IB 300 Final
SDR refers to
(Special drawing rights) an international monetary reserve asset issued by IMF
International economic analyses should
(p.187) provide economic data on both actual and prospective markets
A manager from a U.S. company is negotiating with a Japanese company for goods. What is most likely to be the American's most important criteria in the purchasing decision?
...
Which item or service is least likely to be included within indirect procurement?
... (p.497)
The organizational form at Luscious Chocolate Company includes separate groups organized by specialization, including candy bars, baking chocolate, and premium chocolates. Each of these groups are defined as distinct, independent businesses with clearly defined markets. What is this an example of?
... (strategic business units?)
Problems of the gold standard include
...(P. 217)
Eiko and her customer service group felt they needed better communication because their team seemed to be going in many directions. They decided to meet weekly to discuss how to improve the department's functional capabilities so they could better service their customers. This is an example of
...(groupthink? p.258)
After acquiring two new foreign affiliates, Henson Manufacturing created a new organizational chart to indicate where formal authority would lie within the organization. This organizational chart is an indication of
...(p. 250s?)
Once a company's overseas operations have achieved satisfactory levels, the company might decide to eliminate the international division and incorporate a worldwide structure. These structures are usually based on one of four things, including
...(p. 270s)
When creating a worldwide organizational structure, one criteria that companies do not rely on as the basis for organizational subdivisions at the second, third, and still lower levels is
...(p. 270s)
The volume of international trade in services exports in 2017, worldwide, was
...(p. 347)
What is an accurate description of an IC's structures and systems?
...(p.11)
Michelle has been tasked with the job of analyzing the economy of three South American countries to determine if they have business potential. In her final report, she makes note of national income that may not be reported because it involves illegal activity. This indicates that Michelle is accounting for what?
...(p.197?)
Within the international division structure, it is common for
...(p.271)
Which item is least likely to be a cost of importing for a company?
...(p.482-484)
The United Nations is a worldwide organization that is
193 member-nations are dedicated to the promotion of peace and global stability (p.439)
When did the dollar-based gold exchange standard in which the U.S. dollar became both a means of international payment and a reserve currency cease?
1933
The Bretton Woods system was in place from
1945-1971, used par value (stated value) based on the gold and US Dollar
What is known to be the most discreet financial institution in the world?
BIS (Bank for International Settlement)
The New Development Bank, headquartered in Shanghai, China, was formed by
BRICS (Brazil, Russia, India, China, South Africa)
The World Bank Group's two major institutions are the International Development Association and the
International bank for Reconstructions and Development
International Development Association's purpose is to loan to
Poorest and developing countries
Who took the United States off the gold system?
President Nixon
Carlton Office Systems Inc. needs to improve overall organizational efficiency. To accomplish this, the company has implemented a complete redesign of all business systems and reporting hierarchies. During this process, significant cuts were made in middle management staff. What organizational trend is taking place at this company?
Reengineering
The Qur'an is associated with Islam and indicates the presence of which form of law?
Religious (p.156)
The common interest of all nations in a workable international exchange rate system transcends their conflicting international interests is the premise of
The International Monetary Fund
The UN's International Court of Justice is also known as
World Court
Which scenario demonstrates the concept of guanxi?
a Chinese businessman would not commit to a project with an American company until he established a relationship with the local representative
Civil law is based on
a collection of codes and tends to be bureaucratic
Industry-based B2B exchanges can create value with
aggregating the purchasing power of buyers, improving process efficiency, integrating supply chains, enhancing content dissemination, and improving overall market efficiency (p. 498)
In designing the organizational structure, management knows that two concerns, __________ and __________, run counter to each other.
an effective way to departmentalize: coordinating activities
The Chinese concept of guanxi is an example of
an informal, cognitive institution.
IMF quotas are determined by the relative size of a nation in the global economy and
are the nations "DUES" to the IMF
Dissatisfaction with both the purchasing power parity (PPP) and conversions using official exchange rates caused the World Bank to adopt what methodology to derive per capita GNI estimates?
atlas conversion factors
The rapid expansion of world exports since 1980 demonstrates that
business people must be prepared to meet increased competition, and the opportunity to increase sales by exporting is a viable growth strategy
Which countries have become more important trading partners to the United States as suppliers of electronic products?
china
Which country has the highest percentage of the world's capacity of wind power?
china
The legal system of a country is composed of
civil, common, customary, mixed, and religious
Economies with per capita incomes in the low to middle range that are in a transition toward developed status are known as
emerging market economies
When you assert that a certain aspect of your own culture is superior, you are probably exhibiting
ethnocentrism
"Express kidnapping" targets
expatriates and other international business travelers, was largely a crime against locals, but globalization of banking has provided kidnappers with accessible ATMs
________ refers to the transportation of any domestic good or service to a destination inside a country or region, from a foreign origination point.
exporting
What is a downside of flexible manufacturing?
extensive planning, require highly skilled employees, expensive
The two main issues for management to consider in designing an international company's structure include:
finding the most effective way to compartmentalize and coordinate activities
Which type of institution operates through laws and regulations, with coercion as the regulative mechanism?
formal
Heat sources that are drawn from steam reservoirs deep in the earth are known as
geothermal power plants
A measure of the degree to which family income within a country is distributed equally is called
gini index
In 1717, Sir Isaac Newton took Britain from the silver standard to
gold standard, with fixed rates.
