Mgmt 450 Exam 1 || all solved.
international business correct answers consists of business transactions between parties from more than
one country. Countries could use different currencies, legal systems could differ, cultures could differ, and
the availability of resources in the countries involved could differ. International businesspeople must be
knowledgeable about cultural, legal, political, and social differences among countries.
JIT system (just-in-time system) correct answers Japanese firms pioneered this inventory management
technique, under which suppliers are expected to deliver necessary inputs just as they are needed
exporting correct answers the selling of products made in one's own country for use or resale in other
countries
importing correct answers is the buying of products made in other countries for use or resale in one's own
country
merchandise exports and imports correct answers exporting and importing activities often are divided into
two groups. One group of activities is trade in goods - tangible products such as clothing, computers, and
raw materials. Official U.S. gov publications call this type of trade __, the British call it 'visible trade'
service exports and imports correct answers exporting and importing activities often are divided into two
groups. One group of activities is trade in services - intangible products such as banking, travel, and
accounting activities. U.S. calls this type of trade __, British call it 'invisible trade'
international investments correct answers major form of international business activity - is capital
supplied by residents of one country to residents of another. Such investments are divided into two
categories: foreign direct investments and foreign portfolio investments
FDI (foreign direct investments) correct answers investments made for the purpose of actively controlling
property, assets, or companies located in host countries. Companies HQ country is called the 'home
country', any other country in which the parent company operates is known as the 'host country'
FPI (foreign portfolio investments) correct answers are purchases of foreign financial assets (stocks,
bonds, and certificates of deposit) for a purpose other than control. An example of a portfolio investment
is the purchase of 1,000 shares of Sony's common stock by a Danish pension fund. With this investment
the pension fund is trying to raise the rate of return on its asset portfolio rather than control Sony's
, decision making. For the same reason many investors in recent years have bought shares of mutual funds
that specialize in foreign stocks and bonds
international licensing correct answers is a contractual arrangement in which a firm in one country
licenses the use of its intellectual property to a firm in second country in return for a royalty payment. The
Walt Disney company may permit a German clothing manufacturer to market children's pajamas
embroidered with Mickey's smiling face in return for a % of the company's sales
international franchising correct answers a specialized form of international licensing, occurs when a firm
in one country (the franchisor) authorizes a firm in a second country (the franchisee) to utilize its
operating systems as well as its brand names, trademarks, and logos in return for a royalty payment. i.e.
McDonald's Corporation
international management contract correct answers is an arrangement wherein a firm in one country
agrees to operate facilities or provide other management services to a firm in another country for an
agreed-upon fee. These contracts are common, for instance, in the upper end of the international hotel
industry
MNC (multinational corporation) correct answers is used to identify firms that have extensive
involvement in international business, more precisely a firm "that engages in foreign direct investment
and owns or controls value-adding activities in more than one country." In addition to owning and
controlling foreign assets, MNCs typically buy resources in a variety of countries, create goods and/or
services in a variety of countries, and then sell those goods/services in a variety of countries
MNE (multinational enterprises) correct answers because some large MNCs, such as accounting
partnerships and Lloyd's of London, are not true corporations, some writers distinguish between
multinational corporations and __
MNO (multinational organization) correct answers not-for-profit organizations, such as the IOC and the
International Red Cross, are not true enterprises, so the term __ can be used when one wants to refer to
both non profit and profit seeking organizations
globalization correct answers international business has grown so rapidly in the past decade that many
experts believe we are living in the era of __ - which can be defined as "the inexorable integration of
markets, nation-states, and technologies ... in a way that is enabling individuals, corporations and nation-
states to reach around the world farther, faster, deeper, and cheaper than ever before."
international business correct answers consists of business transactions between parties from more than
one country. Countries could use different currencies, legal systems could differ, cultures could differ, and
the availability of resources in the countries involved could differ. International businesspeople must be
knowledgeable about cultural, legal, political, and social differences among countries.
JIT system (just-in-time system) correct answers Japanese firms pioneered this inventory management
technique, under which suppliers are expected to deliver necessary inputs just as they are needed
exporting correct answers the selling of products made in one's own country for use or resale in other
countries
importing correct answers is the buying of products made in other countries for use or resale in one's own
country
merchandise exports and imports correct answers exporting and importing activities often are divided into
two groups. One group of activities is trade in goods - tangible products such as clothing, computers, and
raw materials. Official U.S. gov publications call this type of trade __, the British call it 'visible trade'
service exports and imports correct answers exporting and importing activities often are divided into two
groups. One group of activities is trade in services - intangible products such as banking, travel, and
accounting activities. U.S. calls this type of trade __, British call it 'invisible trade'
international investments correct answers major form of international business activity - is capital
supplied by residents of one country to residents of another. Such investments are divided into two
categories: foreign direct investments and foreign portfolio investments
FDI (foreign direct investments) correct answers investments made for the purpose of actively controlling
property, assets, or companies located in host countries. Companies HQ country is called the 'home
country', any other country in which the parent company operates is known as the 'host country'
FPI (foreign portfolio investments) correct answers are purchases of foreign financial assets (stocks,
bonds, and certificates of deposit) for a purpose other than control. An example of a portfolio investment
is the purchase of 1,000 shares of Sony's common stock by a Danish pension fund. With this investment
the pension fund is trying to raise the rate of return on its asset portfolio rather than control Sony's
, decision making. For the same reason many investors in recent years have bought shares of mutual funds
that specialize in foreign stocks and bonds
international licensing correct answers is a contractual arrangement in which a firm in one country
licenses the use of its intellectual property to a firm in second country in return for a royalty payment. The
Walt Disney company may permit a German clothing manufacturer to market children's pajamas
embroidered with Mickey's smiling face in return for a % of the company's sales
international franchising correct answers a specialized form of international licensing, occurs when a firm
in one country (the franchisor) authorizes a firm in a second country (the franchisee) to utilize its
operating systems as well as its brand names, trademarks, and logos in return for a royalty payment. i.e.
McDonald's Corporation
international management contract correct answers is an arrangement wherein a firm in one country
agrees to operate facilities or provide other management services to a firm in another country for an
agreed-upon fee. These contracts are common, for instance, in the upper end of the international hotel
industry
MNC (multinational corporation) correct answers is used to identify firms that have extensive
involvement in international business, more precisely a firm "that engages in foreign direct investment
and owns or controls value-adding activities in more than one country." In addition to owning and
controlling foreign assets, MNCs typically buy resources in a variety of countries, create goods and/or
services in a variety of countries, and then sell those goods/services in a variety of countries
MNE (multinational enterprises) correct answers because some large MNCs, such as accounting
partnerships and Lloyd's of London, are not true corporations, some writers distinguish between
multinational corporations and __
MNO (multinational organization) correct answers not-for-profit organizations, such as the IOC and the
International Red Cross, are not true enterprises, so the term __ can be used when one wants to refer to
both non profit and profit seeking organizations
globalization correct answers international business has grown so rapidly in the past decade that many
experts believe we are living in the era of __ - which can be defined as "the inexorable integration of
markets, nation-states, and technologies ... in a way that is enabling individuals, corporations and nation-
states to reach around the world farther, faster, deeper, and cheaper than ever before."
