International Business BUS334

Environment as used in the textbook is the forces surrounding and influencing the life and development of the firm and is classified as

Controllable and uncontrollable as well as internal and external

Hofstede's four dimensions give managers a basis for understanding:

a management technique appropriate in one national culture is not necessarily appropriate in another

Hofstede's uncertainty avoidance measure captures

a societies level of comfort with uncertainty

Religion is a part of a group's culture because

it is responsible for many attitudes and beliefs that influence human behavior.

A government can be said to be stable when:

it maintain itself in power and policies are predictable

Monetary policies:

control the amount of money in circulation

"In learning a language, people can't understand the nuances, double meanings of words, and slang, unless they:"

learn other aspects of the culture

Import duties can be set to encourage

local inputs

"According to the book, economic analyses become more complex when a firm enters overseas markets because, unlike the situation for a company operating domestically:"

management must operate in two new environments, foreign and international

"Common law and civil law have different roots. As time has passed,"

many similarities between them have developed

"If a country's BOP is in deficit, that means"

more money is going out than coming in

International institutions that work to aid developing countries are:

multi lateral and often worldwide

Conversational distance

space between people in a conversation

The efforts of the U.S. government to apply its antitrust laws extraterritorially are:

strongly resented by other governments

In examining which nations are responsible for the large and growing levels of merchandise and services trade that we have seen worldwide

the U.S. ranks as the largest in levels of both merchandise and services imports

Four countries processing oil-bearing shale are

the U.S., Germany, Russia, and China

UN negotiated agreements often work because

the UN can enforce the agreements with peacekeeping forces

When communists take over a previously noncommunist country:

the government will take over private business

"Generally, we can assume that the higher the GNI/capita value:"

the more advanced the nation's economy

In examining the volume of international trade

the proportion of manufacturing value added generated by South and East Asia has quadruped since 1980

The difference between the bid and asked prices is:

the spot rate

"According to the text, the cultural characteristic that probably presents more adaptation problems for Americans overseas is people's attitude towards"

time

Inflation is:

trend of rising prices

Hofstede's individualism-collectivism dimension measures the degree to which people tend to be integrated into groups

true

The central idea of mercantilism is there should be an export surplus so a nation can accumulate precious metals

true

An international business

A business whose activities involve crossing national borders

A basic cultural truth is that

-everything we do is based on culture, or, -that our way is not the only way or even the best way.

The spot rate is:

2 currencies 2 business days

Transnational corporations account for approximately 25 percent of total global output and nearly 50 percent of world trade

2/3rds of the world trade

The European Union is:

A body of 25 European countries dedicated to economic and political integration

The purpose of NAFTA is:

Agreement creating free trade area among Canada, Mexico, and the US

Geographical proximity contributes to

All of the above

International business differs from domestic business in that a firm operating across borders must deal with which of the following additional environmental forces?

All three of the international environment, the domestic environment, and the foreign environment

A multi-domestic company is

An organization with multi country affiliations, each of which formulates its own business strategy on perceived market differences

The three largest markets for American exports of goods are:

Canada, Mexico and Japan

"According to the text, relative changes in wage rates among nations may cause the multinational firm to:"

Change its supply source of imported components

Most anthropologists agree:

Culture is learned not innate, various aspects of culture are interrelated and shared, and culture defines boundaries of different cultures

"With few exceptions, birthrates are now ____________ in developed nations and _______________ in developing nations."

Decreasing, decreasing

The Big Mac Index:

Difference between prices in burgers in different countries. Makes us see whether or not the prices in two different countries are at the equilibrium. Under/Overvaluation Currency. Divide the prices by one another to get PPP.

"Geographic proximity has been a major factor in the formation of trading groups, such as:"

EU, NAFTA, and EFTA

"If Ecuador has an absolute advantage in coffee and Argentina in wheat, then, according to trade theory:"

Ecuador specialize in Coffee, Argentina and wheat and they should engage in trade to meet their needs

"To sum up international trade theory, we can say that the primary reason for trade is:"

Existence of pride differentials among nations

"In using GNP per capita as a basis for making comparisons of nations' economies,"

Extreme care to avoid drawing unwarranted conclusions, realize statistical systems in many developing countries are deficient, and realize the reliability of the data provided is questionable

The major forms of economic integration include:

Free trade area, customs union, common market, economic union, and complete union

Firms that have substantial operations in more than one country are called

Global companies and multi-domestic firms

Navigable waterways with connections to the ocean

Have permitted low cost transportation of goods and people from country's coast to its interior

The domestic environment is composed of all the uncontrollable forces originating in the __________ that surround and influence the life and development of the firm.

