FBLA International Business

the following situations illustrates a polychronic perspective?

A) When a North American talks to a Latin American, he or she may unconsciously back up to maintain personal space.

Latin Americans have a flexible perception of time and may not arrive exactly at the pre-determined time for appointments.

would NOT be considered an example of foreign direct investment (FDI)?

Cross-border purchase of stocks

________ is at odds with free trade, the unrestricted flow of products, services, and capital across national borders

Trade opennes

What represents an infrastructural factor that firms must consider when selecting an FDI location?

Availability and quality of local manufacturing

Titania is a country characterized by a high-context culture. This implies that ________.

personal relations and goodwill are valued in Titania

As part of opening manufacturing units abroad, a U.S. apparel firm decided to send its apparel production coordinator Chris to Bangladesh. Chris is distressed that people don't come to meetings on time and finds it disrespectful when his team members stand too close to him. Chris may trigger a cross-cultural risk by a(n) ________.

ethnocentric orientation

What best characterizes the development of international business?

A) It has existed in some form for centuries

What is provided by the licensor in a licensing agreement?

A combination of intellectual property and technical information and assistance

Blocking imports ________.

Reduces the availability of products sold in the home market

What is a key reason that a focal firm would most likely enter a collaborative venture with a foreign firm?

the foreign firm can fill an important gap in the focal firm's value chain

What is the underlying principle of socialism

Collective welfare of people outweighs the welfare of the individual.

What would be the best way for a manager to learn about country risks in a host country?

employees working in the host country

What is true with regard to protectionism?

It can trigger retaliation from foreign governments, which reduces sales prospects for exports.

Acculturation is defined as the process of ________.

adjusting and adapting to a culture other than one's own

Governments support domestic industries by ________.

adopting procurement policies that restrict purchases to home-country suppliers

What behaviors of a firm can be called unethical?

tolerating sweatshop conditions

Firms with a strong social interest ________.

aim to optimize work conditions and diversity in hiring

What does going deep mean

means institutionalizing appropriate behavior into the organization's culture so it becomes part and parcel of strategy.

Family conglomerates (FCs) might pose a challenge to firms trying to enter emerging markets because ________.

FCs enjoy substantial competitive advantages that overwhelm late entrants

What is a characteristic of emerging markets?

rapidly declining trade barriers

What would be a example of a company implementing a transnational strategy?

could reduce the number of global suppliers.

What is a example of a company implementing a multidomestic strategy instead of a global strategy?

the managers lack internationalization experience.

What would be a important questiona manager say to evaluate the integration-responsiveness framework?

What type of balance is appropriate between headquarters and country managers?

is most likely applicable to a Country witch is based on common law

A detailed contracts that clearly state all potential contingencies

The ________ is the simplest and most common level of regional integration.

Free Trade area

what allows a manufacturer to practice dumping?

subsidies

What means meeting humanity's needs without harming the ability of future generations to meet their needs.

sustanability

According to relativists ________.

ethical truths differ from group to group

________ represents the apex of the pyramid of ethical behavior.

Corporate social responsibility

________ represents the base of the pyramid of ethical behavior.

Complying with laws and regulations

Corruption is defined as ________.

the abuse of power to achieve illegitimate personal gain

________ is the procurement of products or services from suppliers located abroad.

Global sourcing

______ refers to offering, giving, receiving, or soliciting anything of value to influence the actions of a government official or a corporate manager.

Bribery

What acts makes it illegal for U.S. firms to offer bribes to foreign parties in order to secure or retain business?

the U.S. Foreign Corrupt Practices Act

What is true with regard to corruption?

Corruption harms the poorest in societies.

In countries with minimal corruption ________.

financial and accounting information is transparent

The process of reproducing assets without compensating those who originally created them is known as ________.

Counterfeiting

What grants protections to the creators of art, music, books, software, movies, and TV shows?

copyright

________ confer the exclusive right to manufacture, use, and sell products or processes.

Patent

The Nike "swoosh" is an example of a ________.

Trademark

Sustainable practices lead to ________.

cost savings from more efficient production

What approache leads to ethical standards for corporate governance reflects the view that the best ethical action is the one that provides the most good or the least harm?

utilitarian approach

What approache leads to ethical standards for corporate governance reflects the view that the best action emphasizes the welfare of the entire community or nation?

common good approach

71) The ________ is a policy platform and practical framework for companies committed to sustainability and responsible business practices. It is the world's largest voluntary corporate citizenship initiative, representing thousands of businesses in more than 135 countries.

United Nations Global Compact

In terms of CSR and sustainability, going wide implies ________.

a continuous effort to understand how CSR and sustainability affect every aspect of the firm's operations worldwide

Government-imposed unilateral prohibition of trade with another country is known as:

Sanction

Scholars prescribe two perspectives that can help us fully understand the success or failure of internationalising firms. The two perspectives are:

Resource based view and institution based view

The negative impact of political decisions, political events or changes in legal system on a multinational's profitability is known as:

Political risk

For successfully managing a challenging international business environment, managers must adopt

Global Mindset

The shift toward a market-based economic system involves:

Deregulation ,Institutional development ,Privatization

The ________ rests on the premise that countries differ in the type and quantity of production factors they possess

factor proportion theory

The ________ states that it can be beneficial for two countries to trade without barriers as long as one is relatively more efficient at producing goods or services needed by the other.

comparative advantage principle

A firm that pursues foreign direct investment to take advantage of government incentives is demonstrating a(n) ________ motive.

efficeinty seeking

The managerial routines, behaviors, and mechanisms that allow a firm to function as intended are known as ________.

organizational culture

Which of the following is the underlying principle of socialism?

