INTB 200 Midterm Review || with Errorless Answers.
International Business correct answers business activities of public and private
enterprises that involve the movement of goods, services or resources across national boundaries
(raw materials, capital, and people)
Foreign Business correct answers the operations of a firm outside of its domestic or home market
International Company correct answers a company with operations in more than one nation
Factors that Influence Globalization correct answers 1. Political Climate
2. Technology
3. Markets
4. Cost
5. Competition
Political Climate correct answers - reduced trade barriers
- increased in DFI
- a rise in NGOs
- lowering of protectionism
Protectionism correct answers the theory or practice of shielding a country's domestic industries
from foreign competition by taxing imports.
Technology correct answers internet, www., social media
- ease of gathering info
- *pushed companies to go to other countries*
- Reduction in transportation costs through containerization and air freight
,Containerization correct answers paying to ship by container rather than individual products
Air Freight correct answers costs decrease: quick travel causes interest rates to decrease because
the company gets a quicker return
Markets correct answers markets open up and companies can enter new ones and as the
companies globalize, they become global customers
- advertise, pay taxes, hire nationals, build factory, or open office
- creation of new middle classes = new customers who have a disposable income
Why would a company branch out to global markets? correct answers - home market is saturated
- retaliation, foreign co. enters your home market
- seasonal differences (ie. fruit)
Cost correct answers Economies of Scale (bring costs down)
- standardized product
- improve company's competitive advantage
- invest overseas
- access to foreign markets that are close by
- building global awareness of your product
- building worldwide distribution
DFI correct answers direct foreign investment
Competition correct answers Increases in intensity
- find new buyers for your products
- product is obsolete
, Marketing Task correct answers performing business activities that will direct the flow of a
company's goods or services to consumers or users in other nations
Types of Barriers to Trade correct answers - tariff barriers
- monetary barriers
- market barriers
Types of Tariff Barriers correct answers - ad valorem
- specific duty
- compound duty
Ad Valorem correct answers tax that is a % of the commercial invoice value of the goods
Specific Duty correct answers charge based on product (weight, #, etc.)
Compound Duty correct answers combo of ad valorem and specific duties
Types of Monetary Barriers correct answers - blocked currency
- differential exchange rate
- governmental approval
Blocked Currency correct answers no trade/deals in this currency (country won't accept others)
Differential Exchange Rate correct answers higher rates for less favored products
Governmental Approval correct answers government must grant permit for trade
International Business correct answers business activities of public and private
enterprises that involve the movement of goods, services or resources across national boundaries
(raw materials, capital, and people)
Foreign Business correct answers the operations of a firm outside of its domestic or home market
International Company correct answers a company with operations in more than one nation
Factors that Influence Globalization correct answers 1. Political Climate
2. Technology
3. Markets
4. Cost
5. Competition
Political Climate correct answers - reduced trade barriers
- increased in DFI
- a rise in NGOs
- lowering of protectionism
Protectionism correct answers the theory or practice of shielding a country's domestic industries
from foreign competition by taxing imports.
Technology correct answers internet, www., social media
- ease of gathering info
- *pushed companies to go to other countries*
- Reduction in transportation costs through containerization and air freight
,Containerization correct answers paying to ship by container rather than individual products
Air Freight correct answers costs decrease: quick travel causes interest rates to decrease because
the company gets a quicker return
Markets correct answers markets open up and companies can enter new ones and as the
companies globalize, they become global customers
- advertise, pay taxes, hire nationals, build factory, or open office
- creation of new middle classes = new customers who have a disposable income
Why would a company branch out to global markets? correct answers - home market is saturated
- retaliation, foreign co. enters your home market
- seasonal differences (ie. fruit)
Cost correct answers Economies of Scale (bring costs down)
- standardized product
- improve company's competitive advantage
- invest overseas
- access to foreign markets that are close by
- building global awareness of your product
- building worldwide distribution
DFI correct answers direct foreign investment
Competition correct answers Increases in intensity
- find new buyers for your products
- product is obsolete
, Marketing Task correct answers performing business activities that will direct the flow of a
company's goods or services to consumers or users in other nations
Types of Barriers to Trade correct answers - tariff barriers
- monetary barriers
- market barriers
Types of Tariff Barriers correct answers - ad valorem
- specific duty
- compound duty
Ad Valorem correct answers tax that is a % of the commercial invoice value of the goods
Specific Duty correct answers charge based on product (weight, #, etc.)
Compound Duty correct answers combo of ad valorem and specific duties
Types of Monetary Barriers correct answers - blocked currency
- differential exchange rate
- governmental approval
Blocked Currency correct answers no trade/deals in this currency (country won't accept others)
Differential Exchange Rate correct answers higher rates for less favored products
Governmental Approval correct answers government must grant permit for trade
