovate
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Strategic Gap analysis
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Resources you have, strategies to follow, how to best exploit resources, what you need to have
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Cognitive Complexity
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How well you can see shades of gray
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ROI of earning a degree at UTD
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11.2%
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How much has research productivity increased under the current UTD Dean of the JSOM?
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12 Fold
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In the first week of actual competition how many of the UTD teams placed in the top 100 in the world?
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6/8
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Which of the following countries has the highest GDP per capita?
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Norway, Brunei, UAE, Lichtenstein
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Which of the following countries discussed in class has the lowest GDP per capita?
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Chad or Democratic Republic of Congo
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What is the approximate value of a Euro?
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1.35
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From the example used in class why can it be important to do research?
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Increase your income and advance your courier
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What type of guanxi is typically the least expensive to maintain?
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Family
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Cognitive Differentiation
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Ability to tell the difference between people
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A goal should have which of the following characteristics?
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1. Challenging 2. Attainable 3. Specific 4. Time-limited 5. Positive 6. flexible
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Which of the following is a reason why you should study global business?
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1. Employability :Mastering global business knowledge helps advance your employability and career in an increasingly competitive global economy. An ignorant individual is unlikely to emerge as a winner in global competition 2. Career Advancement: Expertise in global business is often a prerequisite to join the top ranks of firms. In order to set yourself apart as an ideal candidate, you will need a mastery of global business knowledge 3. Globalization: This is an age of extensive global interaction and competition. Understanding how global business decisions are made may facilitate your own career in global firms. • Advancing your employability and your career in the global economy. • Better preparation for possible expatriate assignments abroad • Stronger competence in interaction with foreign suppliers, partners, and competitors and in working for foreign-owned employers in your own country
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Comparative advantage
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The relative advantage in one economic activity that a nation enjoys over others.
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Absolute advantage
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With free trade, a nation gains by specializing in economic activities in which it has an absolute advantage.
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Productive Life cycle Theory
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Dynamic theory that accounts for changes in the patterns of trade over time. Every product has three life cycle stages. New product, maturing product, and standardized product.
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National competitive advantage of industries
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Also known as Diamond Theory, this theory focuses on why certain industries but not others are competitive internationally. 1. factor endowment-the natural and human resources of a firm. 2. Tough domestic demand propels firms to scale new heights. 3. Domestic firm strategy, structure, and rivalry in one industry play a huge role in its international success or failure. 4. Related and supporting industries provide the foundation upon which key industries can excel.
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Common law
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English in origin, shaped by precedents and traditions, as well as judicial interpretation. Relative to civil law, common law has more flexibility, because judges have to resolve specific disputes based on their interpretation of the law, and such interpretation may give new meaning to the law, which will in turn shape future cases.
