D270 Chapter 1 Globalization and International Business

What are the overlying Alternative of Operations?

1. Choice of Countries 2. Organization and control Mechanisms

What are the operating environment Competitive Factors?

1. Competitive product strategy 2. Company resources and experience 3. Competitors in each market

What are the operating environment institutional and physical factors?

1. Geographic 2. Cultural factors 3. Political policies and legal practices 4. Economic Forces

What are the Function of operations?

1. Marketing 2. Manufacturing and Supply Chain Management 3. Accounting and Finance 4. Human Resources

What are the Modes operation?

1. Merchandise Exports and imports 2. Service exports and imports 3. Investments

What are the operations objectives?

1. Sales expansion 2. Resource Acquisition 3. Risk Reduction

CLASS: What are three negative sides of globalization?

1. Threats to National Sovereignty 2. Environmental Stress 3. Growing Income Inequality & Stress

General Electrics is selling is appliances business to Chinese company ______ for 5.4 Billion dollars

Haire

A threat to national sovereignty is cultural _______

Homogeneity (threatens uniqueness)

What are the factors that have increased globalization? a. rise in and application of technology b. Liberation of cross border trade and resource movements c. Development of services that support IB d. Growth of consumers pressures e. Increase in global competition f. Changes in political situations and government policies g. expansion of cross-national cooperation. h. None of the Above are Correct I. All of the Above are correct

I. All of the Above are correct

In what instance is offshoring good?

If it can reduce costs; this is good because you can cut your prices or improve your product.

What did Starbucks do when it "failed" in Australia?

In 2014, Starbucks locations in Australia were purchased by Mount Waverly base withers group!! It SOLD the company

________in transportation mean that more countries can compete for sales to a given market.

Innovation

_______ refers to systems of established and prevalent social rules that structure social interactions

Institutions

CLASS: _______ is any commercial transactions between 2 or more countries.

International Business

______- in the form of legal agreements between countries-- determines how earning are taxed by all jurisdictions. a. domestic law b. international law

International Law

_________ is an ideology of spreading western ideals that ultimately replace practice transitions in areas

Monoculturalization

What is one reason that American Football and Cricket have not gained attention around the world? a. The Teams are hard to pronounce b. The Teams have bad players. c. The Rules are too complicated d. The Rules are too simple e. The Referees are not good.

c. The Rules are too complicated

Carnival , is the largest of the cruises, and offers cruises to every continent on the globe and operates 10 lines that it calls_______. a. ships b. voyages c. brands

c. brands

Geography or demography is a a. institutional factor b. competitive factor c. physical factor

c. physical factors

The ways laws are ____ also affect a firm's foreign operations. Some countries are stricter than others and must be taken into consideration when doing IB.

enforced

________includes both home- and host-country regulations on such matters as taxation , employment, and foreign exchange transaction a. Domestic Law b. International Law

domestic law

Service constitute the fastest growth sector in international trade and take many forms such as a. Tourism b. Transportation c. Service Performance d. Asset Use e. All of the Above f. None of the Above

e. All of the Above

What are the competitive factors in the external environments of IB: a. product strategy. b. resources base and experience c. competitor capability d. None of the Above e. All of the Above

e. All of the Above

Why has production advanced so quickly? a. population growth b. Scientist that lived long ago are still alive today c. the rise in production frees up more people to develop new products because fewer people are necessary to produce them d. On average people can buy more, including the new products, by working the same number of hours. e. All of the Above are Correct f. None of the Above Are Correct

e. All of the Above are Correct

Critics of globalization claim: a. countries; sovereignty is diminished b. the resultant growth hurts the environment some people lose both relatively and absolutely c. greater insecurity increases personal stress d. None of the Above are Correct e. All of the Above are Correct

e. All of the Above are correct

According to the second view of the future of globalization, which one is true? a. Almost all of the companies we think of as "global conduct their business in home and neighboring countries. b. Most world trade is regional, and many treaties to remove trade barriers are regional. c. Transport costs favor regional over global business. d. Regionalization of business may be merely a transition stage. In other words, companies may first promote international business in nearby countries and then expand their activities once they've reached certain regional goals e. All of the Above are True

e. All of the Above are true

Although hard to measure , globalization: a. has been growing b. is less pervasive than generally thought c. has economic and non- dimensions d. is stimulated by several factors e. All of the Above are correct f. None of the Above are correct

e. All of the above are correct

True or False: The sparring between pro- and anti-globalists is one reason why the globalization process has progressed in fits and starts.

