BUSI 3250 COMPREHENSIVE EXAM UPDATED
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Theory of Absolute Advantage - ✔✔Exists when a nation can produce more of a
good or service than another country for the same or lower price.
✔✔Theory of Comparative Advantage - ✔✔An economy's ability to produce a particular
good or service at a lower opportunity cost than its trading partners. A lower opportunity
cost means it has to forego less of other goods in order to produce it.
✔✔Differences in resource endowments - ✔✔the land, labor, capital, and related
production factors a nation possesses.
✔✔Overlapping demand - ✔✔the existence of similar preferences and demand for
products and services among nations with similar levels of per capita income.
✔✔International product life cycle (IPLC) - ✔✔heory explaining why a product that
begins as a nation's export eventually becomes its import. The role of innovation in
trade patterns.
4 stages: Export, foreign production, foreign competition, import competition.
✔✔Economies of scale - ✔✔predictable decline in the average cost of producing each
unit of output as a production facility gets larger and output increases.
✔✔Experience curve - ✔✔rising scale on which efficiency improves as a result of
cumulative experience and learning.
✔✔National competitiveness - ✔✔nation's relative ability to design, produce, distribute,
or service products within an international trading context while earning increasing
returns on its resources.
✔✔culture - ✔✔The sum total of the beliefs, rules, techniques, institutions, and artifacts
that characterize human populations. What makes us who we are and what we believe.
✔✔Ethnocentricity - ✔✔The belief that your own culture is superior to other cultures.
✔✔why is culture important - ✔✔1. Culture is learned; we are not born with a culture.
2. The various aspects of culture are interrelated.
3. Culture is shared, patterned, and mutually constructed through social interaction.
4. Culture defines the boundaries of different groups.
✔✔Aesthetics - ✔✔Refers to a culture's sense of beauty and good taste.• Expressed
through art, drama, music, folklore, dance, etc.
(ex: tattoos)
, ✔✔Religion - ✔✔Important component of culture; responsible for many attitudes and
beliefs.
✔✔Language - ✔✔Most obvious and distancing cultural distinction; both spoken and
nonspoken.
✔✔Hall's High and Low Context - ✔✔Classifies cultures based on communication styles
and role of context.•
✔✔high-context culture - ✔✔much of communication is conveyed by context.
-More internalized understandings of what is communicated
ex: HR, Japan
✔✔low-context culture - ✔✔most communication carried in words.
-More knowledge is codified, public, external, and accessible
ex: finance, German
✔✔Hofstede's Six Dimensions - ✔✔Identified six dimensions to help managers
understand how cultural differences affect organizations and management methods.•
Concerned primarily with work values.
✔✔Individualism-collectivism
(Hofstede's Six Dimensions) - ✔✔measures degree to which people in the culture are
integrated into groups.
People in highly collectivistic cultures belong to strong, cohesive in-groups that look
after them in exchange for loyalty.
• People in highly individualistic cultures are more loosely connected and look after
themselves and their immediate family.
✔✔Power distance
(Hofstede's Six Dimensions) - ✔✔extent to which members of a society expect power to
be distributed unequally and accept it.
-In large-power-distance societies, seniority, age, rank, and title are important; formality
is emphasized.
-In small-power-distance environments, a consultative style of leadership predominates;
informality tends to be the norm (US)
✔✔Uncertainty avoidance
(Hofstede's Six Dimensions) - ✔✔describes a society's level of comfort with uncertainty.
• Strong uncertainty avoidance cultures resist change; they expect clear procedures and
preserve the status quo.
• Weak uncertainty avoidance culture see conflict as having positive aspects; they
expect innovation, encourage risk taking and reward change.
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Theory of Absolute Advantage - ✔✔Exists when a nation can produce more of a
good or service than another country for the same or lower price.
✔✔Theory of Comparative Advantage - ✔✔An economy's ability to produce a particular
good or service at a lower opportunity cost than its trading partners. A lower opportunity
cost means it has to forego less of other goods in order to produce it.
✔✔Differences in resource endowments - ✔✔the land, labor, capital, and related
production factors a nation possesses.
✔✔Overlapping demand - ✔✔the existence of similar preferences and demand for
products and services among nations with similar levels of per capita income.
✔✔International product life cycle (IPLC) - ✔✔heory explaining why a product that
begins as a nation's export eventually becomes its import. The role of innovation in
trade patterns.
4 stages: Export, foreign production, foreign competition, import competition.
✔✔Economies of scale - ✔✔predictable decline in the average cost of producing each
unit of output as a production facility gets larger and output increases.
✔✔Experience curve - ✔✔rising scale on which efficiency improves as a result of
cumulative experience and learning.
✔✔National competitiveness - ✔✔nation's relative ability to design, produce, distribute,
or service products within an international trading context while earning increasing
returns on its resources.
✔✔culture - ✔✔The sum total of the beliefs, rules, techniques, institutions, and artifacts
that characterize human populations. What makes us who we are and what we believe.
✔✔Ethnocentricity - ✔✔The belief that your own culture is superior to other cultures.
✔✔why is culture important - ✔✔1. Culture is learned; we are not born with a culture.
2. The various aspects of culture are interrelated.
3. Culture is shared, patterned, and mutually constructed through social interaction.
4. Culture defines the boundaries of different groups.
✔✔Aesthetics - ✔✔Refers to a culture's sense of beauty and good taste.• Expressed
through art, drama, music, folklore, dance, etc.
(ex: tattoos)
, ✔✔Religion - ✔✔Important component of culture; responsible for many attitudes and
beliefs.
✔✔Language - ✔✔Most obvious and distancing cultural distinction; both spoken and
nonspoken.
✔✔Hall's High and Low Context - ✔✔Classifies cultures based on communication styles
and role of context.•
✔✔high-context culture - ✔✔much of communication is conveyed by context.
-More internalized understandings of what is communicated
ex: HR, Japan
✔✔low-context culture - ✔✔most communication carried in words.
-More knowledge is codified, public, external, and accessible
ex: finance, German
✔✔Hofstede's Six Dimensions - ✔✔Identified six dimensions to help managers
understand how cultural differences affect organizations and management methods.•
Concerned primarily with work values.
✔✔Individualism-collectivism
(Hofstede's Six Dimensions) - ✔✔measures degree to which people in the culture are
integrated into groups.
People in highly collectivistic cultures belong to strong, cohesive in-groups that look
after them in exchange for loyalty.
• People in highly individualistic cultures are more loosely connected and look after
themselves and their immediate family.
✔✔Power distance
(Hofstede's Six Dimensions) - ✔✔extent to which members of a society expect power to
be distributed unequally and accept it.
-In large-power-distance societies, seniority, age, rank, and title are important; formality
is emphasized.
-In small-power-distance environments, a consultative style of leadership predominates;
informality tends to be the norm (US)
✔✔Uncertainty avoidance
(Hofstede's Six Dimensions) - ✔✔describes a society's level of comfort with uncertainty.
• Strong uncertainty avoidance cultures resist change; they expect clear procedures and
preserve the status quo.
• Weak uncertainty avoidance culture see conflict as having positive aspects; they
expect innovation, encourage risk taking and reward change.
