International Business BYU Exam
With Complete Solutions
Political Factors - ANSWER Tax rates
Tariffs
Govt efficiency and corruption
IP laws
Industrial policies
Political risk (war)
Economic Factors - ANSWER Cost of materials and resources
Availability and cost of land
Wages rates
Workforce productivity
Market size & growth
Presence of customers
Local competition
Sociocultural factors - ANSWER Cultural barriers
Local business practices
Poverty rates
Civil society
Non-profit orgs
Consumer protection groups
Offshoring backlash
Technological factors - ANSWER Tech platforms
ISO standards
Internet connectivity
Social Media
Advancement of infrastructure
Innovation spaces
According to Amartya Sen globalization - ANSWER has enriched the world
scientifically and culturally, and benefited many people economically as well
According to Joseph Stiglitz globalization - ANSWER perpetuates inequality
throughout the world
,According to Critics of globalization - ANSWER support nationalism and
protectionism, destroys jobs, *makes it too easy for employers to move jobs and
production to cheaper locations
According to author Thomas Friedman - ANSWER Individuals in poor countries
with limited infrastructure are able to compete with people in rich, well-
developed countries.
Know the difference between emerging market and developing market? -
ANSWER developing markets are stagnant - not on the path to becoming
emerging market.
When starting a new operation in a different country what do you have to do to
successfully carry out its operations? - ANSWER PEST analysis
How can you be a global winner in an international setting? - ANSWER identify
and respond to local nuances
How do you boost overall sales by setting up operations in other countries? -
ANSWER persuade people to buy products and services
What has technology done to employment in manufacturing? - ANSWER
replaced it
In a greenfield venture, _____. - ANSWER establishes a foreign subsidiary by
building an entirely new operation in a foreign country
Industry expertise means ________. - ANSWER future of industry, key
players/competitors, how the company can lead
A country is relatively free market, customers are likely to what? - ANSWER
have more income, longer life expectancy, more leisure time to spend income
__________________ is a law signed by President Jimmy Carter in 1977 that made
it illegal to pay foreign government officials for their assistance in obtaining or
retaining business. - ANSWER Foreign Corrupt Practices Act of 1977 (KNOW
DATE)
In 1988, the __________ was expanded to cover foreign companies that operate in
or have securities (stocks or bonds) listed in the United States. - ANSWER FCPA
Know the factors considered in the Human Development Index (HDI)? - ANSWER
Life expectancy
Education
Per capita income
,Gross Domestic Product (GDP) Equation - ANSWER GDP=C+I+G+NE
GDP=Private Consumption+Investment+Gov. Spending+Net Exports(Exports-
Imports)
Know the advantages of spot exchange rate. - ANSWER The primary advantage
to spot and forward foreign exchange is it helps manage risk: allowing you to
protect costs on products and services bought abroad; protect profit margins
on products and services sold overseas; and, in the case of forward foreign
exchange, locks in exchange rates for as long as a year in advance.
What facts support the act of buying currencies of other countries can affect the
floating exchange rate? - ANSWER The demand for the domestic currency
decreases
Know problems of underconsumption in an economy. - ANSWER wealthy get
wealthier, poor get poorer
Local demand does not meet the amount produced in the economy. Leftover
common goods are then sold internationally and the wealthy use increased
income to make foreign investments
What provided a multilateral forum to resolve trade disputes between member
countries? - ANSWER General Agreement on Tariffs and Trade (GATT) - reduces
trade barriers and tariffs while eliminating trade preferences and providing a
multilateral forum to resolve trade disputes
What are quotas and tariffs? - ANSWER quota - a direct limit on the number of
goods that can be imported into or exported from a country
Tariffs - taxes on foreign products that discourage imports
What refers to agreements regarding trade between just two countries? -
ANSWER Bilateral trade agreements
Know what the first step in managing cultural differences in the workplace is? -
ANSWER Recognize cultural differences
When recognized cultural differences the next step is to what? - ANSWER
Respect the differences
What does motivational cultural intelligence quotient measure? - ANSWER
assesses your level of interest, drive, and energy to adapt cross-culturally; this
can come from both an innate (intrinsic) desire as well as external (extrinsic)
forces.
