ib test 1

What is International Business?

Any commercial transaction that crosses the borders of two or more nations.

What are Imports?

Goods and services purchased abroad.

What are Exports?

Goods and services sold abroad.

What is the annual value of global trade in goods?

Approximately $16.2 trillion.

What is a key perspective on globalization from businesspeople?

They see it as an opportunity.

What does technology do in globalization?

It reduces costs of communication and travel.

What is a Multinational Corporation (MNC)?

A firm with direct investments abroad in multiple countries.

What are Born Global Firms?

Firms that engage in international business from or near inception.

What is globalization?

The growing interdependence of economies around the world.

What are the benefits of globalization of markets?

Lower marketing costs, new market opportunities, and the ability to sell seasonal products globally.

What is Cultural Literacy?

Detailed knowledge of a culture.

What is Ethnocentrism?

Belief that one’s culture is superior to others.

What is Totalitarianism?

A political system that centralized power and controls people's lives.

What is Democracy?

A political system where leaders are elected either directly or by representatives.

What are the types of economic systems?

Centrally planned, mixed, and market economy.

What is Corporate Social Responsibility (CSR)?

Going beyond legal obligations to contribute to the welfare of society.

What does Mercantilism encourage?

Encourages exports and discourages imports.

What is Absolute Advantage?

The ability to produce more efficiently than others.

What is Comparative Advantage?

Specializing in what you do relatively best.

What is Factor Proportions Theory?

A theory suggesting that a country should export goods using its abundant resources.

What is New Trade Theory?

Focuses on productivity, first-mover advantage, and economies of scale.

What are the conditions in Porter's National Competitive Advantage?

Factor conditions, demand conditions, related industries, firm rivalry, and government & chance.

What is International Business?

Any commercial transaction that crosses the borders of 2 or more nations.

What are Imports?

Goods and services purchased abroad.

What are Exports?

Goods and services sold abroad.

What is the annual value of global trade in goods?

Approximately $16.2 trillion.

What is a key perspective on globalization from businesspeople?

They see it as an opportunity.

What does technology do in globalization?

It reduces costs of communication and travel.

What is a Multinational Corporation (MNC)?

A firm with direct investments abroad in multiple countries.

What are Born Global Firms?

Firms that engage in international business from or near inception.

What is globalization?

The growing interdependence of economies around the world.

What are the benefits of globalization of markets?

Lower marketing costs, new market opportunities, and the ability to sell seasonal products globally.

What is Cultural Literacy?

Detailed knowledge of a culture.

What is Ethnocentrism?

Belief that one’s culture is superior to others.

What is Totalitarianism?

A political system that centralized power and controls people's lives.

What is Democracy?

A political system where leaders are elected either directly or by representatives.

What are the types of economic systems?

Centrally planned, mixed, and market economy.

What is Corporate Social Responsibility (CSR)?

Going beyond legal obligations to contribute to the welfare of society.

What does Mercantilism encourage?

Encourages exports and discourages imports.

What is Absolute Advantage?

The ability to produce more efficiently than others.

What is Comparative Advantage?

Specializing in what you do relatively best.

What is Factor Proportions Theory?

A theory suggesting that a country should export goods using its abundant resources.

What is New Trade Theory?

Focuses on productivity, first-mover advantage, and economies of scale.

What are the conditions in Porter's National Competitive Advantage?

Factor conditions, demand conditions, related industries, firm rivalry, and government & chance.

What is Foreign Direct Investment (FDI)?

The purchase of physical assets or a significant amount of ownership of a company in another country to gain management control.

What are Tariffs?

Taxes levied by a government on goods entering or leaving a country.

What is a Quota?

A physical limit on the quantity of a specific good that can be imported into a country during a set period.

What is Regional Economic Integration?

The process whereby countries in a geographic region cooperate to reduce or eliminate barriers to the international flow of products, people, or capital.

What is a Free Trade Area?

A form of economic integration where member countries remove all barriers to trade among themselves while maintaining independent trade policies toward non-members.

What is the Foreign Exchange Market?

A decentralized global market for the trading of currencies, determining exchange rates for every currency.

What is an Entry Mode?

The institutional arrangement by which a firm provides its products, technologies, or other resources to a foreign market.

What are the components of Culture?

Values (abstract ideas about what is good or right) and Norms (social rules and guidelines for appropriate behavior).