International Business Midterm Revision (Chapters 1–5)

Comprehensive fill-in-the-blank practice flashcards covering core definitions, frameworks, and theories across Chapters 1 through 5 for the International Business midterm examination.

A reduction or reversal of cross-border integration is referred to as __________.

deglobalization

Policies that shield domestic firms from foreign competition are known as __________.

protectionism

When a firm internationalizes to gain technology, skills, brands, knowledge, or other capabilities, its motive is classified as __________ seeking.

strategic-asset

The extra costs and disadvantages a firm faces simply because it operates in a foreign country are known as the __________.

liability of foreignness (LOF)

Disadvantages stemming from not belonging to important local business networks are referred to as the __________.

liability of outsidership (LOO)

In foreign direct investment, a __________ investment builds a brand-new operation from the ground up.

greenfield

In Hofstede's dimensions, __________ refers to the degree of discomfort with ambiguity and uncertainty.

uncertainty avoidance

In the GLOBE framework, the cultural dimension defined as how directly and strongly people express themselves is called __________.

assertiveness

The GLOBE dimension that reflects loyalty and pride within close groups, like family, team, or organization, is called __________.

in-group collectivism

In __________ communication, messages are explicit, direct, and detailed, with written information and contracts holding high importance.

low-context

The managerial orientation of treating each host country as unique and adapting decisions to local conditions and culture is known as __________.

polycentrism

Assuming home-country practices are best and applying them abroad with little adaptation is called __________.

ethnocentrism

A regime that holds free and fair elections but has weaknesses in participation or governance is classified as a __________.

flawed democracy

The type of political risk that occurs when the government changes how resources or profits are shared, hurting some firms, is known as __________ risk.

distributive

Negative feelings toward a country resulting from historical, political friction, or economic tension are termed __________.

consumer animosity

Government seizure of a specific foreign-owned asset is called expropriation, whereas transferring private ownership or control to the state across an entire industry is called __________.

nationalization

A legal system that relies primarily on written laws and legal codes rather than precedent is called __________ law.

civil

The concept that which country's courts or laws have the power to govern a dispute in cross-border transactions is referred to as legal __________.

jurisdiction

The monetary value of final goods and services produced within a country during a given period is known as __________.

Gross Domestic Product (GDP)

Country income groups (high, upper-middle, lower-middle, low) are classified using __________ per capita.

GNI

The large population situated at the lower end of the income distribution is known as the __________.

Bottom of the Pyramid (BoP)

An economic system in which the state owns or controls major resources and centrally directs production is called a __________ economy.

command

The classical trade theory from the 15th–18th centuries that measured wealth by stocks of gold and silver and promoted trade surpluses is __________.

mercantilism

David Ricardo's theory explains that mutual gains from trade stem from specialization according to lower relative __________ cost.

opportunity

The __________ theory predicts that a country will export goods that intensively use its relatively abundant factor and import goods that use its scarce factor.

Heckscher–Ohlin (H–O)

The finding that the capital-abundant United States exported relatively labor-intensive goods and imported capital-intensive goods is known as the __________.

Leontief Paradox

The __________ theorem states that when the relative price of a good rises, the real return to the factor used intensively in producing it rises, while the real return to the other factor falls.

Stolper–Samuelson

The __________ model predicts that bilateral trade increases with the economic size (GDP) of countries and decreases with geographical distance.

gravity

Posner's __________ theory proposes that innovation gives a country a temporary export advantage until foreign competitors imitate or adopt the technology.

technology gap

When outward migration results in the loss of educated and highly skilled workers from a country, it is known as __________.

brain drain