IB 3090 Midterm
Which of the following services are included in a Turnkey Contract?
Material supply and machinery transport Installation, assembly, and set-up, and operation of the proposed work Staff training and technical assistance ******All of the above
Vodafone Group Plc strategy when the European Commission began a lower cross-border roaming charges within the European Union. Vodafone Passport was created as an opt-in program for frequent border crossers. Aiming at the program's popularity as the basis for a targeted ________ campaign, arguing that binding regulation was unnecessary to bring down prices.
Political *****Lobbying Interest groups Social
The ________ set of ________ that the firm must interact with
relevant, bodies
The __________ of _________-_________ activities performed by a firm in the process of creating a product: R&D, procurement, manufacturing, marketing, distribution, sales and service.
sequence of value adding
The non-market environment consists of the s_____, p________, and l______ arrangements that structure the firm's interactions outside of, and in conjunction with, markets.
socia,l politcal, legal
The tendency of a financial or monetary crisis in one country to __________ __________ to other countries, due to the ongoing integration of national economies.
spread rapidly
Individuals and groups with preferences about, or a _______ in, an issue.
stake
Meeting or exceeding the ethical, legal, and commercial expectations of ___________________, i.e. being a socially responsible corporate citizen in the host country.
stakeholders
A formal arrangement between two or more countries to reduce or eliminate t________, q_______, and b_______ to trade in products and services
tariffs, quotas, and barriers
The franchisee provides ________, in a system franchising agreement.
usage rights for products and patents trademark-protected business concepts training and ongoing support ******down-payment plus royalty
The pattern or geographic arrangement of locations where the firm carries out ______-_______ activities.
value chain
Interests, as a characteristic of nonmarket environment, refer to
what nonmarket strategies address external environment in which organizations are founded *****individuals and groups with preferences about, or a stake in, an issue. what the interested parties know or believe about the relation between actions and consequences and about the preferences and capabilities of the interested parties
The firm's integrated network of sourcing, production, and distribution, organized on a ____________ ______ and located in countries where competitive advantages can be maximized.
worldwide scale
The basis of the pyramid of ethical conduct is___.
Corporate social responsibility Ethical behavior Guarding against corruption ******Complying with laws and regulations
The European Union is the largest political union comprising of 27 countries in Europe.
False
There are no cross-national differences faced by companies in terms of infrastructure, regulation, language, buyer demographics and behavior, payment methods, and currencies.
False
what the interested parties know or believe about the relation between actions and consequences and about the preferences and capabilities of the interested parties
information
Ethical standards are ____________ , and firms and individuals should seek to consistently uphold them anywhere in the world.
universal
Sean, Freedom's senior manager, adheres to the relativist interpretation of ethical principles. He goes by the saying, "When in Rome, do as the Romans do." Sean is most likely to agree strongly with which of the following views?
********Freedom should passively accept the practices that prevail in countries where it does business. Freedom should not partner with foreign business entities. Freedom should institute a single global code of conduct for all its employees and suppliers. Freedom should not hire foreign managers
________ refers to the tendency of a financial or monetary crisis in one country to spread rapidly to other countries, due to the ongoing integration of national economies.
*******Contagion Nationalization Internationalization Co-determination
Which of the following can NOT be considered as new Digital Realities in International Marketplace?
*******Remarkable rise of digitally enabled MNEs Quickened flows of knowledge and information Central role of digital infrastructure Huge change of consumer power
LeShaun Golding researched the risks linked to establishing the plant in Country B. He cited government intervention, lack of local managerial talent, challenges in communication and unethical business practices as the most prominent risks for this location. LeShaun noted all of the following types of risks EXCEPT
*******currency risk political risk country risk cross-cultural risk
An arrangement in which a contractor supplies managerial know-how to operate a hotel, hospital, airport, or other facility in exchange for compensation.
******Management contract Leasing Turnkey contracting Equity-based collaborative venture
Which of the following is an example of licensing?
******Saks Inc. entered China by giving a retail chain in China the authority to use Saks Fifth Avenue name for a flagship department store in Shanghai. An Indian automobile manufacturing company buys engines from a Japanese manufacturer for its environmentally friendly cars. A South-Korean consumer electronics manufacturer produces the screens for its brand of television and sends orders to a factory in China to manufacture the casing for the television. A U.K-based motorcycle manufacturer produces limited-edition customizations of the company's stock models and sells it to customers around the world.
