International management questions

Business activates of private or public enterprises that involve the movement of resources (Capital, human, technology, raw material etc) across national boundaries, between 2 or more countries What is the correct definition of International Business?

Is a long-term equity investment in a foreign affiliate or subsidiary What is the correct definition of Foreign Direct Investment (FDI)?

Company using profits to generate in one market to compete in another market What is Cross subsidization?

Strategic motivations Which of the following motivations for establishing foreign operations characterize experience?

Partial agreement among MS GATT was created/what GATT is?

Removing tariff and nontariff barriers GATT principle purpose was

Enforce GATT agreement WTO was created to

An institution with the authority to set and enforce rules governing trade between countries WTO is

Common market There are different level of economic integration, which of the following trade blocs allows no restriction on factors movement

Trade creation Which is the static effect of economic integration?

Free trade area There are different level of economic integration, NAFTA is:

Common market There are different level of economic integration, MERCOSUR, ASEAN and EU is

Free trade area There are different level of economic integration, FTAA is

Free trade area Bloc member countries remove trade barriers on trade among member countries

Customs union The agreement among member countries to eliminate the duties

Common market A market that allows factor mobility, free movement of resources e.g labor and capital

Economic union Common market where I the national economic policies of member countries are also harmonized

Political union Unified economic and political policies and institutions

Trade creation Positive effect of economic integration

Trade division Negative effect of economic integration

Market extension One benefit of common market

Political union Coordinated political and social policy is in;

A set of players The political system consists of

Ideology A set of closely related beliefs, ideas, attitudes and characteristics of a group is called?

Consensus The widespread acceptance of the decision making process in the political system by the individuals and groups in the system

Legitimacy The use of the power of the state by official in accordance either prearrange and agreed rules

Political risk The degree of uncertainty about the future decisions made by the government

Transfer risk The degree of ease or difficulty experienced in making transfer of capital, goods, technology and people, into or out of the country

Ownership The expropriation of a firm foreign direct investment (FDI) what type of political risk?

Transfer risk The tariffs imposed on imported steel, what type of political risk is?

Transfer risk Capital control that limit remittance of money between countries, what type of political risk is?

Macro risk Risk in which all private enterprise is confiscated or nationalized

Micro risk Specific action against specific company by a group or government

To promote law What is the function of law in a democratic society?

Two trade block/countries that agreed to submit to its authority The international court of justice (The World Court) has the authority to adjudicate commercial disputes between?

Company and a citizen or between two countries The international court of justice (The World Court) has NOT the authority to adjudicate commercial disputes between?

Common law The set of legal principles that has emerged from the feudal law of medieval England

Code law Law which has roots in Roman Empire is called?

Objective culture Components such as infrastructure of roads, architecture, patterns of music, food and dress habits are?

Subjective culture Components such as the way people categorize experience, associations, beliefs, attitude, self-definitions, role definitions, norm and values

Low uncertainty avoidance Inside hofsted’s framework what represent the following principle “ tolerance of deviant and innovative ideas and behavior”

Lower power distance Inside hofsted’s framework what represent the following principle “ inequalities among people should be minimized”

Ethnocentrism An attitude where Everything that originate from home country;

Ethnocentrism A world oriented attitude where standardization of both products and processes is emphasized

Polycentrism A world oriented attitude with no predisposition regarding degree of control or centralization

Geocentrism In terms of international strategies how could we define a highly centralized organization where headquarters control is emphasized?

Polycentrism An attitude where everything originate from other countries

Polycentrism In terms of international strategies how could we define a highly decentralized organization where headquarters control is not emphasized?

Growth strategies When host country is HIGHLY attractive and HIGHLY competitive which strategy?

Collaborative strategies When host country is HIGHLY attractive and LOW competitive, which strategy?

Cross subsidization strategies When host country is LOW attractive and HIGH competitive, which strategy?

Defensive strategies When host country is LOW attractive and LOW competitive which strategy?

Transnational orientation When Global Integration and coordination pressure is HIGH and HIGH Local responsiveness pressure, which Orientation?

Global orientation When Global Integration and coordination pressure is HIGH and LOW Local responsiveness pressure, which Orientation?

Multidomestic orientation When Global Integration and coordination pressure is LOW and HIGH Local responsiveness pressure, which Orientation?

International orientation When Global Integration and coordination pressure is LOW and LOW Local responsiveness pressure, which Orientation?

Exporting The process of sending a firm’s products or services to international destinations

Indirect export Exporting by intermediary

Direct export Exporting without intermediary

Counter trade Arrangements whereby the flow of goods or services in both direction is called?

Marked extension/market growth Counter trade is used for?

Pure barter The business arrangement agree to accept each other’s goods as payment for the transaction

Switch trading Trade involving three or more countries?

Counter purchase A deal where country A exports to country B and in return promises to spend some or all of the receipts on imports from B

Buyback Licensing of patents on trademarks, selling production know-how, lending capital, or building a plant in another country and agreeing to buy part or all of its outputs as payments

Counter trade Pure barter/switch trading/counter purchase/buyback example of?

Contract manufacturing A contractual agreement between a company and a foreign producer under which the foreign producer manufactures the company’s products is called?

Licensing An alternative route to market abroad is?

Franchising Which is a very common form of licensing?

Equity based ventures Ownership and control of foreign venture through foreign direct (FDI) investment?

Equity based ventures Which one of the following has the highest degree of risk?

Knowledge Fluid mix of experience, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experience is called?

Information Something that makes an impact on the judgment of and behavior of the decision maker?

Tacit knowledge What type of knowledge characterizes the artisan Italian fashion business

Culture is inherited and biologically based Which of the following statements does NOT regarding the characteristics of culture

Equality and personal orientation An incubator Culture is characterized by a strong emphasis on

Outsider system Which of the following governance rules are common in the USA

High-context culture A culture where “relations between people are relatively long lasting and individuals feel deep personal involvement with each other

Ethnocentric predisposition In term of strategic predispositions, a company that “allows the values and interests of the parent company to guide strategy

Ideology + the degree of individualism and collectivism To evaluate a political system how many dimensions must be considered

Sovereign immunity What type of international jurisdiction holds that “government have the right to rule themselves as they see fit”

Wholly owned subsidiary Which of the following Foreign Mode-of-entry Choices has the higher degree of control for one MNC

Franchising What is the mode of entry of Monnalisa Fashion Business?

Franchising What is the mode of entry of Gucci Fashion Group?

Exporting What is the mode of entry of Samontana Business?

Eyewear and perfumes Gucci manufactures all products in Italy and licenses the production and distribution of

Social Knowledge What type of knowledge characterize Monnalisa Fashion Business?

Tactic Knowledge What type of knowledge characterize Gucci Fashion Group?

Explicit Knowledge What type of knowledge characterize Samontana Business?

Tactic knowledge What type of knowledge characterize Valdani Bertoli?

Offshoring The process by wich companies undertake some activities at other location insted of iin their countries of orgin

Offscoring The subcontracting or contracting out activities to endogenous organization that have previously been preformed by firm

Economic Environment The interest rates what part of international environment?

Egoism What Evaluates how right or acceptable a behavior is depending on its consequences on the person?

Theory of justice Be equitable, be fair, and be impartial is called?

Cultural relativism Words such as right, wrong, justice and injustice is called?

Responsive CSR Which views the community as an entity in tension or conflict is called?

Strategic CSR which asses and implement the firms activities in a manner similar to its approach for other business choice?

Bribery The payment voluntarily offered for the purpose of including a public official to do or omit to do something is called?

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