UCF GEB3375 Final Exam Updated 2024/2025 Actual Questions and answers with complete solutions

Acquisition - the purchase of one company by another Acquisition advantages and disadvantages - Advantages -quickly gain assets -usually cheaper than a Greenfield investment Disadvantages -combining cultures can be tricky -job cuts due to eliminating duplicate positions Adaptation - Modifying elements of the marketing mix (e.g. product, advertising, pricing, distribution) to accommodate specific customer requirements in individual foreign markets Adaptation is costly. May require substantial changes to the marketing mix, especially when many national markets are involved. Advantages and disadvantages of licensing - Advantages for licensor -Low investment -Low involvement -Low effort, once established -Low-cost initial entry strategy Disadvantages for licensor -Performance depends on the foreign licensee -Licensor has limited control over its asset(s) abroad -Runs the risk of creating a future competitorAdvantages of Standardized Marketing - -cost reduction -improved planning and control -ability to portray a consistent image and build global brands Air waybill - A bill of lading issued by an air carrier Approaches to International Human Resource Management - ethnocentric, polycentric, regiocentric and geocentric Average human attention span - 8 seconds Basic needs potential (1st screening) - Influenced by climate, geography, natural resources Some needs are easy to assess (e.g. industrial goods); others more difficult, especially when they are desires (chocolate) Data include imports, local production etc. Bill of lading - Basic contract between exporter and shipper. Authorizes the shipping company to transport the goods to the buyers destination. Brain drain - Loss by a country of its most intelligent and best-educated people Capital Structure - the mix of long-term equity and debt financing firms use to support their activities. cash in advance - When the credit standing of the buyer is not known or is uncertain, cash in advance is desirable. However, very few buyers will accept these terms, because part of their working capital will be tied up until the merchandise has been received and sold. Furthermore, they have no guarantee that they will receive what they ordered. Few customers will pay cash in advance unless the order is for a custom-made product.Challenges/ potential problem of global supply chains - Complexity (think working with 500 suppliers around the world, involving dozens of different languages and currencies, laws, regulations, distance, time zones, ......etc. etc.) Possibly lower than expected cost advantages (if this was a key rationale to begin with). Importers can face an increase in price because the home currency has lost value as a result of exchange rate fluctuation. Global sourcing is always affected by trade wars (see current situation) Security: can also be a significant concern for e-procurement, including allowing competitors or customers to see proprietary details of their business. Different country standards are also a concern when attempting to implement international eprocurement systems. CIF (cost, insurance, freight) (named port of destination) - seller pays the cargo insurance and delivery of goods to the named port of destination. From the destination port, buyer is responsible for customs clearance and other costs and risks -seller pays for freight and insurance to transport the goods to the named port of destination -responsibility of goods transfers from seller to buyer - seller arranges shipping and insurance Commercial invoice - Actual demand for payment issued by the exporter when a sale is concluded. Components of a product - -Package -Brand Name -Accessories-After-sales service -Warranty -Instructions for use -Company's image Consolidation - The process of translating subsidiary results and aggregating them into one financial report contract manufacturing - Production of goods by one firm, under the label or brand of another firm. Contract manufacturers provide such service to several (even competing) firms based on their own or the customers' designs, formulas, and/or specifications. Also called private label manufacturing. Copyright licensing - A copyright gives the owner the exclusive right to reproduce art, music, literature, software, and other such works, as well as prepare derivative works, distribute copies, or perform or display the work publicly. Culture shock - The anxiety people often experience when they move from a culture that they are familiar with to one that is entirely different Currency option hedge - An option to buy or sell a specific amount of foreign currency at a specific time in order to protect against foreign currency risk. Offers great flexibility.