International business involves the performance of ________ activities by firms across national borders.
trade and investment pg. 4
International business is also known as which of the following?
cross-border business pg. 4
Which of the following best characterizes the development of international business?
It has existed in some form for centuries. (notes)
The growth of international business activity coincides with which of the following?
the globalization of markets pg. 4
Globalization has helped increase all of the following except ________.
the economic isolation of developing countries (notes)
Which of the following is another term for importing?
global sourcing pg. 5
Which of the following are subject to importing and exporting?
all of the above pg 5
________ refers to the transfer of assets to another country or the acquisition of assets in that country.
International trade pg. 5
Each of the following represents a factor of production except ________.
hiring policies pg. 5
Which of the following would not be considered an example of foreign direct investment (FDI)?
cross-border purchase of stocks pg. 5
________ is the total value of products and services produced in a country over the course of a year.
GDP pg. 5
Which of the following best explains the recent rapid increase in exports worldwide?
? Growth in gross domestic product in most countries has declined pg. 6
Each of the following has contributed to the rapid integration of world economies except ________.
the increase in trade barriers
Which of the following type of risk is also known as political risk?
country risk pg. 11
Which of the following is not an example of a cross-cultural risk factor?
competitive intensity pg. 11
Inflationary pricing is an example of which of the following?
currency risk pg. 11
Businesses that directly initiate and implement international business activity are known as ________.
? SMEs pg. 13
The largest multinational firms are found in each of the following industries except ________.
...
Which of the following countries hosts the greatest number of MNEs?
United States pg. 13
Each of the following types of organizations can be active in international business except ________.
NGO pg. 15
The process of targeting and serving markets outside the home country is known as ________.
market diversification pg. 16
Which of the following contributes least to increasing a company's profit margins?
increasing global competition pg. 16
Which of the following best explains why the Japanese firm Canon relocated much of its production to China?
low cost labor pg. 17
Which of the following was a landmark for major growth in international trade and investment?
the establishment of GATT
Increases in international trade and investment are accompanied by increases in all of the following except ________.
cross-border conflict pg. 19
The most recent phase of globalization is characterized by which of the following?
enormous growth of cross-border trade and investment pg. 32
The third phase of globalization was triggered by ________.
the end of World War II pg. 32
3. Multinational firms first emerged in which phase of globalization?
second pg. 32
Which of the following reflects the major contribution of GATT to globalization?
reduction of barriers to international trade pg. 32 (bottom)
Over time, the GATT evolved into which of the following?
World Trade Organization pg. 33
In the third phase of globalization, multinational firms originated from all of the following except ________.
Brazil pg. 32
All of the following represent internal forces that might compel a firm to develop a proactive strategy of internationalization except ________.
market globalization pg. 34
Firms that are more successful at global competition display each of the following qualities except ________
approaching internationalization from a reactive standpoint (guessed)
Value chain activities can best be defined as which of the following?
the sequence of value-adding activities performed by a firm pg. 35
A regional economic integration bloc is characterized by all of the following except ________.
the reduction of investment flows among members
All of the following represent examples of regional economic integration blocs except ________.
World Trade Organization
The free movement of capital around the world is known by which of the following terms?
the globalization of capital pg. 36
Global firms shift their manufacturing activities to foreign locations in order to ________.
benefit from low cost factor inputs pg. 36
Which of the following is not a driver of market globalization?
increased import tariffs pg. 37
Reduction in trade barriers is associated with the emergence of which of the following?
regional economic integration blocs pg. 37
The end of the Cold War was signaled by each of the following except ________.
? China's move to join the WTO pg. 37
At the time of the Berlin Wall collapse, which of the following countries had not already embarked on a program of market-based reforms?
India pg. 37
Which of the following countries has the lowest gross national income (GNI) per person?
India pg. 37
All of the following are characterized by low levels of market globalization except ________.
Sweden pg. 37
Which of the following is likely to be characterized by the highest level of market globalization?
? China
Which of the following drivers of market globalization enables firms to engage in foreign currency transactions?
reduction of barriers to investment?
________ is a financial network through which individuals can transfer money to individual recipients in other countries.
...
International Monetary Fund
SWIFT pg. 37
Which of the following has the greatest proportion of Internet users as a percent of the total population?
United States pg. 40
Technological leapfrogging can best be defined as which of the following?
bypassing certain stages of technology when upgrading to new products pg. 40
Which of the following countries are considered to be the beachheads of technological advances?
