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International Business: Key Concepts and Definitions, Exams of Advanced Education

A comprehensive list of key concepts and definitions related to international business, covering topics such as globalization, trade, economic systems, and international business strategies. It serves as a valuable resource for students seeking a foundational understanding of the subject.

Typology: Exams

2024/2025

Available from 02/15/2025

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INB 302 FINAL EXAM QUESTIONS AND CORRECT ANSWERS
100% VERIFIED
Globalization
the widening set of interdependent relationships among people from different parts of a
world tat happens to be divided into nations
Merchandise exports
tangible products that are sent out of a country
Merchandise Imports
goods brought into a country
franchising
one party allows another to use a trademark as an essential asset of the franchisee's
business
Foreign direct investment
the investor takes a controlling interest in a foreign company
Joint Venture
two or more companies share ownership of a FDI
Portfolio investment
non controlling financial interest in another country
Creolization
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INB 302 FINAL EXAM QUESTIONS AND CORRECT ANSWERS

100% VERIFIED

Globalization the widening set of interdependent relationships among people from different parts of a world tat happens to be divided into nations

Merchandise exports tangible products that are sent out of a country

Merchandise Imports goods brought into a country

franchising one party allows another to use a trademark as an essential asset of the franchisee's business

Foreign direct investment the investor takes a controlling interest in a foreign company

Joint Venture two or more companies share ownership of a FDI

Portfolio investment non controlling financial interest in another country

Creolization

mixing of cultural elements

cultural imperialism forced on elements of another country

Hierarchy of needs theory individuals will fill lower-level before moving to higher needs

Political system the structural dimensions and power dynamics of its governments that specify institutions, organizations, and interest groups, and define the norms that govern political activities

Political ideology stipulates how society ought to function and outlines the methods by which it will do so

Totalitarianism subordinates the individual to the interest of the collective

individualism primacy of the rights and role of the individual

collectivism primacy of the rights and role of the community

rule of man legal rights derive from the individual who commands the power to impose them associated with a totalitarianism system

command economy the visible hand of the state supersedes the invisible hand of individuals

mixed economies fall between market and command economies

socialism regulate economic activity with a focus on social equality and a fair distribution of wealth

state capitalism refers to a system in which the government explicitly manipulates market outcomes for political purpose

gross national income the broadest measure of economic activity for a country

gross national product the total value of all final goods and services produced within a nation in a particular year

gross domestic product the total market value of goods and services produced by workers and capital with a nation's borders

green economies gauge economic performance in terms of the effect of current choices on long-term sustainability

sustainable development meet the needs of the present without compromising the ability of future generations to meet their own needs

happynomics importance of emotional prosperity in additional to financial prosperity

human development index function of life expectancy at birth, educational attainment, and whether average incomes are sufficient to meet the basic needs of life in a country

inflation a measure of the increase in the cost of living

rates to keep the prices of goods in the country fairly similar

marketing when the value of a country's currency rises, exporting becomes more difficult as the product becomes more expensive in foreign markets

production might locate production in a weak currency country because the initial investment is cheaper and it will make a good base for exports

factor mobility theory focuses on why production factors move, the effects of that movement on transforming factor endowments, and the impact of international factor mobility on world trade

laissez faire one that allows market forces to determine trading relations

absolute advantage different countries produce some goods more efficiently than others, and questions why the citizens of any country should have to buy domestically produced goods when they can buy them more cheaply from abroad

comparative advantage

global efficiency gains may still result from trade if a country specializes in what it can produce most efficiently regardless of other countries' absolute advantage

mercantilism holds that a country's wealth is measured by its holdings of "treasure" which usually means gold

trade surplus exporting more than importing

trade deficit importing more than exporting

neomercantilism the approach of countries that try to run favorable balances of trade in attempt to achieve some social or political objective

new trade theory countries specializes in the production and export of particular products not because of underlying differences in factor endowments (land, labor, capital)

theory of country size

presumes that the unregulated importation of lower priced, manufactures presents the development of a domestic industry

dumping companies sometimes export below cost or below their home-country price

optimum-tariff theory a foreign producer will lower its prices if the importing country places a tax on its products

tariffs refer to a government levied tax on goods shipped internationally

subsidies direct assistance to companies to make them more competitive

quotas limit the quantity of a product that can be imported or exported in a given time frame

countertrade government requirements in the importing country whereby the exporter usually in sales to a foreign government, must provide additional economic benefits such as jobs or technology as part of the transaction

bilateral agreements can be between two individual countries of can involve one country dealing with a group of other countries

regional trade agreements integration confined to a region and involving more than two countries

global integration countries from all over the world decide to cooperate through the world trade organization

static effects shifting of resources from inefficient to efficient companies

dynamic effects overall growth in the market

economies of scale the average cost per unit falls as the number of units produced increases

distributing value chain activities around the world-to achieve location economies

core competencies special outlook, skill, capability, or technology that runs through the firm's operations, threading disconnected activities into an integrated value chain

conventional where we learn role conformity, first from our peers, then from societal laws

local responsiveness the process of disaggregating a standardized whole into differentiated parts

brand an identifying mark for a product or service

ethnocentric fill key management positions with home-country nationals

polycentric use host-country nationals to manage local subsidiaries

geocentric seek the best people for key jobs throughout the organization, regardless of nationality

expatriate failure a managers premature return home due to poor performance

International Business as all commercial transactions, including sales, investment, and transportation that takes place between two or more countries

6Which of the following is NOT one of the phases of the U-shaped curve of expatriate adjustment? repatriation 2 multiple choice options

6which of the following is NOT a reason companies engage in international business? none of the above 3 multiple choice options

6the Gini coefficient does which of the following? measures the extent to which the distribution of resources deviates from a perfectly equal distribution

low-cost production

6the EU is an example of a common market T/F True

6the british airport authority assists and trains the security personnel at airports around the world. this exemplifies a turnkey operation T/F True

the comparative advantage theory holds that a country will gain from trade ____________. even though it can produce all goods more efficiently than other countries.

6companies pursue local responsiveness in their strategy to maximize efficiencies T/F False

comparative advantage theory that states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently

the factor proportions theory holds that countries should improve their competitiveness by importing capital and skilled employees from abroad. T/F False

Factor Proportions Theory factors in relative abundance are cheaper than factors that are relatively scarce. differences in countries endowments of the factors of production explain which products a country exports.