True (goes along with globalization and IB will slow down)

CLASS: Foreign ownership of assets has been (decreasing or increasing) since WW2

increasing

Government and International Business may or may not be motivated to _______

make profits

The International Business Goal of private business is to ______

make profits

Environmental Stress includes ____ an ______

pollution and contamination

Where is the most popular destination for cruise passengers is the _______, largely because the area boosts balmy weather year round. a. Carribean/Bahamas b. England c. Mexico d. Dominican Republic

Carribean/Bahamas

True or False: Offshoring should be used by all companies.

False

True or False: Although a country may rank as highly globalized on one dimension, it may be low on another (their is a variance among globalization aspects)

True

True or False: Coca-cola is trying to Americanize through leading in through its advertising

True

True or False: Countries with higher per capita incomes tend to be more globalized than those with lower ones because their citizens can better afford foreign products, travel, and communcations

True

True or False: Critics argue that profits have gone disproportionately to the top executives rather than to the rank and file.

True

True or False: Differences such as density, education, age distribution, and life expectancy impact IB operation, such as market demand and workforce availability

True

True or False: In relation to offshoring, high-income people/ jobs are more employed as a result of sending low-income jobs to countries with lower labor costs

True

True or False: International Companies have more divers and Complex operating environment than purely domestic ones

True

True or False: Most of the world's goods and services are still sold in the countries where they're produced. The principal source of capital in most countries is domestic rather than international

True

True or False: Offshoring is an extension of outsourcing.

True

True or False: by operating abroad, companies gain diversity among their employees that can bring new perspectives

True

True or False: Critics argue that priorities such as labor and environmental protection policies are undermined by opening borders to trade.

True : By opening its border to trade, it may either have to forgo labor and environmental priorities to be competitive or face the downside of fewer jobs and economic output

True or False: Being a leader in one country doesn't guarantee being a leader anywhere else

True : Example Toyota and General Motors

Where is GE headquarters?

Louisville, Kentucky

_____ start out with a global focus because of their founders' international experience and because advances in communication give them a good idea of location for global markets and supplies.

born-global companies (vocab)

creating a ____ or _____ to a product gives the product differentiation

brand image and unique characteristics

Currently _____ of world production is sold outside the country of origin a. 1/5 b. 1/3 c. 1/4 e. 1/2

d. 1/4

Fiat Chrysler Automobiles competes within its best selling models by using a cost strategy. This strategy has influenced to shift some fabrication of engine plants to China, where production costs are low, and to sell in India and Argentina, which are cost-sensitive markets. a. focus strategy b. mass-market strategy

mass-market strategy

The term _________ or __________ is often used as a synonym for Multinational Enterprise , while the United Nations uses the term ________

multinational corporation or multinational company transnational company

A _________ usually signifies any company with foreign direct investments

multinational enterprise

_____ is the dependence on production in a foreign country, usually by shifting from domestic source.

off shoring

_____ the process of companies contracting work to other companies so that they can concentrate on what they do best.

outsourcing

What is one repercussion of globalization that can't be measured in strictly economic terms?

people's stress from real and potential loss of relative economic and social positions.

a negative side of globalization is a threat of job loss which leads to ______

personal stress

Mountains, desert, jungles, and land rocked areas are an example of ______

physical factors (geographic barriers)

CLASS: This is a force behind Current Extent of Globalization 6. Changing _______ and _________

political situations and government policies

A________ is a non-controlling financial interest in another entity. It consists of shares in or loans to a company (or country) in the form of bonds, bills, or notes purchased by the investor. They're important for most international companies, which routinely move funds from country to country for short-term financial gain.

