The Global Business Environment

Question 1

Globalization

Answer 1

The rapid and unintended flow of capital, labor, and ideas across national borders

Question 2

Infrastructures

Answer 2

Basic roads, services, utilities, ect

Question 3

Brain drain

Answer 3

A country or region losing its most talented, educated employees to jobs in other countries

Question 4

Culture

Answer 4

A regions unique customs or traditions

Question 5

Political climate

Answer 5

Some nations are politically unstable and, therefore, are not popular for trade or travel

Question 6

Nationalism

Answer 6

A sense of pride in one’s own country that can create a resistance to outside influences

Question 7

Outsourcing

Answer 7

Finding new supplies of natural resources

Question 8

Cultural intelligence

Answer 8

An understanding of and sensitivity to the difference in customer, traditions, and values that exist among cultures

Question 9

Economic factors

Answer 9

Economic growth, inflation, interest rates, unemployment rates, changing incomes

Question 10

Discretionary items

Answer 10

Products that are wanted but not needed

Question 11

Environmental scanning

Answer 11

Keeping track of external factors and their changes

Question 12

Legal responsibility

Answer 12

A business is responsible for operating within the confines of federal, state, and local laws

Question 13

Philanthropic responsibility

Answer 13

A business is responsible for contributing to society in a charitable manner

Question 14

Marketing orientation

Answer 14

A strong focus on meeting customer needs and wants

Question 15

Domestic trade

Answer 15

An exchange of internally produced goods and services within a country

Question 16

Global trade

Answer 16

Takes place when a product is produced in one country and consumed in another

Question 17

Imports

Answer 17

Goods or services bought from producers in other countries

(Going into the country

Question 18

Exports

Answer 18

Goods or services businesses sell to other counties (leaving the country

Question 19

Absolute advantage

Answer 19

When one country is able to produce a good or service at a lower cost than another country can

Question 20

Comparative advantage

Answer 20

The benefit a country gets from specializing in and making the goods and services at which its most efficient relative to another country

Question 21

Balance of payments

Answer 21

The annual accounting record that a nation uses to track money coming into and out of the country

Question 22

Trade surplus

Answer 22

When a country exports more goods and services than it imports

Question 23

Trade deficit

Answer 23

If a country imports more than it exports

Question 24

Protectionism

Answer 24

A national who attempts to limit its trade with other countries

Question 25

Individualist society

Answer 25

Group ties are loose, everyone is expected to take care of themselves

Question 26

Collectivist society

Answer 26

People are integrated into strong, loyal groups