International Business Surrey

In ____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel.

A turnkey contract

_____ is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies.

Exporting

Onshore, cross-shore, near-shore, and offshore are different forms of?

Location of production

Which two factors shape production strategies?

Location of production & Type of producers

_____ include such factors as indictments against theft, adultery, incest, and cannibalism.

Norms

Which of the following statements is true about a class system?

Social mobility within a class system varies from society to society

Which of the following is a condition of Dunning's eclectic theory?

The firm must own a competitive advantage that overcomes competing against foreign firms in their markets.

_____ occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.

Trade creation

Which of the following is associated with firms following the global standardization strategy?

Use cost advantage to support aggressive pricing in world markets

The downside of increased globalization is:

a severe crisis in one region can affect the entire globe

By centralizing decision making, a firm:

can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization

A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens.

civil

Historically, Unilever measured the performance of national operating subsidiary companies according to profitability. In this example, profitability is a(n) _________.

control system

From least integrated to most integrated, the levels of economic integration are a:

free trade area, a customs union, a common market, an economic union, and a political union

Based on Hofstede's value dimensions, countries that have strict laws and procedures to which their people adhere closely most likely have ________.

high uncertainty avoidance

A French wind power company gives an Indonesian company the right to produce and sell wind turbines in return for a royalty fee on every unit sold. Which business practice is this an example of?

licensing

In a __________, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more

market economy

An international business, unlike a multinational enterprise

need not invest directly in operations in other countries

The essence of a differentiation strategy is to ________.

offer a unique product that supports a premium price

When the pressure for global integration is high and the pressure for local responsiveness is high, a company is most likely to pursue a(n) ________ strategy.

transnational