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MKT 321 > Exam 1 > Flashcards

Exam 1 Flashcards

1
Q

Any transaction between countries

A

International Business

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2
Q

What is the world population?

A

7.4 billion

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3
Q

What is the US population?

A

324 million

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4
Q

What is China’s population?

A

1.35 billion

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5
Q

What is India’s population?

A

1.35 billion

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6
Q

What is the population of Indonesia?

A

206 million

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7
Q

What are the top 5 most populated countries?

A

China, India, US, Indonesia, Brazil

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8
Q

What doe GDP stand for?

A

Gross Domestic Product

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9
Q

What is the world’s GDP?

A

113.5 trillion

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10
Q

What is the US’s GDP?

A

18.5 trillion

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11
Q

What is China’s GDP?

A

21 trillion

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12
Q

What are the top four countries in respect to GDP?

A

China, US, India, Japan

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13
Q

What does PPP stand for?

A

Purchasing Power Parity

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14
Q

A more in-depth analysis of what a country makes b/c it compares exchange rates, how much one can buy, standard of living, etc.

A

PPP

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15
Q

When did the Berlin Wall fall?

A

1989

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16
Q

What are bilateral and multi-lateral trades?

A

Trade between two countries; trade between multiple countries

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17
Q

Why is China’s economy interesting and important?

A

It is an open market, but has a communist government

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18
Q

What are some reasons companies internationalize?

A
  • To expand sales
  • To spread cost
  • Resources
  • Dumping
  • Fixed costs
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19
Q

When you send any product overseas to sell at a lower cost than price to make.

A

Dumping

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20
Q

Dumping creates _______.

A

Monopolies

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21
Q

How might internationalizing help minimize competitive risk?

A
  • Allows more access to strategic planning

- Michigan vs. Firestone vs. Goodyear

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22
Q

Has international business been growing or declining recently?

A

Growing

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23
Q

Why has international business been growing?

A
  • Expansion in technology
  • Liberalization of cross border movements
  • Growth in supporting services
  • Increasing in simple global competition
  • World politics
  • Growing consumer pressure
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24
Q

Modes of International Business:

A
  • Exports and imports (merch services)
  • Joint-venture
  • Strategic alliance
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25
Q

Why do companies not usually actively approach internationalizing?

A

Lack of knowledge about how to do it.

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26
Q

What is an example of a conservative country?

A

Malaysia

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27
Q

_____ is equalitarian while _____ uses a class system

A

US ; India

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28
Q

What is an example of a country that is performance based?

A

Britain

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29
Q

What is an example of a country that emphasizes inclusion?

A

China

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30
Q

What is an example of a country that downsizes based on seniority vs. performance?

A

Germany

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31
Q

_____ is socially oriented, _____ is about relationships.

A

Germany ; China

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32
Q

______, _______, and _______ considers age important, _____ doesn’t.

A

Japan, Middle East, most of Asia ; US

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33
Q

What is paternalism and what are some example countries?

A

A society where the males rule.

  • China
  • India
  • Japan
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34
Q

Which countries focus on nuclear families

A

US, China, Italy, India

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35
Q

What is power distance?

A

Refers to the way in which power is distributed and the extent to which the less powerful accept that power is distributed unequally.

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36
Q

What does a high power distance mean?

A

That the boss is the boss, and there is a distinct hierarchy in who communicates with who.

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37
Q

What are some examples of countries with low power distance?

A

Dutch, Netherlands, Scandinavia

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38
Q

What are some examples of countries with high power distance?

A

Russia, China, India

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39
Q

How do people talk in a high distance vs low distance culture?

A

horizontally vs. laterally

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40
Q

What are some examples of individualist countries?

A

US, Australia, UK

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41
Q

What are some examples of collectivist countries?

A

China (#1), Japan, Asia in general, previously communist nations

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42
Q

Valuing the individual differences and self-expression

A

Individualism

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43
Q

Valuing the group above all else. Country, community, company, family

A

Collectivism

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44
Q

Are individualist or collectivist nations better at teamwork?

A

Collectivist

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45
Q

Are individualist or collectivist nations better at innovation?

A

Individualist

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46
Q

What types of innovation exist?

A

New-to-the-world vs. Improvement

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47
Q

Example of a new-to-the-world innovating country, and an improvement innovating country

A

US ; Japan

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48
Q

Why were additional studies done only after 1989 on risk-taking behaviors?

A

We didn’t have the access before

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49
Q

A society’s tolerance for the uncertain and ambiguous

A

Uncertainty Avoidance

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50
Q

What are examples of countries with high uncertainty avoidance?

A

Greece (#1), Japan, Portugal

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51
Q

What are examples of countries with low uncertainty avoidance?

A

UK, US, Hong Kong, Denmark, Sweden, India

52
Q

What kind of impact does uncertainty avoidance have on business?

