Clarifying Terminology
Refers to a process by which organizations develop influence or operations across international borders.
Globalization
An agreement between countries that seeks to reduce or eliminate tariffs and other trade barriers.
General Agreements on Tariffs and Trade (GATT)
Which of these theories are laws is the theoretical justification for increased international trade?
Law of Comparative Advantage
Purchasing materials or labor from around the world wherever it is cheapest is known as:
importing, exporting, global sourcing
global sourcing aka global outsourcing. the goal is to take advantage of lower costs in order to be more competitive.
Global business managers should expect all these differences, EXCEPT?
security risks, changes in foreign legal systems, similar work schedules, risky political climates, greater uncertainty
similar work schedules
Refers to patriotic ideals and policies that glorify a country's value.
Nationalism
An agreement among the Mexican, Canadian, U.S. governments in which barriers to trade have been eliminated.
North American Free Trade Agreement (NAFTA)
The Win-Win argument: The every country wins argument is based on the law of comparative advancement? True or False?
False. It is based on law of comparative advantage. Which states the economic proposition that a country should produce good or service for which it has the lowest opportunity costs.
These two items usually entail minimal investment and risk, which is why many small business often use these approaches to doing business globally. Are they:
exporting-importing
licensing-franchising
licensing-organization gives another organization the right to make or sell its products using its technology or product specifications.
franchising-organization gives another organization the right to use its name and operating methods
According to the Global Leadership and Organizational Behavior (GLOBE) Effectiveness study, which dimension refers to how much a society relies on social norms to alleviate the unpredictable nature of future occurrences, is known as:
power distance, uncertainty avoidance, assertiveness
uncertainty avoidance-examples are citizens protest repressed would be a high avoidance, but a citizens protest accepted would be a low avoidance. According to Hofstede, uncertainty avoidance reflects the extent to which members of a society attempt to cope with anxiety by minimizing uncertainty.
The view that managers in the host country know the beset work approaches and practices for running their business. Is it ethnocentric attitude, polycentric attitude, or geocentric attitude.
polycentric attitude
A global organization of 164 countries that deals with the rules of trade among nations.
World Trade Organizations (WTO)
Critics of globalization maintain that jobs were leaving developed high cost nations and flowing to cheap labor nations, is an upside or downside of globalization.
Downside.
A U.S. based car company is pairing with a Japanese car company to create a separate, independent organization for selling a line of motorcycles in Brazil. This is an example of:
strategic alliance or joint venture
Joint Venture-a specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.
An economic system in which resources are primarily owned and controlled by the private sector, is known as:
free market economy, planned economy
free market economy
Other economic issues managers need to understand include (1) currency exchange rates, (2) inflation rates, and (3) diverse tax policies. Global managers need to know about a country’s economic system because it too has the potential to constrain decisions. Country inflation rates can, and do vary widely
A world-oriented view that focuses on using the best approaches and people from around the world. Is it ethnocentric attitude, polycentric attitude, or geocentric attitude.
geocentric attitude
A financial institution that provides assistance to developing countries, founded in 1945.
World Bank
law of comparative advantage, law of demand, law of supply, Occam's razor, Gresham's law
Law of comparative advantage
Any type of of international company that maintains operations in multiple countries is known as:
multidomestic corporation
multinational corporation
global company
multination corporation
True or False
Doing business in different countries comes with different rules. For instance, while bribing government officials to get around regulations or to secure contracts is illegal in most of North America and Western Europe, it’s a common practice in Cambodia, Yemen, and Ukraine.
True
Nationalism refers to patriotic ideals and policies that glorify a country's values.
True or False
True
An update on the original NAFTA agreement between the United States, Mexico and Canada. Is it Trans-Pacific Partnership (TPP), or United States-Mexico-Canada Agreement (USMCA)?
USMCA
True or False
Free trade is not the cause of unemployment.
True. Globalization is not the cause for unemployment, technology is the culprit. (found on page 91 of text or PP 21)
Directly investing in a foreign country by setting up a separate and independent production facility or office is known as:
strategic alliance
foreign subsidiary
Foreign Subsidiary-this subsidiary can be managed as a multidomestic (local control) or as a global organization (centralized control). This arrangement involves the greatest commitment of resources and poses the greatest risks.
The values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important is known as:
national culture, ethical culture, economical culture
national culture-it is steeped in a country's history, and it's based on a society's social traditions, political and economic philosophy, and legal system.