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International Business > Review for Exam 2 > Flashcards

Review for Exam 2 Flashcards

1
Q

Which of the following cultural theories argues that Boston is the optimal cultural climate?

A
  • Huntington’s Clash of Civilizations

- institution-based view or resource-base view

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2
Q

Why did Geert Hofstede increase the dimensions of his theory from 4 to 5?

A

To include Long-term orientation as IBM expanded into Asia.

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3
Q

On which of the following dimensions do Chinese and Americans differ the greatest?

A

Individualism

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4
Q

On which of the following dimensions do Chinese and Americans differ the least?

A
  • Masculinity

- Uncertainty Avoidance

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5
Q

Virtual Expatriates

A
  • Does not physically relocate to the host country, manages the responsibilities of the assignment through frequent business trips and the use of teleconferences and electronic communication.
  • Expatriation is typically initiated by the employer. It comprises a period of time when an employee of the organization, usually a business firm, is posted to a subsidiary of the firm in a different country for a substantial time period. Most of the expatriates are “home” employees, but some are third country nationals originating from a different country to that of the “home” or “host”. The expatriation deal accounts for a significant element in the psychological contract between the expatriated person and his or her employer.
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6
Q

Inpatriates/impatriates

A
  • An employee of a multinational company who is from a foreign country, but is transferred from a foreign subsidiary to the corporation’s headquarters.
  • Inpatriation is the practice of developing host country or thrid country managers via a transfer to the corporate headquarters. This practice is a manifest long term human capital investment and is intrumental in developing a diverse cadre of future global managers for the firm. In turn, inpatriation is instrumental in avoiding a “glass ceiling” to local careers.
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7
Q

Flexpatriates

A
  • An employee who takes up an international assignment centered on frequent international business travel without relocating abroad.
  • Are sent by their organization to various parts of the world to perform short term assignments and return home soon after. Gain knowledge to work across cultures. Frequent flyer. This type of work produces hight levels of stress for some and energizes others. Has impact on private lives. Work with several cultures in one year.
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8
Q

Sabbaticals

A
  • A period of paid leave granted to a college teacher for study or travel, traditionally every seventh year.
  • Sabbaticals are mostly confined to academic profession, but employed also in some firms and organizations. Sabbatical programmes allow participants to learn, develop, and grow professionally and personally when they are away from their permanent employment and possibly work in different country. Get a year off from regular duties where they visit other institutions as scholars.
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9
Q

ExHost Country Nationals

A
  • It depicts a phenomenon where people of non-domestic origin return to their homelan. Tung distringuishes between three such types: those born and raised overseas; those born in countries such as China, who have lived most of their lives outside that country; and those who spent considerable time outside their homeland and were highly involved with an overseas labour market. The common denominator is that they eventually return to their country of origin.
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10
Q

Which of the following is NOT a reason why global business should be studied?

A
  • Business conducted outside the confines of any one country is one the decline
  • (Why it should: employability, career advancement, and globalization)
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11
Q

What defines the field of global business more than anything else?

A
  • The focus on firm performance around the globe
  • Global business is fundamentally about not limiting yourself to your home country but treating the entire global economy as your potential playground. Overall, the focus on the globe defines the field of global business (or IB) more than anything else
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12
Q

More than half of the world GDP growth in recent years comes from _______.

A

Emerging Economies: BRIC (Brazil, Russia, India, and China)

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13
Q

An institutional framework is made up of:

A

Both the formal & Informal institutions governing individual and firm behavior and institution-based view on global business

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14
Q

____________ are defined as “fundamental and comprehensive changes introduced to the formal and informal rules of the game that affect organizations as players.”

A

Institutional transitions (institutional based view)

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15
Q

______________ had been embraced throughout Central and Eastern Europe and the former Soviet Union until the late 1980s.

A
  • The Pendulum View

- Communist Totalitarianism

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16
Q

Political risk is associated with political changes that may negatively impact domestic and foreign firms. Which statement about political risk is correct?

A
  • Political risk is associated with political changes that may negatively impact domestick and foreign firms. This statement is true.
  • Totalitarian countries often experience wars, riots, and protesters, chaos, and breakdowns. As a result, these countries often suffer from a high level of political risk, which is a risk associated with political changes that may negatively impact domestic and foreign firms
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17
Q

Civil law can be best described by which of the following statements?