portfolio investment

CLASS: Globalization: a ______ of broadening of _________ among people who are divided into national borders

process; interdependent relationships

Companies receive _____ form licensing agreements, whereby they allow others to use some assets -- such as trademarks, patents, copyrights, or expertise.

royalties

CASE: ________ brings live events from just about anywhere in the world to fans and broadens audience exposure, expanded fan bases, and augmented revenues

satellite TV

The provider and receiver of payment makes a_______

service export

For non-merchandise international earnings the term are ________ and are referred to as invisible.

service exports and imports

The recipient and payer makes a ________.

service import

Starbucks will remain open in Australia in______

touristic areas to appeal to tourists as a familiar face

On an international level, companies receive fees for engineering services rendered in _____ , which are construction projects performed under contract and transferred to owners when they are operational

turnkey operations

International Business consists of all commercial transactions between _____ or more countries

two

Merchandise Exports and Imports are also known as _____

visible exports and imports

What is the country with the highest internet users?

Iceland

Burger King (2nd largest burger chain) want to expand in ________

Russia

where did Starbucks fail?

Australia

Which country has the highest percentage of twitter users?

Saudi Arabia

Can an Australian Coffee Shop do well in America?

Yes : ex Stowaway is an Australian coffee shop and there are more showing up

Why did Disney Choose Paris?

*68 million people within 4 hour drive *Better government deals than Spain *Reviewed 1200 locations in Europe before deciding *Lots of Europeans were visiting Disney World in Orlando *Many Disney stories and princesses are European *Barcelona 2nd choice but seasonal high winds and government challenges led to it being eliminated. *Paris location land was flat•Paris agreed to build metro and train stations by the park entrance * Chunnel coming putting 30 million people 2 hours or less away *Roy Disney later said probably should have built in Spain

Governments have come to realize that their own interests can be addressed through international cooperation by means of treaties, agreements, and consultation. The willingness to pursue such policies is due largely to what three needs?

1. gain reciprocal advantages 2. attack problems JOINTLY that one country alone cannot solve 3. To deal with areas of concern that lie outside the territory of any nation.

What are the key components of a portfolio investment?

1. noncontrolling interest of a foreign operation 2. extension of loans

What are two uncertainties that that may hamper (slow down) globalization?

1.OIL PRICES affect international transportation because they can constitute more than 75 percent of operating costs on large ships 2. SAFETY CONCERNS -- property confiscation, terrorism, piracy of ships , and outright lawlessness -- may inhibit adequately handle the complexities of an interconnected world

How many countries are there in the world according to the United Nations?

193

CLASS: _____% of global production sold outside country of origin (____% in 1950)

25% 7%

coca-cola is worth ____ and is sold in more than _____ countries

74 billion; 200

Coco-Cola Globalization: Coca-Cola is recognized by ____ and is the second most understood term in the world. Second to the word ____

94% Okay

In the United States _____% of exporters are small firms. a. 37% b. 47% c. 87% d. 97%

97 : IB does not only pertain to large companies only

_____ forces regularly protest international conferences and government policies-- sometimes violently

Anti globalization

What is one service that supports IB?

Bank Credit Agreements: clearing arrangements that convert one currency into another and insurance that covers such risks nonpayment and damage en route

What are the modes of international Business?

Merchandise exports and imports Service exports and Imports Investments

CASE: How do international competitions (such as the Olympics and the World Cup) relate to businesses? a. cities and countries compete to host events to attract tourists and publicize their business opportunities b.companies pay for marketing rights as sponsors c. individual athletes compete for lucrative contracts to endorse products. d. All of the Above are Correct e. None of the Above are Correct.

D. All of the above are correct

CLASS: Restriction on imports have been (decreasing or increasing) since WW2.