A
  • Entrepreneurs

- More precise about rules

53
Q

Willingness to trust strangers

A

Trust

54
Q

What are examples of countries with low trust?

A

China and other previously communist nations

55
Q

What are examples of countries with high trust?

A

US, Norway

56
Q

Why do some countries tend to trust more than others?

A

Because they can afford to. They often have a legal system that will stand behind you.

57
Q

Whether you believe you will make a difference in life or a company.

A

Self-efficacy

58
Q

What are examples of countries with low self-efficacy (fatalism)?

A

Russia, Hungary, other previously communist nations

59
Q

What are examples of countries with high self-efficacy?

A

US, UK

60
Q

_____ directly relates to self-efficacy

A

Work ethic

61
Q

What are examples of countries with low accountability?

A

Previously communist nations

62
Q

The concept that some countries either think about the future vs. the here and now.

A

Future orientation

63
Q

What are examples of countries with low future orientation?

A

Europe, care more about vacation and raises vs. retirement

64
Q

What are examples of countries with high future orientation?

A

Japan and China, care more about retirement packages

65
Q

Which countries tend to not be sharing?

A

Previously communist nations

66
Q

What is the difference between low and high context countries?

A

Low-context only want the facts, and high-context want a focus on relationship building before business.

67
Q

What are examples of low context countries?

A

US, UK, Dutch, Germans

68
Q

What are examples of high context countries?

A

Asia, Russia, Latin, South America, Middle East, India

69
Q

What is being monochronic vs. polychronic information processing?

A

Polychronic cultures can multi-task

70
Q

What is an example of a monochonic country?

A

Asia

71
Q

What is an example of a polychonic country?

A

US

72
Q

Tips for speaking with non-English native speaking

A
  • Avoid slang
  • Speak slowly
  • Less wordy
  • No innuendos such as sarcasm
  • Use pictures
  • Try to get people to repeat back
73
Q

Characteristics of feminine nations

A
  • More socially inclined
  • Nurturing and thoughtful
  • Socialism-leaning
  • ex. Scandinavians
74
Q

Characteristics of masculine nations

A
  • Assertive and aggressive
  • Competitive
  • ex. US, Switzerland, Austria, Japan
75
Q

Dangers of stereotyping

A
  • It doesn’t feel good
  • It could be illegal
  • Damages company reputation
  • Means you’re not hiring the best people
  • Reduces your competitiveness
  • Culture influencing recruitment
76
Q

Culture influencing recruitment

A
  • All interviewing questions must relate to job

- Model interview questions for each culture

77
Q

Does culture influence training techniques?

A

Yes, some countries don’t train their employees to do some things..

78
Q

How did Schein improve upon Hofsted’s work?

A
  • Adding more dimensions

- Made judgements about which are good and which are bad

79
Q

Ideal Management Employee

A

Schein observes 500 of the best business people and noticed a pattern

80
Q

Nature of reality and trust: Authoritative vs. Pragmatic

A

More pragmatic business people are better

81
Q

What is pragmatic?

A

What is said vs. who said it

82
Q

Nature of human nature (what does the manager BELIEVE is human nature?): Evil vs. Good and Fixed vs. Mutable

A

Business people who believe in good and mutable are better

83
Q

Nature of human relationships: Group Oriented vs. Individualistic and Authoritative vs. Collegial/Participative

A

Middle of group oriented and individualistic is best, same for authoritative and collegial

84
Q

Time Orientation: Past vs. Present vs. Near Future

A

Business people who focus on the near future are better

85
Q

CD Info and Communication: Low Connected vs. Fully Connected

A

Business people who are fully connected are better

86
Q

Is building a long term (permanent) business process for managing change a worthwhile endeavor?

A

Yes;

  • Change management is a big part os international business
  • Tried-and-true methods exist
87
Q

Factors for building a long term business process for managing:

A
  • Value Systems
  • Cost Benefit Analysis
  • Participation
  • Reward Sharing
  • Opinion Leaders
  • Timing and Pace
88
Q

Cost Benefit Analysis of Change

A

Tally up the money, pros and cons, of change. If cost outweighs the benefits don’t turn in. Always do one.

89
Q

What is interesting about the Russia article?

A
  • BRIC Nations
  • Oligarchy
  • Barter System (counter trade)
  • Emotional Negotiations
  • High Power Distance (seal/stamp)
90
Q

Why does it matter that China is still communist?

A
  • You can be kicked out without any assets, at any time.

- They track your social life and give you a score which will effect what you and buy, sell, etc.

91
Q

Why do we care about China?

