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.