BUSA 4000 Exam 1 Questions and Answers Solved Correctly Rated A+
International Business - Answers Performance of trade AND investment activities by firms across
national borders
Globalization of markets - Answers ongoing economic integration and growing interdependency of
countries worldwide
International trade - Answers Exchange of products and services across national borders: typically
through exporting and importing (surplus and deficit)
Exporting - Answers Sale of products or services to customers located abroad, from a base in the home
country or a third country
Importing/Global sourcing - Answers procurement of products or services from suppliers located abroad
for consumption in the home country or a thirrd country
International investment - Answers transfer of assets to another country or the acquisition of assets in
that country. AKA FDI
International portfolio investment - Answers Passive ownership of foreign securities such as stocks and
bonds, in order to generate returns
The 4 risks of international business - Answers 1. Cross-cultural risk
2. Country risk
3. Currency risk
4. Commercial risk
Multinational enterprise (MNE) - Answers A large company with substantial resources that performs
various business activities through a network of subsidiaries and affiliates located in multiple countries
Small and medium sized enterprise (SME) - Answers Companies with 500 or fewer employees,
comprising over 90% of all firms in most countries.
Born global firm - Answers a young, entrepreneurial SME that undertakes substantial international
business at or near its founding
Non governmental organization - Answers Many of these non-profit organizations conduct cross border
activities. they pursue special causes and serve as advocates for social issues, education, politics, and
research
Culture - Answers the values, beliefs, customs, arts, and other products of human thought and work that
characterize the people of a given society
,cross-cultural risk - Answers a situation or event where a cultural miscommunication puts some human
value at stake. It arises in environments comprised of unfamiliar languages, and unique values, beliefs,
and behaviors
Socialization - Answers the process of learning the rules and behavioral patterns appropriate to one's
society
Acculturation - Answers the process of adjusting and adapting to a culture other than one's own;
commonly experienced by expatriate workers
High context culture - Answers - Establish social trust first
- personal relations and goodwill are valued
- agreements emphasize trust
- negotiations are slow and ritualistic
Typical of asian culture
Low context culture - Answers - Get down to business first
- expertise and performance are valued
- agreements emphasize specific, legalistic contract
- negotiations are as efficient as possible
Germany, Swiss, USA
Power distance - Answers describes how a society deals with inequalities in power that exist among
people
Uncertainty avoidance - Answers refers to the extent to which people can tolerate risk and uncertainty
in their lives
International strategy - Answers strategy carried out in two or more countries
Three strategic objectives - Answers 1. Efficiency
2. Flexibility
3. Learning
Essentials of successful global firms - Answers 1. Strategy
, 2. Organizational structure
3. Organizational processes
4. Organizational culture
5. Visionary leadership
Visionary leadership - Answers A quality of senior management that provides superior strategic
guidance for managing efficiency, flexibility, and learning
- International mindset and cosmopolitan values
- Willingness to commit resources
- strategic vision
- willingness to invest in human assets
Organizational culture - Answers The pattern of shared values, behavioral norms, systems, policies, and
procedures that employees learn and adopt
- employees acquire the culture as the correct way to perceive, think, feel, and behave
- usually derives from the influence of founders
- mgmt should seek to build a global organizational culture
Organizational processes - Answers Managerial routines, behaviors, and mechanisms that allow the firm
to function as intended
- include mechanisms for collecting info, ensuring quality control in manufacturing, and maintaining
effective payment systems
Important organizational processes for achieving internal coordination - Answers Global team: an
internationally distributed group of employees charged with specific problem solving or best practices
Global information systems: global IT infrastructure
Multi-domestic industry - Answers an industry in which competition takes place on a country-by-country
basis
International Business - Answers Performance of trade AND investment activities by firms across
national borders
Globalization of markets - Answers ongoing economic integration and growing interdependency of
countries worldwide
International trade - Answers Exchange of products and services across national borders: typically
through exporting and importing (surplus and deficit)
Exporting - Answers Sale of products or services to customers located abroad, from a base in the home
country or a third country
Importing/Global sourcing - Answers procurement of products or services from suppliers located abroad
for consumption in the home country or a thirrd country
International investment - Answers transfer of assets to another country or the acquisition of assets in
that country. AKA FDI
International portfolio investment - Answers Passive ownership of foreign securities such as stocks and
bonds, in order to generate returns
The 4 risks of international business - Answers 1. Cross-cultural risk
2. Country risk
3. Currency risk
4. Commercial risk
Multinational enterprise (MNE) - Answers A large company with substantial resources that performs
various business activities through a network of subsidiaries and affiliates located in multiple countries
Small and medium sized enterprise (SME) - Answers Companies with 500 or fewer employees,
comprising over 90% of all firms in most countries.
Born global firm - Answers a young, entrepreneurial SME that undertakes substantial international
business at or near its founding
Non governmental organization - Answers Many of these non-profit organizations conduct cross border
activities. they pursue special causes and serve as advocates for social issues, education, politics, and
research
Culture - Answers the values, beliefs, customs, arts, and other products of human thought and work that
characterize the people of a given society
,cross-cultural risk - Answers a situation or event where a cultural miscommunication puts some human
value at stake. It arises in environments comprised of unfamiliar languages, and unique values, beliefs,
and behaviors
Socialization - Answers the process of learning the rules and behavioral patterns appropriate to one's
society
Acculturation - Answers the process of adjusting and adapting to a culture other than one's own;
commonly experienced by expatriate workers
High context culture - Answers - Establish social trust first
- personal relations and goodwill are valued
- agreements emphasize trust
- negotiations are slow and ritualistic
Typical of asian culture
Low context culture - Answers - Get down to business first
- expertise and performance are valued
- agreements emphasize specific, legalistic contract
- negotiations are as efficient as possible
Germany, Swiss, USA
Power distance - Answers describes how a society deals with inequalities in power that exist among
people
Uncertainty avoidance - Answers refers to the extent to which people can tolerate risk and uncertainty
in their lives
International strategy - Answers strategy carried out in two or more countries
Three strategic objectives - Answers 1. Efficiency
2. Flexibility
3. Learning
Essentials of successful global firms - Answers 1. Strategy
, 2. Organizational structure
3. Organizational processes
4. Organizational culture
5. Visionary leadership
Visionary leadership - Answers A quality of senior management that provides superior strategic
guidance for managing efficiency, flexibility, and learning
- International mindset and cosmopolitan values
- Willingness to commit resources
- strategic vision
- willingness to invest in human assets
Organizational culture - Answers The pattern of shared values, behavioral norms, systems, policies, and
procedures that employees learn and adopt
- employees acquire the culture as the correct way to perceive, think, feel, and behave
- usually derives from the influence of founders
- mgmt should seek to build a global organizational culture
Organizational processes - Answers Managerial routines, behaviors, and mechanisms that allow the firm
to function as intended
- include mechanisms for collecting info, ensuring quality control in manufacturing, and maintaining
effective payment systems
Important organizational processes for achieving internal coordination - Answers Global team: an
internationally distributed group of employees charged with specific problem solving or best practices
Global information systems: global IT infrastructure
Multi-domestic industry - Answers an industry in which competition takes place on a country-by-country
basis
