INB 300 Exam 1 Questions With Correct
Answers
International Business - CORRECT ANSWER✔✔-A business (or firm) that engages in
international (cross-border) activities or the action of doing business abroad
Multinational Enterprise (MNE) - CORRECT ANSWER✔✔-A firm that engages in foreign direct
investment and operates in multiple countries
Foreign Direct Investment (FDI) - CORRECT ANSWER✔✔-Investment in, controlling, and
managing value-added activities in other countries
Global Business - CORRECT ANSWER✔✔-Business around the globe
Group of 20 - CORRECT ANSWER✔✔-The group of 19 major countries plus the European Union
whose leaders meet on a regular basis to solve global economic problems
Gross Domestic Product (GDP) - CORRECT ANSWER✔✔-The sums of value added by resident
firms, households, and governments operating in an economy
Purchasing Power Parity (PPP) - CORRECT ANSWER✔✔-A conversion that determines the
equivalent amount of goods and services different currencies can purchase. This conversion is
usually used to capture the differences in cost of living in different countries
Triad - CORRECT ANSWER✔✔-Three regions of developed economies (North America, Western
Europe, and Japan)
, Base of the pyramid - CORRECT ANSWER✔✔-The vast majority of humanity, about five billion
people, who make less than $2,000 a year on a per capita basis
Expatriate Manager (Expat) - CORRECT ANSWER✔✔-A manager who works out of his or her
native country
International Premium - CORRECT ANSWER✔✔-A significant pay raise commanded by
expatriates when working overseas
Institution-based View - CORRECT ANSWER✔✔-A leading perspective that suggests that firm
performance is, at least in part, determined by the institutional frameworks governing firm
behavior around the world.
Institutions - CORRECT ANSWER✔✔-Formal and informal rules of the game
Institutional Framework - CORRECT ANSWER✔✔-Formal and informal institutions that govern
individual and firm behavior
Formal Institutions - CORRECT ANSWER✔✔-Institutions such as laws, regulations, and rules
Resource-based View - CORRECT ANSWER✔✔-A leading perspective that suggests that firm
performance is, at least in part, determined by its internal resources and capabilities
Liability of Foreignness - CORRECT ANSWER✔✔-The inherent disadvantage that foreign firm
experience in host countries because of their non-native status
Globalization - CORRECT ANSWER✔✔-The close integration of countries and peoples of the
world
Answers
International Business - CORRECT ANSWER✔✔-A business (or firm) that engages in
international (cross-border) activities or the action of doing business abroad
Multinational Enterprise (MNE) - CORRECT ANSWER✔✔-A firm that engages in foreign direct
investment and operates in multiple countries
Foreign Direct Investment (FDI) - CORRECT ANSWER✔✔-Investment in, controlling, and
managing value-added activities in other countries
Global Business - CORRECT ANSWER✔✔-Business around the globe
Group of 20 - CORRECT ANSWER✔✔-The group of 19 major countries plus the European Union
whose leaders meet on a regular basis to solve global economic problems
Gross Domestic Product (GDP) - CORRECT ANSWER✔✔-The sums of value added by resident
firms, households, and governments operating in an economy
Purchasing Power Parity (PPP) - CORRECT ANSWER✔✔-A conversion that determines the
equivalent amount of goods and services different currencies can purchase. This conversion is
usually used to capture the differences in cost of living in different countries
Triad - CORRECT ANSWER✔✔-Three regions of developed economies (North America, Western
Europe, and Japan)
, Base of the pyramid - CORRECT ANSWER✔✔-The vast majority of humanity, about five billion
people, who make less than $2,000 a year on a per capita basis
Expatriate Manager (Expat) - CORRECT ANSWER✔✔-A manager who works out of his or her
native country
International Premium - CORRECT ANSWER✔✔-A significant pay raise commanded by
expatriates when working overseas
Institution-based View - CORRECT ANSWER✔✔-A leading perspective that suggests that firm
performance is, at least in part, determined by the institutional frameworks governing firm
behavior around the world.
Institutions - CORRECT ANSWER✔✔-Formal and informal rules of the game
Institutional Framework - CORRECT ANSWER✔✔-Formal and informal institutions that govern
individual and firm behavior
Formal Institutions - CORRECT ANSWER✔✔-Institutions such as laws, regulations, and rules
Resource-based View - CORRECT ANSWER✔✔-A leading perspective that suggests that firm
performance is, at least in part, determined by its internal resources and capabilities
Liability of Foreignness - CORRECT ANSWER✔✔-The inherent disadvantage that foreign firm
experience in host countries because of their non-native status
Globalization - CORRECT ANSWER✔✔-The close integration of countries and peoples of the
world
