GLOBAL BUSINESS ENVIRONMENT

Question 1

• is any commercial transaction that crosses the borders of two or more nations.

Answer 1

International Business

Question 2

goods and services purchased abroad and brought into a country.

Answer 2

Imports

Question 3

goods and services sold abroad and sent out of a country.

Answer 3

Exports

Question 4

is a business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in multiple countries.

Answer 4

Multinational Corporation (MNC)

Question 5

The purchase of physical assets or a significant amount of the ownership of a company in another country to gain a measure of management control.

Answer 5

FOREIGN DIRECT INVESTMENT

Question 6

The purchase of physical assets or a significant amount of the ownership of a company in another country to gain a measure of management control.

Answer 6

Foreign direct investment -

Question 7

a company with a global perspective that engages in international business from inception and quickly achieves a competitive advantage.

Answer 7

Born global firm

Question 8

is the name we give to this trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

Answer 8

Globalization

Question 9

is the value of all goods and services produced by a domestic economy during a one-year period.

Answer 9

Gross domestic product (GDP)

Question 10

the value of all goods and services produced by a country’s domestic and international activities during a one-year period.

Answer 10

gross national product (GNP)

Question 11

refers to the convergence in buyer preferences in markets around the world. This trend is occurring in many product categories, including consumer goods, indus trial products, and business services.

Answer 11

Globalization of markets

Question 12

• refers to the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service.

Answer 12

Globalization of production

Question 13

a treaty designed to promote free trade by reducing tariffs and nontariff barriers to international trade.

Answer 13

General Agreement on Tariffs and Trade (GATT)

Question 14

are essentially taxes levied on traded goods

Answer 14

Tariffs

Question 15

are limits on the quantity of an imported product.

Answer 15

nontariff barriers

Question 16

is the international organization that enforces the rules of international trade.

Answer 16

World Trade Organization (WTO)

Question 17

is an agency created to provide financing for national economic development efforts.

Answer 17

World Bank

Question 18

is an agency created to regulate fixed exchange rates and to enforce the rules of the international monetary system.

Answer 18

International Monetary Fund (IMF)

Question 19

the use of computer networks to purchase, sell, or exchange products; to service customers; and to collaborate with partners.

Answer 19

e-commerce

Question 20

• includes all devices and equip ment that are readable, recognizable, locatable, addressable and/or controllable via the internet.

Answer 20

Internet of Things (IoT)

Question 21

The process of changing information from analog to digital form for use by computers and other information technologies.

Answer 21

Digitization

Question 22

• is the use of digital data and technology to develop a digital platform for new business operations, strategies, or business models.

Answer 22

Digitalization

Question 23

• is fundamental change in which digital technologies penetrate all areas of operations, strategy, and culture to create customer-focused competitive advantage.

Answer 23

Digital transformation

Question 24

is an indispensable tool that manag ers use to stay in contact with international operations.

Answer 24

Videoconferencing

Question 25

refers to your ability to learn a concept and appro priately apply that knowledge in another setting to achieve a higher level of understanding.

Answer 25

application of knowledge

Question 26

involves purposeful and goal-directed thinking used to define and solve problems, make decisions, or form judgments related to a set of circum stances.

Answer 26

Reflective (critical) thinking

Question 27

which involves following a fact pattern to draw a conclusion.

Answer 27

analytical thinking,

Question 28

• is another workplace skill that this course will help you to improve. We define these concepts simply as sets of guiding principles that influence the way individuals and organizations behave within society.

Answer 28

ethical understanding and social responsibility

Question 29

influences how firms conduct their operations in both subtle and not-so-subtle ways. No business is entirely immune to events in the international business environment, as evidenced by the long-term trend toward more porous national borders.

Answer 29

international business environment -

Question 30

is vastly different from the management of a purely domestic business. Widely dispersed production and marketing activities today means companies commonly interact with people in distant locations.

Answer 30

International business management

Question 31

an attribute that is difficult to imitate and enables a firm to outper form its competitors in the same industry.

Answer 31

competitive advantage

Question 32

is individual behavior in accordance with principles for good conduct or morality.

Answer 32

ethical BEHAVIOR

Question 33

an ethics theory advocating actions that foster happiness and opposing actions that cause unhappiness. This theory asserts that it is the consequences of a decision that determine its ethical value.

Answer 33

utilitarianism

Question 34

• states that every human being has rights and all governments are obligated to protect them.

Answer 34

Rights theory

Question 35

• describes a society of free citizens who have equal basic rights and who cooperate within an egalitarian economic system.

Answer 35

theory of justice

Question 36

• says the morality of an act depends on how the act is perceived within that specific culture at the time of the act.

Answer 36

Cultural relativism

Question 37

a formal statement that conveys ethical values and describes baseline profes sional conduct expected of individuals.

Answer 37

code of ethics

Question 38

the belief that a company should incorporate social objectives within its goals and policies and contribute positively to society.

Answer 38

corporate social responsibility (CSR)

Question 39

Corporate Citizen (Desired)

Answer 39

Philantrophic

Question 40

Fair and Just (expected)

Answer 40

Ethical

Question 41

Lawful Actions (required)

Answer 41

Legal

Question 42

Sustained Profits (required)

Answer 42

Economic-

Question 43

a view of capitalism that stresses the interconnected relationships between a business and those who have an interest, or “stake,” in the organization.

Answer 43

stakeholder theory—

Question 44

include all parties who affect, or are affected by, a company’s activities.

Answer 44

Stakeholders

Question 45

external stakeholders

Answer 45

(e.g., suppliers, customers, creditors, unions, communities, governments, media).

Question 46

• is a form of business entity that is legally empowered to pursue positive stakeholder impacts alongside profits.

Answer 46

benefit corporation -

Question 47

• movement is a community of mission-driven entrepreneurs that is creating a new kind of company that balances purpose and profit to use business as a force for good.

Answer 47

Certified B Corporation