D270 Midterm Test Questions with Correct Answers Latest Update

D270 Midterm Test Questions with Correct Answers Latest Update How did Tom Stroud ever come to be a guest lecturer in Prof. Garcia's class in the first place? - Answers Tom was interviewing Kelley students and happened to wander into Garcia's class one day Talking about the importance of D270, which of the following did Tom STRESS in his guest lecture? - Answers Hard skills may get you the job, but soft skills will help you be good at the job Speaking of Tom's cultural Profile, which of the following countries matches Tom's profile most closely? - Answers Germany Tom shared an interesting vignette about the "coffee, tea, soda guy" he once met while working in India. This story was mean to illustrate which of the following? - Answers It is important to remember the Platinum Rule when doing business abroad Tom offered all of the following recommendations to D270 students EXCEPT - Answers Attend every class session every term, it is actually the easiest part of college success How many countries are there in the world? - Answers Around 200 If you are about to engage in business with a person from a different national culture than your own (selling, buying, managing, negotiating, etc.), where would you MOST focus your effort to understand their behavior? - Answers Start with their National Culture Pattern then focus intently on their individual behavior Globalization - Answers Widening and deepening of interdependant relationships among different nations International business - Answers All commerical transactions between two or more countries What is the goal of IB for private businesses - Answers To make profit What is the goal of IB for governments - Answers Various reasons may or may not be for profit What is the current trend of economic interdependence - Answers increasing sporadically since the mid 20th century What are some characteristics of globalization - Answers Hard to measure, growing but less pervasive then generally thought, has both economic and noneconomic dimensions, stimulated by several factors What value of US consumption comes from other countries - Answers 15%, goods and services are still generally sold where they are produced What some negative characteristics of globalization - Answers Smaller countries tend to be more globalized than bigger ones (become over dependant) Lower variety of production (homogenous products and cultures stop foreign influences) Countries w higher per capita income are more globalized bc ppl can afford foreign g+s Varience among globalization aspects Factors in increased Globalization - Answers Rise in and application of technology Liberalization of cross-border trade and resource movements Development of services that support IB Growth of consumer pressures Increase in global competition Changes in political situations and government policies Expansion of cross-national cooperation born-global companies - Answers companies that start out with a global focus, because of their founders' international experience G20 - Answers 19 countries + the EU that account for 90% of the world's production, 80% of world trade and 2/3 of the population What do Critics of Globalization claim? - Answers Countries sovereignity is diminished Growth hurts the environment People lose relatively & absolutely (income inequality) Greater insecurity inceases personal stress Sovereignty - Answers Freedom to act locally without externally imposed restrictions 3 major IB operating objectives - Answers 1. sales expansion 2. resource acquisition 3. risk reduction Merchandise Exports and Imports - Answers Tangible products - goods - that are respectively sent out of and brought into a country Service Exports - Answers non-merchandise international earnings that are sent out of the country. Ex:Travel, transportation, banking, insurance Turnkey operations - Answers contracted construction projects transferred to owners when they're operational Management Contracts - Answers arrangements in which one company provides personnel to perform general or specialized management functions for another Franchising - Answers a contract in which a company assists another on a continuous basis and allows use of its trademark Foreign Direct Investment (FDI) - Answers Investor makes a controlling interest in a foreign company Joint Venture - Answers an agreement between two or more companies to share a FDI Portfolio Investment - Answers A noncontrolling financial interest in another entity, shares, bonds, bills, notes, non controlling interest of a foreign operation, extension of loans Collaborative Arrangements - Answers companies working together in joint ventures, licensing agreements, management contracts, minority ownership, and long-term contractual arrangements strategic alliance - Answers An agreement that is of critical importance to a partner or one that doesnt involve joint ownership Multinational Enterprise - Answers any company with FDI's also called Multinational corporation or Transnational Company Conditions that affect IB success - Answers Physical, Institutional (culture, law, politics),