Collective welfare of people outweighs the welfare of the individual.

What would implementing a multidomestic strategy instead of a global strategy?

that managers lack internationalization experience.

following most likely supports a company implementing a transnational strategy?

company could reduce the number of global suppliers.

Which law is more flexibe for for judicial interpretation

common law

Give a reason to pick civil law over common law

contractual noncompliance provisions are broader in scope

The CEO introduced another overseas effort by noting that it represented an attempt to confront an international competitor. The CEO was most likely referring to which of the following efforts?

a distribution centre established in London to pre-empt the growth of a British car manufacturer

A Multinational manager decides to allow hiring of children for a foreign plant as such practices are accepted in the country. Which ethical principle is she basing her decision on?

Ethical relativism

Government-imposed unilateral prohibition of trade with another country is known as:

sanctions

The negative impact of political decisions, political events or changes in legal system on a multinational's profitability is known as:

political risk

A manager who can successfully adapt and manage culturally diverse situations has a high:

cultural intelligance

Firms entering a market early can gain first mover advantages including:

-The ability to pre-empt rivals and capture demand by establishing a strong brand name

-The ability to build up sales volume in that country and ride down the experience curve ahead of rivals and gain a cost advantage over later entrants

-The ability to create switching costs that tie customers into their products or services making it difficult for later entrants to win business

First mover disadvantages - the disadvantages associated with entering a foreign market before other international businesses

These may result in pioneering costs

why might Small-scale entry be attractive

it allows the firm to learn about a foreign market, but at the same time it limits the firm's exposure to that market

what is usually the firm's first foreign entry strategy and very popular among SME's

exporting

what mode of entry is sensitive to tarriff barriers,Low risk, low cost, and flexible

exporting

what mode of entry An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation

licencing

what is a mode of entry that An arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other compensation.

franchising

what is business format franchising

franchisor transfers to the franchisee a total business method— including production and marketing methods, sales systems, procedures, training, and the use of its name

what represents the most advanced form of regional integration?

political union

What is Regional Integration?

growing economic interdepencence that results when 2 or more countries within a geograpic region form or allocation aimed at reducing barriers to trade and investment

what is the most prefered way to enter a bloc fro firms

FDI

what is born globals

is a business organisation that from inception seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries

How does Born globals Compete?

-imlement cutting edge it systems

-be creative in product design

-competitive pricing strategies

-be customer friven and customer focus

what does Entrepreneurial motives affect

internationalisation (Networking)

what has teh Internet done for global businesses

Internet has accelerated pace of global businesses at unprecedented rates.

what has shifted the nature of competition

Globalisation and technology

what is the rule of law

Existence of a legal system where rules are clear, publicly disclosed, fairly enforced, and widely respected by individuals, organisations, and the government

which legal system is more flexible

common law

what is common law based on

tradition, precedent, and custom

what do judges do in civil law

Judges do not interpret but apply the law

Totalitarianism is most associated with what legal system

most associated with religious law and socialist law.

what is economic freedom

is the fundamentl right of every human to control his or her own labor and property

what opposes foreign firms

Local competing firms

how can we manage country risk

careful choice of countries and practice enviromental scanning to develop comphensives understanding of the macro enviroment

what is typically manifested by tariffs, nontariff barriers such as quotas, and arbitrary administrative rules designed to discourage imports.

protectionism

what did The U.S. government put on foreign steel to protect U.S. steel manufacturers from foreign competition, aiming to give the U.S. steel industry time to restructure and revive itself.

mposed tariffs on imports

what can generate substantial government revenue.

tarriff

What can protection do

-helps preserve domestic jobs, at least in the short term

-helps ensure the development of industries that strenghten the nation's economy

what is wto

world trade organisation

what is Regional Economic Integration aimed at

refers to the growing economic interdependence that results when nations within a geographic region form an alliance aimed at reducing barriers to trade and investment

what is cross culture risk

a situtation or event where a cultural miscommunication puts some human value at stake

What us Socialization

the process of learning the rules and behavioral patterns appropriate to ones society

What makes Attitudes and preferences different than values

attitudes are often unconsciously held and may not have a rational basis.

What is Monochronic and give example

when individual is focused in scehdules,punctuality,time as a resource for example people in US are impatient and hurried

What is the difference in deal oriented cultures and relationship oriented cultures

Deal oriented cultures managers focus on the task at hand ,are impersonal,typically use contracts and want to just "get down to business" while in relationship oriented cultures managers value affiliations with people and getting to know parties in business interactions

What attitude towards culture is the most the most prevalent that is also the most likely to lead to failure in global business.

Ethnocentrism