International Business Exam || Latest
Exam
Globalization -CORRECT ANSWER Broadening set of interdependent relationships
among people from different parts of the world divided into nations. [interdependent
relationship between different countries]
International Business -CORRECT ANSWER All commercial transactions between two
or more countries. Only exists when funds move across boarders. (ex) I bought my
plane ticket to Italy from American Airlines- this was NOT considered international
business because the funds went to the same country. If I bought my ticket from a
foreign country it would be considered international trade.
Two Types of International Business and Differences Between them -CORRECT
ANSWER Public = has shareholders
Private = does not have shareholders
In what ways does international business influence domestic operations? -CORRECT
ANSWER Physical
Societal
Competitive
(ex) banks- amount of public companies are changing
Fiat- biggest Italian car producer 10% owned by son 10% US stock and 80% Italy
Why engage in international business?
Why is it important to study? -CORRECT ANSWER Expand sales
Acquire Resources (better resources, services, products)
Minimize Risk (diversity among diff countries taking advantage of business cycle)
Important to study because = today global events affect almost all companies
everywhere.
Reasons for Growth in International Business/Globalization -CORRECT ANSWER 1)
Technology- increase and expansion
2) Transportation- quicker and lower costs
3) Increased Global Competition
4) Communication- control from afar
5) Consumer Pressure
6) Liberal govt policies on trade
7) Development of institutions that support Int'l trade
*essay
Modes of International Business -CORRECT ANSWER Importing & Exporting = (trade)
merchandise is most common but services are also traded. (ex) merch: Italy exports
,wine, the physical finished product, to the US. (ex) service: tourism and transportation,
turn key operations, licensing and franchising (bud wiser gave peroni license to sell bud
wiser in Italy (licensing)
Investments = factors of production can be a direct investment (control- joint ventures)
and portfolio investments (no control)
Two Types of Investments -CORRECT ANSWER Direct Investments (control) joint
ventures- new activity started by 2 or more partners
Portfolio Investments (no control) stocks
Example of a French export would be a visit by a -CORRECT ANSWER **US citizen to
Euro Disney in France
xxx French Citizen to Disneyland in the US
When one party allows another party the use of a trademark and assist that other party
on a regular basis the arrangement is known as a -CORRECT ANSWER Franchise
MNE -CORRECT ANSWER Multinational Enterprise is a global approach to markets
and production
Types of Ownership -CORRECT ANSWER Propritorship = one owner
Partnership = 2 or more owners
Cooperation
(all three of these could go global)
(ex) nestle chocolate brand is so globalized that you no longer associate it with one
country (switzerland)
Offshoring -CORRECT ANSWER transferring production abroad (seen as controversial)
Antiglobalists 3 thoughts on Globalization -CORRECT ANSWER 1) threats to national
sovereignty
2) promotes growth that causes environmental stress
3) increase income unequally (skews income distribution)
Why is it important to understand cultural environments facing business? -CORRECT
ANSWER It is important for companies to unlearns and be sensitive to constantly
changing environments.
Major Cultural Issues Occur in International Business when: -CORRECT ANSWER
Employees:
1) have subconscious reactions
2) assume all societal groups are similar
3) can't adjust / accept foreign culture
4) insensitive to consumer preferences
(ex) we eat at 6 in US in Italy they eat later. US news is on at 6 but is not in Italy
, Cultural Factors -CORRECT ANSWER Behaviour affecting business
Identification and Dynamics of Cultures
Cultural Awareness
Strategies for dealing with cultural differences
Cultural Awareness (Attire, Religion, Language) -CORRECT ANSWER Attire: Italians
dress more formal than US
Religion: Italians primarily Catholic
Language: Italians have two ways of speaking informal and formal
Culture -CORRECT ANSWER learned set of norms based on attitudes, values, and
beliefs of a group of people (Points of reference: national, geographical, language,
religion) * International business often changes cultures (ex) McDonalds has to change
their menu in diff countries to adapt
Different types of cultures people belong to -CORRECT ANSWER national, ethnic,
professional, and organizational
Difference between Ascribed versus Acquired Status
*on exam -CORRECT ANSWER Ascribed = status you cannot change (where you
come from, gender, family, caste, ethic)
Acquired = can change status (religion, political affiliations)
Social Stratification Systems -CORRECT ANSWER Individuals Status with the culture
Ascribed Group Membership
Acquired Group Membership
United States "Values"
*he said important slide -CORRECT ANSWER 1) Success (compentence)
2) Intolerance for discrimination of: Gender, Race, Age, Religion
3) US values seem radical to foreigners: It is important that int'l business spend
resources to determine what foreign cultures can ethically/effictively conduct in business
(ex) case study chapter 2 w/ Saudi
Common Cultural Differences: -CORRECT ANSWER Work Ethic, Materialism, Leisure
(US not as relaxed as Italians) , expectation of success and reward, assertiveness and
masculinity index (Japan vs. Sweden)
Hierarchy of Needs Pyramid -CORRECT ANSWER Physiological, Security, Affiliation,
Esteem, Self-Actualization.