Decreasing

What is this an example of: British law determines how the US investor owned Liverpool football club is taxed and which nationalities it employs in the UK. a. domestic Law b. International Law

Domestic Law

As a manger in almost any company you'll need to consider a. where you can obtain the best inputs at the best possible price for your production b. where you can best sell the product or service you've put together from those inputs c. where you can best sell the product or service you've put together from those outputs d. What the best Marketing strategy is e. only A and B are correct d. none are correct.

E. Only A and B are correct

Depletion of planets limited resources is an example of ______

Environmental Stress

What are G20 countries? a. consists of 19 of the world's most economically important countries plus representation from the European Union of its members not included in the 19 b. Countries account for over 85 % of the world's production c. Countries account for 80% of world trade d. Countries account about two-thirds of the world's population e. Countries coordinate economic policies in these and other areas, the most economically important countries meet regularly to share information and pool ideas. f. All of the Above are correct g. None of the above are correect

F. None of the Above are correct

______ is the term used when firms are bringing many operations back from abroad because of miscalculating offshoring advantages to begin with as well as poor quality, consumers pressure, concerns bout competitive security, and advantages of locating production near technical development a. reshoring b. outsourcing c. offshoring d. rightshoring e. Only B and C f. Only A and D g. None of the Above

F. Only A and D

True or False: TV is the only means by which sports organizations are seeking foreign fan bases and players.

False: NFL underwrites football programs in Chinese schools and plays some regular games in Europe . The NBA is helping to build basketball youth leagues in India

True or False: Larger countries tend to be more globalized than smaller ones

False: Smaller countries tend to be more globalized than larger ones, mainly because their smaller land masses and populations permit a lower variety of production

True or False: A Multinational Enterprise must be a large enterprise

False; usually companies start small and become bigger; as long as a firm has some form of foreign direct investment they are considered a multinational enterprise

In 2016 Carnival commenced a brand, _____, which takes passengers to developing countries for a week where they participate in a variety of volunteer activities. a. Fathom b. Volunteer Helpers c. Developers

Fathom

This term sometimes refers to the elimination of barriers to international movements of goods , services, capital, technology, and people that influence the integration of world economies. a. International Business b. globalization

Globalization

______ enables us to get more variety, better quality, or lower prices. a. Globalization b. International Business

Globalization

______ has expanded human connection and extended people's access to more varied resources, products, services, and markets. a. Globalization b. International Business

Globalization

_______ is the widening and deepening of interdependent relationships among people from different nations a. Globalization b. International Business

Globalization

What Australian coffee shop is doing well?

Gloria Jeans

What country has the highest percentage of women?

Latvia

What is this an example of: Disney's management of the theme parks in France and Japan? a. Management Agreements b. licensing agreements c. franchising d. All of the Above e. None of the Above

Management Contracts

What is the most popular IB mode?

Merchandise exports and imports

_________ are tangible products--goods-- that are respectively sent out and brought into a country.

Merchandise exports and imports

_______ often determines where and how IB can take place.

Politics

Consumer Pressures has spurred companies to spend more on ______ and ______ and to search worldwide for innovations and products they can sell to evermore-demanding consumers

Research and Development (R&D)

______ has supported the criticism that greater access to low-cost labor in poor countries has reduced the real wage growth labor in rich countries. And even overall worldwide gains from globalization are positive, there are bound to be some absolute or relative losers ( who will probably oppose globalization). a. Adam Storow c. Robert Solow d. Jim Solow e. Ron Solow

Robert Solow

What are the three major Operating objectives?

Sales Expansion Resource Acquisition Risk Reduction

________ is doing better than the Disney in Paris and Hong Kong

Shanghai

What is necessary for a sports business to be successful? _______ and ________

Shrewd Marketing and Financial Management

(Small/Large) countries feel threatened and overly dependent

Small

CASE: ______ may be the world's most globalized business

Sports

what are two different portfolio investments?

Stocks Loans

What spark controversy in Coca-cola?

Superbowl commercial America the Beautiful sung in different languages

What is the main complaint about offshoring>

Too many domestic jobs end up abroad.

