Final FITB Flashcards
WTO stands for
World Trade Organization
IMF stands for
International Monetary Fund
FDI stands for
Foreign Direct Investment
International ___ occurs when a firm exports goods or services to consumers in another
country.
trade
_____ totalitarianism is found in the states where political power is monopolized by
a party, group, or individual that governs according to religious principles.
Theocratic
In a _____ economy, the government plans the goods and services that a country
produces, the quantity in which they are produced, and the prices at which they are sold
command
FCPA stands for
Foreign Corrupt Practice Act
_____ risk is the likelihood that political forces will cause drastic changes in a
country’s business environment that adversely affect the profit and other goals of a
business enterprise.
Political
_____ involves removing legal restrictions to the free play of markets, the
establishment of private enterprises, and the manner in which private enterprises operate
Deregulation
GDP stands for
Gross Domestic Product
OECD stands for
Organization for Economic Cooperation and Development
In the opening case of chapter 5 (Ethics, Corporate Responsibility, and Sustainability),
Gucci was founded in
Florence
A firm’s _____ are individuals or groups that have an interest, claim, or stake in
the company, in what it does, and in how well it performs.
stakeholders
Abstract ideas about what a group believes to be good, right, and desirable is called
values
_____ is the official ethical system of China
Confucianism
the most widely spoken language in the world is
English
The most widely practiced religion in the world with some 2.20 billion followers is
Christianity
trade refers to a situation in which a government does not attempt to influence
through quotas or duties what its citizens can buy form another country or what they can
produce and sell to another country.
free
According to the chapter 6 (International Trade Theory), a country has an _____ _____ in the production of a product when it is more efficient than any other
country at producing it.
absolute advantage
When unit costs reductions associated with a large scale of output happens, it is called
economies of scale
ASEAN is
Association of Southeast Asian Nations
A currency _____ totally involves the short-term movement of funds from one
currency to another in the hopes of profiting from shifts in exchange rates. move freely
among members.
speculation
_____ exposure is the extent to which a firm’s future international earning power is
affected by changes in exchange rates
economic
_____ exposure is the extent to which the income from individual transactions is
affected by fluctuations in foreign exchange values.
transaction
A _____ market has no barriers to trade among member countries, includes a
common external trade policy and allows factors of production to move freely among
members.
common
The role of the IMF is to avoid the repetition of a global economic chaos through a
combination of _____ and _____
digital, flexibility
A _____ crisis refers to a loss confidence in the banking system that leads to a run on
banks, as individuals and companies withdraw their deposits
banking
A _____ crisis is a situation in which a country cannot service its foreign debt
obligations, whether private-sector or government debt
foreign debt
Falling demand for U.S. dollars and rising demand for euros translated into a _____ in the
value of the dollar against the euro.
fall
A _____ exchange rate happens when the value of the currency is fixed relative to a
reference currency.
pegged
_____ effects refer to cost savings that come from learning by doing.
learning
firms pursuing a _____ _____ strategy try not to customize their product
offering and marketing strategy to local conditions because customization involves
shorter production runs and the duplication of functions, which tend to raise costs
global standardization
firms pursuing an _____ strategy take products first produced for their domestic
market and then sell them internationally with only minimal local customization.
international
the _____ supply chain includes all of the organizations (e.g., suppliers) and
resources that are involved in the portion of the supply chain from raw materials to the
production facility.
upstream
According to the opening case of chapter 15, Uber faced intense competition from Didi, a
homegrown ride-for-hire operator. Didi was from the country of _____
China
One disadvantage of_____ is that it does not give a firm the tight control over
manufacturing marketing, and strategy that is required for realizing experience curve and
location economies.
licensing
A factory that is viewed as an intelligence-gathering unit is called a _____ factory
outpost
_____ was the airline company featured in the opening case of chapter 13.
Emirates
one advantage of _____ _____ is that the firm benefits from a local partner’s
knowledge of the host country’s competitive conditions, culture, language, political
systems, and business
joint venture
the most important disadvantage of _____ _____ _____ is that it is generally the
most costly method of serving a foreign market from a capital investment standpoint.
wholly owned subsidiary
According to the opening case of chapter 18, Airbnb’s percentage of total bookings was _____
12.7%
_____ _____ is a technique financial managers use to try to quantify the benefits,
costs, and risk of an investment.
capital budgeting
a _____ staffing policy requires host-country nationals to be recruited to manage
subsidiaries, while parent-country nationals occupy key positions at corporate
headquarters.
polycentric
an _____ staffing policy is one in which all key management positions are filled
by parent-country nations.
ethnocentric
_____ _____ refers to identifying distinct groups of consumers whose needs,
wants, and purchasing behavior differ from others in important ways.
market segmentation
channel _____ refers to the expertise, competencies, and skills of established retailers in
a nation and their ability to sell and support the products of international businesses.
quality
_____ pricing is the use of price as a competitive weapon to drive weaker
competitors out of a national market.
predatory
Out of the four samples of prominent international market research firms, this firm,
_____ is headquartered in London.
Kantar
In the opening case of chapter 20, Ireland’s corporate income tax was _____
12.5%
_____ costs are the cost of exchange.
transaction
