CH 16-18

Question 1

Globalization involves …..

Answer 1

the growing interdependence of the worlds economies

Question 2

Globalization creates….

Answer 2

a variety of international business opportunities

Question 3

International business is done by….

Answer 3

global sourcing
import/export
licensing
franchising

Question 4

international business is complicated by different….

Answer 4

legal and political systems

Question 5

In-sourcing

Answer 5

domestic jobs are created by foreign employees

Question 6

Outsourcing

Answer 6

jobs are shifted to foreign locations to take advantages of lower wages, infrastructure, educated workforce or government support

Question 7

off shoring

Answer 7

using another country for outsourcing

Question 8

Global economy

Answer 8

resources, markets and competition are world wide in scope

Question 9

globalization

Answer 9

process of growing interdependence of global economies

Question 10

international business

Answer 10

conducts transaction across international boundries

Question 11

Reasons to go international

Answer 11

profits
customers
suppliers
capital labor risk

Question 12

Saturated Market

Answer 12

everyone already has it, making it harder to sell

Question 13

Global Sourcing

Answer 13

materials, components, or services are purchased world wide

Question 14

Exporting

Answer 14

selling locally made products in foreign markets

Question 15

importing

Answer 15

buying foreign made products and selling them to domestic markets

Question 16

Licensing

Answer 16

foreign firm pays for rights to make or sell another company’s products

Question 17

Franchising

Answer 17

foreign firm buys rights to another name and operating method in its home country

Question 18

Joint Venture

Answer 18

Co-ownership arrangement in which foreign and local businesses jointly operate the new business

Question 19

Global strategic alliance

Answer 19

cooperative partnership to achieve tasks that would be difficult for partners alone

Question 20

Foreign subsidiary

Answer 20

operation completely owned and controlled by a foreign firm

Question 21

greenfield venture

Answer 21

subsidiary established after firm has experience in joint ventures

Question 22

tariffs

Answer 22

taxes placed on imports

Question 23

protectionism

Answer 23

tarrifs, subsidies and other tactics that give advantages to domestic producers

Question 24

World Trade Organization

Answer 24

global institution to promote free trade and open markets around the world

Question 25

Transnational corportations

Answer 25

operate without one national home

Question 26

currpuption

Answer 26

illegal practices

Question 27

Foreign Corrupt Practices Act

Answer 27

U.S. Legal standards apply to companies when operating foreign countries

Prevents: Bribes, gifts to foreign officials in return for business favors

Question 28

Sweatshops

Answer 28

employees work long hours in poor or unsafe conditions

Question 29

child labor

Answer 29

full time employment of children

Question 30

Entrepreneuers are ________________ who spot and pursue opportunities

Answer 30

risk takers

Question 31

entrepreneurship

Answer 31

dynamic, risk taking, creative, growth oriented behavior

Question 32

entreprenuer

Answer 32

person willing to pursue opportunities that others fail to recognize or view as a problem

Question 33

first mover advantage

Answer 33

exploiting a new market opportunity before competitors

Question 34

Intrapreneurs

Answer 34

employees of larger firm that display entrepreneurial behavior such as developing a new product or process

Question 35

Social entrepreneurs

Answer 35

are driven by a social mission

Question 36

Sole proprietorship

Answer 36

an individual or married couple pursuing business for a profit

Question 37

Partnership

Answer 37

two or more people agree to contribute resources to start and operate a business together

Question 38

corporation

Answer 38

a legal entity that exists separately from its owners

Question 39

limited liability company

Answer 39

a combination of sole proprietorship, parner ship and corporation

Question 40

debt financing

Answer 40

involves borrowing money from other person, a bank or financial instituion

Question 41

equity financing

Answer 41

involves exchanging ownership shares for outside investment monies

Question 42

venture capitalist

Answer 42

involves making large investments in new ventures in return for an equity stake in a business

Question 43

initial public offering

Answer 43

an initial selling of shares of stock to the public at large

Question 44

Diversity

Answer 44

rece, gender, age and many other individual differences

Question 45

inclusivity

Answer 45

degree to which an organization is open to any one who can perform a job regardless of race, gender, age or any other individual differences

Question 46

Multi-cultural organization

Answer 46

based on plualism and operates with inclusivity and respect for diversity

Question 47

Affirmative action

Answer 47

managment commitment to hiring and advancing women and minorities

Question 48

valuing differences

Answer 48

education and training to understand and respect differences

Question 49

managing diversity

Answer 49

building an inclusive network that allows everyone to reach his or her potential

Question 50

ethnocentrism

Answer 50

is the belief that ones memebrship group or subculture is superior to all others

Question 51

low context cultures

Answer 51

emphasize spoken or written words

Question 52

high context cultures

Answer 52

rely on non verbal

Question 53

power distance

Answer 53

is the degree to which a society accepts unequal distribution of power