Exam 2

Question 1

The entire set of social norms and responses that dominates the behavior of a population and makes each social environment different.

Answer 1

Culture

Question 2

A political and social entity that is defined geographically.

Answer 2

Society

Question 3

Elements of Culture

Answer 3

Attitudes and beliefs
Attitudes toward time
Attitudes toward work and leisure
Attitudes toward achievement
Attitudes toward change
Attitudes toward jobs

Question 4

Does religion affect commerce?

Answer 4

Religion provides the spiritual foundation of a culture.
Business brings about modernization that disrupts religious traditions.
International business can conflict with holy days and religious holidays.

Question 5

Pertains to the sense of beauty and good taste of a culture and includes myths, tales, dramatization of legends, and more modern expressions of the arts: drama, music, painting, sculpture, architecture, and so on.

Answer 5

Aesthetics

Question 6

Refers to the objects and things used and enjoyed by people and includes all human-made objects.

Answer 6

Material Culture

Question 7

The marketer uses it to determine the types and sophistication of advertising.

Answer 7

Literacy Rate

Question 8

Which areas are considered important to concentrated education.

Answer 8

Education Mix

Question 9

Closely related to culture because each culture reflects what the society values in its language.

Answer 9

Communication and Language

Question 10

Types of international contrasts that indicate how widespread the differences are in group memberships and how important they are as business considerations.

Answer 10

Sex
Age
Family

Question 11

Categorizes individuals (and societies) in terms of how they communicate, and what is required in order to successfully communicate in a given society.

Answer 11

Hall’s Low-Context, High-Context Approach

Question 12

The words used by the speaker explicitly convey the speaker’s message to the listener.
(EX: USA)

Answer 12

Low-Context Culture

Question 13

The context in which a conversation occurs is just as important as the words that are actually spoken.
Cultural clues are important in understanding what is being communicated.
(EX: France and Japan)

Answer 13

High-Context Culture

Question 14

Hofstede’s Five Dimensions of Culture

Answer 14

Social Orientation
Power Orientation
Uncertainty Orientation
Goal Orientation
Time Orientation

Question 15

Reflects a person’s beliefs about the relative importance of the individual and the groups to which that person belongs.

Answer 15

Social Orientation

Question 16

Social Orientation

Answer 16

Individual vs. Collective

Question 17

Refers to the belief that people tend to hold about the appropriateness of power and authority differences in hierarchies such as business organizations.

Answer 17

Power Orientation

Question 18

Power Orientation

Answer 18

Power Tolerant vs. Power Respect

Question 19

Refers to the feelings that people tend to have regarding uncertain and ambiguous situations.

Answer 19

Uncertainty Orientation

Question 20

Uncertainty Orientation

Answer 20

Acceptance vs. Avoidance

Question 21

Deals with the manner in which people are motivated to work toward different goals.

Answer 21

Goal Orientation

Question 22

Goal Orientation

Answer 22

Aggressive vs. Passive

Question 23

Deals with the extent to which members of a culture adopt a long-term outlook vs. a short-term outlook regarding life, work, and other issues.

Answer 23

Time Orientation

Question 24

Time Orientation

Answer 24

Long-Term vs. Short-Term

Question 25

A country or independent area where taxes are levied at a low rate.

Answer 25

Tax Haven

Question 26

Income is taxable to the parent when declared as a dividend, regardless of whether the income is active or subpart F. Deferral applies.

Answer 26

Foreign Sales Corporations (FSCs)

Question 27

All income is taxable to the parent when earned by them.

Answer 27

Foreign Branches

Question 28

Active income is tax-deferred. | Subpart F income is taxable to the parent when earned by one.

Answer 28

Controlled Foreign Corporations (CFCs)

Question 29

Records at current exchange. | Updates later to reflect gain/loss.

Answer 29

Transactions

Question 30

Prices that are charged within a company between subsidiaries, division, or departments.

Answer 30

Transfer Prices

Question 31

Process of restating foreign currency financial statements into a common currency.

Answer 31

Translation

Question 32

Process of combining the financial statements of a parent and its subsidiaries.

