QUESTIONS AND ANSWERS | 100%
PASS
international business - 🧠 ANSWER ✔✔any business activity that involves the
transfer of resources, goods, services, knowledge, skills or info across national
boundaries
country level dynamics - 🧠 ANSWER ✔✔currency, inflation, interest rates,
accounting practices, cultures, social customs, laws, political stability
company level dynamics - 🧠 ANSWER ✔✔communication, coordination,
motivation, difference in organizational principles and management philosophies
multinational enterprise - 🧠 ANSWER ✔✔owns business operations in more than
one country
,subsidiary - 🧠 ANSWER ✔✔a branch of MNE operating in a foreign country
home country - 🧠 ANSWER ✔✔country in which the MNE is headquartered
host country - 🧠 ANSWER ✔✔foreign country with which the MNE is doing
business
globalization - 🧠 ANSWER ✔✔the process or shift toward increasing
interdependence and integration of national economies
globalization of production - 🧠 ANSWER ✔✔produce different parts of the
product or service in different countries
globalization of markets - 🧠 ANSWER ✔✔sell the product or service in many
countries
world trade organization - 🧠 ANSWER ✔✔organization that has helped establish
freer trade between member nations
IMF and World Bank - 🧠 ANSWER ✔✔created to foster economic stability
united nations - 🧠 ANSWER ✔✔created as a forum for political negotiations
the rise of global institutions
technological change
, changing world order
multinational corporations - 🧠 ANSWER ✔✔list the factors that led to
globalization
political economy - 🧠 ANSWER ✔✔the interdependence of political, economic,
and legal systems
ownership risk - 🧠 ANSWER ✔✔political threats the ownership from
nationalization or seizure
operational risk - 🧠 ANSWER ✔✔threats governments impose for "changing the
rules of the game"
transfer risk - 🧠 ANSWER ✔✔impediments to the transfer of production factors,
products or capital
collectivism - 🧠 ANSWER ✔✔concerned with the needs of the overall society or
group, rather than those of the individual
individualism - 🧠 ANSWER ✔✔guarantee individual freedom and expression
democracy - 🧠 ANSWER ✔✔government by people exercised directly or through
elected representatives
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