Which of the following best describes Pure local adaptation strategy?
******Strategy that applies to conditions in which cross-border barriers or geographic distance renders attempts to achieve global scale efficiencies futile. A cost-effective strategy aimed at providing a wide range of products at the most competitive prices. A strategy aimed at achieving high local responsiveness while also achieving high global integration. A strategy aimed at improving local responsiveness. Companies may take advantage of market-specific characteristics such as Web site layout, local language and currency, examination and return policies, payment options, and customer support.
Which of the following claims about leasing is TRUE?
******The focal firm's ability to gain immediate access to target markets is a major advantage. In return for a lump-sum payment, the lessor relinquishes ownership of the property. It is a high-risk, high-cost strategy for entering into a foreign market. It is a contract under which a contractor provides management expertise in return for payments to run a hotel, hospital, airport, or other facility.
Which of the following describes the promotion of free trade ties between two or more geographically related nations?
******economic bloc trading diaspora grey market business strategic unit
________ is the total value of products and services produced in a country over the course of a year.
*****GDP CAD FDI PPP
Which of the following claims about intellectual property infringement is TRUE?
*****It amounts to piracy which takes the form of manufacture and distribution of counterfeit goods. Because of subjective ethical norms, counterfeiting and piracy can be especially problematic in advanced economies The right to keep valuable intellectual property out of the hands of rivals. Heavy machinery and computer manufacturing are the most widely counterfeited products.
Under the __________, Canada, Mexico, and the United Staes have eliminated nearly all tariffs on product imports from each other.
*****USMCA GATT FTAAP APEC
Philip Baxter reported on the risks associated with establishing the plant in Country A. The most significant risk, in his view, was posed by the government's complex bureaucratic structure. Philip reported the likelihood of significant administrative delays in opening the plant. The risk identified by Philip is an example of which of the following?
*****country risk commercial risk currency risk cross-cultural risk
When applying the five-step framework for making ethical decisions, managers should ________, at first.
*****recognize the ethical problem implement a decision evaluate alternatives examine the facts
A company with _______ or ________ employees (in Canada and the U.S.)., or 250 or fewer employees in the EU and elsewhere.
500 or fewer
Which of the following is TRUE with regard to the rights approach?
According to the rights approach, the most important virtues are truth and prudence. ******It is based on the belief that, regardless of how you deal with an ethical dilemma, human dignity must be preserved. It is based on the belief that the best action treats everyone equally and fairly. It produces the greatest balance of good over harm to customers, employees, shareholders, the community, and the natural environment
What are the advantages of Regional Integration?
Acquire stronger defensive and political posture Achieve scale economies and enhanced productivity Attract direct investment from outside the bloc *********All of the above
What are the advantages of franchising to the franchisee?
Acquire training and know-how; receive ongoing support from the franchisor Operate an independent business Become part of an established international network ******All of the above
Companies can choose the following strategy to address the institutional challenges in emerging markets
Adapt your strategy Change the context Stay away *****All of the above
While of the following is(are) characteristics of a successful regional economic integration?
Economic similarity Political similarity Cultural similarity *******All of the above
_________firm is international from almost inception.
Entrepreneurial
__________ represent a significant force in the Globalization of Markets.
Export controls Prohibitive tariffs *********Continued reductions in trade restrictions Import controls
Which of the following is an example of offshoring?
Fahad, a resident of the UAE, can share his views—data and information—about the country's construction industry with his friends in the U.S. ******The IT support services for customers of Mayfair Inc., a U.S. based consumer electronics manufacturer, are based in India. Treat Corp. is a food and beverage manufacturer based in Texas. It decided to move from Houston to Fort Worth in Texas to cut production costs. Lin, a Chinese citizen, decides to move to the U.K. after her application for scholarship is accepted by a leading university in London.
A common market has a lower degree of integration than a customs union.
False
A course of action must be established as soon as the ethical dilemma is identified, according to the process for arriving at ethical decisions.
False
Ethical principles are standardized around the world.
False
International business today is predominantly the domain of large, multinational companies.