Once you achieve one level you are no longer motivated to achieve that level so you go
to the next level. *in italy the most important is security of the job and security not being
fired, Japan's most important is affiliation, US//UK is esteem
Relationship Preferences: Power Distance -CORRECT ANSWER Relationship between
superiors and subordinates (Distance tends to be greater for Italy compared to US)
Exam
Globalization -CORRECT ANSWER Broadening set of interdependent relationships
among people from different parts of the world divided into nations. [interdependent
relationship between different countries]
International Business -CORRECT ANSWER All commercial transactions between two
or more countries. Only exists when funds move across boarders. (ex) I bought my
plane ticket to Italy from American Airlines- this was NOT considered international
business because the funds went to the same country. If I bought my ticket from a
foreign country it would be considered international trade.
Two Types of International Business and Differences Between them -CORRECT
ANSWER Public = has shareholders
Private = does not have shareholders
In what ways does international business influence domestic operations? -CORRECT
ANSWER Physical
Societal
Competitive
(ex) banks- amount of public companies are changing
Fiat- biggest Italian car producer 10% owned by son 10% US stock and 80% Italy
Why engage in international business?
Why is it important to study? -CORRECT ANSWER Expand sales
Acquire Resources (better resources, services, products)
Minimize Risk (diversity among diff countries taking advantage of business cycle)
Important to study because = today global events affect almost all companies
everywhere.
Reasons for Growth in International Business/Globalization -CORRECT ANSWER 1)
Technology- increase and expansion
2) Transportation- quicker and lower costs
3) Increased Global Competition
4) Communication- control from afar
5) Consumer Pressure
6) Liberal govt policies on trade
7) Development of institutions that support Int'l trade
*essay
Modes of International Business -CORRECT ANSWER Importing & Exporting = (trade)
merchandise is most common but services are also traded. (ex) merch: Italy exports
,wine, the physical finished product, to the US. (ex) service: tourism and transportation,
turn key operations, licensing and franchising (bud wiser gave peroni license to sell bud
wiser in Italy (licensing)
Investments = factors of production can be a direct investment (control- joint ventures)
and portfolio investments (no control)
Two Types of Investments -CORRECT ANSWER Direct Investments (control) joint
ventures- new activity started by 2 or more partners
Portfolio Investments (no control) stocks
Example of a French export would be a visit by a -CORRECT ANSWER **US citizen to
Euro Disney in France
xxx French Citizen to Disneyland in the US
When one party allows another party the use of a trademark and assist that other party
on a regular basis the arrangement is known as a -CORRECT ANSWER Franchise
MNE -CORRECT ANSWER Multinational Enterprise is a global approach to markets
and production
Types of Ownership -CORRECT ANSWER Propritorship = one owner
Partnership = 2 or more owners
Cooperation
(all three of these could go global)
(ex) nestle chocolate brand is so globalized that you no longer associate it with one
country (switzerland)
Offshoring -CORRECT ANSWER transferring production abroad (seen as controversial)
Antiglobalists 3 thoughts on Globalization -CORRECT ANSWER 1) threats to national
sovereignty
2) promotes growth that causes environmental stress
3) increase income unequally (skews income distribution)
Why is it important to understand cultural environments facing business? -CORRECT
ANSWER It is important for companies to unlearns and be sensitive to constantly
changing environments.
Major Cultural Issues Occur in International Business when: -CORRECT ANSWER
Employees:
1) have subconscious reactions
2) assume all societal groups are similar
3) can't adjust / accept foreign culture
4) insensitive to consumer preferences
(ex) we eat at 6 in US in Italy they eat later. US news is on at 6 but is not in Italy
, Cultural Factors -CORRECT ANSWER Behaviour affecting business
Identification and Dynamics of Cultures
Cultural Awareness
Strategies for dealing with cultural differences
Cultural Awareness (Attire, Religion, Language) -CORRECT ANSWER Attire: Italians
dress more formal than US
Religion: Italians primarily Catholic
Language: Italians have two ways of speaking informal and formal
Culture -CORRECT ANSWER learned set of norms based on attitudes, values, and
beliefs of a group of people (Points of reference: national, geographical, language,
religion) * International business often changes cultures (ex) McDonalds has to change
their menu in diff countries to adapt
Different types of cultures people belong to -CORRECT ANSWER national, ethnic,
professional, and organizational
Difference between Ascribed versus Acquired Status
*on exam -CORRECT ANSWER Ascribed = status you cannot change (where you
come from, gender, family, caste, ethic)
Acquired = can change status (religion, political affiliations)
Social Stratification Systems -CORRECT ANSWER Individuals Status with the culture
Ascribed Group Membership
Acquired Group Membership
United States "Values"
*he said important slide -CORRECT ANSWER 1) Success (compentence)
2) Intolerance for discrimination of: Gender, Race, Age, Religion
3) US values seem radical to foreigners: It is important that int'l business spend
resources to determine what foreign cultures can ethically/effictively conduct in business
(ex) case study chapter 2 w/ Saudi
Common Cultural Differences: -CORRECT ANSWER Work Ethic, Materialism, Leisure
(US not as relaxed as Italians) , expectation of success and reward, assertiveness and
masculinity index (Japan vs. Sweden)
Hierarchy of Needs Pyramid -CORRECT ANSWER Physiological, Security, Affiliation,
Esteem, Self-Actualization.
Once you achieve one level you are no longer motivated to achieve that level so you go
to the next level. *in italy the most important is security of the job and security not being
fired, Japan's most important is affiliation, US//UK is esteem
Relationship Preferences: Power Distance -CORRECT ANSWER Relationship between
superiors and subordinates (Distance tends to be greater for Italy compared to US)
