BUSMHR 2000 Test Questions and Answers Latest Update 2025 Graded A+
International Business - Answers The business activities that involve the transfer of resources, goods,
services knowledge, skills or information across national boundaries.
Introduction - Answers We are moving toward a world in which barriers to cross-border trade and
investment are declining; perceived distance is shrinking due to advances in transportation and
telecommunications technology; material culture is starting to look similar the world over; and national
economies are merging into an interdependent, integrated global economic system. The process by
which this is occurring is commonly referred to as globalization.
Introduction Cont. - Answers Advances in technology, lower transportation costs, and the rise of skilled
workers in developing countries imply that many services no longer need to be performed where they
are delivered.
International Bus. Involves - Answers -Individuals
-Companies
-Government bodies
-International institutions
International Bus. Includes - Answers Any activity or transaction across borders
Usually in the Form of - Answers -Exports and imports
-Tangible products
-Intangibles including services and licensing
International Investments - Answers -Passive (portfolio investments)
-Active (foreign direct investments)
International vs. Domestic Bus. - Answers Environmental Dynamics
-Currency, inflation, interest rates, accounting practices, cultures, social customs, laws, political stability
Operational Nature
-Communication, coordination, motivation, differences in organizational principles and management
philosophies
The Multinational Enterprise - Answers A firm that engages in international investments
Also known as MNC, TNC or multinational firm
,Home Country - Answers Country in which the MNE is headquartered
Host Country - Answers Foreign country is which the MNE is doing business
Globalization - Answers -Process of increasing interdependence and integration of national economies
-Economic imperatives are usually the driving factor
-Lower prices
-Higher quality
-More products to choose from
-Can cause clashes between societies
Globalization Cont. - Answers Refers to the shift toward a more integrated and interdependent world
economy. Globalization has several facets, including the globalization of markets and the globalization of
production.
Trend away from distinct national economic units and toward one huge global market.
Globalization of Markets - Answers -Sell the product or service in many countries
-Economies of scale
-Higher revenue base
Moving away from an economic system in which national markets are distinct entities, isolated by trade
barriers and barriers of distance, time, and culture, and toward a system in which national markets are
merging into one global market.
The merging of historically distinct and separate national markets into one huge global marketplace.
As firms follow each other around the world, they bring with them many of the assets that served them
well in other national markets—their products, operating strategies, marketing strategies, and brand
names—creating some homogeneity across markets. Thus, greater uniformity replaces diversity.
Globalization of Markets Cont. - Answers Markets converge to create a Global Market
, Small and Medium firms account for much of the exports.
Markets differ in tastes and preferences, distribution channels, culturally embedded value systems,
business systems, and legal regulations.
The most global of markets are not typically markets for consumer products—where national
differences in tastes and preferences can still be important enough to act as a brake on globalization—
but markets for industrial goods and materials that serve a universal need the world over.
Globalization of Production - Answers -Produce different parts of the product or service in different
countries
-Search for lowest cost production sites
-Search for best skills for specific activities
Trend by individual firms to disperse parts of their productive processes to different locations around
the globe to take advantage of differences in cost and quality of factors of production.
A global web of suppliers yields a better final product
Factors of Production - Answers Inputs into the productive process of a firm, including labor,
management, land, capital, and technological know-how.
By doing this, companies hope to lower their overall cost structure or improve the quality or
functionality of their product offering, thereby allowing them to compete more effectively.
Requirements for Globalization - Answers Free movement of goods and services across national borders
-The World Trade Organization has helped establish freer trade between member nations
Relative economic stability across the world
-Political and economic risks reduce incentives to enter markets and engage in business
-The IMF and World Bank created to foster economic stability
International Business - Answers The business activities that involve the transfer of resources, goods,
services knowledge, skills or information across national boundaries.
Introduction - Answers We are moving toward a world in which barriers to cross-border trade and
investment are declining; perceived distance is shrinking due to advances in transportation and
telecommunications technology; material culture is starting to look similar the world over; and national
economies are merging into an interdependent, integrated global economic system. The process by
which this is occurring is commonly referred to as globalization.
Introduction Cont. - Answers Advances in technology, lower transportation costs, and the rise of skilled
workers in developing countries imply that many services no longer need to be performed where they
are delivered.
International Bus. Involves - Answers -Individuals
-Companies
-Government bodies
-International institutions
International Bus. Includes - Answers Any activity or transaction across borders
Usually in the Form of - Answers -Exports and imports
-Tangible products
-Intangibles including services and licensing
International Investments - Answers -Passive (portfolio investments)
-Active (foreign direct investments)
International vs. Domestic Bus. - Answers Environmental Dynamics
-Currency, inflation, interest rates, accounting practices, cultures, social customs, laws, political stability
Operational Nature
-Communication, coordination, motivation, differences in organizational principles and management
philosophies
The Multinational Enterprise - Answers A firm that engages in international investments
Also known as MNC, TNC or multinational firm
,Home Country - Answers Country in which the MNE is headquartered
Host Country - Answers Foreign country is which the MNE is doing business
Globalization - Answers -Process of increasing interdependence and integration of national economies
-Economic imperatives are usually the driving factor
-Lower prices
-Higher quality
-More products to choose from
-Can cause clashes between societies
Globalization Cont. - Answers Refers to the shift toward a more integrated and interdependent world
economy. Globalization has several facets, including the globalization of markets and the globalization of
production.
Trend away from distinct national economic units and toward one huge global market.
Globalization of Markets - Answers -Sell the product or service in many countries
-Economies of scale
-Higher revenue base
Moving away from an economic system in which national markets are distinct entities, isolated by trade
barriers and barriers of distance, time, and culture, and toward a system in which national markets are
merging into one global market.
The merging of historically distinct and separate national markets into one huge global marketplace.
As firms follow each other around the world, they bring with them many of the assets that served them
well in other national markets—their products, operating strategies, marketing strategies, and brand
names—creating some homogeneity across markets. Thus, greater uniformity replaces diversity.
Globalization of Markets Cont. - Answers Markets converge to create a Global Market
, Small and Medium firms account for much of the exports.
Markets differ in tastes and preferences, distribution channels, culturally embedded value systems,
business systems, and legal regulations.
The most global of markets are not typically markets for consumer products—where national
differences in tastes and preferences can still be important enough to act as a brake on globalization—
but markets for industrial goods and materials that serve a universal need the world over.
Globalization of Production - Answers -Produce different parts of the product or service in different
countries
-Search for lowest cost production sites
-Search for best skills for specific activities
Trend by individual firms to disperse parts of their productive processes to different locations around
the globe to take advantage of differences in cost and quality of factors of production.
A global web of suppliers yields a better final product
Factors of Production - Answers Inputs into the productive process of a firm, including labor,
management, land, capital, and technological know-how.
By doing this, companies hope to lower their overall cost structure or improve the quality or
functionality of their product offering, thereby allowing them to compete more effectively.
Requirements for Globalization - Answers Free movement of goods and services across national borders
-The World Trade Organization has helped establish freer trade between member nations
Relative economic stability across the world
-Political and economic risks reduce incentives to enter markets and engage in business
-The IMF and World Bank created to foster economic stability
