BUSA 4000 Midterm
What is country risk? - CORRECT ANSWER-Exposure to potential loss or adverse
effects on company operations and profitability caused by developments in a country's
political and/or legal environments.
What is competitive advantage? - CORRECT ANSWER-Factors that allow a company
to produce goods or services better or more cheaply than its rivals.
What are the 3 strategic objectives? - CORRECT ANSWER-efficiency, flexibility,
learning
Define efficiency - CORRECT ANSWER-lower the cost of the firm's operations and
activities on a global scale
Define flexibility - CORRECT ANSWER-the agility to manage diverse country risks and
opportunities by tapping resources in individual countries
Define learning - CORRECT ANSWER-develop the firms products, technologies,
capabilities, and skills by internalizing knowledge gained from international ventures
What is visionary leadership? - CORRECT ANSWER-A quality of senior management
that provides superior strategic guidance for managing efficiency, flexibility, and learning
What is global team? - CORRECT ANSWER-an internationally distributed group of
employees charged with a specific problem solving mandate that affects the whole firm.
What is global integration? - CORRECT ANSWER-Coordination of the firm's value-
chain activities across multiple countries to achieve worldwide efficiency, synergy, and
cross-fertilization, to take advantage of similarities between countries.
What is local responsiveness? - CORRECT ANSWER-meeting the specific needs of
buyers in individual countries
Why do firms participate in international business? - CORRECT ANSWER-- to better
serve key customers that have relocated abroad.
- to be closer to supply sources, benefit from global sourcing advantages, or gain
flexibility in the sourcing of products.
- gain access to lower costs or better value factors of production
- confront international competitors
- potential relationship with a foreign partner
What are the four risks of international business? - CORRECT ANSWER-Commercial
risk, currency (financial) risk, cross-cultural risk, country risk
What is country risk? - CORRECT ANSWER-Exposure to potential loss or adverse
effects on company operations and profitability caused by developments in a country's
political and/or legal environments.
What is competitive advantage? - CORRECT ANSWER-Factors that allow a company
to produce goods or services better or more cheaply than its rivals.
What are the 3 strategic objectives? - CORRECT ANSWER-efficiency, flexibility,
learning
Define efficiency - CORRECT ANSWER-lower the cost of the firm's operations and
activities on a global scale
Define flexibility - CORRECT ANSWER-the agility to manage diverse country risks and
opportunities by tapping resources in individual countries
Define learning - CORRECT ANSWER-develop the firms products, technologies,
capabilities, and skills by internalizing knowledge gained from international ventures
What is visionary leadership? - CORRECT ANSWER-A quality of senior management
that provides superior strategic guidance for managing efficiency, flexibility, and learning
What is global team? - CORRECT ANSWER-an internationally distributed group of
employees charged with a specific problem solving mandate that affects the whole firm.
What is global integration? - CORRECT ANSWER-Coordination of the firm's value-
chain activities across multiple countries to achieve worldwide efficiency, synergy, and
cross-fertilization, to take advantage of similarities between countries.
What is local responsiveness? - CORRECT ANSWER-meeting the specific needs of
buyers in individual countries
Why do firms participate in international business? - CORRECT ANSWER-- to better
serve key customers that have relocated abroad.
- to be closer to supply sources, benefit from global sourcing advantages, or gain
flexibility in the sourcing of products.
- gain access to lower costs or better value factors of production
- confront international competitors
- potential relationship with a foreign partner
What are the four risks of international business? - CORRECT ANSWER-Commercial
risk, currency (financial) risk, cross-cultural risk, country risk
