INTB 200 Midterm Exam Questions With
Correct Verified Solutions.
International Business - Answer business activities of public and private
enterprises that involve the movement of goods, services or resources across national
boundaries (raw materials, capital, and people)
Foreign Business - Answer the operations of a firm outside of its domestic or home market
International Company - Answer a company with operations in more than one nation
Factors that Influence Globalization - Answer 1. Political Climate
2. Technology
3. Markets
4. Cost
5. Competition
Political Climate - Answer - reduced trade barriers
- increased in DFI
- a rise in NGOs
- lowering of protectionism
Protectionism - Answer the theory or practice of shielding a country's domestic industries
from foreign competition by taxing imports.
Technology - Answer internet, www., social media
- ease of gathering info
- *pushed companies to go to other countries*
- Reduction in transportation costs through containerization and air freight
Containerization - Answer paying to ship by container rather than individual products
,Markets - Answer markets open up and companies can enter new ones and as the companies
globalize, they become global customers
- advertise, pay taxes, hire nationals, build factory, or open office
- creation of new middle classes = new customers who have a disposable income
Why would a company branch out to global markets? - Answer - home market is saturated
- retaliation, foreign co. enters your home market
- seasonal differences (ie. fruit)
Cost - Answer Economies of Scale (bring costs down)
- standardized product
- improve company's competitive advantage
- invest overseas
- access to foreign markets that are close by
- building global awareness of your product
- building worldwide distribution
DFI - Answer direct foreign investment
Competition - Answer Increases in intensity
- find new buyers for your products
- product is obsolete
Marketing Task - Answer performing business activities that will direct the flow of a company's
goods or services to consumers or users in other nations
Types of Barriers to Trade - Answer - tariff barriers
- monetary barriers
- market barriers
Types of Tariff Barriers - Answer - ad valorem
- specific duty
, Specific Duty - Answer charge based on product (weight, #, etc.)
Compound Duty - Answer combo of ad valorem and specific duties
Types of Monetary Barriers - Answer - blocked currency
- differential exchange rate
- governmental approval
Blocked Currency - Answer no trade/deals in this currency (country won't accept others)
Differential Exchange Rate - Answer higher rates for less favored products
Governmental Approval - Answer government must grant permit for trade
Types of Market Barriers - Answer - quotas
- embargo
- economies of scale
- documentation
- anti-dumping laws
International Environment - Answer interaction between domestic and foreign environmental
forces or between sets of foreign environmental forces
Self-Reference Criterion - Answer reference to ones own cultural values when judging how
others will behave in new and different environments
Direct Foreign Investment - Answer goes beyond merely investing in foreign stock markets:
activities outside of home country
1. investment in equipment, structures, organizations (becoming part of that country's economy
2. investment at levels sufficient for management to obtain significant control
Correct Verified Solutions.
International Business - Answer business activities of public and private
enterprises that involve the movement of goods, services or resources across national
boundaries (raw materials, capital, and people)
Foreign Business - Answer the operations of a firm outside of its domestic or home market
International Company - Answer a company with operations in more than one nation
Factors that Influence Globalization - Answer 1. Political Climate
2. Technology
3. Markets
4. Cost
5. Competition
Political Climate - Answer - reduced trade barriers
- increased in DFI
- a rise in NGOs
- lowering of protectionism
Protectionism - Answer the theory or practice of shielding a country's domestic industries
from foreign competition by taxing imports.
Technology - Answer internet, www., social media
- ease of gathering info
- *pushed companies to go to other countries*
- Reduction in transportation costs through containerization and air freight
Containerization - Answer paying to ship by container rather than individual products
,Markets - Answer markets open up and companies can enter new ones and as the companies
globalize, they become global customers
- advertise, pay taxes, hire nationals, build factory, or open office
- creation of new middle classes = new customers who have a disposable income
Why would a company branch out to global markets? - Answer - home market is saturated
- retaliation, foreign co. enters your home market
- seasonal differences (ie. fruit)
Cost - Answer Economies of Scale (bring costs down)
- standardized product
- improve company's competitive advantage
- invest overseas
- access to foreign markets that are close by
- building global awareness of your product
- building worldwide distribution
DFI - Answer direct foreign investment
Competition - Answer Increases in intensity
- find new buyers for your products
- product is obsolete
Marketing Task - Answer performing business activities that will direct the flow of a company's
goods or services to consumers or users in other nations
Types of Barriers to Trade - Answer - tariff barriers
- monetary barriers
- market barriers
Types of Tariff Barriers - Answer - ad valorem
- specific duty
, Specific Duty - Answer charge based on product (weight, #, etc.)
Compound Duty - Answer combo of ad valorem and specific duties
Types of Monetary Barriers - Answer - blocked currency
- differential exchange rate
- governmental approval
Blocked Currency - Answer no trade/deals in this currency (country won't accept others)
Differential Exchange Rate - Answer higher rates for less favored products
Governmental Approval - Answer government must grant permit for trade
Types of Market Barriers - Answer - quotas
- embargo
- economies of scale
- documentation
- anti-dumping laws
International Environment - Answer interaction between domestic and foreign environmental
forces or between sets of foreign environmental forces
Self-Reference Criterion - Answer reference to ones own cultural values when judging how
others will behave in new and different environments
Direct Foreign Investment - Answer goes beyond merely investing in foreign stock markets:
activities outside of home country
1. investment in equipment, structures, organizations (becoming part of that country's economy
2. investment at levels sufficient for management to obtain significant control
