GEB 3017 UF FINAL PAPER 2026
QUESTIONS AND SOLUTIONS COMPLETE
STUDY GUIDE
◉Globalization. Answer: broadening set of interdependent
relationships among people from different nations
◉International Business. Answer: All commercial transactions
between two or more countries
◉Seven factors in increased globalization. Answer: - Rise in
application of technology
- Liberation of cross-border trade and resource movement
- Development of services that support IB (government, banks,
transportation, etc)
- Growth in consumer pressures due to knowledge about more
products
- Increase in global competition
- Changes in political situations and government policies
- Expansion of of cross-national cooperation
,◉Why do companies lower restrictions on trade?. Answer: - greater
variety for citizens
- competition spurs efficiency
- hope to induce other countries to lower their barriers as well
◉Born-global companies. Answer: start out with a global focus
because of their founder's international experience and because of
advancements in communications
◉Clustering effect. Answer: Follows from the congregation of buyers
and sellers of a particular good in a certain locale -- they induce
other buyers and sellers to relocate there
◉Three needs for expansion of cross-national cooperation. Answer:
- gain reciprocal advantages
- attack problems jointly that one country alone cannot solve
- deal with areas of concern outside territory of any nation (middle
of ocean, space, and antartica)
◉Criticisms for globalization. Answer: - threats to national
sovereignty
- environmental stress
- growing income inequality and personal stress
,◉Threats to national sovereignty. Answer: - question of local
objectives and policies
- question of small economies over dependence on larger companies
- question of cultural homogeneity (language and traditions)
◉Offshoring. Answer: process of shifting domestic production to a
foreign country for the purpose of serving the home country at a
reduced cost
◉Why companies engage in international business?. Answer: - sales
expansion
- resource acquisition
- risk reduction
◉Modes of operation in international business. Answer: -
merchandise exports and imports
- service exports and imports
- investments
- types of international organizations
◉Merchandise imports/exports. Answer: tangible products that are
brought into or sent to a foreign country for use or resale
, ◉Service imports/exports. Answer: intangible, non-merchandise
products
- tourism and transportation
- service performance
-asset use
◉Turnkey operations. Answer: construction, performed under
contract, of facilities that are transferred to the owner when they are
ready for operation
◉Management contracts. Answer: arrangements in which one firm
provides personnel to perform management functions for another
◉Royalties. Answer: export earnings earned by allowing foreign
clients to use their assets
◉Licensing agreements. Answer: contracts that represent a
transaction in which a licensor sells the right to use its intellectual
property to a licensee for a fee or royalty
◉Franchising. Answer: contract in which a company assists another
on a continuous basis and allows use of its trademark
QUESTIONS AND SOLUTIONS COMPLETE
STUDY GUIDE
◉Globalization. Answer: broadening set of interdependent
relationships among people from different nations
◉International Business. Answer: All commercial transactions
between two or more countries
◉Seven factors in increased globalization. Answer: - Rise in
application of technology
- Liberation of cross-border trade and resource movement
- Development of services that support IB (government, banks,
transportation, etc)
- Growth in consumer pressures due to knowledge about more
products
- Increase in global competition
- Changes in political situations and government policies
- Expansion of of cross-national cooperation
,◉Why do companies lower restrictions on trade?. Answer: - greater
variety for citizens
- competition spurs efficiency
- hope to induce other countries to lower their barriers as well
◉Born-global companies. Answer: start out with a global focus
because of their founder's international experience and because of
advancements in communications
◉Clustering effect. Answer: Follows from the congregation of buyers
and sellers of a particular good in a certain locale -- they induce
other buyers and sellers to relocate there
◉Three needs for expansion of cross-national cooperation. Answer:
- gain reciprocal advantages
- attack problems jointly that one country alone cannot solve
- deal with areas of concern outside territory of any nation (middle
of ocean, space, and antartica)
◉Criticisms for globalization. Answer: - threats to national
sovereignty
- environmental stress
- growing income inequality and personal stress
,◉Threats to national sovereignty. Answer: - question of local
objectives and policies
- question of small economies over dependence on larger companies
- question of cultural homogeneity (language and traditions)
◉Offshoring. Answer: process of shifting domestic production to a
foreign country for the purpose of serving the home country at a
reduced cost
◉Why companies engage in international business?. Answer: - sales
expansion
- resource acquisition
- risk reduction
◉Modes of operation in international business. Answer: -
merchandise exports and imports
- service exports and imports
- investments
- types of international organizations
◉Merchandise imports/exports. Answer: tangible products that are
brought into or sent to a foreign country for use or resale
, ◉Service imports/exports. Answer: intangible, non-merchandise
products
- tourism and transportation
- service performance
-asset use
◉Turnkey operations. Answer: construction, performed under
contract, of facilities that are transferred to the owner when they are
ready for operation
◉Management contracts. Answer: arrangements in which one firm
provides personnel to perform management functions for another
◉Royalties. Answer: export earnings earned by allowing foreign
clients to use their assets
◉Licensing agreements. Answer: contracts that represent a
transaction in which a licensor sells the right to use its intellectual
property to a licensee for a fee or royalty
◉Franchising. Answer: contract in which a company assists another
on a continuous basis and allows use of its trademark
