Systems
Name the 4 types of law
Customary, Theocratic, Common, Civil
Gamea Tech. wishes to develop products that are unique so that it can persuade customers to pay more for it. In this scenario, Gamea Tech is following a _____.
1) greenfield 2) price-skimming 3) differentiation 4) high-cost
Differentiation strategy
Will a manufacturing-dependent country want to over or undervalue their currency? And why?
Undervalue so that their exports are cheaper and will stimulate investment into their country
What is the sourcing decision?
Whether to buy production components from external suppliers or make those components in-house (make or buy decision)
What is reverse innovation?
Bringing improved products back to developed markets from emerging markets
What is the difference between macro and micro political risks?
Macro political risks affect all foreign investments and operations in a host country whereas micro only affects only a specific sector, firm, or project
Gotin Manufacturers produces its goods in its home country. It then exports its manufactured goods to other countries. Which of the following is an advantage that Gotin Manufacturers will have by exporting its products?
1) It will be able to lower the cost of labour in the home country 2) Goods supplied will not be subjected to import tariffs 3) Exporting will save time and money when goods supplied are bulky. 4) It will be able to respond quickly to changes in global demand.
It will be able to respond quickly to changes in global demand
Name the 3 types of foreign exchange risk
Transaction exposure, translation exposure, economic exposure
Structural or Operational risk: when relationships with service providers or outsourcing vendors become problematic.
Structural risk
Name the 3 negative outcomes of foreign aid
Stifled innovation, encouraged corruption at the government level, and dependence
What is the Law of One Price?
The assumption is that any given good or service would carry the same price everywhere if allowed free movement across national borders.
The research and development (R&D) team at Daffle Systems constantly works toward innovating new products and launching new versions of existing products. Through product innovation, which is a form of differentiation, the R&D team at Daffle Systems is most likely to:
1) decrease the perceived value of a product 2) offer low-cost products 3) increase the functionality of products 4) allow the company to compete in the low-cost section of the market.
increase the functionality of products
4 government policies that affect currency valuations and foreign exchange rates
Float, dirty float, pegging, dollarization
What are the 4 advantages of making?
Steady supply, stable price estimates, maintain control of sensitive knowledge, give a firm more control over production time frames and deliveries
Name 3 ways to figh short-termism
Shift focus from shareholders to stakeholders, convince shareholders that long-term and sustainable activities are worthwhile, implement ownership-based governance
Name the 3 monetary policies that a government can employ
Discount rate, reserve requirement, open market operations
Albath and Koina, two countries in the same continent, have different trading blocs. In the context of the liability of foreignness, which of the following forms of distances does this illustrate?
1) Cultural 2) Economic 3) Administrative 4) Geographic
Economic distance
What theory states that recessions are the result of insufficient (local) demand relative to the supply, and underconsumption is often caused by wealth inequality.
Theory of underconsumption
What 4 factors are included in physical resources?
Raw materials, manufacturing, transportation, and energy resources
4 Stages to gain sustainability competitive advantage
View compliance as an opportunity, make value chains sustainable, design sustainable products and services, develop new business models
Name the 3 actions taken to shift from a command economy to a market economy
Privatization, property rights, deregulation
Sikesa, a country in Eastern Europe, has a market-based economy. It is likely that:
1) individuals and businesses in Sikesa determine how much they privately consume and invest in the economy. 2) common law determines decisions regarding investment, production, and distribution in Sikesa. 3) factors of trade and production in Sikesa are controlled by the state rather than private owners. 4) the citizens of Sikesa cannot generate personal wealth from capital
individuals and businesses in Sikesa determine how much they privately consume and invest in the economy.
Which is theory suggests that trade flows from countries with abundant factor endowments and to countries with scarce factor endowments
Heckscher-Ohlin theory of trade
How do managers assess the value of human capital in a country (3)?
The country’s educational infrastructure, the company’s global corporate training and development, and the level of collaboration between companies, educational institutions, and governments.
Name the 5 stages in the Rostow model
Traditional society, Reconditions to take off, Take off, Drive to maturity, High mass consumption