Global Business-Chapter 1

What is the difference between exporting and importing?

Exporting = selling abroad. Importing = buying/sourcing from abroad

What are the two main types of international investment?

FDI (direct, long-term, asset ownership)
Portfolio investment (passive, short-term securities)

Name the four risks of international business.

Cross-cultural
country/political
currency/financial
commercial

What’s the difference between globalization (macro) and internationalization (micro)?

Globalization = global economic integration (macro).
Internationalization = firm-level increase in cross-border business (micro).

Which firms are considered "born globals"?

SMEs that go international soon after founding.

Give one driver of globalization.

Any of these would work:
Reduction of trade barriers
Technology
Liberalized markets
Industrialization
Integration of finance

Give an example of cross-cultural risk.

Negotiation styles differ: Mexicans value relationships; Americans get down to business quickly.

What is country risk?

Political, legal, or economic instability that negatively affects business operations.

What is a societal consequence of globalization?

Offshoring and job flight, environmental impact, or cultural loss.

What cultural dimension measures tolerance for risk and uncertainty?

Uncertainty avoidance (Hofstede).