IBT Finals Flashcards
From the organizational participants intemational business begins from the __________
Focal firms
The firm involved in promoting the product of the local firm is the _____
Distribution channel/intermediary
_____ are the drivers of economies of many countries in the world including the Phillippines and Indonesia.
SMEs
The _________ is the idea businesses due to some gains derived from operating in foreign lands.
The Theory of International New Ventures
The ________ the problem stemming from a company not knowing fully the things it takes to operate in a different county.
Liability of foreignness
The other term for tariffs is ___
duties
Customs procedures and quotas are examples of _____
Non- Tariff Barriers
_____ limits the accumulation. of foreign firms in the country.
Investment Restriction
Mc Donald’s Phillippines’ use of locally grown vegetables for its Big Mac is a manifestation of its adherence to ____
Local Content Requirements.
_____ government assistance in the form of or low cost of borrowed
Subsidies
is a govemment policy of shielding local industries from overseas competition.
Protectionism
Govemment subsidies benefit both the local firms and ______
MNE’s.
In privatization, private investors buy
State owned enterprises.
is a local government’s way of governing and managing the repatriation of money of companies in their home countries.
Currency Contol
The home country of Jco
Indonesia
steers the way do their trade.
World trade organization
The United Nations is responsible in preserving peace and
Global stability
advances the economic goals of industrialized countries.
OECD/ ORGANIZATION OF ECONOMIC COOPERATION AND DEVELOPMENT
The OPEC mainly controls ____ which affect business operations.
Oil Prices
The __ is like the mother of all Central Banks due to its role as the ultimate financial institution for countries with distressed economies.
IMF/ International monetary fund
is a formal agreement between countries to lessen or case trade barriers and facilitate the better flow of goods and services.
Free Trade Agreement
When free trade it is between two countries, it is called
Bilateral
The Philippines’ first bilateral FTA was with the country of___ signed in 2006.
Japan
ASEAN FTA is a ____ between china, india, korea, japan Australia and New Zealand.
Multilateral FTA
ASEAN is a regional economic integration composed of __ countries.
10
The ______ is the econimic union of countries in the world smallest continent.
European Union
USSR is an example of
Political Union.
In customs union, _____ is highly encouraged t to be practiced by firms.
Competition
Among the countries with competition law are the United States and __
China
The management implications of regional Integration are internationalization by firms inside andoutside the economic, rationalization of operations,regional products and marketing strategy, and ___
Mergers and acquisitions
is a mechanism for the conversion of foreign currencies.
Foreign exchange system
In a foreign exchange system, the amount of conversion of a currency depends on the current
Exchange rate
is the result of exchanging a currency with a value that has declined.
Currency risk
is the inflow and outflow of foreign currencies in a certain country.
Balance of payment
When there are more entering the country, there is balance of payment surplus.
Foreign currencies
represents the cost of borrowing money.
Interest
Higher interest rates may attract more foreign capital, causing the to rise.
Exchange rate
is an exchange rate system where the country’s currency price is determined by the relative supply and demand of other currencies.
Floating exchange rate
is the amount of money by the Central Bank to the commercial banks to be kept to meet liabilities in case of sudden withdrawals.
Reserve requirement
For commercial banks to gain from the money they borrowed from the Central Bank, they must impose a higher interest rate than the ___ rate charged by the latter.
Rediscount
1.-4. Factors that impact the currency supply and demand.
Economic growth
Interest rate
Market psychology
Political action
5.-7. Composition of global financial system
Central banks
Commercial banks
Stock exchanges
8.-10. Monetary systems.
Floating exchange rate
Fixed exchange rate
Managed (dirty) float
1.-3. Groups involved in international business
Firms
Government
Institution
4.-6. Organizations comprising the international or global value chain
Focal firm
Distribution channel intermediary
Facilitator
7.-11. Key concepts in international business
Liability of foreignness
Firm specific advantage
Country specific advantage
Global integration
Local responsiveness
12.-17. Government interventions in international business
Trade barriers
Non tariff barriers
Investment restriction
Currency controls
Local content requirements
Subsidies
18.-24, Institutions that regulate the global business system
World trade organization
International monetary fund
World bank
United nations
OECD
BRICS
OPEC
25.-29. Countries comprising the BRICS
Brazil
Russia
India
China
South africa
30.-34. Economic integration.
Free trade area
Customs union
Common market
Economic union
Political union
35.-44. ASEAN member countries
Brunei
Cambodia
Indonesia
Laos
Myanmar
Malaysia
Philippine
Singapore
Thailand
Vietnam