What are three different types of service (exports and imports)?

Tourism & Transportation Service Performance Assets Use

A rise in technology has improved two sectors within a business what are they?

Transportation and Communication

True or False: A market leader has resources for much more ambitious international operations than a smaller competitor.

True

True or False: Critics claim that globalization has affected income inequality by helping to develop a global superstar system, creating access to a greater supply of low cost labor, and developing competition leads to winners and losers.

True

True or False: selling in countries with different timing of business cycles can decrease swings in sales and profits. (when countries hit recessions at different times)

True

True or False; Companies will face more competitors in large markets than in small ones

True

True of False: Teams have enough brand name cachet to be global brands for selling clothes and other items.

True: Companies both sponsor and seek endorsements from well-known teams; others pay for naming rights to arena and other venues

True or False: Critics complain that economically small countries depend too much on larger ones for supplies and sales

True: They are vulnerable to foreign mandates, including everything from defending certain UN positions to supporting a large economy's foreign military or economic actions.

True or False: Many top pro athletes are effectively global brands

True: companies within and outside the sports industry pay them handsomely for endorsing clothing, equipment, and other products

True or False: Critics charge that globalization homogenizes merchandise, production methods, social structures, and even language, thus undermining the cultural foundation of soverignty.

True: countries have difficulty maintaining the traditional ways of life that unify and differentiate them

True or False: In relation to offshoring, cost savings generate growth and growth creates more jobs.

True: it creates more HIGH -VALUED jobs at home; demand for qualified people goes up

What are two service performances?

Turnkey operations and Management Contracts

_______ explains country differences in costs, currency, values, and market size. a. economic b. behavioral c. legal d.Political

a. Economic

About a third of the world's ship crews are _____ because of their English Fluency and willingness to work for low wages. a. Filipino b. American c. French d. European

a. Filipino

What is this an example of: Us investors bought the Liverpool Football Club, it came a US _____ in the United Kingdom? a. Foreign Direct Investment b. Portfolio Investment c. Dividend d. None of the Above e. All of the above

a. Foreign Direct Investment

The positive effects of pursuing global interest may, nevertheless, conflict with national interest. Which one aligns with this statement? a. Global pressures on Brazil to protect the Amazon but leaves unemployed workers the have jobs in the logging industry. b. Australia protecting the great barrier reef because of climate change c. The United States restricting the number of cars bought to reduce a global carbon footprint

a. Global pressures on Brazil to protect the Amazon but leaves unemployed workers the have jobs in the logging industry.

______ firms have recently followed foreign acquisition strategies to gain knowledge needed to compete globally. a. Indian b. Italian c. Mexico d. American

a. Indian

Why do firms go international?

a. expand sales (growth and efficiency) b. acquire resources (not everything can be found at home) c. Minimize Risk d. Others (institution factors- image)

As TV revenues flattened in North America, _____ broadened its fan base by broadcasting games to international audiences, which also showed youngsters all over the world how the game was played. a. Major League Baseball b. Major League Basketball c. National Basketball Association d. National Cricket Association

a. Major League Baseball

What are the three factors that companies external environments are affected on how they operate?

a. Physical Factors b. Institutional Factors c. Competitive Factors

When the Wall Street Journal posed a question to Nobel Prize Winners in economics ans asked "What is the greatest economic challenge for the future?" what did they respond with? a. Several responses addressed globalization and IB b. Several responses addressed globalization c. Several response addressed IB

a. Several responses addressed globalization and IB

Which statement is True? a. World Trade grows more rapidly than World Production. b. World Production grows more rapidly than World Trade

a. World Trade Grows more Rapidly than World Prouduction

______ helps explain why countries exchange goods and services, why capital and people travel among countries in the course of business, and why one country's currency has a certain value compared to another. It helps explain why some countries can produce goods or service for less. a. economic b. behavioral c. legal d.Political

a. economic

What is the upside of pro sports being a global phenomenon? a. fans can enjoy a greater variety and higher level of competition. b. fans can only have one sport and team to cheer c. fans can buy merchandise from teams d. fans can sometimes see their favorite sport on TV

a. fans can enjoy a grater variety and a higher level of competition

Fiat Chrysler Automobiles centered its production of its Alfa Romeo and Maserati vehicle in Italy because these compete with high-priced vehicles in high-income countries. a. focus strategy b. mass market strategy

a. focus strategy

Culture, politics, law, and economy is a a. institutional factor b. competitive factor c. physical factor

a. institutional factor

What are the three global areas that belong to no single country?