China and India pg. 41
Which of the following represents the most important activity underlying technological advances?
innovation
Technological advances have had their greatest impact in all of the following areas except ________.?
financial services pg. 41
The ability of a nation to govern its own affairs is known as ________.
sovereignty pg .45
Which of the following terms is used to refer to the relocation of manufacturing and other value-chain activities to cost-effective locations abroad?
off-shoring pg. 46
Each of the following represents a firm-level consequence of market globalization except ________.?
? an international focus is viable only in certain industries pg. 52 first para.
Highly advanced internationalizing firms seek a simultaneous presence in which of the following trading regions?
North America, Europe, and Asia
The most direct firm-level consequence of market globalization affects which of the following?
the firm's entire value chain pg. 52
Which of the following represents the final stage in a firm's value chain?
Sales & Service?
The main purpose of distribution channel intermediaries is to ________.
supply marketing services for focal firms pg. 60
The participant responsible for conceiving and designing a product is known by which of the following terms?
focal firm pg. 60
Which of the following refers to a specialized logistics service provider that arranges international shipping for exporting firms?
freight forwarder pg. 60
All of the following are characterized as customers except ________.
freight carriers pg. 61
The "economic miracle" which occurred in Japan in the 1980s was a result of all of the following except ________.
...
Within the international value chain, which of the following would operate as a facilitator?
lawyer pg. 61 (bottom graphic)
Which stage of the international value chain immediately follows the research and development stage?
sourcing pg. 61 (bottom graphic)
Colleges and universities provide support to focal firms in which stage of the international value chain?
research and development pg. 61 (bottom graphic)
Before purchasing components from international suppliers for the 2004 Chevrolet Malibu, General Motors most likely considered all of the following criteria except ________.
...
Which stage of the international value chain is represented by the assembly of a Dell computer in Malaysia?
production pg. 63
Which of the following characterizes how multinational enterprises enter foreign markets?
outsourcing (guess)
Internationally-active focal firms are relatively uncommon in which of the following industries?
graph on pg.65
The ________government partly or wholly owns numerous large international focal firms.
Chinese pg. 64
Which of the following characteristics is considered an advantage for SMEs in the global market?
innovation (...guess) pg. 65
Small focal firms are typically involved in the realm of ________.
exporting pg. 65
Which of the following has enabled SMEs to market their products at the same level as large multinational enterprises?
communication technology pg. 66
A born global firm can best be defined as which of the following?
a company that moves quickly into international markets pg. 66
Each of the following is one of the three major types of cross-border transactions except ________.
local economic development pg. 67
A firm that exchanges intellectual property for royalties is known by which of the following terms?
licensor pg. 68
Delegating certain non-core functions to outside vendors is a strategy known as ________.
outsourcing pg.68
Which of the following is a benefit of licensing agreements?
home based globalization pg. 68 bottom
Developing economies often enter into build-own-transfer agreements with ________.
? turnkey contractors pg. 69
International collaborative ventures allow focal firms to ________.
configure value chains more effectively pg. 70
Two focal firms might partner together in a project based, non-equity venture in order to ________.
pursue long-term strategic goals pg. 70
Distribution channel intermediaries perform all of the following functions for focal firms except ________.
production pg. 71
Independent wholesalers that purchase products from exporters for resale at a profit are known as ________.
merchant distributors pg. 71
Which of the following intermediaries is especially useful in markets that consist of many small, widely dispersed buyers and sellers?
agents
Major retailers such as Wal-Mart and Toys R Us have opened stores around the world in order to ________.
shorten the distribution channel pg.72
Producers with limited international business experience often turn to which of the following intermediaries when needing assistance with importing and exporting commodities?
trading companies pg. 73
Trading companies play an important role in Japan's external trade because Japan ________.
lacks its own raw materials pg.73
Internet-based international intermediaries provide all of the following benefits except ________.
bringing more customers into retail stores pg. 74-75 (guess)
The increase in the number of international business facilitators has been driven by all of the following except _________.
falling trade in international services pg. 75
Common carriers are firms that ________.
own the ships, trucks, and airplanes used to transport goods pg. 76
Which of the following assists focal firms when disputes occur with foreign business partners?
...
Commercial banks facilitate the operations of international businesses by doing all of the following except ________.
gathering credit information about foreign buyers pg 76 and 77,78 (confusing)
Which of the following industries in Dubai contributes less than 10 percent towards the nation's GDP?
oil and gas pg.142
Which of the following features would be considered the primary comparative advantage for the Persian Gulf nations?
technology pg.142
All of the following are comparative advantages that develop with time except ________.
natural endowments pg. 143
Which of the following statements is a characteristic of a competitive advantage?
