International Business Exam -1 with complete solutions
11 views 0 purchase
Course
International Business
Institution
International Business
A specific tariff describes a tax on imports levied as a constant percentage of the monetary value of one unit of the imported good. T/F
False
According to the authors, which of the following is NOT true regarding globalization lessons for developing countries?
Import oriented nations must...
International Business Exam #1 with
complete solutions
What is international business? - ANSWER-The performance of trade and investment
activities by firms across national borders.
Why do firms internationalize? - ANSWER-Higher profits, Global Scale Economies,
Seek opportunities for growth through market diversification, gain new ideas about
products, services, and business methods. Also resource acquisition, access to
otherwise unavailable resources, enhanced competitiveness/knowledge transfer.
Confront international competitors more effectively, better serve key customers that
have relocated abroad.
What does "the globalization of markets" refer to? - ANSWER-The ongoing economic
integration and growing interdependency of of countries world wide.
Are manufacturing firms the only ones in that conduct international business? -
ANSWER-No. Companies in the service sector are also internationalizing.
What does the globalization of markets involve? - ANSWER-1) Growth of international
trade
2) Flows of capital, technology, and knowledge
3) Development of sophisticated global financial systems
4) Mechanisms that facilitate cross-border flow of products, money, technology, and
knowledge
5) Greater collaboration among nations (WTO)
What is international trade? - ANSWER-Refers to an exchange of products and services
across national borders. (Trade involves PRODUCTS & SERVICES)
, What are two forms of trade? - ANSWER-Exporting: The sale of products or services to
customers located abroad.
Importing: The procurement of products or services from suppliers located abroad.
What does the term "international investment" refer to? - ANSWER-The transfer of
assets to another country or the acquisition of assets in that country.
These assets include: capital, technology, managerial talent, & manufacturing
infrastructure.
Within international investment there are two classifications of "investments" - what are
they and can you describe them? - ANSWER-International Portfolio Investment: Refers
to the passive ownership of foreign securities (such as stocks and bonds for the
purpose of generating financial returns).
Foreign Direct Investment: An internationalization strategy in which the firm establishes
a physical presence abroad through acquisition of productive assets such as capital,
technology, labor, land, plant, and equipment.
In recent years is total world GDP or exports greater? - ANSWER-World exports have
grown more than thirty-fold while GRP has only grown ten-fold.
What does the rapid integration of world economies involve? - ANSWER-1) Advances in
information and transportation technologies
2) Decline of trade barriers
3) Liberalization of markets
4) Growth of emerging market economies
Between international investment portfolio & foreign direct investment, which is more
substantial in regards to internationalization? - ANSWER-Foreign direct investment,
because it encompasses the widest range of international business activity. (It involves
businesses actually establishing themselves in foreign markets).
Why would a firm decide to utilize Foreign Direct Investment (FDI)? - ANSWER-1) To
set up manufacturing or assembly operations
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tuition. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