a. non coastal areas of the ocean b. outer space c. Antarctica

Foreign locations may give companies: a. lower costs b. new or better products c. additional operating knowledge d. All of the Above e. None of the Above

d. All of the Above

Dividends and interest from foreign investments are considered a. service exports and imports b. visible exports and imports c. merchandise exports and imports

a. service exports and imports

What are three criticisms of globalization?

a. threats to national sovereignty b. environmental stress growing income inequality and personal stress

About ____ of players in England's professional soccer league (premiership) are from other countries, which helps improve the caliber of play and increase the TV fan base outside England? a. two thirds b. one third c. one half d. one sixth

a. two-thirds

About ____% of employment is at risk from computerization a. 27 b.47 c.37 d. 57

b 47%

What disrupted the cruise ship industry in the 1960s after WW2? a. Trains b. AirPlanes c. Yachts d. Bigger Cruise Ships

b. Airplanes - it was cheaper and more efficient

The related disciplines of anthropology, psychology, and sociology can help managers better understand different values, attitudes and beliefs to help them make operational decisions abroad. This is a _______ factor a. economic b. behavioral c. legal d.Political

b. Behavioral

Today the cruise industry is dominated by two companies. Who are they? a. Carnival and Caribbean Cruises b. Carnival and Royal Caribbean c. Royal Caribbean and Festival Cruises

b. Carnival and Royal Carribean

What soccer team turned to young business graduates to help reduce its financial problems? a. Futbol Spain b. Futbol Barcelona c. Futbol Americana d. Futbol Italy

b. Futbol Barcelona

Number and strength of suppliers, customers and rival firms is a a. institutional factor b. competitive factor c. physical factors

b. competitive firm

What is this an example of: McDonald's assists individually owned McDonald's trademarked restaurants by providing supplies, management services, technology,and joint advertising programs? a. royalties b. licensing agreements c. franchising d. All of the Above e. None of the Above

c. Franchising

For 2017 , the ______ sanctioned 68 tournaments in 33 countries. It also requires pros to compete in certain number of events-- and thus play in a number of countries -to maintain international rankings. a. Association of Tennis Athletes (ATA) b. Association of Professional Athletes (APA) c. Association of Tennis Professionals (ATP) d. Association of Tennis Partners (ATP)

c. The Association of Tennis Professionals (ATP)

________ denotes companies working together --- in joint ventures, licensing agreements, management contracts, minority ownership, and long-term contractual arrangements.

collaborative arrangements

The view that globalization is inevitable reflects the premise that advances in human connectivity are so pervasive that consumers everywhere will know about and demand the best products of the best prices regardless of their origins. This view known as ______ premises that internationally connecting, infrastructure will accelerate. a. connectivity b. connectivitidity c. connectography

connectography

CLASS: This is a force behind Current Extent of Globalization 4. Growing ________: consumers demand for foreign products and on MNC behaviors

consumer pressures

What are the scenarios for the future of IB: a. Further globalization is inevitable b. IB will grow primarily along regional rather than global lines c. Forces working against further globalization and Ib will slow down the growth of both d. All of the Above are Correct e. None of the Above are correct.

