IBA 350 - Test 1 - University of Alabama

________ involved the passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns.

International portfolio investment

ABC Enterprises transferred some of its manufacturing and other value-chain activities to a more cost-effective location in China five years ago. Recently, ABC Enterprises has undergone a change in management, and the new manager has decided to move those value-chain and manufacturing activities back to the home country. In which of the following is ABC participating?

Reshoring

In ________, people are primarily concerned with their own self-interest, and ties among individuals are fairly loose

individualistic societies

From the trade theories perspective, the main reason that firms internalize value-chain activities is to _______.

gain and sustain competitive advantage

_____ involved the allocation of assets to another country or the attainment of assets in that particular country.

International investment

Which term refers to unconscious judgements, often not based on logical facts, about what is good, acceptable, important, and normal?

attitudes

The formation of the WTO and emergence of economic integration blocs led to_____.

a global decrease in barriers to trade

Which of the following best describes culture?

Culture is relative

Cross-cultural differences in business can lead to problems with __________, which is when information and instructions can be understood in multiple ways.

Ambiguity

The greatest significance of globalization is reflected directly in a company's

value chain

Societies that score low on uncertainty avoidance

take risks and make decisions quickly

Which dimension of market globalization is a result of the North American Free Trade Agreement, as well as other countries agreements that have facilitated reduced trade barriers among their members?

Growth of regional economic integration blocs

There have been four phases of globalization since the 1800s. The most current phase is characterized by _________.

the growth of cross-border trade

Which of these describes a strategy that involved a firm's establishing a presence overseas by acquiring productive assets such as land, plants, equipment, capital, and technology?

Foreign direct investment

Which term refers to the trend of corporations to methodically expand their worldwide business activities?

Internationalization

Advances in _____ have resulted in an expansion of the global marketplace for small and medium-sized enterprises (SMEs).

communications

Johnson & Johnson created alcohol-free Listerine Zero for Muslim countries, where spirits are forbidden, and Green Tea Listerine for Asian markets. This example shows that _________.

cultural differences necessitate the tailoring of marketing activities to target markets

Which of the following is a motivation for international expansion?

Being closer to supply sources

Which of the following is a societal consequence of globalization?

Offshoring and the flight of jobs

What is the second stage of internationalization process model?

Pre-export

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

A ________ values nonverbal messages and sees communication as a way to encourage harmony in relationships.

high-context culture

_______ is the tendency to view other cultures through the lens of one's own culture.

self-reference criterion

What is the most complex entry strategy for engaging in global business

Foreign direct investment

_________ is an inflexibly held attitude that is generally negative and typically times at particular groups of people.

a prejudice

in a ________ culture, people are flexible, and they value multitasking and spending a lot of time with others. Such cultures do not put much emphasis on time and schedules

polychronic

Critical incident analysis involved all of the following steps EXCEPT __________.

using an ethnocentric orientation in judging behavior

Acculturation refers to the process of _________.

adapting to a culture other than one's original culture

When a company transfers its. value-chain activities by launching a subsidiary in a foreign country, it is called _________.

offshoring

An _________ is form of collaboration between two of more firms to create a new enterprise.

joint venture

Established in 2010, Instagram quickly found an international market for its photo-site. Currently, only a small fraction of Instagram's customers are from the United States. Instagram is an example of a ___________.

born global firm

__________ refers to the performance of trade and investment activities by firms across national borders.

International Business

______ describes using one's own culture as a basis for judging other cultures.

Ethnocentric orientation

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

Internationalization

________ refers to degree of competence a country has in overseeing its own matters. It implies that the laws of one country cannot be applied to another country.

Sovereignty

_________ is a situation of event in which a cultural misunderstanding puts some human value at stake

cross-cultural risk

Which of the following describes an instance when a firm owns multiple stages in the production of a product or service?

Vertical Integration

The MNEs that are the most active in FDI are in the _________, _________, and _________ industries.

automotive, oil, telecommunications

Nigeria's telecom infrastructure has increased telephone usage to over 30 million cellular subscribers. What is the most likely benefit Nigeria will realize from adding telephones?

improved living standards

Sierra's religion is baed on a holy book called the Qur'an. She participates in daily ritual prayers, fasts during certain times of the year, and gives to charities. Her religion prohibits the consumption of alcohol or wearing revealing clothing. What religion does Sierra practice?

Islam

Which of the following is NOT a ket feature of foreign direct investment?

Proximity to key export markets

________ is a religion that is not associated with one particular prophet. It is an open-hearted faith that fully accepts other faiths and is inspired by central concepts called dharma and karma.

Hinduism

________ is defined as the ability to accept uncertainty and a lack of clarity in the thinking and actions of others. I ask students to do this with me all the time!

Tolerance for ambiguity

Which term refers to an expression whose symbolic meaning differs from the literally meaning?

Idiom

Tori believes that business contracts should be very exactly worded. Because of bad experiences, she does not trust agreements based on assumptions, handshakes, or unspoken understandings. Tori trusts extensive verbal explanations and spoken words more than relationships. She is from a ________ culture

low-context

_______ inspires corporations to establish their their sourcing, producing, and promoting activities on a worldwide scale in order to attain lower costs with higher efficiency.

Globalization

Which of the following statements about FDI is FALSE?

FDI requires fewer of a firm's capabilities than does any other entry strategy

Which of the following represents the trend of economic disaster spreading from one country to another?

Contagion

The sequence of activities implemented by a company in the course of creating, manufacturing, promoting, and servicing a product is known as _________.

a value chain

Which cultural dimension related to personal motivations and behaviors?

Values