Topics Flashcards
Relative to traditional economic theories of trade and Porter’s Diamond, match each statement with it’s appropriate concept.
England produces wool more efficiently, Portugal produces wine more efficiently
Absolute Advantage
Relative to traditional economic theories of trade and Porter’s Diamond, match each statement with it’s appropriate concept.
The wool industry is more diverse and competitive in England than in Portugal
Porter’s Firm strategy, structure and rivalry
Relative to traditional economic theories of trade and Porter’s Diamond, match each statement with it’s appropriate concept.
Portugal produces both wool and wine more efficiently, but the advantage is smaller in wool
Comparative Advantage
Relative to traditional economic theories of trade and Porter’s Diamond, match each statement with it’s appropriate concept.
English consumers are more knowledgeable about wine and more demanding that Portuguese consumers
Porter’s Demand Conditions
Relative to traditional economic theories of trade and Porter’s Diamond, match each statement with it’s appropriate concept.
Portuguese barrel producers (for aging wine) are more skilled than England’s
Porter’s Related and supporting industries
From the perspective of a firm seeking competitive advantage in international trade
T/F Country Specific Advantages can refer to either natural or man-made advantages
True
From the perspective of a firm seeking competitive advantage in international trade
T/F Firms in the same industry may have successful strategies based on different Firm Specific Advantages
True
From the perspective of a firm seeking competitive advantage in international trade
T/F Firm Specific Advantages may be in Primary activities, Supporting activities or Auxiliary activities
False
From the perspective of a firm seeking competitive advantage in international trade
T/F Firms should operate in countries where their Firm Specific Advantages work well with the countries’ Country Specific Advantages
True
From the perspective of a firm seeking competitive advantage in international trade
T/F Supporting activities are based on infrastructure, Primary activities are based on transforming inputs into finished products/services
True
SparkCo is considering entering the German market with its line of hydration energy drinks. Match each of the following statements with its appropriate category in the market assessment process.
In Germany’s moderate climate people lose water when they exercise.
Physical
SparkCo is considering entering the German market with its line of hydration energy drinks. Match each of the following statements with its appropriate category in the market assessment process.
By German law, beverage products must reveal their sugar and caffeine content.
Regulatory
SparkCo is considering entering the German market with its line of hydration energy drinks. Match each of the following statements with its appropriate category in the market assessment process.
Germany has the highest level of personal income in the EU.
Economic
SparkCo is considering entering the German market with its line of hydration energy drinks. Match each of the following statements with its appropriate category in the market assessment process.
The three largest political parities in Germany are committed to open trade inside and outside the EU.
Political
SparkCo is considering entering the German market with its line of hydration energy drinks. Match each of the following statements with its appropriate category in the market assessment process.
Germans tend to drink familiar products like Radler and fruit juices after exercise.
Sociocultural
Match each of the following sources of information to its appropriate stage in the market assessment process
Descriptive information on cultural/religious/ethnic factors
In depth screening
Match each of the following sources of information to its appropriate stage in the market assessment process
A list of the world’s countries
Country Identification
Match each of the following sources of information to its appropriate stage in the market assessment process
Trade reports purchased from industry associations
In depth screening
Match each of the following sources of information to its appropriate stage in the market assessment process
Statistical information from various sources
Preliminary screening
Match each of the following sources of information to its appropriate stage in the market assessment process
Personal interviews with potential intermediaries in the country
Final Selection
Match each of the following statements with the approach to cross cultural analysis that it represents.
Japanese executives devote much more time to non-task sounding than to European executives
Cross cultural negotiation styles
Match each of the following statements with the approach to cross cultural analysis that it represents.
Latin Americans stand much closer together when conversing than North Americans
Silent language of space
Match each of the following statements with the approach to cross cultural analysis that it represents.
Southern Europe is heavily influenced by Roman Catholicism while North Africa is more influenced by Islam
Academic approach to culture studies
Match each of the following statements with the approach to cross cultural analysis that it represents.
Europeans attach most meaning to the objective content of language in cross cultural business communication
Low context culture
Match each of the following statements with the approach to cross cultural analysis that it represents.
Survey responses indicate that Italians are more willing to take risks than Brazilians.
Hofstede’s Indices
In the Hofstede Cultural Classification system, Thailand is classified as High Power Distance (vs Low Power Distance) and Collectivist (vs Individualist.) Would the following behavior would be expected in countries so classified?
Hierarchical organizational structures
Yes
In the Hofstede Cultural Classification system, Thailand is classified as High Power Distance (vs Low Power Distance) and Collectivist (vs Individualist.) Would the following behavior would be expected in countries so classified?
Decentralized decision making
No
In the Hofstede Cultural Classification system, Thailand is classified as High Power Distance (vs Low Power Distance) and Collectivist (vs Individualist.) Would the following behavior would be expected in countries so classified?
Concern for organizational benefit rather than individual advancement
Yes
In the Hofstede Cultural Classification system, Thailand is classified as High Power Distance (vs Low Power Distance) and Collectivist (vs Individualist.) Would the following behavior would be expected in countries so classified?
An emphasis on individual decision making
No
In the Hofstede Cultural Classification system, Thailand is classified as High Power Distance (vs Low Power Distance) and Collectivist (vs Individualist.) Would the following behavior would be expected in countries so classified?
