IMS 3310 - Exam 1 (Zydorek) Actual
study with Questions and
correct/verified Answers
International business (IB) - ANSW-(1) A business (firm) that engages in international (cross-border)
economic activities and/or (2) the action of doing business abroad
Multinational enterprise (MNE) - ANSW-A firm that engages in foreign direct investment (FDI)
Foreign direct investment (FDI) - ANSW-Investment in, controlling, and managing value-added activities
in other countries
Global business - ANSW-Business around the globe
Global mindset - ANSW-Ability to "connect the dots" globally
Expatriate manager (expat) - ANSW-A manager who works abroad
International premium - ANSW-A significant pay raise when working overseas
A Unified Framework - ANSW-What is it that we do in global business?
It is about treating the global economy as your potential playground (or battlefield).
Fundamental Question - ANSW-What determines the success and failure of firms around the globe?
Institution-Based View - ANSW-Suggests that the success and failure of firms are enabled and
constrained by institutions.
Triple bottom line - ANSW-Economic, social, and environmental performance
Stakeholder - ANSW-Any group or individual who can affect or is affected by the achievement of a firm's
objectives.
"Rules of the game" - ANSW-Doing business around the globe requires intimate knowledge about both
formal rules (such as laws) and informal rules (such as values) that govern competition in various
countries.
Resource-Based View - ANSW-Focuses on a firm's internal resources and capabilities
Liability of foreignness - ANSW-The inherent disadvantage that foreign firms experience in host countries
because of their nonnative status.
Globalization - ANSW-The close integration of countries and peoples of the world (capital, people,
goods/services, technology)
Emerging economies - ANSW-A term that has gradually replaced the term "developing countries" since
the 1990s
Emerging markets - ANSW-A term that is often used interchangeably with "emerging economies"
, Base of the pyramid (BoP) - ANSW-Economies where people make less than $2,000 per capita per year
Reverse innovation (or frugal innovation) - ANSW-An innovation that is adopted first in emerging
economies and is then diffused around the world.
Risk management - ANSW-The identification and assessment of risks and the preparation to minimize
the impact of high-risk, unfortunate events
Black swan event - ANSW-An unpredictable event that is beyond what is normally expected and that has
severe consequences
Semiglobalization - ANSW-A perspective that suggests that barriers to market integration at borders are
high, but not high enough to insulate countries from each other completely
Gross domestic product (GDP) - ANSW-The sum of value added by resident firms, households, and
governments operating in an economy
Purchasing power parity (PPP) - ANSW-A conversion that determines the equivalent amount of goods
and services that different currencies can purchase.
Gross national product (GNP) - ANSW-GDP plus income from nonresident sources abroad
Gross national income (GNI) - ANSW-GDP plus income from nonresident sources abroad; GNI is a term
used by the World Bank and other international organizations to supersede the term GNP
Institutional transition - ANSW-Fundamental and comprehensive changes introduced to the formal and
informal rules of the game that affect firms as players
Institution - ANSW-Formal and informal rules of the game
Institutional framework - ANSW-Formal and informal institutions that govern individual and firm
behavior
Formal institution - ANSW-Institution represented by laws, regulations, and rules
Regulatory pillar - ANSW-The coercive power of governments
Informal institution - ANSW-Institution represented by cultures, ethics, and norms
Normative pillar - ANSW-The mechanism through which norms influence individual and firm behavior
Norms - ANSW-Values, beliefs, and actions of relevant players that influence the focal individuals and
firms
Cognitive pillar - ANSW-The internalized (or taken-for-granted) values and beliefs that guide individual
and firm behavior
Transaction cost - ANSW-The cost associated with economic transactions or, more broadly, the cost of
doing business
Opportunism - ANSW-The act of self-interest seeking with guile
- Examples include misleading, cheating, and confusing other parties in transactions that will increase
transaction costs
study with Questions and
correct/verified Answers
International business (IB) - ANSW-(1) A business (firm) that engages in international (cross-border)
economic activities and/or (2) the action of doing business abroad
Multinational enterprise (MNE) - ANSW-A firm that engages in foreign direct investment (FDI)
Foreign direct investment (FDI) - ANSW-Investment in, controlling, and managing value-added activities
in other countries
Global business - ANSW-Business around the globe
Global mindset - ANSW-Ability to "connect the dots" globally
Expatriate manager (expat) - ANSW-A manager who works abroad
International premium - ANSW-A significant pay raise when working overseas
A Unified Framework - ANSW-What is it that we do in global business?
It is about treating the global economy as your potential playground (or battlefield).
Fundamental Question - ANSW-What determines the success and failure of firms around the globe?
Institution-Based View - ANSW-Suggests that the success and failure of firms are enabled and
constrained by institutions.
Triple bottom line - ANSW-Economic, social, and environmental performance
Stakeholder - ANSW-Any group or individual who can affect or is affected by the achievement of a firm's
objectives.
"Rules of the game" - ANSW-Doing business around the globe requires intimate knowledge about both
formal rules (such as laws) and informal rules (such as values) that govern competition in various
countries.
Resource-Based View - ANSW-Focuses on a firm's internal resources and capabilities
Liability of foreignness - ANSW-The inherent disadvantage that foreign firms experience in host countries
because of their nonnative status.
Globalization - ANSW-The close integration of countries and peoples of the world (capital, people,
goods/services, technology)
Emerging economies - ANSW-A term that has gradually replaced the term "developing countries" since
the 1990s
Emerging markets - ANSW-A term that is often used interchangeably with "emerging economies"
, Base of the pyramid (BoP) - ANSW-Economies where people make less than $2,000 per capita per year
Reverse innovation (or frugal innovation) - ANSW-An innovation that is adopted first in emerging
economies and is then diffused around the world.
Risk management - ANSW-The identification and assessment of risks and the preparation to minimize
the impact of high-risk, unfortunate events
Black swan event - ANSW-An unpredictable event that is beyond what is normally expected and that has
severe consequences
Semiglobalization - ANSW-A perspective that suggests that barriers to market integration at borders are
high, but not high enough to insulate countries from each other completely
Gross domestic product (GDP) - ANSW-The sum of value added by resident firms, households, and
governments operating in an economy
Purchasing power parity (PPP) - ANSW-A conversion that determines the equivalent amount of goods
and services that different currencies can purchase.
Gross national product (GNP) - ANSW-GDP plus income from nonresident sources abroad
Gross national income (GNI) - ANSW-GDP plus income from nonresident sources abroad; GNI is a term
used by the World Bank and other international organizations to supersede the term GNP
Institutional transition - ANSW-Fundamental and comprehensive changes introduced to the formal and
informal rules of the game that affect firms as players
Institution - ANSW-Formal and informal rules of the game
Institutional framework - ANSW-Formal and informal institutions that govern individual and firm
behavior
Formal institution - ANSW-Institution represented by laws, regulations, and rules
Regulatory pillar - ANSW-The coercive power of governments
Informal institution - ANSW-Institution represented by cultures, ethics, and norms
Normative pillar - ANSW-The mechanism through which norms influence individual and firm behavior
Norms - ANSW-Values, beliefs, and actions of relevant players that influence the focal individuals and
firms
Cognitive pillar - ANSW-The internalized (or taken-for-granted) values and beliefs that guide individual
and firm behavior
Transaction cost - ANSW-The cost associated with economic transactions or, more broadly, the cost of
doing business
Opportunism - ANSW-The act of self-interest seeking with guile
- Examples include misleading, cheating, and confusing other parties in transactions that will increase
transaction costs
