IMS

deals that do not result in a foreign investor obtainining at least

10%

The three largest markets for American exports of goods in 2017 were

Canada, Mexico, and China

If Ecuador has an absolute advantage in coffee and Argentina in wheat, then, according to trade theory:

Ecuador should focus production on coffee and trade for other goods

Only in communist countries do governments own the factors of production

False

Thanks in part to communication advancements, international trade has stabilized and became evenly distributed across all countries of the world.

False

______ refers to the transportation of any domestic good or service to a destination inside a country or region, from a foreign origination point.

Importing

Nations whose mountains divide them into smaller regional areas include:

Switzerland, Afghanistan, China, and Colombia

All managers need to have a basic knowledge of international business.

True

International business differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environments- domestic, foreign, and international.

True

The five major drivers of international business include political, sociocultural, technological, market, and a competitive drivers.

True

Civil law is based on

a collection of codes and tends to be bureaucratic

what is an example of a competitive driver of international business activity?

a company that enters a foreign market to distract companies with similar products or services

Mercantilists believed that

a nation should have an export surplus in order to accumulate precious metals

supporters of mercantilism would agree that

accumulation of precious metals is an activity essential to a nation's welfare

material culture includes

all human-made objects

The increased internationalization of business requires __________ to have a basic knowledge of international business.

all managers

a nation having absolute disadvantage in the production of two goods with respect to another nation has a(n)

comparative advantage

The automobile manufacturer decided it had to enter the european market because if it didn't then all of the other car companies

competitive

A company that decides to go abroad as a way to increase economies of scale is basing this decision on which driver of international business activity?

cost

a business that decides to increase sales by entering the international market may do so in order to create an economy of scale. This would be an example of which driver of internationalism?

cost

Social dumping occurs when an exporting country

creates unfair competition based on lower costs, which undermines social support systems to the worker.

The purchase of an existing business in another nation is known as a

cross-border acquisition

the two components of foreign investment include portfolio investment and

direct investment

based on the work of Edward Hall, the explicit communicator in a low-context culture is

direct, unsubtle, and unambiguous: What you say is what you mean

When gross national income rates drop significantly, it affects a company's environment. Which type of external force does this represent

economic

the tendency toward an international integration of goods, technology, information, labor, and capital or the process of making

economic globalization

environmental sustainability is both local and global because

environmental conditions do not recognize national behaviors

A patent gives the inventor

exclusive rights to manufacture, exploit, use, and sell the invention for a given time period.

Low-context cultures such as the United States tend to have these kinds of communication patterns:

explicit

The forces over which the management does have some commands are called

external

Governments nationalize private firms in order to

extract money from the firms when the firms are suspected of concealing profits

Hofstedes masculinity-femininity dimension suggests that, as an international manager, you might well:

find men and women equally ready to assume leadership roles in a feminine culture

which of the elements in porters diamond model of national advantage takes into consideration companies that locate near the suppliers they need to produce their product

firm strategy, structure and rivalry

Which of the elements in Porter's diamond model of national advantage takes into consideration companies

firm strategy, structure, and rivalry

in a low power distance culture

first names are likely

In a low power distance culture

first names are likely to be used in the office because the ideal is equality

CISG has been ratified by many countries and provides a set of uniform rules governing

foreign direct investment

Among the cybercrimes that most often target businesses are

hacking and espionage

One motivation for government privatization is to

have the businesses run more efficiently

The theory of overlapping demand suggests that

international trade in manufactured goods will be more common between countries with similar levels of income

One example of the effect of topography is:

isolated language groups, which require special marketing adjustments.

why is it predicted that the use of coal as an energy source will decline?

it pollutes heavily

Brennan audio Inc. is struggling in the industry because it doesn't have the staff with the right skills for the job. Which category of external forces does this represent?

labor

What is an example of a resource endowment that a nation possesses

land

the most obvious cultural distinction a company must take into account when deciding to undertake international business is

language

Trading groups in close proximity would typically have the benefit of

lower freight costs

The carbon disclosure project (CDP), unlike the Kyoto Protocol, a UN convention no climate change, is

made up of corporate members

Government stability is a characteristic of a government that

makes sudden radical policy changes

When a supplier to an original equipment manufacturer...

market

Adam smith argued against mercantilism by claiming that

market forces, not government controls, should determine direction, volume, and the composition of international trade

decision making in the international environment is considered __________ it is in a purely domestic environment

more complex than

Connor's manager told him not to make the "Ok" sign with his hands when meeting with the representatives from France

nonverbal communication

The forces in the foreign environment differ from the domestic environment in that they originate

outside the firm's home country

Culture frameworks are helpful, but their use may

oversimplify and limit our understanding and learning after a point

When a government transfers the assets of a company from the public sector to the private sector, it is an example of

privatization

arbitration is often preferred when the contract stipulates US law and one of the litigants is foreign because it is

quicker, cheaper, and more private than litigation

Historically, international business as a business practice is considered

relatively new

Theory based on ____________________ states that international and interregional differences in production costs occur because of differences in the supply of production factors.

resource endowments

when considering where to export, advantages to managers of focusing on a nation that is already

satisfactory transportation facilities

a government nationalizes a firm when it shifts the ownership from public to private

true

How do the dimensions of Kluckhohn and Strodtbeck's framework help us to better understand other cultures?

They help us to further understand beliefs and actions in other cultures

Intellectual property trade includes

anything that is the result of creative work that can be protected by legal means

according to the theory of comparative advantage, trade can benefit

both countries involved in a trade

What is Hall's high and low context framework based upon?

communication analysis

Ethnocentricity gets in the way of communication across cultural borders because

people with inferior cultures will not want to communicate

government stability has to do with

policies that are permanent or changing gradually

Honest yogurt company of Denver, Colorado, was relieved when trade barriers on dairy products were lifted in Europe

political

Jay-Keong is a finance director

polychronic

The national defense argument for trade restrictions suggests that

some industries, even if they are not competitive, may need protection from imports

Ecologically sustainable businesses such as Patagonia recognize that doing business following the traditional approach

the negative impact of the business, such as an excessive water usage

The experience curve refers to

the rising scale on which efficiency improves as a result of cumulative experience and learning

The kinds of forces in the foreign environment are ________ those in the domestic environment except tthat they occur in foreign nations

the same as