IBA 350 test 1

______ describes using one's own culture as a basis for judging other cultures.

Ethnocentric orientation

Which of the following would be a cross-cultural risk in internationalization?

Different Languages

The MNEs that are the most active in FDI are in the ________, ________, and ________ industries.

automotive; oil; telecommunications

Established in 2010, Instagram quickly found an international market for its photo- site. Currently, only a small fraction of Instagram's customers are from the United States. Instagram is an example of a(n) ________.

born global firm

Advances in ________ have resulted in an expansion of the global marketplace for small- and medium-sized enterprises (SMEs).

communications

An advantage of internalization is the ability to​ _______

control how a​ company's products are produced

Johnson & Johnson created alcohol-free Listerine Zero for Muslim countries, where spirits are forbidden, and Green Tea Listerine for Asian markets. This example shows that ________.

cultural differences necessitate the tailoring of marketing activities to target markets

Which of the following best describes culture?

culture is relative

Which term refers to the trend of corporations to methodically expand their worldwide business activities? 1

internationalization

Sierra's religion is based on a holy book called the Qur'an. She participates in daily ritual prayers, fasts during certain times of the year, and gives to charities. Her religion prohibits the consumption of alcohol or wearing revealing clothing. What religion does Sierra practice?

islam

A(n) ________ is a form of collaboration between two or more firms to create a new enterprise.

joint venture

Tori believes that business contracts should be very exactly worded. Because of bad experiences, she does not trust agreements based on assumptions, handshakes, or unspoken understandings. Tori trusts extensive verbal explanations and spoken words more than relationships. She is from a ________ culture.

low context

​________ favors trade achieved by maximizing exports and minimizing or even impeding imports

mercantilism

What technology has had the greatest effect in developing economies?

mobile phones

When a company transfers its value-chain activities by launching a subsidiary in a foreign country, it is called ________.

offshoring

Which of the following is a societal consequence of globalization?

offshoring and flight of jobs

What is the second stage of the internationalization process model?

pre export

The factor proportions theory rests on the premise that​ ________

products differ in amount of​ labor, natural​ resources, and capital required for production

ABC Enterprises transferred some of its manufacturing and other value-chain activities to a more cost-effective location in China five years ago. Recently, ABC Enterprises has undergone a change in management, and the new manager has decided to move those value-chain and manufacturing activities back to the home country. In which of the following is ABC participating?

reshoring

________ is the tendency to view other cultures through the lens of one's own culture.

self reference criterion

Which of the following represents the trend of economic disaster spreading from one country to another?

Contagion

What is the eclectic​ paradigm?

A framework that explains the extent of value chain operations that firms should own overseas

Which principle or theory describes how two different countries can benefit through trade only if one of those countries is moderately more effective at producing a product needed by the other?

Comparative advantage principle

Amy is employed in an American investment firm and is currently working with some South African clients on a new project. She uses a lot of hand gestures during meetings which his clients find very distracting and rude. This has also led to many misunderstandings between Amy and her South African clients in the recent past. Which of the following best describes such a situation?

Cross-cultural risk

Which of these describes a strategy that involves a firm's establishing a presence overseas by acquiring productive assets such as land, plants, equipment, capital, and technology?

Foreign direct investment

________ is a religion that is not associated with one particular prophet. It is an open-hearted faith that fully accepts other faiths and is inspired by central concepts called dharma and karma.

Hinduism

________refers to the performance of trade and investment activities by firms across national borders.

International Business

________ involves the allocation of assets to another country or the attainment of assets in that particular country.

International Investment

________ involves the allocation of assets to another country or the attainment of assets in that particular country.

International investment

________ involves the passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns.

International portfolio investment

In what do companies engage when they systematically increase the international dimension of their business activities?

Internationalization

Which of the following is NOT a limitation of the absolute and comparative advantage theories?

Large-scale production provides economies of scale.

Which element of social structure refers to a​ person's social class and is dependent upon occupation and​ income?

Social stratification

The technology for television sets was invented in the United States, and production began in the 1940s. Sales grew until TVs became standardized. Then production shifted overseas, and now the United States imports its television sets. This is an example of ________.

The international product life cycle

_______ is defined as the ability to accept uncertainty and a lack of clarity in the thinking and actions of others. I ask my students to do this with me all the time!! :-)

Tolerance for ambiguity

Which of the following is NOT an economic integration bloc? Mercosur World Trade Organization (WTO) European Union (EU) North American Free Trade Agreement (NAFTA) Asia Pacific Economic Cooperation Zone (APEC)

World Trade Organization (WTO)

The sequence of activities implemented by a company in the course of creating, manufacturing, promoting, and servicing a product is known as ________.

a value chain

Acculturation refers to the process of ________.

adapting to a culture other than one's original culture

Which element in Porter's diamond model describes a nation's position in terms of labor, natural resources, wealth, technology, entrepreneurship, and know-how?

factor conditions

​Germany's abundance of employees with strong engineering skills has led to the nation becoming a leader in the international engineering and design industries. This is an example of national competitiveness due to

factor conditions

English is the most common primary language in the world.

false

What is the most complex entry strategy for engaging in global business?

foreign direct investment

Which of the following refers to the absence of restrictions to the movement of goods and services among countries?

free trade

From the trade theories perspective, the main reason that firms internalize value-chain activities is to ________.

gain and sustain competitive advantage

The main reason that firms internalize​ value-chain activities is to​

gain and sustain competitive advantege

Which of the following is another term for importing?

global sourcing

________ inspires corporations to establish their sourcing, producing, and promoting activities on a worldwide scale in order to attain lower costs with higher efficiency.

globalization

Which term refers to an expression whose symbolic meaning differs from the literal meaning?

idiom

Nigeria's telecom infrastructure has increased telephone usage to over 30 million cellular subscribers. What is the most likely benefit Nigeria will realize from addingtelephones?

improved living standards

In ________, people are primarily concerned with their own self-interest, and ties among individuals are fairly loose.

individualistic societies

Culture is not?

inhereted

Sally, a recent business school graduate, loves adventure, so she is seeking a job in a foreign country to expand her sense of the world of business. She is being recruited by a company that has 50 employees and is looking to hire additional personnel to oversee the firm's exporting branch in Vietnam. What type of international business is recruiting Sally?

small enterprise

Societies that score low on uncertainly avoidance ________.

take risks and make decisions quickly

Why do service firms face a potential for communication​ problems?

the communicate more with customers

The initial phase of globalization was triggered by the introduction of the railroads and ocean transport.

true

The greatest significance of globalization is reflected directly in a company's ________.

value chain

Which cultural dimension relates to personal motivations and behaviors?

values

What is the most likely reason that Nestlé sells its food and beverage products worldwide?

wants to earn profits in international markets