Centralized decision making
Yes
In the Hofstede Cultural Classification system, Thailand is classified as High Power Distance (vs Low Power Distance) and Collectivist (vs Individualist.) Would the following behavior would be expected in countries so classified?
High respect for authority
Yes
In the Hofstede Cultural Classification system, Thailand is classified as High Power Distance (vs Low Power Distance) and Collectivist (vs Individualist.) Would the following behavior would be expected in countries so classified?
Relative low levels of employee layoffs in bad economic times
Yes
In the Hofstede Cultural Classification system, Thailand is classified as High Power Distance (vs Low Power Distance) and Collectivist (vs Individualist.) Would the following behavior would be expected in countries so classified?
High levels of executive movement among companies as they advance their careers
No
Match each statement with its appropriate cross cultural index in the Hofstede system
Everyone in a business meeting may speak freely whenever they wish.
Power distance
Match each statement with its appropriate cross cultural index in the Hofstede system
We’ll avoid risk by using our traditional methods.
Uncertainty avoidance
Match each statement with its appropriate cross cultural index in the Hofstede system
Aggressive, hard charging managers should be rewarded
Masculinity/Femininity
Match each statement with its appropriate cross cultural index in the Hofstede system
We will make decisions together for the good of the group.
Individualism/Collectivism
Match each statement with its appropriate cross cultural index in the Hofstede system
Our pl anning horizon is 100 years
Long term orientation
Match each of the following variables with the type of international economic data it represents
80% of Spaniards live in urban areas
Geography
Match each of the following variables with the type of international economic data it represents
90% of Spain’s intercity roads are paved
Infrastructure
Match each of the following variables with the type of international economic data it represents
Over 35% of Spanish adults over 25 hold a college degree.
Population
Match each of the following variables with the type of international economic data it represents
The top 20% of Spanish households account for 45% of annual household income.
Income
Match each of the following variables with the type of international economic data it represents
Over 70% of Spanish households have high speed Internet access.
Infrastructure
T/F Latin American countries have market economies while most European countries have command economies.
False
T/F The World Trade Organization governs monetary policy of the world’s countries
False
T/F Most countries have mixed economies, with both command and market elements
True
T/F Command economies are more ecologically sustainable than market economies
False
T/F The International Monetary Fund helps developing countries finance economic progress
True
In the European Union’s governance system, laws are proposed by the _____,
European Commission
In the European Union’s governance system, laws are proposed by the European Commission, sent to the _________ for advice and co-approval
European Parlaiment
In the European Union’s governance system, laws are proposed by the European Commission, sent to the European Parliament for advice and co-approval, then to the ___________ for final approval
European Council of Ministries
In the European Union’s governance system, laws are proposed by the European Commission, sent to the European Parliament for advice and co-approval, then to the European Council of Ministries for final approval, Legal disputes over the content of laws are decided by the _______________
European Court of Justice
In the European Union’s governance system, laws are proposed by the European Commission, sent to the European Parliament for advice and co-approval, then to the European Council of Ministries for final approval, Legal disputes over the content of laws are decided by the European Court of Justice, while the _____________ manages monetary policy for the EU
European Central Bank
Does the following statement show a way in which the German auto firm BMW has benefited from the EU’s Single Market Initiative and Single Currency (Euro) adoption
No currency exchanges for Eurozone revenues and payments to suppliers
Yes
Does the following statement show a way in which the German auto firm BMW has benefited from the EU’s Single Market Initiative and Single Currency (Euro) adoption
Continuation of the Deutschemark for non-Eurozone transactions
No
Does the following statement show a way in which the German auto firm BMW has benefited from the EU’s Single Market Initiative and Single Currency (Euro) adoption
One set of product specifications for the entire EU
Yes
Does the following statement show a way in which the German auto firm BMW has benefited from the EU’s Single Market Initiative and Single Currency (Euro) adoption
Common promotion and branding possibilities across EU countries.
Yes
Does the following statement show a way in which the German auto firm BMW has benefited from the EU’s Single Market Initiative and Single Currency (Euro) adoption
Elimination of non-EU suppliers
No
Does the following statement show a way in which the German auto firm BMW has benefited from the EU’s Single Market Initiative and Single Currency (Euro) adoption
More efficient supply chain and distribution network
Yes
Does the following statement show a way in which the German auto firm BMW has benefited from the EU’s Single Market Initiative and Single Currency (Euro) adoption
Elimination of cultural differences among EU countries
No
Does the following statement show a way in which the German auto firm BMW has benefited from the EU’s Single Market Initiative and Single Currency (Euro) adoption
A stronger competitive position in global markets
Yes
What year did this happen?
The Maastricht Treaty creates the European Union and sets the goal of a common currency by 1999.
1992
What year did this happen?
The Euro transfers from an accounting currency to the core currency of Eurozone countries.
2002
What year did this happen?
The League of Nations considers an economic and currency union
1929
What year did this happen?
Six countries sign the Treaty of Rome to create the European Economic Community
1958
What year did this happen?
The Great Financial Crisis creates hardships in the Eurozone and leads to the potential expulsion of Greece.
2007-2009, 2014-2015