The sustainability consortium aims to reduce the impact of global consumption
by: - ANSWER by gathering data on the life cycle of consumer products and then
putting that information into the hands of relevant companies.
, When deciding who to involve in a sustainability initiative, a company should
first? - ANSWER companies need to be sure the objectives of any potential
partners (other companies, NGOs, governments, universities) are consistent
with their own
Conduct due dilligence
Know the first 3 stage in sustainable innovation - ANSWER Stage 1: View
Compliance as Opportunity
Stage 2: Make Value Chains Sustainable
Stage 3: Design Sustainable Products and Services
What contributes to the increase in the earth's average temperature - ANSWER
Climate Change through greenhouse gasses
To avoid short termism, the board of a company should.... - ANSWER Strategy 1:
Focus on Stakeholders, Not Just Shareholders.
Strategy 2: Convince Wall Street to Change the Rules.
Strategy 3: Get the Board of Directors to Think Long Term.
Most part of a company's stock market value is determined by its ... - ANSWER
Intangible assets
Know reasons to appropriate time to disengage? - ANSWER Exit strategies
it has drifted too far from its mission
the environmental factors have changed so much that the goal is no longer
reasonable
once a specific set of objectives has been met.
_____ is usually the first stage in sustainable innovation. - ANSWER View
Compliance as Opportunity
Know problems that will most likely pose a risk to a company targeting the poor
as consumers. - ANSWER Low to No Consumption
Low to no cost savings
Low to no respect (media can be negative for companies moving to
impoverished countries)
According to economist Jeffrey Sachs, the key to lift poverty-stricken countries
is to: - ANSWER Foreign aid is the key. They need a jump start, provided by
govts, NGO's, or corps. They need help getting out of the trap.
Constitutional law - ANSWER laws that set the bounds of government and
governmental procedures
With Complete Solutions
Political Factors - ANSWER Tax rates
Tariffs
Govt efficiency and corruption
IP laws
Industrial policies
Political risk (war)
Economic Factors - ANSWER Cost of materials and resources
Availability and cost of land
Wages rates
Workforce productivity
Market size & growth
Presence of customers
Local competition
Sociocultural factors - ANSWER Cultural barriers
Local business practices
Poverty rates
Civil society
Non-profit orgs
Consumer protection groups
Offshoring backlash
Technological factors - ANSWER Tech platforms
ISO standards
Internet connectivity
Social Media
Advancement of infrastructure
Innovation spaces
According to Amartya Sen globalization - ANSWER has enriched the world
scientifically and culturally, and benefited many people economically as well
According to Joseph Stiglitz globalization - ANSWER perpetuates inequality
throughout the world
,According to Critics of globalization - ANSWER support nationalism and
protectionism, destroys jobs, *makes it too easy for employers to move jobs and
production to cheaper locations
According to author Thomas Friedman - ANSWER Individuals in poor countries
with limited infrastructure are able to compete with people in rich, well-
developed countries.
Know the difference between emerging market and developing market? -
ANSWER developing markets are stagnant - not on the path to becoming
emerging market.
