IMS EXAM Part 2 prep

What is an example of the competitive driver of international activity?

A company that enters a foreign market to distract companies with similar products or services.

Which of the following is not linked to the market driver of internal business activity?

A company that moves its manufacturing operations to another country because labor costs are lower.

The increased internationalization of business requires _________ to have basic knowledge of international business.

All managers

Foreign business denotes

Business conducted within a foreign country.

A nation having absolute disadvantages in the production of 2 goods w/ respect to another nation has a(n) in the production of the good which its absolute disadvantage its less.

Comparative advantage

The purchase of an existing business in another nation is known as

Cross-border acquisition

Based on the work of Edward Hall, the explicit communicator in a low context culture is

Direct, unsubtle, and unambiguous: What you say is what you mean

A government nationalizes a firm when it shifts the ownership from public to private

False

Thanks in part to communication advancements international trade has become stabilized and become evenly distributed across all countries around the world.

False

a government that makes radical changes to existing policies is demonstrating

Instability

The theory of overlapping demand suggests that

International trade services will be more common between countries with

Theory based on ____________________ states that international and interregional differences in production costs occur because of differences in the supply of production factors.

Resource Endowments

WIPO is a

UN agency that administers intellectual property treaties and advises countries on intellectual property-related administrative issues.

the two components of foreign investment include portfolio investment portfolio investment and

direct investment

When gross national income rates drop significantly, it affects a company's environment. What type of external force does this represent?

economic

When gross national income rates drop significantly, it affects a company's environment. Which type of external force does this represent?

economic

The tendency toward an international integration of goods, technology, information, labor and capital or the process of the is called

economic globalization

environmental sustainability is both local and global because

environmental conditions do not recognize national borders

Hofstede's masculinity-feminity dimension suggests that, as an international manager, you might

find men and women equally ready to assume leadership roles in a feminine culture.

High context countries

indirect and implicit communication-China, Japan and the Middle East; North America is low context-very direct

The forces over which the management does have some command are called

internal

Government stability is a characteristic of government that

maintains predictability in fiscal, monetary, and political policies

International business differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environment-domestic, foreign, and international

true

Nearly 60% of global output is now destined for international trade

true

The vast proportion of outward FDI, about 2/3rds, originates from the developed countries.

true

Examples of orderly marketing arrangements are

voluntary export restraints

State-owned transnationals currently accounts for ___________________ of all transnational corporations.

Less than 1%

In a low power distance culture

People will want direction, so top-down leadership style

Historically international business as a business practice is considered

before the Roman Empire

The three main approaches to law are

civil, common, and religious

Hofstede's individualism-collectivism measure

the degree to which people in the culture are integrated into groups.