BUSA 4000 Final Exam- Slides with correct answers 100%

BUSA 4000 Final Exam- Slides with correct answers 100% International business - Correct Answer Performance of trade and investment activities by firms across national borders. Globalization of market - Correct Answer Ongoing economic integration and growing interdependency of countries worldwide International trade - Correct Answer Exchange of products and services across national borders; typically through exporting and importing. [Surplus & Deficit] Exporting - Correct Answer Sale of products or services to customers located abroad, from a base in the home country or a third country. Importing or global sourcing - Correct Answer Procurement of products or services from suppliers located abroad for consumption in the home country or a third country. International investment - Correct Answer Transfer of assets to another country or the acquisition of assets in that country. Also known as 'foreign direct investment' (FDI), we will focus on this type of investment. International portfolio investment - Correct Answer Passive owner-ship of foreign securities such as stocks and bonds, in order to generate returns. Why do firms participate in international business? - Correct Answer -Better serve key customers that have relocated abroad -Be closer to supply sources, benefit from global sourcing advantages, or gain flexibility in the sourcing of products -Gain access to lower-cost or better-value factors of production -Develop economies of scale in sourcing, production, marketing, and R&D -Confront international competitors more effectively or thwart the growth of competition in the home market -Invest in a potentially rewarding relationship with a foreign partner What are the 4 risks of International Business - Correct Answer -Cross-Cultural Risk -Country Risk -Currency (Financial) Risk -Commercial Risk What are the Three Strategic Objectives - Correct Answer efficiency, flexibility, learning Efficiency - Correct Answer Lower the cost of the firm's operations and activities on a global scale flexibility - Correct Answer The agility to manage diverse country-specific risks and opportunities by tapping resources in individual countries and exploiting local opportunities learning - Correct Answer Develop the firm's products, technologies, capabilities, and skills by internalizing knowledge gained from international ventures The 6 Tasks of Global Market Opportunity Assessment - Correct Answer 1.Analyze organizational readiness to internationalize. 2.Assess the suitability of the firm's products and services for foreign markets. 3.Screen countries to identify attractive target markets. 4.Assess the industry market potential, or the market demand, for the product(s) or service(s) in selected target markets. 5.Choose qualified business partners, such as distributors or suppliers. 6.Estimate company sales potential for each target market. Types of Contractual relationships - Correct Answer licensing, franchising, and royalty