MGMT 320 TEST 2 (TOMA) QUESTIONS & ANSWERS
globalization - Answers - the trend of the world economy toward becoming a more
interdependent system
global village - Answers - shrinking of time and space as air travel and electronic media
has made it easier for ppl around the world to communicate
e-commerce - Answers - buying and selling of products or services
global economy - Answers - economies of the world that interact with one another as 1
market
an advantage of one big world market - Answers - foreign firms create revenue in the
U.S. by building plants here
negatives of one big world market - Answers - outsourcing of jobs
mergers - Answers - when big companies come together to become even bigger and
dominate their field
mini firms - Answers - small companies that can get started more easily and maneuver
faster for change
multinational CORPoration (enterprise) - Answers - business firm with operations in
several countries ; Chase
multinational ORGanization - Answers - nonprofit org with operations in several
countries; Red Cross
we exist in a - Answers - global economy
GATT - Answers - general agreement on trades and tariffs; reduces tariffs and trade
barriers
WTO - Answers - world trade org; designed to monitor and enforce trade agreements
the answer to everything that involves international business always depends on -
Answers - the differences in the external business environment
3 RESULTS of globalization - Answers - -rise of global village & e-commerce
-world becomes one market instead of many
-rise of both megafirms and internet enabled minirfirms worldwide
, international mgmt - Answers - mgmt that oversees the conduct of operations in or with
organizations in foreign countries; can be through multinational corps or organizations
geocentric managers - Answers - accepts cultural differences and uses what is most
effective
ethnocentric managers - Answers - "we know best"; their native culture is superior
polycentric managers - Answers - "they know best"; home offices leave native offices
alone
why international business ? - Answers - access to finance capital
-avoid tariffs and import quotas
-low labor costs
-new markets
-availability of supplies
how companies expand internationally - Answers - global outsourcing
-import, export, countertrade
-licensing and franchising
-joint ventures
-wholly owned subsidiaries
outsourcing - Answers - using suppliers outside the company to provide goods and
services
offshoring - Answers - defined as using suppliers outside the U.S. to provide labor,
goods and services
importing - Answers - a company buys goods outside the country and resells them
domestically
exporting - Answers - a company produces goods domestically and sells them outside
the country
licensing - Answers - you have to pay a fee but the founding company doesn't get a
profit like a franchise
a joint venture is also called a - Answers - strategic alliance that you share risks with
another company when starting a new enterprise together
NAFTA - Answers - purpose is to reduce internal trade barriers
trade flows through the path of - Answers - least trade barriers
economic union - Answers - to harmonize policies of running the economy
globalization - Answers - the trend of the world economy toward becoming a more
interdependent system
global village - Answers - shrinking of time and space as air travel and electronic media
has made it easier for ppl around the world to communicate
e-commerce - Answers - buying and selling of products or services
global economy - Answers - economies of the world that interact with one another as 1
market
an advantage of one big world market - Answers - foreign firms create revenue in the
U.S. by building plants here
negatives of one big world market - Answers - outsourcing of jobs
mergers - Answers - when big companies come together to become even bigger and
dominate their field
mini firms - Answers - small companies that can get started more easily and maneuver
faster for change
multinational CORPoration (enterprise) - Answers - business firm with operations in
several countries ; Chase
multinational ORGanization - Answers - nonprofit org with operations in several
countries; Red Cross
we exist in a - Answers - global economy
GATT - Answers - general agreement on trades and tariffs; reduces tariffs and trade
barriers
WTO - Answers - world trade org; designed to monitor and enforce trade agreements
the answer to everything that involves international business always depends on -
Answers - the differences in the external business environment
3 RESULTS of globalization - Answers - -rise of global village & e-commerce
-world becomes one market instead of many
-rise of both megafirms and internet enabled minirfirms worldwide
, international mgmt - Answers - mgmt that oversees the conduct of operations in or with
organizations in foreign countries; can be through multinational corps or organizations
geocentric managers - Answers - accepts cultural differences and uses what is most
effective
ethnocentric managers - Answers - "we know best"; their native culture is superior
polycentric managers - Answers - "they know best"; home offices leave native offices
alone
why international business ? - Answers - access to finance capital
-avoid tariffs and import quotas
-low labor costs
-new markets
-availability of supplies
how companies expand internationally - Answers - global outsourcing
-import, export, countertrade
-licensing and franchising
-joint ventures
-wholly owned subsidiaries
outsourcing - Answers - using suppliers outside the company to provide goods and
services
offshoring - Answers - defined as using suppliers outside the U.S. to provide labor,
goods and services
importing - Answers - a company buys goods outside the country and resells them
domestically
exporting - Answers - a company produces goods domestically and sells them outside
the country
licensing - Answers - you have to pay a fee but the founding company doesn't get a
profit like a franchise
a joint venture is also called a - Answers - strategic alliance that you share risks with
another company when starting a new enterprise together
NAFTA - Answers - purpose is to reduce internal trade barriers
trade flows through the path of - Answers - least trade barriers
economic union - Answers - to harmonize policies of running the economy
