BUS 280 Exam 1

is the name we give to the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. 

Globalization

Opposition groups allege that globalization empowers organizations erodes the ______. 

sovereignty of a nation

______ are the two main forces that underlie the globalization of markets and production. 

Falling barriers to trade and investment and technological innovation

Multinational corporations are key players in international business and can be described as companies that ______. 

have direct investments in the form of marketing or manufacturing subsidiaries abroad in multiple countries

Why do most international firms today support reasonable environmental laws? 

They recognize that healthy future markets require a sustainable approach to the business expansion for future local markets for their goods and services.

 The revision in 1994 of the GATT clearly defined intellectual property rights in order to ______. 

give more protection to copyrights, trademarks, and patents

Operating across borders and time zones could complicate the job of coordinating and controlling international business activities especially for smaller firms. To operate more efficiently, international companies tend to ______. 

accelerate the use of technology, email, video conferencing, the Internet, and intranets

The main purpose for establishing regional trade agreements such as NAFTA and APEC is to ______. 

foster trade and boost cross-border investment

Globalization of markets can benefit companies that sell a global product and creates new market opportunities abroad especially if their home market ______. 

is small or becoming saturated

The power of the WTO that sets it apart from the GATT is its capability to ______. 

penalize offending nations and the power to settle trade disputes

Why do companies typically produce goods and services abroad? 

To reduce their overall labor costs

A company that adopts a global perspective and engages in international business from or near its inception is known as a(n) ______. 

born global firm

Cultural homogeneity refers to — 

cultural uniformity

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses? 

capitalism

NAFTA's purpose is to: 

Eliminate trade barriers among the member countries

Purchasing power parity is: 

The number of units of a currency required to buy the same amount of goods and services in the domestic market as one dollar would buy in the US.

Arguments for trade restrictions include: 

all of the above.

Frequently, a firm will go abroad to:  (4 pts)

all of the above.

Uncontrollable forces that management has no direct control over include:

Political.

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation?

confiscation

______ is a system in which a supervisor walks an employee through every step of an assignment or task, monitoring the results at each stage. 

Situational management

Which of the following refers to the process by which cultural traits spread from one culture to another? 

cultural diffusion

Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture? 

subculture

______ is anything that represents a culture's way of life, including gestures, material objects, traditions, and concepts. 

cultural trait

The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ______. 

gross national product (GNP)