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BUSI 3250 Exam 1 Questions with Complete Solutions
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BUSI 3250 Exam 1 Questions with Complete Solutions
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BUSI 3250 Exam 1 Questions withComplete Solutions
International Business - Answer-= Business that is carried out across national borders
- includes trade and foreign manufacturing, service industry like transportation/
tourism/advertising, and retailing
Foreign Business - Answer-denotes the operations of a company outside its home or
domestic market (interchangeable with international business)
international company - Answer-A company with operations in multiple nations
T/F: No domestic firm is entirely free from foreign or international environmental forces -
Answer-True, due to competition
environment - Answer-all of the forces influencing the life and development of the firm
uncontrollable forces - Answer-= The external forces that management has no direct
control over (PESTLE)
- to be a successful business, you have to adapt to uncontrollable forces
What does PESTLE stand for? - Answer-Political, Economic, Social, Technological,
Legal, Environmental
the domestic environment - Answer-all the uncontrollable forces originating in the home
country that surround and influence the firm's life and development
the foreign environment - Answer-All the uncontrollable forces originating outside the
home country that surround and influence the firm
Professor C.K. Prahalad popularized the term "Bottom of the Pyramid" to refer to what?
- Answer-the approximately 3 billion people who survive on less than $2 per day, where
basic survival needs are just barely met
- said this large mass of humanity should be viewed as having tremendous market
potential with untapped purchasing power
self-reference criterion - Answer-unconscious reference to one's own cultural values,
experiences, and knowledge as a basis for decisions
- the thought is we do it in this way in our country, so it is the best way
, - adds complexity to doing business w other cultures (because we are not familiar with
other cultures)
What are the 3 choices international managers have in deciding what to do with a
concept or technique employed in another country? - Answer-1. transfer it intact
2. adapt it to local conditions
3. not use it overseas
(international managers who discover the differences in the environmental forces are
better prepared)
T/F: While most multinationals are based in developed nations, there has been a recent
surge in the # arising in emerging economies - Answer-True, BRICS in the textbook
When did international business really gain traction? - Answer-100 years ago
Transnational Corporation - Answer-An enterprise made up of entities in more than one
nation, operating under a decision-making system that *allows a common strategy and
coherent policies*
What % of the world GDP comes from transnationals? - Answer-transnationals
collectively account for 10%
Foreign Direct Investment (FDI) - Answer-Direct investment in equipment, structures,
and organizations in a foreign country at a level to obtain significant management
control (measures where and how fast internationalization takes place)
T/F: FDI includes mere foreign investment in stock markets - Answer-False
Exporting - Answer-The transportation of any domestic good or service to a destination
outside a country or region (large amt of international business is exporting rather than
FDI)
Importing - Answer-The transportation of any good or service into a country or region,
from a foreign origination point
What are the 5 majors kinds of drivers, all based on change, leading international firms
to internationalize their operations? - Answer-1. political
2. technological
3. market
4. cost
5. competitive
Economic Globalization - Answer-The tendency toward an international integration of
goods, technology, information, labor and capital, or the process of making this
integration happen
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