International Business Midterm Questions with Verified Solutions

International Business Midterm Questions with Verified Solutions The globalization of business and economic growth has _____ since _____. Accelerated dramatically, the 1990s What are the three major benefits of international business from an individual company's standpoint? More potential customers, lower production costs from the economics of scale, and the ability to hone skills through competing on foreign markets Which factors typically drive international business? Market, environment, cost, and competition How is the relative participation of countries in the world trade evolving? Western Europe's relative participation is dwindling, while that of China, Brazil and ASEAN countries has grown Wide-scale trade was present in and around the area controlled by the Roman Empire in its heyday. How was trade affected by Rome? The safety provided by the legions and navy, the roads built and common coinage within the empire helped trade flourish International business is conducted in the form of: Direct trade, management contracts, licensing, and franchising over national borders What is required to develop an international business partnership? An international transaction that is followed by mutual feeling that the participants are better off after the transaction than they were before it Communication technology has affected global trade in all of the following ways, except quick and precise communication practices have effectively made the notions of previous generations, such as law of supply and demand, obsolete How has international business changed policy makers' job? The complicated trade networks have increased the number of responsibilities, while international market interconnectedness have limited the tools to balance local market economv Which methods are generally accepted in global free trade to reach long-term balance of payments? Generating enough export sales and attracting enough foreign investments to balance out imports and outgoing investments Guaranteed government contracts, purchases, protection from competition through tariffs, and local content requirements are examples of which kind of investment promotion? non-financial All of the following are ways import controls may backfire and cause unforeseen consequences, except Importing natons often use military action to retallate What typically drives and shapes the relationship between a host country and a business engaging in direct foreign investment? The relative bargaining power or each party What are known as brownfield investments? Investments resulting in acquisitions of local companies Providing roads, land, buildings, loans, and provisions of education are examples of which kind of incentives on investments? financial What is the core mission of the World Trade Organization? Supporting international trade and investment How can a business act as an agent of change? By introducing new products, ideas, and practices to a culture. Flat and fluid power hierarchy is measurable on which cultural dimension? Power distance What are the defining features of a low-context culture? The words used for communicating carry a lot of meaning, while the context in