Intro to International Business - Exam 1
(OSU) with complete solutions
Globalization - ANSWER-integration of national economies through trade, investment,
capital flow, labor, migration and technology
International Business - ANSWER-performance of trade and investments by firms
across borders
International Trade - ANSWER-Exchange of products and services across national
borders, typically through exporting and importing
International Portfolio Investment - ANSWER-passive ownership of foreign securities
such as stocks and bonds for the purpose of generating financial returns
Risks of IB - ANSWER-1- Cross cultural risk
2- Country risk
3- Currency risk
4- Commercial risk
MNE - ANSWER-a large company with substantial resources that performs various
business activities through a network of subsidiaries and affiliates located in multiple
countries (Disney)
SME - ANSWER-500 or fewer employees, 90% of all firms in most coutnries
Born Global Firm - ANSWER-a young entrepreneurial company that initiates
international business activity very early in its evolution, moving rapidly into foreign
markets
Non-governmental foundation - ANSWER-many non profit globally
, World Bank - ANSWER-A specialized agency of the United Nations that makes loans to
countries for economic development, trade promotion, and debt consolidation.Helps
countries fight poverty.
WTO - ANSWER-successor to GATT, nation states comply to rules of trade treaties
Uruguay round - ANSWER-a trade agreement to dramatically lower trade barriers
worldwide; created the World Trade Organization
Moore's Law - ANSWER-the observation that computing power roughly doubles every
two years.
Containerization - ANSWER-Process of combining several unitized loads into a single,
well-protected load for shipment.
Political Economy - ANSWER-the political, economic, and legal systems of a country
Economic Development - ANSWER-the process by which a nation improves the
economic, political, and social well-being of its people
Economic Growth - ANSWER-a steady, long-term increase in real GDP
Collectivism - ANSWER-Plato, socialistic, collective goals>individual goals, state control
Individualism - ANSWER-individuals>group, self expression, Aristotle, free-markets
Free Market - ANSWER-prices are determined by unrestricted competition between
privately owned businesses
Command Economy - ANSWER-An economic system in which the government controls
a country's economy.
Mixed Economy - ANSWER-An economy in which private enterprise exists in
combination with a considerable amount of government regulation and promotion.
Common Law - ANSWER-A legal system based on custom and court rulings (USA)
Civil Law - ANSWER-A law that governs relationships between individuals and defines
their legal rights. (Germany)
Theocratic Law - ANSWER-legal system based on religious teachings (Islam)
(OSU) with complete solutions
Globalization - ANSWER-integration of national economies through trade, investment,
capital flow, labor, migration and technology
International Business - ANSWER-performance of trade and investments by firms
across borders
International Trade - ANSWER-Exchange of products and services across national
borders, typically through exporting and importing
International Portfolio Investment - ANSWER-passive ownership of foreign securities
such as stocks and bonds for the purpose of generating financial returns
Risks of IB - ANSWER-1- Cross cultural risk
2- Country risk
3- Currency risk
4- Commercial risk
MNE - ANSWER-a large company with substantial resources that performs various
business activities through a network of subsidiaries and affiliates located in multiple
countries (Disney)
SME - ANSWER-500 or fewer employees, 90% of all firms in most coutnries
Born Global Firm - ANSWER-a young entrepreneurial company that initiates
international business activity very early in its evolution, moving rapidly into foreign
markets
Non-governmental foundation - ANSWER-many non profit globally
, World Bank - ANSWER-A specialized agency of the United Nations that makes loans to
countries for economic development, trade promotion, and debt consolidation.Helps
countries fight poverty.
WTO - ANSWER-successor to GATT, nation states comply to rules of trade treaties
Uruguay round - ANSWER-a trade agreement to dramatically lower trade barriers
worldwide; created the World Trade Organization
Moore's Law - ANSWER-the observation that computing power roughly doubles every
two years.
Containerization - ANSWER-Process of combining several unitized loads into a single,
well-protected load for shipment.
Political Economy - ANSWER-the political, economic, and legal systems of a country
Economic Development - ANSWER-the process by which a nation improves the
economic, political, and social well-being of its people
Economic Growth - ANSWER-a steady, long-term increase in real GDP
Collectivism - ANSWER-Plato, socialistic, collective goals>individual goals, state control
Individualism - ANSWER-individuals>group, self expression, Aristotle, free-markets
Free Market - ANSWER-prices are determined by unrestricted competition between
privately owned businesses
Command Economy - ANSWER-An economic system in which the government controls
a country's economy.
Mixed Economy - ANSWER-An economy in which private enterprise exists in
combination with a considerable amount of government regulation and promotion.
Common Law - ANSWER-A legal system based on custom and court rulings (USA)
Civil Law - ANSWER-A law that governs relationships between individuals and defines
their legal rights. (Germany)
Theocratic Law - ANSWER-legal system based on religious teachings (Islam)