A
  • It uses comprehensive satutes and codes as a primary means to form legal judgements. Civil law has less flexibility, because judges only have the power to apply the law.
  • Civil law was derived from Roman law and strengthened by Napoleon’s France. Relative to common law, civil law has less flexibility, because judges only have the power to apply the law.
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18
Q

A pure market economy characterized by the “invisible hand” of market forces is noted by:

A

Adam Smith in the Wealth of Nations in 1776

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19
Q

The “division of labor” thesis was first advanced by:

A

Adam Smith

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20
Q

Which of the following countries can be defined as a high-context culture?

A
  • High-context cultures, such as those in Arab and Asian countries, communication relies heavily upon unspoken conditions or assumptions. No does not necessarily mean no.
  • High context countries are: China, Korea, Japan and Arab.
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21
Q

Which of the following set of clusters includes ALL countries?

A

Huntington Civilizations

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22
Q

Which of the following dimensions does NOT accurately describe the majority of firms in the United States?

A
  • Power Distance
  • Dimensions are long term orientation, uncertainty avoidance, masculinity, individualism, and power distance. The United States has low power distance
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23
Q

Which of the following is the law enacted in 1977 that bans bribery to foreign officials?

A

The Foreign Corrupt Practices Act (FCPA)

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24
Q

The greatest weakness in the fight against eradicating corruption is:

A
  • Not going through with it

- Not having FCPA type legislation institutionalized and enforced in every country

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25
Q

___ is an individual’s ability to understand and adjust to new cultures.

A

Cultural intellegence

26
Q

The View in global business which deals with external opportunity threats is also called

A
  • Institutional-based view
  • Opportunities and Threats external assessment of the business environment to identify the uncontrollable events that might impact management decistions
  • SWOT = Opportunities and Threats
  • In global business, the institution-based view deals with external O and T, enabled and constrained by formal and informal rules of the game.
27
Q

A Global business perspective that deals with internal strengths and weaknesses is also called

A
  • Strengths and weaknesses internal assessment of the organization leading to management decisions
  • Resource-based view, builds on SWOT analysis…and concentrates on the internal S and W to identify and leverage sustainable competitive advantage.
28
Q

Observable and easily quantified assets are:

A

Tangible resources and capabilities assets such as Finance, Physical and Technological

29
Q

Assets hard to observe and difficult to quantify are:

A

Intangible resources and capabilities assets are: human, innovation, and reputational

30
Q

Which of the following is NOT a tangible asset?

A

Human, innovation and reputational.

31
Q

Which of the following is NOT an intangible asset?

A

Financial, physical and technological

32
Q

A chain of activities used in the production of goods and services that add value is a(n):

A

Value Chain: the value chain consists of steps in a process of turning inputs to outputs. Value is added at each stage of the chain, from development to marketing. Each activity in the chain requires a number of resources and capabilities

33
Q

An examination as to whether a firm has the resources and capabilities to perform a particular activity in a manner superior to competitors is:

A

Benchmarking: given that no firm is likely to have enough resources and capabilities to be good at all primary and support activities, the key is to examine whether the firm has resources and capabilities to perfom a particular activity in a manner superior to competitors. If managers find that a particular activity performed by their firm is unfavorable, a two-stage decision model can remedy the situation

34
Q

The point at which an industry-specific activity becomes common across industries and the need to keep it proprietary no longer exists is also called:

A
  • Commodization

- Firm specific

35
Q

Turning over an organizational activity to a domestic firm is also called:

A
  • Onshoring or inshoring
  • Offshoring international/foreign outsourcing
  • Inshoring domestic outsourcing
  • Captive sourcing setting up subsidiaries abroad
  • Outsourcing the turning over of an organizational activity to an outside supplier that will perform the activity on behalf of the focal firm.
36
Q

Turning over an organizational activity to an outside supplier that will perform it on behalf of the local firm is also called:

A

outsourcing

37
Q

Turning over an organizational activity to an international firm is also called:

A

off-shoring

38
Q

Which of the following are the four focal points of the resource-based view?

