INTB - Exam 1 Review
Globalization correct answersis the ongoing process that deepens and
broadens the relationships and interdependence among countries
-also refers to the integration of world economies through the reduction of
barriers to the movement of trade, capital, technology, and people
- International business is a mechanism to bring about globalization
Forces Driving Globalization correct answers1.) Increase in and
application of technology
2) Liberalization of cross-border trade and resource movements.
3) Development of services that support international business
4) Growing consumer pressures
5) Increased global competition
6) Changing political situations
7) Expanded cross-national cooperation
Merchandise exports correct answers- goods that are sent out of a
country Merchandise imports correct answers- goods that are
brought into a country
- Sometimes referred to as visible exports and imports
Foreign direct investment (FDI) correct answers- investor takes a controlling
interest in a foreign company
Portfolio investment correct answersa non-controlling financial interest in
another entity
Multinational Enterprises (MNEs) correct answers-take a global approach
to markets and production or have operations in more than one country
-Any company with foreign direct investments is known as a
multinational enterprise. Sometimes referred to as:
- Multinational corporations (MNCs)
- Multinational companies (MNCs)
- Transnational companies (TNCs) - UN
Culture correct answers- refers to the learned norms based on values,
attitudes, and beliefs of a group of people
, - Culture is an integral part of a nation's operating environment.
- every business function is subject to potential cultural differences
Languages correct answersAlmost 6000 languages in
the world 1/3 of the world speaks English
Hierarchy of needs theory correct answers- fill lower-level needs before
moving to higher level needs
- The ranking of needs differs among cultures
Individualism correct answers-primacy of the right and role of the
individual
Collectivism correct answers-primacy of the rights and role of the
community Democracy correct answers-all citizens are politically
and legally equal
-all are equally all are equally entitled to freedom of thought, opinion,
belief, speech, and association
all equally command sovereign power over public officials
Prominent types of democracy correct
answersRepresentative Multiparty
Parliamenta
ry Social
Totalitarian System correct answers-subordinates the individual to the
interests of the collective
-dissent is eliminated through indoctrination, persecution, surveillance,
propaganda, censorship, and violence
Prominent types of totalitarianism correct answersAuthoritarianism
Fascism - Advocates a single-party state that controls, through force and
indoctrination, people's minds, souls, and daily existence i.e. N. Korea and
Burma
Secular - China, Vietnam, and Venezuela
Theocratic - Applies ancient dogma in place of modern political or legal
principles; i.e. Iran, Afghanistan, and Saudi Arabia
Political risk correct answersPolitical risk refers to the risk that political
decisions or events in a country negatively affect the profitability or
sustainability of an investment
Types of political risk correct
answersSystematic Problematic
Distributiv
e
Catastrophi
c
Globalization correct answersis the ongoing process that deepens and
broadens the relationships and interdependence among countries
-also refers to the integration of world economies through the reduction of
barriers to the movement of trade, capital, technology, and people
- International business is a mechanism to bring about globalization
Forces Driving Globalization correct answers1.) Increase in and
application of technology
2) Liberalization of cross-border trade and resource movements.
3) Development of services that support international business
4) Growing consumer pressures
5) Increased global competition
6) Changing political situations
7) Expanded cross-national cooperation
Merchandise exports correct answers- goods that are sent out of a
country Merchandise imports correct answers- goods that are
brought into a country
- Sometimes referred to as visible exports and imports
Foreign direct investment (FDI) correct answers- investor takes a controlling
interest in a foreign company
Portfolio investment correct answersa non-controlling financial interest in
another entity
Multinational Enterprises (MNEs) correct answers-take a global approach
to markets and production or have operations in more than one country
-Any company with foreign direct investments is known as a
multinational enterprise. Sometimes referred to as:
- Multinational corporations (MNCs)
- Multinational companies (MNCs)
- Transnational companies (TNCs) - UN
Culture correct answers- refers to the learned norms based on values,
attitudes, and beliefs of a group of people
, - Culture is an integral part of a nation's operating environment.
- every business function is subject to potential cultural differences
Languages correct answersAlmost 6000 languages in
the world 1/3 of the world speaks English
Hierarchy of needs theory correct answers- fill lower-level needs before
moving to higher level needs
- The ranking of needs differs among cultures
Individualism correct answers-primacy of the right and role of the
individual
Collectivism correct answers-primacy of the rights and role of the
community Democracy correct answers-all citizens are politically
and legally equal
-all are equally all are equally entitled to freedom of thought, opinion,
belief, speech, and association
all equally command sovereign power over public officials
Prominent types of democracy correct
answersRepresentative Multiparty
Parliamenta
ry Social
Totalitarian System correct answers-subordinates the individual to the
interests of the collective
-dissent is eliminated through indoctrination, persecution, surveillance,
propaganda, censorship, and violence
Prominent types of totalitarianism correct answersAuthoritarianism
Fascism - Advocates a single-party state that controls, through force and
indoctrination, people's minds, souls, and daily existence i.e. N. Korea and
Burma
Secular - China, Vietnam, and Venezuela
Theocratic - Applies ancient dogma in place of modern political or legal
principles; i.e. Iran, Afghanistan, and Saudi Arabia
Political risk correct answersPolitical risk refers to the risk that political
decisions or events in a country negatively affect the profitability or
sustainability of an investment
Types of political risk correct
answersSystematic Problematic
Distributiv
e
Catastrophi
c
