IMS 3310 - Exam 1 Questions With Complete Solutions
"Rules of the game" Correct Answers 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.
A Unified Framework Correct Answers What is it that we do
in global business?
It is about treating the global economy as your potential
playground (or battlefield).
Absolute advantage Correct Answers The economic advantage
one nation enjoys that is absolutely superior to other nations
Administrative policy Correct Answers Bureaucratic rules that
make it harder to import foreign goods
Antidumping duty Correct Answers Tariff levied on imports
that have been "dumped" (selling below costs to "unfairly" drive
domestic firms out of business)
Authoritarianism Correct Answers A political system in which
political plurality is undermined and concentrated government
power is imposed
Balance of trade Correct Answers The aggregation of
importing and exporting that leads to the country-level trade
surplus or deficit
,Base of the pyramid (BoP) Correct Answers Economies where
people make less than $2,000 per capita per year
Benchmarking Correct Answers Examining whether a firm has
resources and capabilities to perform a particular activity in a
manner superior to competitors
Black swan event Correct Answers An unpredictable event
that is beyond what is normally expected and that has severe
consequences
Bounded rationality Correct Answers The necessity of making
rational decisions in the absence of complete information
Captive sourcing Correct Answers Setting up subsidiaries
abroad so that the work done is in-house but the location is
foreign; Also known as foreign direct investment (FDI)
Causal ambiguity Correct Answers The difficulty of
identifying the actual cause of a firm's successful performance
Civil law Correct Answers A legal tradition that uses
comprehensive statutes and codes as a primary means to form
legal judgments
Civilization Correct Answers The highest cultural grouping of
people and the broadest level of cultural identity people have
Classical trade theories Correct Answers The major theories of
international trade that were advanced before the 20th century,
, which consist of (1) mercantilism, (2) absolute advantage, and
(3) comparative advantage
Cluster Correct Answers Countries that share similar cultures
Code of conduct (code of ethics) Correct Answers A set of
guidelines for making ethical decisions
Cognitive pillar Correct Answers The internalized (or taken-
for-granted) values and beliefs that guide individual and firm
behavior
Collectivism Correct Answers The idea that an individual's
identity is fundamentally tied to the identity of their collective
group
Command economy Correct Answers An economy that is
characterized by government ownership and control of factors of
production
Commoditization Correct Answers A process of market
competition through which unique products that command high
prices and high margins gradually lose their ability to do so, thus
becoming commodities
Common law Correct Answers A legal tradition that is shaped
by precedents and traditions from previous judicial decisions
Communist totalitarianism Correct Answers centers on a
communist party
"Rules of the game" Correct Answers 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.
A Unified Framework Correct Answers What is it that we do
in global business?
It is about treating the global economy as your potential
playground (or battlefield).
Absolute advantage Correct Answers The economic advantage
one nation enjoys that is absolutely superior to other nations
Administrative policy Correct Answers Bureaucratic rules that
make it harder to import foreign goods
Antidumping duty Correct Answers Tariff levied on imports
that have been "dumped" (selling below costs to "unfairly" drive
domestic firms out of business)
Authoritarianism Correct Answers A political system in which
political plurality is undermined and concentrated government
power is imposed
Balance of trade Correct Answers The aggregation of
importing and exporting that leads to the country-level trade
surplus or deficit
,Base of the pyramid (BoP) Correct Answers Economies where
people make less than $2,000 per capita per year
Benchmarking Correct Answers Examining whether a firm has
resources and capabilities to perform a particular activity in a
manner superior to competitors
Black swan event Correct Answers An unpredictable event
that is beyond what is normally expected and that has severe
consequences
Bounded rationality Correct Answers The necessity of making
rational decisions in the absence of complete information
Captive sourcing Correct Answers Setting up subsidiaries
abroad so that the work done is in-house but the location is
foreign; Also known as foreign direct investment (FDI)
Causal ambiguity Correct Answers The difficulty of
identifying the actual cause of a firm's successful performance
Civil law Correct Answers A legal tradition that uses
comprehensive statutes and codes as a primary means to form
legal judgments
Civilization Correct Answers The highest cultural grouping of
people and the broadest level of cultural identity people have
Classical trade theories Correct Answers The major theories of
international trade that were advanced before the 20th century,
, which consist of (1) mercantilism, (2) absolute advantage, and
(3) comparative advantage
Cluster Correct Answers Countries that share similar cultures
Code of conduct (code of ethics) Correct Answers A set of
guidelines for making ethical decisions
Cognitive pillar Correct Answers The internalized (or taken-
for-granted) values and beliefs that guide individual and firm
behavior
Collectivism Correct Answers The idea that an individual's
identity is fundamentally tied to the identity of their collective
group
Command economy Correct Answers An economy that is
characterized by government ownership and control of factors of
production
Commoditization Correct Answers A process of market
competition through which unique products that command high
prices and high margins gradually lose their ability to do so, thus
becoming commodities
Common law Correct Answers A legal tradition that is shaped
by precedents and traditions from previous judicial decisions
Communist totalitarianism Correct Answers centers on a
communist party
