IBA 350 Exam 1

Which of the following statements about FDI is FALSE?

FDI requires fewer of a firm's capabilities than any other market entering strategy

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

Individualistic societies

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

communications

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

ethnocentric orientation

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

international investment

Tori believes that business contracts should be 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. Tori is from a --- culture.

low-context

The formation of the WTO and the emergence of economic integration blocs led to---.

A global decrease to barriers in trade

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

A prejudice

The sequence of activities implemented by a company in the course of creating, manufacturing, promoting, and servicing a product is known as ----

A value-chain

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

Attitudes

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

Contagion

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

Cross-cultural risk

Johnson and Johnson created alcohol-free Listerine Zero for Muslim countries, where spirits are forbidden, and Green Tea Listerine for Asian Markets This example shows that ---

Cultural differences necessitate the tailoring of marketing activities to target markets

Which of the following best describes culture?

Culture is relative

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

Foreign direct investment

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

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

Globalization

---- is a religion that is not associated with one particular prophet. It is an open-hearted 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

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

International business

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

A ---- is a form of collaboration between two or more firms to create a new enterprise.

Joint venture

Which of the following is a motivation for international expansion?

Lowering profit margins

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

Off-shoring

In ---- culture, people are flexible, and they value multitasking and spending a lot of time with others. Such cultures do not put emphasis on time and schedules.

Polychronic

What is the second stage of the internationalization process model?

Pre-export

Which of the following is NOT a key feature of foreign direct investment?

Proximity to key export markets

ABC Enterprises transferred some of its manufacturing and other value-chain activities to a more cost-effective location in China five years ago. Recently, ABC Enterprises has undergone a change in management, and the new manager has decided to move those value-chain and manufacturing activities back to the home country. ABC is participating in

Reshoring

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

Self-reference criterion

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

Small enterprise

---- refers to the degree of competence a country has in overseeing its own matters. It implies that the laws of one country cannot be applied to another country.

Sovereignty

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

The growth of cross-border trade

------ is defined as the ability to accept uncertainty and a lack of clarity in the thinking and actions of others.

Tolerance for ambiguity

The greatest significance of globalization is reflected directly in a company's

Value chain

What cultural dimension refers to personal motivations and behaviors?

Values

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

Vertical integration

The MNEs that are the most active in FDI are in the ---, ----, and ----- industries

automotive, oil, and telecommunications

Acculturation refers to the process of ----

adapting to a culture other than one's original culture

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

ambiguity

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

gain and sustain a competitive advantage

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

high-context culture

Societies that score low on uncertainty avoidance

takes risks and makes decisions quickly

Critical incident analysis includes all of the following steps EXCEPT

using an ethnocentric orientation in judging behavior