IBUS 410: Exam 1 || with Errorless Answers.
globalization correct answers the shift toward a more integrated and interdependent world
economy
main drivers of globalization correct answers Decline in barriers and technological change
Multinational Enterprise (MNE) correct answers any business that has productive activities in 2
or more countries
Since the 1960s, there has been a correct answers Rise in non-US MNE, and a growth of mini-
multinationals
How has FDI changed over time? correct answers US has decreased % share of total FDI stock,
Developing countries have increased
four trends of drastic change in the demographics of the world economy correct answers 1. The
changing world output and world trade picture
2. The changing foreign direct investment picture
3. The changing nature of the multinational enterprise
4. The changing World Order
Managing an international business is different from managing a domestic business because
correct answers -country difference
-complexity
-government intervention
-converting money
, political economy correct answers political, economic, and legal systems of a country are
interdependent; they interact and influence each other and in doing so they affect the level of
economic well-being.
private action correct answers theft, piracy, blackmail, and the like by private individuals or
groups
Public action correct answers public officials extort income or resources from property holders;
excessive taxation, requiring expensive licenses
when a country has a high level of corruption correct answers -FDI falls
-international trade falls
-economic growth falls
Country Attractiveness correct answers 1) Benefits:
Size of Economy
Likely Economic Growth
2) Costs:
Corruption
Lack of Infrastructure
Legal Costs
3) Risks:
Political: Social Unrest/Anti-Business Trends
Economic: Economic Mismanagement
Legal: Failure to Safeguard Property Rights
globalization correct answers the shift toward a more integrated and interdependent world
economy
main drivers of globalization correct answers Decline in barriers and technological change
Multinational Enterprise (MNE) correct answers any business that has productive activities in 2
or more countries
Since the 1960s, there has been a correct answers Rise in non-US MNE, and a growth of mini-
multinationals
How has FDI changed over time? correct answers US has decreased % share of total FDI stock,
Developing countries have increased
four trends of drastic change in the demographics of the world economy correct answers 1. The
changing world output and world trade picture
2. The changing foreign direct investment picture
3. The changing nature of the multinational enterprise
4. The changing World Order
Managing an international business is different from managing a domestic business because
correct answers -country difference
-complexity
-government intervention
-converting money
, political economy correct answers political, economic, and legal systems of a country are
interdependent; they interact and influence each other and in doing so they affect the level of
economic well-being.
private action correct answers theft, piracy, blackmail, and the like by private individuals or
groups
Public action correct answers public officials extort income or resources from property holders;
excessive taxation, requiring expensive licenses
when a country has a high level of corruption correct answers -FDI falls
-international trade falls
-economic growth falls
Country Attractiveness correct answers 1) Benefits:
Size of Economy
Likely Economic Growth
2) Costs:
Corruption
Lack of Infrastructure
Legal Costs
3) Risks:
Political: Social Unrest/Anti-Business Trends
Economic: Economic Mismanagement
Legal: Failure to Safeguard Property Rights