False
Market infrastructure in emerging countries is largely the same, and companies need to deploy similar strategies to succeed.
False
Members of free trade areas agree to introduce common tariffs and non-tariff barriers that apply to products from non-member nations, allowing free trade between them.
False
One of the disadvantages of licensing is that it requires the licensor to make a high capital investment in the foreign market.
False
J.I. case company's decision to standardize its tractors and focus on a handful of models to serve the EU market is considered to be?
Internationalization from outside the bloc *******Regional standardization of products Internationalize value chain activities Trade diversion
The popularity of Konbini in Japan mainly presents the following challenges of internet markets?
Language User demographics *****Payment system Currency
downstream activities
Marketing, distribution, and sales and service
Which of the following best describes Global low-cost strategy?
Strategy that applies to conditions in which cross-border barriers or geographic distance renders attempts to achieve global scale efficiencies futile. *****A cost-effective strategy aimed at providing a wide range of products at the most competitive prices. A strategy aimed at achieving high local responsiveness while also achieving high global integration. A strategy aimed at improving local responsiveness. Companies may take advantage of market-specific characteristics such as Web site layout, local language and currency, examination and return policies, payment options, and customer support.
Which of the following best describes Transnational cost-adaptive strategy?
Strategy that applies to conditions in which cross-border barriers or geographic distance renders attempts to achieve global scale efficiencies futile. A cost-effective strategy aimed at providing a wide range of products at the most competitive prices. ********A strategy aimed at achieving high local responsiveness while also achieving high global integration. A strategy aimed at improving local responsiveness. Companies may take advantage of market-specific characteristics such as Web site layout, local language and currency, examination and return policies, payment options, and customer support
Sovereignty
The ability of a nation to govern its own affairs.
Institutional void refers to?
The abundance of specialized intermediaries, regulatory system and contract-enforcing mechanisms ******The absence of specialized intermediaries, regulatory system and contract-enforcing mechanisms The abundance of foreign investment and local competitions The absence of foreign investment and local competitions
Which of the following statements is TRUE about the firm-level consequences of market globalization?
The globalization of markets has narrowed down new business opportunities for internationalizing firms. ***********Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world. A firm's value chain is not subject to internationalization. Through offshoring, a firm relocates a major value-chain activity by establishing a factory or subsidiary in the home market.
The ________ and ______________ activities by companies across national borders.
Trade, investment
A Company may face high adverse impact on failure to adopt CSR behaviors.
True
Both market and nonmarket strategies should be considered in addressing and defending against market forces and realizing market alternatives.
True
Governments have facilitated economic integration by lowering barriers to international trade and investment, harmonizing their monetary and fiscal policies within regional economic integration blocs.
True
International business is performed not just by individual firms, but also governments and international agencies.
True
It is important to integrate nonmarket strategies with market strategies.
True
The globalization of markets refers to the growing independence and self-sufficiency of countries worldwide.
True
The initial phase of globalization was triggered by the introduction of the railroads and ocean transport.
True
Under a build-operate-transfer (BOT) arrangement, a firm or consortium of firms contracts to build a major facility abroad and then transfers ownership to the project sponsor, typically the host-country government or public utility.
True
Payment methods and customs vary widely from country to country. In China, ________ is the major payment method.
Visa Mastercard Discover *****Alipay
The ____________ of specialized intermediaries, regulatory systems, and contract-enforcing mechanisms
absence
International business is also known as which of the following?
born global business laissez-faire business ******cross-border business multi-hub business
Third stage of regional integration- trade barriers are reduced or removed, common external barriers are established and products, services, and factors of production such as c______, l____ and t__________ are allowed to move freely among the member count
capital, labor, technology
Second level of regional integration- similar to a free trade area except that the member states harmonize their external trade policies and adopt __________ tariff and nontariff barriers on imports from nonmember countries.
common
It is most likely that a person who believes in ethical normativism would interpret ethical behavioral standards as:
constantly changing ******universal superior to religious beliefs dependent on societal norms
Idea generation, idea ___________, idea diffusion
conversion
Strategy that seeks to achieve ____ ______________ in order to offer a wide selection of goods at the most competitive prices.
cost effectiveness
Identify critical competencies, 2) _______ an ___________, and 3) develop transfer processes.