Among the cybercrimes that most often target businesses are
hacking and data espionage
The International Monetary Fund would characterize a developing economy as one in which
have less technically developed infrastructure and lower living standards. (p. 188)
The World Bank categorizes countries based on GNI per capita, using the following categories:
high-income, middle-income, low -income
Where are the greatest urban shifts now occurring?
in low and middle-income countries (p.207)
The proportion of merchandise exports from Asia has ________ since 1983.
increased
The purchasing of goods and services that are not part of finished goods is called
indirect procurement
Trade that occurs between a parent company and its foreign affiliates is called
intrafirm
What is the current status of nuclear power?
it is increasing in popularity, with 453 current plants and more about to be built
What is one disadvantage of the geographic region structure?
its divided into geographic regions that each must have its own product and specialists: duplication of product and functional specialists is needed
Culture is a group of shared worldviews, social rules, and interpersonal dynamics that is
learned, interrelated, and shared
The geographic region structure seems to be popular with companies that
manufacture products with a low technological content requiring marketing ability
The __________ organization has evolved from management's attempt to mesh product and regional and functional expertise while maintaining clear lines of authority.
matrix
An organization in which top-level divisions are required to heed input from a staff composed of experts from another organizational dimension in an attempt to avoid the double-reporting difficulty of a matrix organization but still mesh two or more dimensions is known as a
matrix overlay
The IBRD is a major institution of the World Bank whose function is to loan to
middle-income and credit-worthy poor nations
A fixed peg currency arrangement means that
monetary authorities. will approve any movement (officially fixed value)
Incomes measured by the Atlas conversion factor are generally
more stable over time and changes in income rankings are more likely to be due to relative economic performance
"Little JIT" refers to
narrow focus scheduling materials, scheduling services of production
The World Trade Organization is an example of an institution that "propagate(s) principles, and broadly represent(s) 'humanity.'" As such, the WTO is a (n)
normative institution
Instead of declining, which nonrenewable energy source, because of its lack of pollution and the rising price of oil, has seen significant growth?
nuclear power
A basic cultural concept is
our way is not the only way
Which sourcing arrangement is common in the clothing industry?
overseas independent contractor
What is predicted to happen with the population of many developed countries?
p. 207
When companies rely on concentrating solar thermal power, what are they using to collect sunlight?
panels (mirrors)
This country engaged in many privatizations in the aftermath of the 2008‒2009 financial crisis.
poland
The trend toward unification and socialization of the global community is illustrated by which of the following?
preferential trading arrangements that group several nations into a single market
Strong institutions are vitally important to international business decision makers because they
provide ways to settle conflicts
Extraterritoriality refers to
right of foreigners to be protected by the laws of their own nation
The WTO is the only international organization designed to establish and help implement
rules among trades of nations
When considering where to export, advantages to managers of focusing on a nation that is already a sizable purchaser of goods coming from the home country include the fact that
satisfactory transportation facilities have already been established
When governments nationalize a firm, they don't seek to
sell the firm to foreign investors
Kinship and free association are examples of
social institutions found in all societies and categorized by the conditions of their formation
The present floating exchange rate system is not a totally free float because
some central banks intervene in the market to buy or sell large amounts of currency to affect supply and demand of a particular currency
Fordham Fresh Foods relies on an exchange rate that is based on trade for delivery within two business days. What type of exchange rate does the company use?
spot rate
__________ are organizational forms in which product divisions are defined as though they were independent businesses.
strategic business units
An entire manufacturing system with unbalanced operations that emphasizes total system performance is
synchronous manufacturing
________ is a scheduling and manufacturing control system that seeks to locate and then eliminate or minimize any constraints to greater production output.
synchronous manufacturing importance
Relatively inexpensive international communication enables firms to "body shop," that is, transmit computer-oriented tasks worldwide to a cheap but skilled labor force. This is an example of a ________ driver of international business activity.
technological
What is identified in the text as being one of the five major drivers of globalization?
technology
In a managed float currency arrangement, the currency fluctuates while
the country's monetary authority actively intervenes on the exchange market without specifying or making public its goals and targets (p. 220)
The fixed exchange rates set up at Bretton Woods were based on gold and
the dollar
The rise of the Ottoman Empire before 1300 influenced trade as
the emerging trade routes for people, goods, money, animals, and microorganisms. had the effect of raising the cost of asian trade for europeans, drove search for sea route.x
A hybrid organization may result from
the firm's acquiring a company with distinct products and distribution channels
A currency arrangement that is based on free floating exchange rates relies on
the market
Aesthetics is
the philosophical inquiry into the nature and expression of beauty
Organizational design is best described as
the process of changing an organizations design in response to shifting dynamics in the organization's environment
New institutional theory suggests that institutions provide
the rules of the game, reducing uncertainty
Financial forces such as inflation and taxation are considered uncontrollable because
they are external forces beyond the influence of the firm.
Businesses that conduct country risk assessment do so
to protect their assets (people and property)
The most important sources of international law are
treaties
The price of gold since about 1200 AD has been
trending upward
A vehicle currency is a currency
used for international trade or investment.
Quality circles meet to discuss ways to improve
ways of improving products or processes