d. All of the Above are Correct

Products compete by ____ or ____ strategies

cost or differentiation

CLASS: This is a force behind Current Extent of Globalization 7. Expand _______ such as WTO, IMF, NAFTA, EU, treaties and agreements

cross national cooperation

CASE: A _____ is a sea voyage taken for pleasure (as opposed to say, working abroad a ship or conveying oneself from point A to point B. a. cruise b. voyage c. ship d. trip

cruise

A good understanding of what one will encounter helps reduce operating risks, and smart companies develop the means to implement international strategies by examining the following conditions abroad that can affect their success: a. Physical Factors b. Institutional Factors c. Competitive Factors d. All of the Above e. None of the Above

d. All of he Above

Companies competitive situations may differ by a. their relative size in different countries b. the competitors they face by country c. the resources they can commit internationally d. All of the above e. None of the above

d. All of the Above

Although foreign external environmental differences are problematic a. some anecdotes of failures are merely myths b. they must be weighed against domestic opportunities and risks c. understanding institutional factors and how they affect all business functions helps assure success abroad d. All of the Above are Correct e. None of the Above are Correct

d. All of the Above are correct

What are the reasons why governments have reduced restriction on entry and exit of goods, services, and resources? a. Their citizens want a greater variety of goods and services at lower prices b. Competition spurs domestic products to become more efficient c. They hope to induce other countries to lower their barriers in turn. d. All of the Above are Correct e. None of the Above are Correct f. Only A nd C are correct

d. All of the Above are correct

What is an argument that critics make for environmental stress? a. growth in both production and international travel consumes more nonrenewable natural resources and increases environmental damages. Examples are toxic runoff rives and oceans, air pollution from factory, vehicle emission, and deforestation that can affect weather and climate b. buying from more distant locations increase transportation which increases the global footprints c. cargo ships rely on on heavy oil fuel d. All of the above are correct e. None of the Above are Correct

d. All of the above are Correct

Which of the following is an example of resource acquisition (operating objective)? a. Televising sports competitions to multiple countries generates advertising revenue in excess of the increased transmission costs b. Automobile manufacturers hires companies in northern Italy to help with styling c. Baseball bats are made from wood in Costa Rica, a place where baseball is not popular. d. More than one answer is correct e. None of the Above are Correct

d. More than one answer is correct

International Operation may reduce operating risk by: a. smoothing sales and profits b. preventing competitors from gaining advantages c. companies should never go international d. only A and B e. None of the Above f. All of the Above

d. Only A and B

Physical Factors Affect: a. Where different goods and services can be best produced b. Operating risks c. countries politics d. Only A and B e. All of the Above f. None of the Above

d. Only A and B

Legally, Carnival is a _____ company, even though it's listed on the New York Stock Exchange, has operating headquarters in Miami and London, and caters mainly to passengers who set sail form the United States. a. European b. American c. Lithuanian d. Panamanian

d. Panamanian

What sport has no country boasts enough fans to keep players at home for year-round competition, yet today's top-flight pros come from every inhibited continent? a. Volleyballl b. Soccer c. Football d. Tennis

d. Tennis

What is this an example of: Real Madrid football tealm receives a ______from Adidas use of its logo on merchandise a. Management Agreement b. licensing agreement c. franchising d. royalty e. All of the Above f. None of the Above

d. royalty

(1) developing a favorable brand image, usually through advertising or from long-term consumer experience or (2) developing unique characteristics, such as through R&D efforts or different means of distribution are examples of product ______.

differentiation

Coca-cola practices ______ which is the remove products from its original context to fit in to a more global scene to cater to specific regions around the world and the cultures in the regions

disembedding

In China how often does a Starbucks open?

every 15 hours

Targeting to a niche (small) market is called a _______ strategy

focus

In a _________ the investor takes a controlling interest in a foreign company

foreign direct investment (FDI)

______means ownership of foreign property in exchange for a financial return, such as interest and dividends, and it may take two forms: direct and portfolio

foreign investment

Companies also receive royalties from ____ a contract in which a company assists another on a continuous bases and allows use of its trademark.

