Ims 3310 Exam 1 Ut Dallas Updated Questions And Correct Answers

IMS 3310 EXAM 1 UT DALLAS UPDATED QUESTIONS
AND CORRECT ANSWERS
Question:
1. International Busi-ness
Answer:
Business that is carried out across national borders

Question:
2. Foreign Business
Answer:
The operations of a company outside its home or domestic market

Question:
3. International Com-pany (IC)
Answer:
A company with operations in multiple nations

Question:
4. Environment
Answer:
All the forces influencing the life and development of the firm

Question:
5. Uncontrollable forces
Answer:
The External forces that management has no direct control over

Question:
6. What are the 11 Uncontrollable Forces?
Answer:
-competitive -Distributive -Economic -Socioeconomic -Financial -Legal -Physical -Political
-Sociocultural -Labor -Technological

Question:
7. Controllable Forces
Answer:
Internal forces that management administers to adapt to changes in the uncontrollable forces
1. Human Resources
2. Finance
3. Production
4. Marketing

Question:
8. Domestic Environ-ment

,Answer:
All the uncontrollable forces originating in the home country that surround and influence the life and
development of the firm

Question:
9. Foreign Environ-ment
Answer:
All the uncontrollable forces originating outside the home country that sur-round and influence the
firm -values often differ widely -difficult to asses, especially legal and political forces -forces
interrelated

Question:
10. International Envi-ronment
Answer:
Interactions between domestic and foreign environmental forces, as well as interactions between the
foreign environmental forces of two countries -Decision making is more complex -Managers in home
office overseeing subsidiaries in 10 different nations must consider not only domestic forces but also
the influence of 10 foreign national environments, both individually and collectively since there may
be some interaction

Question:
11. Self Reference Ori-entation
Answer:
Unconscious references to your own cultural values when judging behaviors of others in environment
-Time Vs Money

Question:
12. Foreign Direct In-vestment (FDI)
Answer:
Direct investments in equipment, structures, and organizations in a foreign country at a level
sufficient to obtain significant management control; Note: does not include mere foreign investment
in stocks

Question:
13. Exporting
Answer:
The transportation of any domestic good or service to a destination outside a country or region

Question:
14. Importing
Answer:
The transportation of any good or service into a country or region, from a foreign origination point

Question:
15. economic global-ization
Answer:
The tendency toward an international integration and interdependency of good, technology, info,
labor, and capital, or the process of making this in-tegration happen

, Question:
16. Trade Defecit
Answer:
The amount by which by which the value of imports into a nation exceeds the value of trade exports
Imports > Exports

Question:
17. Trade Surplus
Answer:
Exports > Imports

Question:
18. Mercantilism
Answer:
An economic philosophy based on the beleif that
1. a nation's wealth depends on accumulated treasure, usually precious metals
such as gold or silver
2. To increase wealth, government policies should promote exports and dis-
courage imports

Question:
19. Absolute Advan-tage
Answer:
a nation's ability to produce more of a good or service than another country for the same or lower cost
of inputs

Question:
20. Strategic behavior theory
Answer:
suggests that strategic rivalry between firms in an oligopolistic industry will result in firms closely
following and imitating each other's international invest-ments in order to keep a competitor from
gaining an advantage

Question:
21. Perfect Competi-tion
Answer:
a market situation in which there is a sufficiently large number of well-informed buyers and sellers of
a homogeneous product, such that no individual partic-ipant has enough power to determine the price
of the product, resulting in a marketplace that is efficient in production and allocation of products
(aka example of absolute adv)

Question:
22. Comparative Ad-vantage
Answer:
When one nation is less efficient than another nation in the production of each of two goods, the less
efficient nation has a comparative advantage in the production of that good for which its absolute
disadvantage is less