Gms 520 final exam review questions
with correct answers
free market economy - correct answer ✔✔government has little intervention, market/prices are
determined exclusively by forces of demand and supply, private enterprises control the economy
global governance - correct answer ✔✔- supernational bodies that regulate international transactions in
the case there are legal issues between two different countries
- ex. two (world trade organization), wipe, NATO, uno, world bank
international management - correct answer ✔✔- the process of developing strategies, designing
operating systems, and working with people around the world to ensure sustained competitive
advantage
- maintaining competitive advantage, stagnant no fluctuation
- new app, new tech, etc.
globalization - correct answer ✔✔- global competition characterized by networks of international
linkages that bind countries, institutions, and people in an interdependent global economy
- the worldwide interdependence of resource flows, product markets, and business competition that
characterize our economy
cultures in international business - correct answer ✔✔- culture affects our ways of life values and
behaviours
- it can affect business relationships and decisions
certain cultures conduct business differently
,culture intelligence
- avoid ethnocentric (assume your own culture is the best)
- have cultural literacy
- political, economic, legal, technological systems differ
- contrast of rules, laws, cultures, etc.
international business - correct answer ✔✔conducting for-profit transactions of goods and services
across national boundaries
businesses go global in search of - correct answer ✔✔- customers (larger market, gain market share)
- suppliers
- capital (less/lower taxes)
- labour (cheap labour, labour intensive companies)
- risk diversification (less risks in different markets, don't put all assets in one market)
how companies go global - correct answer ✔✔- global sourcing
- exporting
- importing
,- licensing agreement
- franchising
- foreign direct investment
global sourcing - correct answer ✔✔the process of purchasing materials or services around the world for
local use
exporting - correct answer ✔✔selling locally made products in foreign markets
importing - correct answer ✔✔buying foreign-made products and selling them domestically
licensing agreement - correct answer ✔✔one firm pays fee for rights to make or sell another company's
products
franchising - correct answer ✔✔a fee is paid for rights to use another firm's name, branding, and
methods
foreign direct investment (fdi) - correct answer ✔✔carry a portfolio, go overseas, set new branch, have
your own investment
brownfield investment - correct answer ✔✔- buy/invest existing, have 5 candidates, bring lawyers,
accountants to look at prior company's books to see facts behind figures
- find the right guys
greenfield - correct answer ✔✔from scratch, buy building, build
five key global trends - correct answer ✔✔1. changing balance of growth towards emerging markets
, 2. need for increased productivity and consumption in developed countries
3. increasing global interconnectivity
make world smaller
4. increasing gap between supply and demand of natural resources
5. challenge for governments to develop policies for economic growth and financial stability
challenges to globalism - correct answer ✔✔- backlash against capitalism and rekindling of nationalism
(some countries want to be more protectionist)
- increased protectionism of high-demand resources (anti - globalization and free trade, setting taxes and
duties on foreign goods)
- need to develop top managers with international understanding and experience
- increasing pressure and publicity for companies to consider the social responsibility of their actions
effects of globalization on corporations - correct answer ✔✔- global companies are becoming less tied to
specific locations
- companies that desire to remain competitive will have to develop a cadre of experienced international
managers
- small companies are also affected by, and in turn, affect globalism
the globalization of human capital - correct answer ✔✔- while firms still offshore manufacturing jobs,
some are reshoring jobs to lower shipper costs
with correct answers
free market economy - correct answer ✔✔government has little intervention, market/prices are
determined exclusively by forces of demand and supply, private enterprises control the economy
global governance - correct answer ✔✔- supernational bodies that regulate international transactions in
the case there are legal issues between two different countries
- ex. two (world trade organization), wipe, NATO, uno, world bank
international management - correct answer ✔✔- the process of developing strategies, designing
operating systems, and working with people around the world to ensure sustained competitive
advantage
- maintaining competitive advantage, stagnant no fluctuation
- new app, new tech, etc.
globalization - correct answer ✔✔- global competition characterized by networks of international
linkages that bind countries, institutions, and people in an interdependent global economy
- the worldwide interdependence of resource flows, product markets, and business competition that
characterize our economy
cultures in international business - correct answer ✔✔- culture affects our ways of life values and
behaviours
- it can affect business relationships and decisions
certain cultures conduct business differently
,culture intelligence
- avoid ethnocentric (assume your own culture is the best)
- have cultural literacy
- political, economic, legal, technological systems differ
- contrast of rules, laws, cultures, etc.
international business - correct answer ✔✔conducting for-profit transactions of goods and services
across national boundaries
businesses go global in search of - correct answer ✔✔- customers (larger market, gain market share)
- suppliers
- capital (less/lower taxes)
- labour (cheap labour, labour intensive companies)
- risk diversification (less risks in different markets, don't put all assets in one market)
how companies go global - correct answer ✔✔- global sourcing
- exporting
- importing
,- licensing agreement
- franchising
- foreign direct investment
global sourcing - correct answer ✔✔the process of purchasing materials or services around the world for
local use
exporting - correct answer ✔✔selling locally made products in foreign markets
importing - correct answer ✔✔buying foreign-made products and selling them domestically
licensing agreement - correct answer ✔✔one firm pays fee for rights to make or sell another company's
products
franchising - correct answer ✔✔a fee is paid for rights to use another firm's name, branding, and
methods
foreign direct investment (fdi) - correct answer ✔✔carry a portfolio, go overseas, set new branch, have
your own investment
brownfield investment - correct answer ✔✔- buy/invest existing, have 5 candidates, bring lawyers,
accountants to look at prior company's books to see facts behind figures
- find the right guys
greenfield - correct answer ✔✔from scratch, buy building, build
five key global trends - correct answer ✔✔1. changing balance of growth towards emerging markets
, 2. need for increased productivity and consumption in developed countries
3. increasing global interconnectivity
make world smaller
4. increasing gap between supply and demand of natural resources
5. challenge for governments to develop policies for economic growth and financial stability
challenges to globalism - correct answer ✔✔- backlash against capitalism and rekindling of nationalism
(some countries want to be more protectionist)
- increased protectionism of high-demand resources (anti - globalization and free trade, setting taxes and
duties on foreign goods)
- need to develop top managers with international understanding and experience
- increasing pressure and publicity for companies to consider the social responsibility of their actions
effects of globalization on corporations - correct answer ✔✔- global companies are becoming less tied to
specific locations
- companies that desire to remain competitive will have to develop a cadre of experienced international
managers
- small companies are also affected by, and in turn, affect globalism
the globalization of human capital - correct answer ✔✔- while firms still offshore manufacturing jobs,
some are reshoring jobs to lower shipper costs
