D270 Midterm - James Davis Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
Globalization - CORRECT ANSWER Process of broadening interdependent
relationships among people who are divided among people who are divided into national
boarders
international business - CORRECT ANSWER commercial transactions between 2+
countries
forces behind globalization - CORRECT ANSWER 1. technology
2. trade
3. services that support intern. business
4. consumer pressure
5. global competition
6. changing political situations and gov policies
7. expanded cross-national cooperation
negative effects of globalization - CORRECT ANSWER 1. threats to national
sovereignty
2. small countries feel threatened
3. cultural homogenity threatens uniqueness
193 - CORRECT ANSWER how many countries in the world
portfolio investment - CORRECT ANSWER non-controlling investment of stocks and
loans
constortium - CORRECT ANSWER 2+ people investing in a business
, direct exports - CORRECT ANSWER shipping directly to customers from home
market. costs = low, easy to initiate, no shared ownership,
high shipping cost, no local adaption
exporting via a local distributer - CORRECT ANSWER entering an agreement for a
local distributor to sell goods produced in home market in a new market,
cost=low, control=low, some local adaption, limited financial return, lack of control
licensing - CORRECT ANSWER entering an agreement for local manufacturer to
produce/sell goods in a new market,
cost=low, control-low, gov mech = ownership of sales
Sales operation - CORRECT ANSWER setting up a sales team in a new market to sell
goods produced in home market,
cost = mod, control=mod
equity investment - CORRECT ANSWER Buying minority stake in an existing firm in
a new market, entering in an agreement to work in that market
aquisition - CORRECT ANSWER purchasing a majority stake in an existing firm
operating in a new market
outsourcing - CORRECT ANSWER a company allowing another to do one part of
their business, usually within the same country
offshoring - CORRECT ANSWER the relocation of business processes and services to
a lower-cost foreign location
physical factors - CORRECT ANSWER geography and demographic influences
QUESTIONS AND CORRECT ANSWERS
Globalization - CORRECT ANSWER Process of broadening interdependent
relationships among people who are divided among people who are divided into national
boarders
international business - CORRECT ANSWER commercial transactions between 2+
countries
forces behind globalization - CORRECT ANSWER 1. technology
2. trade
3. services that support intern. business
4. consumer pressure
5. global competition
6. changing political situations and gov policies
7. expanded cross-national cooperation
negative effects of globalization - CORRECT ANSWER 1. threats to national
sovereignty
2. small countries feel threatened
3. cultural homogenity threatens uniqueness
193 - CORRECT ANSWER how many countries in the world
portfolio investment - CORRECT ANSWER non-controlling investment of stocks and
loans
constortium - CORRECT ANSWER 2+ people investing in a business
, direct exports - CORRECT ANSWER shipping directly to customers from home
market. costs = low, easy to initiate, no shared ownership,
high shipping cost, no local adaption
exporting via a local distributer - CORRECT ANSWER entering an agreement for a
local distributor to sell goods produced in home market in a new market,
cost=low, control=low, some local adaption, limited financial return, lack of control
licensing - CORRECT ANSWER entering an agreement for local manufacturer to
produce/sell goods in a new market,
cost=low, control-low, gov mech = ownership of sales
Sales operation - CORRECT ANSWER setting up a sales team in a new market to sell
goods produced in home market,
cost = mod, control=mod
equity investment - CORRECT ANSWER Buying minority stake in an existing firm in
a new market, entering in an agreement to work in that market
aquisition - CORRECT ANSWER purchasing a majority stake in an existing firm
operating in a new market
outsourcing - CORRECT ANSWER a company allowing another to do one part of
their business, usually within the same country
offshoring - CORRECT ANSWER the relocation of business processes and services to
a lower-cost foreign location
physical factors - CORRECT ANSWER geography and demographic influences