Answer 32

Consolidation

Question 33

Tax treatment that subtracts the foreign tax rate on taxable income first, then US tax rate.

Answer 33

Deduction

Question 34

Tax treatment tax that subtracts US tax rate on taxable income.

Answer 34

Credit

Question 35

The files that show how Mossack Fonseca clients were able to launder money, dodge sanctions and avoid tax.

Answer 35

Panama Papers

Question 36

Four Ps of marketing.

Answer 36

Product Price Promotion Placement

Question 37

Goods sold to manufacturing firms, businesses, or governments and include such durables as steel, hardware, machinery, parts, etc.

Answer 37

Industrial Products

Question 38

Purchased by a large number of individuals who may vary drastically in their needs and tastes.

Answer 38

Consumer Goods

Question 39

Involves reaching potential consumers and providing then with information on the product's existence, attributes, and the needs it satisfies.

Answer 39

Promotion

Question 40

Includes advertising, personal selling, and sales promotions. Must create a relationship between a firm and its customers, as well as enhance long-term sales potential and consumer confidence in the product and the firm.

Answer 40

Promotional Mix

Question 41

Tools used in promotion.

Answer 41

``` Advertising Personal Selling Sales Promotion Publicity Public Relations ```

Question 42

Begins with the producer of the goods and then generally flows through an intermediary in the form of a wholesaler or distributor, who in turn provides the retailer with his goods for sale.

Answer 42

Distribution Chain

Question 43

Building flexibility to respond to national differences through strong, resourceful, and entrepreneurial national operations.

Answer 43

Strategic Orientation of Multinational Companies

Question 44

Decentralized and nationally self-sufficient.

Answer 44

Configuration of Assets and Capabilities of Multinational Companies

Question 45

Building cost advantages through centralized global-scale operations.

Answer 45

Strategic Orientation of Global Companies

Question 46

Centralized and globally scaled.

Answer 46

Configuration of Assets and Capabilities of Global Companies

Question 47

Developing global efficiency, flexibility, and worldwide learning capability simultaneously.

Answer 47

Strategic Orientation of Transnational Companies

Question 48

Dispersed, interdependent, and specialized.

Answer 48

Configuration of Assets and Capabilities of Transnational Companies

Question 49

Four issues that must be addressed by international marketing managers.

Answer 49

How to develop the firm's product(s). How to price those products. How to sell those products. How to distribute those products to the firm's customers.

Question 50

Firms market goods in international markets using the same marketing mix used domestically. Avoid the expense of developing new marketing techniques. Belief that marketing mix that worked at home will work abroad. This is the least costly, but could be risky if domestic customers differ greatly from those abroad.

Answer 50

Ethnocentric

Question 51

Attempt to customize a firm's marketing mix in each market that it enters, in order to meet specific needs to customers in each market. Cannot be the low cost provider profitably here. Could boost revenues if each market's customers are substantially different from other markets.

Answer 51

Polycentric

Question 52

Standardization of the marketing mix. Allows a firm to provide essentially the same product or service in different markets and to use essentially the same marketing approach to sell that product or service globally. Not necessarily the mix used in the original domestic market. Creates huge economies of scale.

Answer 52

Geocentric

Question 53

Different Legal Systems

Answer 53

Civil Law Common Law Bureaucratic Law Religious Law (Theocracy)

Question 54

A body of law that is written essentially in the form of statutes and is constructed and administered by judicial experts in government. Practiced in most European nations and the former colonies of those countries.

Answer 54

Civil Law

Question 55

Based not on federal administration but on judicial interpretation of the law as well as on customs or usages existing within the nation. Practices in Great Britain and its former colonies.

Answer 55

Common Law

Question 56

Law that is set by the country's current leadership. | Practiced in many communist countries as well as dictatorships.

Answer 56

Bureaucratic Law

Question 57

The principle that individual nations have absolute power over the governing of their populaces and the activities that occur within their borders. A nation must be independent, have a permanent population and well-defined boundaries, possess a working economy and government, and have the capacity to conduct foreign relations.

