BUSMHR 2000 exam 1 qs

In what do companies engage when they systematically increase the international dimension of their business​ activities?

internationalization

​________refers to the performance of trade and investment activities by firms across national borders

International Business

Which type of investment is the passive ownership of foreign securities for the purpose of generating financial​ returns?

International Portfolio Investment

Carol wants to expand her recycled toy business​ abroad, because demand for recycled products is much higher in Europe and Asia than in the United States. She locates three suppliers in Europe and three in​ Asia, and creates one factory in Germany and one in Singapore. She seeks ways to advance her machinery to meet the needs of her production as well as her​ eco-friendly business model. In what type of international business has Carol​ engaged?

Foreign Direct Investment

A macro trend of intense economic interconnectedness among the nations of the world is called​ ________.

Globalization

Which of the following would be a​ cross-cultural risk in​ internationalization?

Different Languages

If a firm is operating in a foreign​ country, what type of risk does it face from the​ country's political,​ legal, and economic​ environment?

Country Risk

In international​ business, cross-cultural risk can come from differences in language and culture. Which statement best explains why language is an important aspect of​ culture?

Language facilitates communication and sheds light on​ people's value systems.

Custom​ Cars, a painting and auto modification​ company, has expanded operations into South America. The first problem Custom Cars encountered was determining the applicable laws in the new country.​ Next, Custom Cars was informed by the local mayor that the firm will be shut down if it does not prepay its taxes in cash. Which risk in international business is Custom Cars​ encountering?

Country Risk

A U.S. mining operation opens a mine in Canada. The owner knows that it is easier and less expensive to acquire mining equipment in the​ Klondike, an area of​ Canada, than elsewhere. The owner of the mine goes to the Klondike and meets locals who offer to partner with him. Why is this miner seeking international​ business, and what type of risk is he​ taking?

Commercial Risk; to gain access to less costly factors of production

What type of group that participates in international business is most likely to work in fields such as education and health​ care?

Nongovernmental Organizations (NGO's)

Sally, a recent business school​ graduate, loves​ adventure, so she is seeking a job in a foreign country to expand her sense of the world of business. She is being recruited by a company that has 50 employees and is looking to hire additional personnel to oversee the​ firm's exporting branch in Vietnam. What type of international business is recruiting​ Sally?

Small Enterprise

Pioneer Systems is a young entrepreneurial company that has engaged in international business from the day it opened its doors. Pioneer is categorized as a​ ________

Born Global Firm

A focal firm is a company that​ ________.

Initiates international business transactions

​________ include ​businesses, institutions, and governments

Organizational Buyers

Why would firms internationalize to earn higher margins and​ profits?

Market growth in mature countries is often flat, and foreign markets may be undeserved.

India is entering the global age and has a growing middle class. An Indian car manufacturer wants to offer a car for the average citizen of​ India, but does not have the technology available to create an inexpensive car that meets the laws that the Indian government is considering imposing. The company sets out to find a U.S. hybrid and electric car manufacturer that is willing to work with them. Why would a U.S. firm most likely​ agree?

To develop a network of people and increase business in the future.

Companies primarily internationalize for the purpose of​ _______

Gaining a competitive advantage

What is the LEAST likely motive for international​ expansion?

Learning about a new culture

When Nissan opened its first factory in the United​ Kingdom, many Japanese auto parts suppliers​ followed, establishing their own operations there. This is an example of​ ________.

Better serving clients that have moved into foreign markets.