When starting a new operation in a different country what do you have to do to
successfully carry out its operations? - ANSWER PEST analysis
How can you be a global winner in an international setting? - ANSWER identify
and respond to local nuances
How do you boost overall sales by setting up operations in other countries? -
ANSWER persuade people to buy products and services
What has technology done to employment in manufacturing? - ANSWER
replaced it
In a greenfield venture, _____. - ANSWER establishes a foreign subsidiary by
building an entirely new operation in a foreign country
Industry expertise means ________. - ANSWER future of industry, key
players/competitors, how the company can lead
A country is relatively free market, customers are likely to what? - ANSWER
have more income, longer life expectancy, more leisure time to spend income
__________________ is a law signed by President Jimmy Carter in 1977 that made
it illegal to pay foreign government officials for their assistance in obtaining or
retaining business. - ANSWER Foreign Corrupt Practices Act of 1977 (KNOW
DATE)
In 1988, the __________ was expanded to cover foreign companies that operate in
or have securities (stocks or bonds) listed in the United States. - ANSWER FCPA
Know the factors considered in the Human Development Index (HDI)? - ANSWER
Life expectancy
Education
Per capita income
,Gross Domestic Product (GDP) Equation - ANSWER GDP=C+I+G+NE
GDP=Private Consumption+Investment+Gov. Spending+Net Exports(Exports-
Imports)
Know the advantages of spot exchange rate. - ANSWER The primary advantage
to spot and forward foreign exchange is it helps manage risk: allowing you to
protect costs on products and services bought abroad; protect profit margins
on products and services sold overseas; and, in the case of forward foreign
exchange, locks in exchange rates for as long as a year in advance.
What facts support the act of buying currencies of other countries can affect the
floating exchange rate? - ANSWER The demand for the domestic currency
decreases
Know problems of underconsumption in an economy. - ANSWER wealthy get
wealthier, poor get poorer
Local demand does not meet the amount produced in the economy. Leftover
common goods are then sold internationally and the wealthy use increased
income to make foreign investments
What provided a multilateral forum to resolve trade disputes between member
countries? - ANSWER General Agreement on Tariffs and Trade (GATT) - reduces
trade barriers and tariffs while eliminating trade preferences and providing a
multilateral forum to resolve trade disputes
What are quotas and tariffs? - ANSWER quota - a direct limit on the number of
goods that can be imported into or exported from a country
Tariffs - taxes on foreign products that discourage imports
What refers to agreements regarding trade between just two countries? -
ANSWER Bilateral trade agreements
Know what the first step in managing cultural differences in the workplace is? -
ANSWER Recognize cultural differences
When recognized cultural differences the next step is to what? - ANSWER
Respect the differences
What does motivational cultural intelligence quotient measure? - ANSWER
assesses your level of interest, drive, and energy to adapt cross-culturally; this
can come from both an innate (intrinsic) desire as well as external (extrinsic)
forces.
The sustainability consortium aims to reduce the impact of global consumption
by: - ANSWER by gathering data on the life cycle of consumer products and then
putting that information into the hands of relevant companies.
, When deciding who to involve in a sustainability initiative, a company should
first? - ANSWER companies need to be sure the objectives of any potential
partners (other companies, NGOs, governments, universities) are consistent
with their own
Conduct due dilligence
Know the first 3 stage in sustainable innovation - ANSWER Stage 1: View
Compliance as Opportunity
Stage 2: Make Value Chains Sustainable
Stage 3: Design Sustainable Products and Services
What contributes to the increase in the earth's average temperature - ANSWER
Climate Change through greenhouse gasses
To avoid short termism, the board of a company should.... - ANSWER Strategy 1:
Focus on Stakeholders, Not Just Shareholders.
Strategy 2: Convince Wall Street to Change the Rules.
Strategy 3: Get the Board of Directors to Think Long Term.
Most part of a company's stock market value is determined by its ... - ANSWER
Intangible assets
Know reasons to appropriate time to disengage? - ANSWER Exit strategies
it has drifted too far from its mission
the environmental factors have changed so much that the goal is no longer
reasonable
once a specific set of objectives has been met.
_____ is usually the first stage in sustainable innovation. - ANSWER View
Compliance as Opportunity
Know problems that will most likely pose a risk to a company targeting the poor
as consumers. - ANSWER Low to No Consumption
Low to no cost savings
Low to no respect (media can be negative for companies moving to
impoverished countries)
According to economist Jeffrey Sachs, the key to lift poverty-stricken countries
is to: - ANSWER Foreign aid is the key. They need a jump start, provided by
govts, NGO's, or corps. They need help getting out of the trap.
Constitutional law - ANSWER laws that set the bounds of government and
governmental procedures
