IBus 380 WSU Exam1with Complete Solutions

International Business - ANSWER-is any commercial transaction that crosses the borders of two or more nations Imports - ANSWER-Goods and services that are purchased abroad and brought into a country Exports - ANSWER-Goods and services sold abroad and sent out of a country Key Players - ANSWER-Large companies from the wealthiest nations Firms from emerging markets Small and medium sized companies Multinational corporations (MNCs) Born global firms Gross Domestic Product (GDP) - ANSWER-Value of all goods and services produced by a domestic economy over a one-year period Gross National Product (GNP) - ANSWER-Value of all goods and services produced by a country's domestic and international activities over a one-year period GDP or GNP per capita - ANSWER-Nation's GDP or GNP divided by its population Globalization - ANSWER-the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies _____________ is characterized by denationalization, and differs from internationalization Denationalization - ANSWER-national boundaries becoming less relevant Internationalization - ANSWER-Entities cooperate across national boundaries Globalization of markets - ANSWER-refers to the convergence in buyer preferences in markets around the world Globalization of markets Benefits - ANSWER-•Reduces marketing costs •Creates new market opportunities •Levels uneven income streams •Local buyers' needs •Global sustainability Globalization of Production - ANSWER-the spread of production activities to locations that help a company achieve its cost minimization or quality maximization objectives for a good or service Globalization of Production Benefits - ANSWER-•Access lower-cost workers •Access technical expertise •Access production inputs Drivers of Globalization - ANSWER-•Falling barriers to trade and investment •Technological innovation World Trade Organization (WTO) - ANSWER-an international organization that enforces the rules of international trade World Bank - ANSWER-provides financing for national economic development efforts International Monetary Fund (IMF) - ANSWER-regulates fixed exchange rates and enforces rules of the international monetary system purpose of trade agreements such as NAFTA and APEC - ANSWER-•These organizations are similar to WTO but, are more "regional" in nature Technological Innovation - ANSWER-•E-business (e-commerce) •E-mail and videoconferencing •Internet •Company Intranet / Extranet •Improved Transportation Technologies •E-business (e-commerce) - ANSWER-•The use of computer networks to purchase, sell, or exchange products; to service customers; and to collaborate with partners •E-mail and videoconferencing - ANSWER-•Letters / fax vs. e-mail / video chat Internet - ANSWER-•Selling online, eliminating costs (middlemen), idea generation etc. •Improved Transportation Technologies - ANSWER-•GPS & RFID KOF - ANSWER-Index of Globalization Against Globalization - ANSWER-•Eliminates jobs in developed nations •Lowers wages in developed nations •Exploits workers in developing countries Support Globalization - ANSWER-•Increases wealth and efficiency in all nations •Generates labor market flexibility in developed nations •Advances the economies of developing nations Inequality within nations - ANSWER-Developed nations (white-collar vs. blue-collar jobs) Inequality between nations - ANSWER-US vs. China (average income gap is closing) US vs. Africa (average income gap is widening) Global inequality - ANSWER-Situation in Africa (13% of world population but, only 3% of world GDP) Increasing aid / forgiving debt Culture - ANSWER-the collective programming of the mind that distinguishes the members of one category of people from those of another. Content of culture - ANSWER-Beliefs, attitudes, goals and values held by most people in a society Meaning of characteristic behaviors, rules, customs, and norms that most people follow Meaning of significant aspects of major social institutions and physical objects used by people in a society National culture - ANSWER-Nation-states support and promote the concept of national culture by building museums and monuments to preserve the legacies of important events and people