International Business Final Exam Review

A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit of the latter.

acquisition

A clean floating exchange rate policy is a government policy to _____.

allow a currency's value to fluctuate according to the foreign exchange rate.

Dumping is defined as a(n) _____.

exporter selling below cost abroad

Collusion is more difficult between firms with high market commonality than firms with low market commonality.

false

Cultures of low uncertainty avoidance tend to resist change.

false

Explicit knowledge is noncodifiable and its transfer requires hands-on practice.

false

Firms with strong patents can challenge rivals for infringements, making mutual forbearance impossible.

false

Importance of direct organizational monitoring and control is low in equity-based alliances.

false

Market orientation is the effort to establish, maintain, and enhance relationships with customers.

false

Captive sourcing is also known as _____.

foreign direct investment

A _____ is the price of one currency, such as the dollar, in terms of another, such as the euro.

foreign exchange rate

Entrepreneurs selling an equity stake or the entire firm to foreign entrants are using a(n) ____ strategy to internationalize.

harvest and exit

The _____ view of global business focuses on external factors that affect a firm's performance.

institution-based

The _____ view suggests that the success and failure of firms are largely determined by their environments.

institution-based

The _____ theory viewed international trade as a zero-sum game.

mercantilism

_____ are legal rights awarded by government authorities to inventors of new products.

patents

Which of the following is one of the four Ps in the marketing mix?

promotion

Microfinance provides micro loans used to:

start small businesses.

Tyrone has described himself as an individualist. This means that he

takes advantage of opportunities to advance his career.

The set of informal institutions that stresses the cognitive pillar lays emphasis on _____.

the internalized taken-for-granted values and beliefs that guide firm behavior

In theory, a global matrix structure supports the goals of the _____ strategy.

transnational

Cultural values and norms are examples of informal institutions.

true

Entrepreneurial firms can internationalize while staying in domestic markets through indirect exports.

true

Entrepreneurs need to cultivate strong informal norms granting legitimacy to entrepreneurs.

true

Equity, learning and experience, relational capabilities, and nationality are four factors that may influence alliance performance.

true

Factor endowments is one of the four interacting aspects of the theory of national competitive advantage of industries.

true

Foreign acquisitions are an example of an FDI entry into foreign markets.

true

One of the main objectives for establishing the WTO was to strengthen the trade dispute settlement mechanism.

true

The basic concept of protectionism and mercantilism is the same.

true

The foreign exchange market has no central physical location and is the largest and most active market in the world.

true

Greenfield operations are similar to acquisitions in that they are both examples of _____.

wholly owned subsidiaries

Knowledge outflow, one of the knowledge management elements, faces the common problem of _____.

"How does it help me?" syndrome

_____ is a neutral, third-party intermediary in the supply chain that provides logistics and other support services.

3PL

_____ refers to the official title for regional economic integration involving 21 member economies around the Pacific.

APEC

_____ is a country's international transaction statement, which includes merchandise trade, service trade, and capital movement.

Balance of payments

Which of the following is a primary cost of FDI to home countries?

Capital outflow and job loss

Which of the following countries is an original signatory of the Trans-Pacific Partnership (TPP)?

Chile

_____ refers to price setting at a level higher than the competitive level by monopolists.

Collusive price setting

_____ determines the institutional mix of competition and cooperation that gives rise to the market system and also seeks to balance efficiency and fairness.

Competition policy

Sociologist Max Weber criticized _____ as a leading cause of Asian backwardness.

Confucianism

Which is one of the four phases in an alliance dissolution?

Going public

Which of the following is one of the four major characteristics associated with a growing entrepreneurial firm?

Internationalization

Which of the following stakeholders has the most concern over short-term revenue falling during mergers and acquisitions?

Investors

Which of the following is true of quantitative easing?

It depreciates the currency that is being printed.

Which of the following is true of the Union of South American Nations (USAN)?

It is an integration of Mercosur and the Andean Community.

Which of the following is a disadvantage of the home replication strategy?

It lacks local responsiveness.

Which of the following occurs in the uncoupling stage of an alliance dissolution?

Last minute salvage

Which of the following is defined as the degree of overlap between two rivals' markets?

Market commonality

_____ are associations between firms that are based on contracts and do not involve the sharing of ownership.

Non-equity based alliances

Which of the following four Ps of marketing includes TV, radio, print, and online advertising, as well as coupons, direct mail, billboards, direct marketing, and public relations?

Promotion