A
  • Competitive business relations
  • # 1 recipient nation of Foreign Direct Investment
  • Level of intellectual property theft helps GDP grow about 6%
  • World’s largest expat population (living outside China)
  • Affluent
92
Q

Potential Business Consequences of Different Political Environments

A
  • Government Intervention (Yukos Oil)
  • Civil Disorder (ex. kidnapping)
  • Boycotts and Embargos (Iran Trade)
93
Q

Individualistic vs. communitarian systems

A

Individualistic expect less from government (pull yourself up by your bootstraps) vs. a government and business relationship

94
Q

What are some communitarian countries?

A

Russia, China, Japan, South Korea

95
Q

Political Trends

A
  • Democracy, less totalitarian

- Improved communication techniques

96
Q

Legal Concerns Around the World

A
  • Starting up a business
  • Enforcing contracts
  • Hiring and firing
  • Bankruptcy laws
  • Bonuses
  • Product safety
  • Liability laws
  • Intellectual property laws
97
Q

Example of an international IP problem?

A

Knock-offs

  • Liability
  • Safety
98
Q

How to fight knock-offs

A
  • Make your own

- Educate others

99
Q

International problems faced by companies:

A
  • Sometimes no experience in previously communist areas
  • Materials
  • Supplies
  • Shortages
  • Public backlash at home
  • Transport
  • Training and translation
100
Q

Why is international business worth the fight?

A

Developing economies have the most people and the most growth potential

101
Q

What is a market economy?

A

Economy decides prices and what will be made

102
Q

What are the factors of production that should be considered when considering location of a new facility in the world?

A
  • Human Resources (labor)
  • Physical Resources
  • Knowledge Resources
  • Infrastructure (ports, airports, energy, communication)
  • Capitol Resources (debt, equity, venture)
103
Q

What are the three types of capitol resources?

A
  • Debt (loans)
  • Equity (shares)
  • Venture (individual investment)
104
Q

GDP is…

A

Everything produced on a country’s soil, not based on ownership just production
- Japanese production in the US adds to US GDP

105
Q

GNI is…

A

Ownership money

- Japanese production in the US adds to Japan’s GNI)

106
Q

Four Country Groups

A
  • Established Market Economies (EMEs) (66% of world GDP)
  • Transitioning Economies (TREs) (10% of world GDP)
  • Emerging Economies (EECs) (20% of world GDP)
  • Poor Economies (3% of world GDP)
107
Q

Examples of EME countries

A

Germany, US, England, France, Japan, Australia, Canada

108
Q

Examples of TRE countries

A

China, Russia, Hungary, Czech Republic, Poland, Ukraine, Vietnam, Slovakia

109
Q

Examples of Poor/Fronteir countries

A

Islands, much of Asia

110
Q

Supply and demand determine what’s made, who makes it, and how many are made

A

Market Economy

111
Q

Prices, who make it, and how many are made are all set.

A

Command/Centrally Planned Economy

112
Q

In between Market and Command Economy (majority)

A

Mixed Economy

113
Q

Number of units of a country’s currency required to buy the same amount of goods and services in THAT market, that $1 would buy in the US

A

Purchasing Power Parity (PPP)

114
Q

Economic Environmental Factors

A
  • PPP

- Inflation, exchange rates, surplus, deficit

115
Q

What weakens currency?

A
  1. Relative inflation rate goes up
  2. Our external (trade) deficit goes up
  3. Our international deficit (budget) goes up
116
Q

What does it mean when our international deficit goes up?

A

We’re spending more than we’re making

117
Q

What does it mean when our external deficit goes up?

A

We’re importing more than we’re exporting

118
Q

What is relative inflation?

A

Inflation relative to our trading partners.

- i.e. the British pound to the US dollar

119
Q

What Strengthens Currency?

A
  1. Raise interest rates
  2. Reduce our external trade deficit
  3. Reduce our international deficit
120
Q

What does it mean to raise interest rates?

A

The price of money. Makes money worth less, so people will buy less.

121
Q

What negatively impacts exports? Neg vs. Pos?

A

Rising currency exchange rates.

  • Neg: Makes imports more expensive, increases in price can result in sales decreases
  • Pos: Anything we export will seem like more money
122
Q

What does the World Bank do?

A

Developmental assistance to the poorest of the poor

123
Q

What assistances does the World Bank provide?

A
  • People: basic health, education
  • Environmental Protection
  • Supporting/Encouraging Private Business
  • Government Ability to Deliver Quality Services
  • Stable Economic Environment
  • Social Development and Infrastructure to Reduce Poverty
124
Q

What does IMF stand for and what do they do?

A
  • International Monetary Fund ; 182 Member Nations
  • International Monetary Cooperation
  • Exchange Rate Stability
  • Orderly Exchange Arrangements
  • Fosters Economic Growth and Employment
  • Temporary Relief to Ease Payment
125
Q

What does WTO (World Trade Org) do?

A
  • Promotes Free Trade
  • Focus of Negotiation Process:
  • Removing Barriers
  • Protection of IP Rights
  • Grants “Normal Trade Relations”
  • Enforcement

MKT 321 (3 decks)

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