create, architecture
Which of the following would NOT be considered an example of foreign direct investment (FDI)?
cross-border purchase of a textile plant *******cross-border purchase of stocks purchase of capital assets of a foreign company purchase of foreign land for business operations
Which of the following types of risk is also known as political risk?
currency risk cross-cultural risk commercial risk ******country risk
Enabling or transforming business functions, operations, and activities by leveraging ________ technologies and digitized data.
digital
Which of the following stages of regional integration does USMCA represent?
economic union common market *****free trade area political union
The globalization of finance ________.
enables companies to minimize offshoring **********contributes to firms' abilities to develop and operate world-scale production and marketing discourages innovation discourages free international exchange of goods and services
Cross-border exchange of products (merchandise) and services (intangibles) typically through __________ and _____________.
exporting and importing
The value-adding activity is delegated to an ___________ ___________, as opposed to being internalized within the company.
external supplier
To simplify the foreign operation and reduce potential risks, firms leveraging internet market for global expansion should use English in their websites for different countries.
false
Fourth stage of regional integration- member countries enjoy all the advantages of early stages, but also strive to have common _________ and ___________ policies.
fiscal and monetary
Trademarks, copyrights, and patents are examples of.
fundamental rights ******intellectual property rights ethical rights tangible property rights
Strategy that applies to conditions in which cross-border barriers or geographic distance renders attempts to achieve global scale efficiencies ________.
futile
Strategy that seeks to achieve high local responsiveness and high ______ ___________..
global integration
Which of the following is a societal consequence of market globalization?
greater emphasis on proactive internationalization internationalization of firm's value chain new risks and instant rivalry from foreign competitors *******offshoring and the flight of jobs
________ or ___________ created by individuals/firms.
ideas or works
Firms that are more successful at global competition display each of the following qualities EXCEPT ________.
identifying foreign market opportunities aggressively ********approaching internationalization from a reactive standpoint actively pursuing partnerships with foreign firms focusing intensively on building organizational capacities
Strategy that seeks to achieve ______ _______________. Firms may play to the peculiarities of each market such as Web site design, local language and currency, examination and return policies, payment options, and customer service.
local responsiveness
The relocation of manufacturing and other value-chain activities to cost-effective _________ ____________.
locations abroad
Which of the following represents the final stage in a firm's value chain?
marketing procurement research and development *******sales and service
A large company with many resources whose business activities are performed by a network of subsidiaries located in __________ _____________.
multiple countries
Which of the following is NOT an example of a cross-cultural risk factor?
negotiation patterns decision-making styles *****costs of production ethical practices
A concerted pattern of actions taken in the non________ ______________to create value by improving its overall performance.
non market environment
What non_______ ______________ address.
non market strategies
Ethical truths are ____ __________ but differ from group to group.
not absolute
Research and development, ________________ , and manufacturing.
procurement
The ___________ of selected value-adding activities, including production of intermediate goods or finished products, from external independent supplies.
procurement
The method of replicating properties without compensating those that developed them originally is known as______.
product differentiation bribery *******counterfeiting trademarking
The nonmarket strategies become most important when
the level of government intervention in the market is low the level of government intervention in the market is moderate ******the level of government intervention in the market is high none of the above
In a licensing agreement, the licensee provides ________.
the rights to use its industrial design the knowledge and supporting products, which includes raw substances and components intellectual property, technical information, and assistance *****a combination of down-payment plus royalty payments
A value chain is ________.
the sequence of administrative policies implemented to promote economic integration by a government the process of relocating manufacturing and production to valuable and cost-effective locations abroad the process of integrating national economies during a financial crisis ********the sequence of value-adding activities performed by a firm in the course of developing, producing, marketing, and servicing a product
Cross-border investment is the _________ of __________ to another country or the acquisition
transfer, assets
A nonmarket strategy allows a company to shape the environment in which it operates, creating opportunities.
true
Digitalization refers to enabling business functions, operations, and activities by leveraging digital technologies and digitized data.
true
In a global economy, sustained competitive advantage arises from tackling social, political and environmental issues as part of a corporate strategy — not just pursuing business as usual
true
New markets coming online will quickly be dominated by a small number of global platforms such as Facebook.
true