Answer 57

Sovereignty

Question 58

In the eyes of the US, a foreign nation waives its right to sovereign immunity when it or its agency engages in a commercial activity. Focuses on the nature and the purpose of commercial activity undertaken and covers business activities that take place in the US, are performed in the US but involve activities elsewhere, or have a direct effect on the US, even if performed outside the country's border.

Answer 58

Foreign Sovereign Immunity Act (FSIA)

Question 59

The principle that a sovereign state enjoys immunity from being held under the jurisdiction of local courts when it is party to a suit unless the state itself consents to be a party to that suit.

Answer 59

Sovereign Immunity

Question 60

A legal principle that refers to claimed made by foreign parties whose assets or belongings have been taken by the state in public actions.

Answer 60

Act of State Doctrine

Question 61

Refers to the application of ones country's laws to activities outside its borders.

Answer 61

Extraterritoriality

Question 62

Designed to provide for the imposition of tariffs to equalize prices of imports that are low because of subsidies provided by home governments to encourage trade.

Answer 62

Countervailing Duties

Question 63

Protects industries and companies against the unfair practices of parties in other nations as they relate to pricing practices, specifically, predatory pricing.

Answer 63

Anti-Dumping Laws

Question 64

A foreign competitor attempts to capture a large share of a target market by cutting prices below those charged locally.

Answer 64

Predatory Pricing

Question 65

Enacted to prevent businesses from engaging in anticompetitive activities an to challenge the growth of monopoly power in industries.

Answer 65

Antitrust Laws

Question 66

Antitrust Laws

Answer 66

Sherman Act Clayton Act Webb Pomerania Act of 1918

Question 67

Introduced with the goal of preserving competition in both US domestic and export markets. Prohibits anticompetitive or monopolistic activities by business entities.

Answer 67

Sherman Act

Question 68

Prohibits the acquisition of the stock or assets of another firm if the effect of that acquisition is the reduction of competition within the industry or the creation of a monopoly.

Answer 68

Clayton Act

Question 69

Allows some American firms to seek exemptions from the application of theses antitrust laws if they join together to gain access to foreign markets by exporting their goods.

Answer 69

Webb Pomerania Act of 1918

Question 70

Are rights granted by governments to the inventors of products or processes for exclusive manufacturing, production, sale, and use of those products or processes.

Answer 70

Patents

Question 71

Designs, logos, and names used by manufacturers to differentiate and identify their goods with customers.

Answer 71

Trademarks and Trade Names

Question 72

The largest international agreement regarding the mutual recognition of patents on goods and processes of member countries and provides for the protection of patents and trademarks.

Answer 72

Paris Convention

Question 73

Gives exclusive rights to authors, composers, singers, musicians, and artists to publish, dispose of, or release their works as they see fit.

Answer 73

Copyrights

Question 74

The unlawful duplication of copyrighted material including sound recordings to make bootleg tapes and records.

Answer 74

Piracy

Question 75

A method of dispute resolution using the offices of a third party known as the mediator.

Answer 75

Mediation

Question 76

Each nation defers to another's sovereignty in the protection of the rights of foreign citizens under their own legislative, executive, and judicial system.

Answer 76

Principle of Comity

Question 77

Provide the means for courts of different countries to communicate with one another.

Answer 77

Letters Rogatory

Question 78

The capacity of a nation to prescribe a course of conduct for its citizens and to enforce a rule of law on its citizens.

Answer 78

Jurisdiction

Question 79

Technology acquisition strategy with a high level of market competition and low availability to technology.

Answer 79

Engage in Licensing Agreement

Question 80

Technology acquisition strategy with a high level of market competition and high availability of technology.

Answer 80

Formulate Strategic Alliance and Adapt (Exogenous) Foreign Technology

Question 81

Technology acquisition strategy with low level of market competition and low availability to technology.

Answer 81

Spin Out (Endogenous) In-House Basic Research and Development

Question 82

Technology acquisition strategy with low level of market competition and high availability to technology.

Answer 82

Invest Long-Term in Innovative Companies