A competitive advantage is difficult for competitors to imitate.
Theories regarding international trade and investment are categorized into what two groups?
nation-level and firm-level pg.144
Born globals and focal firm internationalization are categorized under which of the following theories of international trade and investment?
firm-level theory pg. 143
The idea that exports should be maximized and imports should be minimized is known by which of the following terms?
The Mercantilist View
Which of the following statements best explains the reason that many economists adhere to the concept of free trade between nations?
Unrestricted international trade increases the prosperity of poor nations. pg. 145
The idea that each nation is efficient in the production of some goods and less efficient in the production of other goods underlies which of the following concepts?
absolute advantage principle pg. 146
Considering the subtle advantages held by nations led to which of the following concepts regarding the rationale for international trade?
comparative advantage principle pg. 146 guess
All of the following statements characterize the comparative advantage principle except ________.
...
Modern international trade is hindered by all of the following except ________.
technology pg. 148
According to the factor proportions theory, nations with an ample labor supply of low-skill labor, such as Mexico, should ________.
export textiles and import pharmaceuticals - guess 149-150
Which of the following was the analysis revealed by the Leontief paradox in the 1950s?
Despite having abundant capital, the U.S. was exporting labor-intensive goods.
According to the international product cycle theory, inventors of a product earn the most profits at which of the following stages?
introduction guess. pg. 150
Which of the following is not an element of the Diamond Model of Porter?
Quality of production pg. 153
All of the following are methods of innovation used by focal firms except ________.
...
A nation's factor endowments help determine which of the following?
national competitive advantage pg.154
Northern Italy is recognized as a(n) ________ for the fashion industry.
industrial cluster
Which of the following statements would be supported by Michael Porter?
Rivalry among industry competitors spurs innovation. pg. 153
The collaboration between public and private sectors in an attempt to initiate economic development is known by which of the following terms?
national industrial policy pg. 155
Each of the following actions contributed to the "Irish miracle" except ________.
opening a new bridge between Ireland and Scotland pg. 156
How do nations that lack natural or other resources compete in international business and trade?
...
Which of the following statements best supports the concept of new trade theory?
Some industries must increase production volume to achieve international success. Pg. 150
In which stage of the internationalization process does the firm focus on its home market?
1st pg. 158
In which stage of the internationalization process does a firm expend its resources to enter a viable foreign market?
experimental involvement pg. 158
What is suggested by the increasing number of early internationalizing focal firms?
Born globals will become typical in the world of international trade pg. 158
The effect of multinational enterprises on international trade and business has been to ________.
drive globalization and integrate world economies pg. 159
Which of the following countries is home to the largest stock of inward FDI in Europe?
United Kingdom - diagram pg. 160
Which theory supports the idea that a firm chooses FDI as an entry strategy because an MNE can operate foreign subsidiaries more profitably than a local firm?
internalization theory pg. 160
Which of the following is a benefit of internalizing foreign-based value-chain activities?
The MNE eliminates the expense of freight forwarders and customs brokers. pg. 163
Which of the following is considered the most important monopolistic advantage?
proprietary knowledge pg.160
All of the following are typical examples of ownership-specific advantages except ________.
...
Which of the following terms is used to refer to a collaborative venture which results in a new legal entity?
...
Networks are characterized by all of the following except ________.
...
Each of the following is one of the four major risks in international business except ________.
cross-cultural risk
A polycentric orientation refers to the ___________
tendency of managers to develop a strong attraction to the countries where they do business. pg. 90
Using one's own culture as a standard for the judgment of other cultures is known by which of the following terms?
ethnocentric orientation pg. 90
Socialization can best be defined by which of the following?
Learning the norms and behavioral patterns and rules of one's own society. pg.91
Considering the iceberg metaphor proposed by anthropologists to explain the layers of a culture, which of the following would be the most deeply embedded?
conversational patterns pg.92
All of the following are managerial tasks in which cross-cultural proficiency is essential except ________.
communicating with business facilitators in one's own country pg. 94
Which of the following is a cultural business issue that arises in China and Japan?
Employees expect to be promoted based on their age pg.94
Amae can best be defined as which of the following?
a relationship of indulgent dependence pg. 95
NATIONAL, PROFESSIONAL, AND CORPORATE CULTURE
...
Which of the following occurs the longer a person works in a particular profession and workplace?
Individuals become increasingly influenced by the professional and corporate culture. pg.93
Which of the following is a cultural metaphor for Israel?
kibbutz pg.97
Which of the following statements is an idiom?
