IBA test 1

A belief popular in the 16th century that national prosperity results from maximizing exports and minimizing imports.

Mercantilism

Special type of acquisition in which two firms join to form a new, larger company.

Merger

What is the second-stage of the internationalization process model?

Pre-export

Even though the U.S is the number 1 market for Mini, the company is trying to increase its popularity and sales in other markets such as France, UK, and Italy. What is Mini motive to internationalization?

Seeking opportunities for growth through market diversification

___________ describes using one's own culture as a basis for judging other cultures.

Ethnocentric orientation

when Mini started manufacturing cars in Austria, in addition to its only other facility in England, this represents ____________.

Foreign Direct Investment (FDI)

Nigeria's telecom infrastructure has increased telephone usage to over 30 million cellular subscribers. what is the most likely benefit Nigeria will realize from adding telephones?

Improved living standards

Partnership in which a separate firm is created through the investment of assets by two or more parent firms that gain joint ownership of a new legal entity.

Equity joint ventures

which of the following statements about Foreign Direct Investment (FDI) is false

FDI requires fewer of a firm's capabilities than does any other entry strategy

__________ is the tendency to view other cultures through the lens of one's own culture.

self-reference criterion

There have been 4 phases of globalization since the 1800's. The most current phase is characterized by ____________.

the growth of cross-border trade

Stages in company Internationalization

1. Domestic Focus 2. Pre-export stage 3. Experimental Involvement 4. active involvement 5. committed involvement

Types of FDI

1. Greenfield investment vs. mergers and acquisitions 2. Nature of ownership 3. Level of integration

the formation of the World Trade Organization (WTO) and the emergence of economic integration blocs led to __________.

A global decrease in barriers to trade

Which term refers to unconscious judgments, often not based on logical facts, about what is good, acceptable, important, and normal?

Attitudes

Direct investment or purchase an existing company or facility.

Acquisition

Which of the following identifies a key factor that helped DLP internationalize quickly?

Ability to offer a relatively standardized product

Acculturation refers to the process of _______________.

Adapting to a culture other than one's original culture

Cross-culture differences in business can lead to problems with __________ which is when information and instructions can be understood in multiple ways.

Ambiguity

Mini cars were originally sold in the U.S in the 1960's but were withdrawn due to ____________ risk.

Comercial

Advances in ___________ have resulted in an expansion of the global marketplace for small and medium-sized enterprises (SMEs).

Communications

Which of the following represents the trend of economic disaster spreading from one country to another?

Contagion

When shopping for cars, many U.S consumers are impulse buyers, whereas consumerism other countries are often more deliberate and prepared. based on this information, what type of risk does mini face in different markets?

Cross-cultural Risk

__________ is a situation or event in which a cultural misunderstanding puts some human value at stake.

Cross-cultural risk

4 risks of International business

Cross-cultural risk Country risk Commercial risk Currency (Financial risk)

Johnson & Johnson created alcohol-free listerine zero for muslim countries, where spirits are forbidden, & green tea listerine for asian markets. this example shows that......

Cultural differences necessitate the tailoring of marketing activities to target markets

The values, beliefs, customs, arts, and other products of human thought and work that characterize the people of a given society.

Culture

Which of the following best describes culture?

Culture is relative

In ___________ people are primarily concerned with their own self-interests, and ties among individuals are fairly loose.

Individualistic societies

Mini manufactures its cars in only two countries with sales throughout the world. This represents ____________.

International Business

___________ refers to the performance of trade and investment activities by firms across national borders.

International Business

A cross-border business alliance in which partnering firms pool their resources and share costs and risks of a venture.

International collaborative venture

__________ involves the allocation of assets to another country or the attainment of assets in that particular country.

International investment

____________ involves the passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns.

International portfolio investments

In what do companies engage when they systematically increase the International dimension of their business activities?

Internationalization

Which term refers to the trend of corporations to methodically expand their worldwide business activities?

Internationalization

Sierra's religion is based on a Holy book called the Quran. She participates in daily ritual prayers, fasts during certain times of the year, and gives to charities. her religion prohibits the consumption of alcohol or wearing revealing clothing. what religion does Sierra practice?

Islam

sally, a recent business school graduate, loves adventures. so she is seeking a job in a foreign country to expand her sense of the world business. she is being recruited by a company that has 50 employees and is looking to hire additional personnel to oversee the firm's exporting branch in Vietnam. What type of international business is recruiting Sally?

Small enterprise

The process of learning the rules and behavioral patterns appropriate to one's society.