A 
- VRIO 
V: Value
R: Rarity
I: Imitability
O: Organizational
  • VRIO Framework: The resource based framework that focuses on the value (V), rarity (R), Irritability (I), and Organizational (O) aspects of resources and capabilities
39
Q

The difficulty of identifying the causal determinants of successful firm performance is also called:

A

Casual Ambiguity

40
Q

The combination of resources and assets that enables a firm to gain a competitive advantage is also called:

A

complementary assets

41
Q

Which of the following is the implication for action based on the information in this chapter?

A

-
• Mangers need to build firm strength based on the VRIO framework
• Relentless limitation or benchmarking, while important, is not likely to be a successful strategy
• Managers need to build up resources and capabilities for future competition
• Students need to make themselves into “untouchables” whose jobs cannot be easily outsourced.

42
Q

The theory of absolute advantage is:

A

A theory that suggests that under free trade, each nation gains by specializing in economic activities in which it is the most efficient producer (in which it has an absolute advantage)

43
Q

The factor endowment theory is identified as:

A
  • A theory that suggests that nations will develop comparative advantages based on their locally abundant factors
  • The extent to which different countries possess various factors of production such as labor, land, and technology.
44
Q

Factor endowments, which refer to the natural and human resource repertoires, were noted by:

A

Heckscher-Ohlin

45
Q

The national competitive advantage (AKA the diamond theory) of industries depends on:

A

Four aspects that form a diamond when diagrammed.

  1. Country factor endowments
  2. domestic demand conditions
  3. Firm strategy, structure, and rivalry
  4. Related and supporting industries
46
Q

The birth of modern economics and the forerunner of the free trade movement are strengths and influences of:

A
  • Absolute Advantage

- The theory of absolute advantage

47
Q

Which of the following is the first theory to incorporate dynamic changes in patterns of trade?

A

Product life cycle theory: a dynamic theory. Every product has 3 life cycle stages

  • Stage one: the production of new products that commands a price premium, with production focused in the US
  • Stage two: a maturing stage, in which the damand and ability to produce grows in other advanced countries
  • Stage three: standardization, when the previously new product is standardized, and prodcution can move to low cost countries.
48
Q

Which of the following is comparative advantage strength?

A
  • More realistic guidance to nations (their firms)
  • Interested in trade but having no absolute advantage
  • Explains patterns of trade based on factor endowments
49
Q

What determines the success and failure of a firm’s exports around the globe?

A

A firms ability adapt to change, understand the innate differences of all the different cultures they wish to market to, and constantly innovate

50
Q

Strategic Gap analysis

A
  • All of the above
  • Forecasting technique in which the difference between the desired performance levels and the extrapolated results of the current performance levels is measured and examined. This measurement indicates what needs to be done and what resources are required to achieve the goals of an organization’s strategy.
  • Resources you have, strategies to follow, how to best exploit resources, what you need to have
51
Q

Cognitive Complexity

A
  • Ability to solve a specific problem or task. The inner of yourself.
  • How well you can see shades of gray
52
Q

Cognitive Differentiation

A
  • enables an individual to perceive differences in the features of a stimulus object and to make fin distinctions bewteen that object and others.
  • Ability to tell the difference between people
53
Q

ROI of earning a business degree at UTD

A
  • 33.5
54
Q

How much has research productivity increased under the current UTD Dean of the JSOM?

A

6 fold

55
Q

At the midpoint of actual competition, how many of the UTD teams placed in the top 100 in the world?

A

35 teams

56
Q

Which of the following countries has the highest GDP per capita?

A
  • Norway, Brunei, UAE, Lichtenstein
57
Q

Which of the following countries discussed in class has the lowest GDP per capita?

A
  • Chad or Democratic Republic of Congo
58
Q

What is the approximate value of a Euro?

A
  • 1.05

- 1.15

59
Q

From the example used in class why can it be important to do research?

A
  • All the above

- Increase your income and advance your career

60
Q

What type of guanxi is typically the least expensive to maintain?

A

Family guanxi

61
Q

A goal should have which of the following characteristics?

A
  • All of the above
  1. Challenging
  2. Attainable
  3. Specific
  4. Time-limited
  5. Positive
  6. Flexible

International Business (2 decks)

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