The office was 'like a graveyard' yesterday because we lost the bid. pg.98
What is the most likely reason that northern Europe and North America are low-context cultures?
Both regions have a history of relying on rhetoric to convey ideas and opinions. pg. 98
Business dealings in low-context cultures are characterized by which of the following?
efficiency pg.98
As defined by ____________, four dimensions of national culture include long-term orientation and power distance.
Geert Hofstede pg.99
Which of the following refers to the extent to which people can tolerate risk in their lives?
uncertainty avoidance pg. 100
In which of the following countries are the opinions of group members and group harmony highly regarded?
China - guess
High power-distance countries are characterized by which of the following?
a lack of concern regarding the inequalities between the weak and the powerful pg.100
Firms that would rate high on power-distance would most likely be characterized by which of the following?
concentrated power among executives and little autonomy for subordinates pg. 100
All of the following characterize masculine cultures except ________.
interdepend
All of the following cultural values are credited for the East Asian Miracle except ________.
pg. 101
An employee who often watches his clock throughout the day most likely works in which of the following countries?
Canada pg. 102
In which of the following cultures is a citizen most likely to stand very close to you during a conversation?
Brazil
Major world religions include all of the following except ____________.
Animism
The purpose of material productions in a society is to ________.
enable people to live and work in their environments
Approximately how many languages are spoken in the world today?
7,000
Firms should consider the language of the countries in which they advertise for all of the following reasons except ________.
metaphors are generally understood across cultures - guess
Mandarin, Hindi, Bengali, and Arabic...
are among the most commonly spoken languages in the world pg.107
Firms should consider the language of the countries in which they advertise for all of the following reasons except ________.
metaphors are generally understood across cultures - guess
Mandarin, Hindi, Bengali, and Arabic...
are among the most commonly spoken languages in the world pg.107
Which of the following is a cultural barrier inherent to service firms that internationalize via FDI?
Service firms are unable to infiltrate international markets due to language issues. pg. 108
What has been the impact of technology and the Internet on global culture?
Cultural attitudes and values have spread rapidly due to reduced boundaries. pg. 108
The rise of transnational media, high-tech communications, and modern transportation systems have led to...
brought geographically separated cultures in closer contact than ever before. pg. 109
Which of the following types of assumptions is the cause of most problems between business managers and foreigners?
ethnocentric - guess
Self-reference criterion can best be defined by which of the following?
the propensity to view other cultures through the lens of one's own culture pg.110
All of the following are personality traits that are beneficial to individuals who desire success in international business except ________.
the ability to tolerate the ambiguous actions of others , the ability to be open-minded and flexible, the ability to perceive subtle body language and behavior, and the ability to acquire foreign languages easily (only one though)
In international business, successful managers are able to ________.
adapt to cultural differences - guess
Cultural intelligence can best be defined as which of the following?
a person's ability to function effectively in culturally diverse situations pg. 110
What is the primary reason that some firms decide to enter foreign markets through FDI instead of exporting?
extensive customs bureaucracy - maybe? pg. 178
All of the following are ways that firms can benefit from a foreign market's political and legal systems except ________.
legal protection pg. 174 (not quite sure)
A company's potential loss of profitability caused by a nation's political or legal setting is known by which of the following terms?
country risk
Each of the following could be considered intellectual property except ________.
stock (guess)
Which of the following situations would raise country risk the most?
civil (war guess)
Which of the following helps explain why India was once characterized by high country risk?
Political leaders enacted laws targeted against foreign firms. pg.175
Which of the following characterizes country risk?
Although country risk never disappears, its intensity fluctuates with political changes and legal happenings. pg. 177
Which of the following is not a typical principal function of a political system?
...
Which of the following countries is considered primarily socialist?
Venezuela ? maybe - pg. 178 (fig. 7.4)
Totalitarian states are characterized by all of the following except ________.
free flow of information in the mass media
Which of the following is the underlying principle of socialism?
The wellbeing of the group supersedes the wellbeing of individuals.
Which form of government is characterized by private property rights and limited government?
democratic
What has been the impact of social democracy on international business relations in some European countries?
Regulations have forced foreign firms to invest elsewhere. pg. 178
Which of the following is an element of socialism often found in democratic societies?
government regulation of the public sector (guess) pg. 179
Which of the following pairs of nations are on opposite ends of the political freedom scale?
Cuba and Sweden pg. 180
A command economy can be characterized by all of the following except ________.
limited government intervention pg.181
Which of the following countries is considered a mixed economy?
Norway pg. 181