Home country

Examples of the kinds of external forces listed in the text are each of the following except:

Human resources

These are reasons to enter foreign markets:

Increase profits and sales or protect markets from competition

"In more dense populations, international managers can expect"

Lower marketing and distribution

The major globalization drivers include all of the following except:

Market, cost, technology, government, and competition

OPEC formed as a result of:

Oil (price related)

"Because ____________ consumer expenditures eliminate differences in relative prices, marketers use these data to analyze how the composition of consumption changes with the level of development."

PPP based

Foreign investment includes the following components:

Portfolio and direct investment

"According to opponents of the globalization of trade and investment,"

Produced uneven results across nations and people, has had harmful to labor and labor standards, and has had decline in environmental and health conditions

Unconscious reference to one's own cultural values when judging behavioral actions of others in a new and different environment is called:

Self-reference criterion

The International Product Life Cycle is a theory that explains

The direction of foreign trade and direct investment

Economies of scale and the experience curve effect are important for international trade because:

They explain how a nation's industries can become low-cost producers if the nation has an abundance of a certain class of production factors

Certain geologic structures have led to the development of separate languages within the same country. These barriers include

Topographical barriers

Examples of socioeconomic data are:

Total population, population density, and population distribution

Aesthetics is

What a culture considers "good taste" in the arts, the imagery evoked by certain expressions, and the symbolism of certain color

"Income distribution studies confirm the belief that, generally, income is more evenly distributed in the:"

advanced nations

Trade benefits to poorer nations have been slower in developing than for richer nations because:

agricultural subsidies hit poorer nations very hard

Ideal capitalism calls for:

all factors of production to be privately own and government to only perform those functions the private sector cannot accomplish

Natural Resources

are anything supplied by nature on which people demand

"To be successful in relationships with people in other countries, international business people must:"

be students of culture, have factual knowledge, and be sensitive to cultural differences

Ethanol is a _______ fuel that is part of the world's energy supply

biomass

Tax treaties:

define terms such as income and source, what constitutes taxable activities, and contain provisions for the exchange of info

Country risk assessment

differ from country to country and examine types of risks

The belief by a society that its culture is superior to all others is called:

ethnocentricity

Forward rate is the:

exchange rate between two currencies for delivery in the future (306090180)

Trompenaars's dimension of universalism versus particularism measures whether rules or rewards regulate behaviors

false

Uncontrollable financial forces include

foreign currency exchange risk, national balance of payments, national monetary and fiscal policies

"The quotation, Canada (dollar) US$ equivalent rate .7261 means"

it costs the US$.7261 to buy one Canadian dollar

The dollar symbol ($) is:

generally, refers to US$ also used elsewhere to denote local currencies

"According to the text, you can improve your chances for obtaining an overseas post by doing all of the following except:"

getting a well-paid domestic internship

International companies are:

global or multi-domestic company

Barriers to trade

government-imposed restraint on the flow of international goods or services

"If a currency is being quoted at a premium for future delivery, that means"

in the expectations of the world financial community, that currency's value will be higher in the future

Arbitration of disputes over international contracts is/are:

informal, confidential, faster than law courts

Inflation makes international business management more difficult because:

interest rates go up, capital raising and expenditure planning are more difficult, and inflation is at different rates in different countries

The Foreign Corrupt Practices Act:

is being enforced by the US more vigorously than any other such law by other countries

Governments strictly avoid ownership of business in countries which call themselves:

none of the above (capitalist, socialist, and communist)

Privatization includes:

ownership transfer from public to private sector, contracted out services, state-owned activities leased to private entities

Trade secrets are:

protected by laws in most cases

The primary motivation of tariffs is to

raise the price of imports, to protect domestic goods

Some non-revenue tax purposes are to:

redistribute income, discourage consumption of certain products, and encourage consumption of domestic rather than imported goods

Marketers are interested in knowing the trend of women entering the work force because this may:

result in larger family income and provide larger market to convenience goods

An important phenomenon that is changing the population distribution everywhere is the:

rural to urban shift

Dumping is

selling a product for less than the cost

Variable interest rates

shift the risk to the borrower

The rapid expansion of world exports since 1980 demonstrates that

two of A, B and C (business people must be prepared to meet increased competition; the opportunity to increase sales by exporting is a viable growth strategy)

"From country to country, tax laws:"

vary tremendously

"If you have the contract right to receive a foreign currency in the future,"

you hope it strengthens in relation to your currency