MNB3702 Global Business Management Exam QuestionsandAnswers.

MNB3702 Global Business Management Exam QuestionsandAnswers. Global Busines management of US firms among the world’s 2000 in 2003 - ANSWER-38.8% .% of US firms among the world’s 2000 in 2017 - ANSWER-27% (drop of 236 firms compared to 2003) .2 drivers of Globalization (Macro Factors) - ANSWER--The decline in trade and investment barriers -Technological change .3 types of Economic systems - ANSWER--Market -Command -Mixed .3 ways for protecting intellectual property - ANSWER--Patent (brevet) -Copyrights -Trademarks (marques déposées) .4 dominant religions in the world - ANSWER--Christianity -Islam -Hindiusm -Buddhism .4 principles of Social stratas - ANSWER--Trait of society -Carries over into next generation -Generally universal but variable -Involves not just inequality byt also beliefs .Absolute Advantage (Adam Smith, The Wealth of Nations) - ANSWER-Countries should specialize in the production of goods for which they have an absolute advantage and then trade these goods for goods produced by other countries .Anti-corruption law in the US - ANSWER-US Foreign Corrupt Practices Act (FCPA) .Benefits of Trade for countries that can produce for themselves - ANSWER--Allows specialization -Achieve the efficiency of resource utility .Caste system - ANSWER--Social position determined by family -India has four main castes .Changing nature of the multinational enterprise - ANSWER--Rise of mini-multinationals (medium and small-sized businesses) -Internet is lowering barriers .Civil Law - ANSWER--Laws organized into codes -Less adversarial .Class system - ANSWER--Form of open social stratification -Position can be changed through achievement or luck .Collectivism - ANSWER--a system that stresses the primacy of collective goals over individual goals -The needs of society are viewed as being more important than individual freedoms .Command Economy - ANSWER--Government plans the good and services, quantity and price, then allocates them for the good of society -All businesses are state owned -Historically found in communist economies -No incentive for individuals to look for better ways to serve needs .Common Law - ANSWER--Tradition, precedent, custom -More flexible than other systems .Comparative Advantage (David Ricardo, 1817) - ANSWER-Critics of Absolute Advantage : is trade still beneficial if a country has an absolute advantage in the production of all products ? -A country should specialize in the production of the goods it produces most efficiently and buy the goods that it produces less efficiently .Conclusions of the studies of Hofstede - ANSWER--Correspondence between culture and the Nation-State -Research team may be culturally bounded .Convention on Combating Bribery of Foreign Public Officials in International Business Transactions - ANSWER-1997, another act against corruption in the US .Critics of globalization - ANSWER--Destroys manufacturing jobs in wealthy advanced economies -Services are also outsourced and contribute to a higher unemployment rate and lower living standards .Critics of supranational institutions (WTO, EU, UN) - ANSWER-Loss of national sovereignty .Culture - ANSWER-A system of values and norms that are shared among a group of people and that when taken together constitute a design for living .Decision-making processes - ANSWER-Decision about whether a decision is ethical or not .Decline in trade and investment barriers - ANSWER--GATT lowered barriers (Uruguay Round, WTO) -faster growth of trade of merchandised goods than the growth rate the world economy since 1950 .Defining group - ANSWER-two or more people who interact and are interdependent in the sense that their needs and goals cause them to influence each other .Definition of globalization - ANSWER-Refers to the shift toward a more integrated and independent world economy .Definition of the Political economy - ANSWER-Refers to the political, economic and legal systems of a country .Demand conditions - ANSWER-Firms gain competitive advantage if their domestic consumers are sophisticated and demanding .Democracy - ANSWER-A political system in which the government is by the people, and is exercised either directly or through elected individuals .Determinants of culture - ANSWER--The values and norms of a culture evolve over time -Social structure -Religion -Political philosophy -Economic philosophy -Education -Language .Difference in Contract Law between Civil and Common law - ANSWER--In Civil Law, contracts tend to be much shorter and less specific -In Common Law, contracts are very detailed with all contingencies spelled out, more expensive and can be adversarial .Economic implications of Buddhism - ANSWER--Does not emphasize wealth creation -Entrepreneurial behavior is not stressed culturally -Does not support the caste system (more social mobility) .Economic implications of christianity - ANSWER-Protestant ethics contributed to develop capitalism (Max Weber) .Economic implications of Confucianism (mainly in China) - ANSWER--3 key teachings : loyalty, reciprocal obligations and honesty which both lead to lower the cost of doing business in Confucian societies .Economic implications of Hinduism - ANSWER--Hindus are valued by their spir