franchising

Studying IB is important because: a. most companies are either international or compete with international companies b. modes of operations may differ from those used domestically c. it helps managers to decide where to find resources and where to sell, d. The best way of conducting business may differ by country e. understanding helps you make better career decisions f. understanding what governmental policies to support g. All of the Above h. None of the Above

g. All of the Above

What is a downside to global competition? a. global terrorism is a risk and security and cost is a big issue b. money spent of stadiums and facilities have no use afterwards c. Their is a risk of local and national debt d. it provides a disadvantage to the development of native players e. Professional sports have tempted the commitment of corruption f. None of the above are correct g. All of the Above are Correct

g. All of the Above are correct

Starbucks failed because: a. it opened locations to fast and thought it could develop in this different culture b. it was too available for consumers c. Australian coffee market is one of the biggest in the world d. Forcing it to much into the American culture e. Too many sugary drinks f. Starbucks charged more than local coffee shops g. All of the above are true h. None of the Above are true

g. All of the Above are true

CLASS: This is a force behind Current Extent of Globalization 5. Increased ________

global competition

There is a (greater/lesser) division between the rich and poor

greater- negative side of globalization

Environmental Stress includes emission of ______ and ______

greenhouse gases and climate change

Pursuing international sales usually ______ the potential sales and potential profits a. increases b. decreases c. has no effect

increases

Language, money, law, systems of weight and measures, table manners and firms (and other organizations) are all _______.

institutions

Each country has its own laws regulating business. Agreements among countries set _______. a. domestic law b. international law

international law

What is this an example of: when transactions between countries involve disputes, such as whether a French football team must pay Nike for imported uniforms when it questions the quality, the contract usually specifies the country's law that will make the determination. a. domestic law b. international law

international law

Which is true about outsourcing? a. lower production costs have resulted in higher compensation for already high-paid managers and for share holders b. the percentage of national income going to labor has gone down while the percentage of national income to profits and upper-level employees has been going up. c. Their is NO loyalty in offshoring d. When out shoring fails, reshoring cause companies to hire workers at a less cost than before they offshored e. offshoring may lead to short-tern cost savings, but many studies indicate that it merely diverts companies attention from taking steps to find innovative means of more efficient production, such as productivity-enhancing technologies f. Because countries are competing with lower wages, it encourages them to keep wages from rising g. a companies reputation can suffer if bad working conditions go viral h. their is little job security in offshoring i. Workers simply aren't equipped to handle the pace of change when it means that jobs can be exported faster than the average worker can retrain for different skills j. All of the Above k. None of the Above.

j. All of the Above

When two or more companies are ownership of an FDI, the operation is a ________

joint venture

CLASS: This is a force behind Current Extent of Globalization 2. ______ and resource movements

liberalization of cross-border trade

Companies receive royalties form_________, whereby they allow others to use some assets -- such as trademarks, patents, copyrights, or expertise.

licensing

What are two assets use?

licensing agreements and franchising

Companies also receive fees from _____- arrangements in which they provide personnel to perform management functions for another.

management contracts

Some observers worry that the proliferation of international agreements, particularly those that undermine local regulation on how goods are produced and sold, will diminish a _______ - it's freedom to act locally" and without externally imposed restrictions.

national sovereignty

CLASS: Globalization has to do with the ___________ on movement of goods, services, capital, technology, people

reduction of barriers

CLASS: This is a force behind Current Extent of Globalization 3. Development of ________ activities

services that support international business activities

what are three different foreign direct investments?

solo joint venture consortium

The term ______ is usually referred to either to an agreement that is of critical importance to a partner or one that does not involve joint ownership

strategic ownership

CLASS: This is a force behind Current Extent of Globalization 1. Increase in and application of ________

technology

CLASS: World ___ has grown more rapidly than world ____ since WW2.

trade production

CLASS: The Increase in and application of technology has allowed improvements of ______ and _____ networks

transportation and communication

Improve ______ and ______ enhance a manager's ability to over-see foreign operations, such as more easily visiting foreign facilities and communicating with managers

transportation and communications

CLASS: What are three examples of development of services that support international business activities?

transportation, banking, packages, etc.

Because we can actually see the goods, they are called ____

visible exports and imports