Socialization

__________ refers to the degree of competence a country has in overseeing it's own matters. It implies that the laws of one country cannot be applied to another country.

Sovereignty

_________ is defined as the ability to accept uncertainty and a lack of clarity in the thinking and actions of others. I ask my students to do this with me all the time!

Tolerance for ambiguity

Critical incident analysis involves all of the following steps except ______________.

Using ethnocentric orientation in judging behavior

the greatest significance of globalization is reflected directly in a company's _____________.

Value chain

Which cultural dimension relates to personal motivations and behaviors?

Values

which of the following describes instance when a firm owns multiple stages in the production of a product or service?

Vertical integration

Investor fully owns the foreign assets

Wholly owned direct investment

The MNEs that are the most active in FDI (foreign direct investment) are in the ___________, ____________ and ____________ industries.

automotive, oil, telecommunications

A ___________ values nonverbal messages and sees communication as a way to encourage harmony in relationships.

high-context culture

which of the following is a motivation for international expansion?

Being closer to supply sources

A young, entrepreneurial SME that undertakes substantial international business at or near its founding.

Born global firm

established in 2010, instagram quickly found an international market for its photo-site. currently, only a small fraction of instagram's customers are from the untied states. instagram is an example of a _______________

Born global firm

Which of these describes a strategy that involves a firm's establishing a presence overseas by acquiring productive assets such as land, plants, equipment, capital, and technology?

Foreign Direct Investment (FDI)

what is the most complex entry strategy for engaging in global business?

Foreign direct investment (FDI)

From the trade theories perspective, the main reason that firms internalize value-chain activities is to __________

Gain and sustain competitive advantage

____________ inspires corporations to establish their sourcing, producing, and promoting activities on a worldwide scale in order to attain lower costs with higher efficientcy

Globalization

The firm invests to build a new manufacturing, marketing or administrative facility, as opposed to acquiring existing facilities.

Greenfield investment

which dimension of market globalization is a result of the North American Free Trade Agreement, as well as other countries' agreements that have facilitated reduced trade barriers among their members?

Growth of regional economic integration blocs

_____________ is a religion that is not associated with one particular prophet. It is an openhearted faith that fully accepts other faiths and is inspired by central concepts called dharma and karma.

Hinduism

which Term refers to an expression whose symbolic meaning differs from the literal meaning?

Idiom

A __________ is a form of collaboration between 2 or more firms to create a new enterprise.

Joint Venture

Tori believes that business contracts should be very exactly worded. Because of bad experiences, she does not trust agreements based on assumptions, handshakes, or unspoken understandings. Tori trusts extensive verbal explanations and spoken words more than relationships. She is from a ___________ culture.

Low-context

A rigid orientation to time in which the individual is focused on schedules, punctuality, time as a resource, time is linear, "time is money". For example, people in the U.S. are hurried and impatient

Monochronic

A large company with substantial resources that performs various business activities through a network of subsidiaries and affiliates located in multiple countries. e.g., Caterpillar, Samsung, Unilever, Vodafone, Disney.

Multinational enterprise (MNE)

Comparative advantage + competitive advantage = ______________

National Competitiveness

Argues that Economies of scales are an important factor in some industries for superior international performance even in the absence superior comparative advantages. Some industries succeed best as their volume of production increases

New Trade Theory

When a company transfers its value chain activities by launching a subsidiary in a foreign country, it is called _____________.

Offshoring

which of the following is a societal consequence of globalization?

Offshoring and flight of jobs

in a _________ culture, people are flexible, and they value multitasking and spending a lot of time with others. Such cultures do not put much emphasis on time and scheduling.

Polychronic

__________ is an inflexibly held attitude that is generally negative and typically aimed at particular groups of people.

Prejudice

which of the following is not a key feature of foreign direct investment (FDI)?

Proximity to key export markets

ABC enterprises transferred some of its manufacturing & other value chain activities to a more cost-effective location in china 5 years ago. Recently ABC enterprises has undergone a change in management, and the new manager has decided to move those value chains & manufacturing activities back to the home country. what is ABC participating in?

Reshoring

Typically, companies with 500 or fewer employees, comprising over 90% of all firms in most countries. SMEs increasingly engage in international business.

Small and medium-sized enterprise (SME)

Societies that score low on uncertainly avoidance ____________.

take risks and make decisions quickly

the sequence of activities implemented by a company in the course of creating, manufacturing, promoting, and servicing a product is know as a ____________.

value-chain