UNIT 3 Flashcards

1
Q

the factors/activities that surround or encircle international business

A

International business environment

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2
Q

refers to the factors that affect or influence multinational corporations.

A

business environment

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3
Q

They include human resource management, trade unions, organizational structure, financial management, marketing management and production management, as well as management/leadership styles.

A

Internal environmental factors

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4
Q

include competitors, customers, market intermediaries, raw material suppliers, finance providers, shareholders, and stakeholders.h

A

Micro-external environmental factors

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5
Q

include social and cultural factors, technological, economic, political, and government factors, and international and natural factors.

A

External macroenvironmental factors

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6
Q

prioritized to protect people, animals, and plants while maintaining ecological balance.

A

Environmental protection

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7
Q

reveal a company’s strengths and weaknesses

A

Internal environmental factors

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8
Q

highlight growth opportunities.

A

highlight growth opportunities

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9
Q

forces in the global environment that directly increase or decrease a company’s sales revenues or operating costs

A

External Microenvironment

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10
Q

the individuals and companies that provide a company with the resources that it needs to produce goods and services

A

Suppliers

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11
Q

responsible for searching out the lowest cost, best quality inputs no matter where they are located

A

purchasing managers of MNCs

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12
Q

link the companies that make products with the customers who buy them; make it easier for stores to locate the goods they will sell

A

Distributors

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13
Q

MNC should know how to segment its market

A

Customers

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14
Q

competitors they vie to obtain a larger share of the market

A

Competitors

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15
Q

refers to a country’s desire to assert its authority over foreign business through various sanctions

A

Political sovereignty

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16
Q

refers to an instant upheaval on a massive scale against an established regime

A

Turmoil

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17
Q

large scale, organized violence against a government

A

Internal War

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18
Q

represents an instant, planned act of violence against those in power

A

Conspiracy

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19
Q

official seizure of foreign property by a host country whose intention is to use the seized property in the interest of the public.

A

Expropriation

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20
Q

expropriation without compensation

A

Confiscation

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21
Q

creeping expropriation

A

Domestication

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22
Q

process by which controls and restrictions placed on a foreign firm gradually reduce the control of the owners

A

Domestication

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23
Q

to regulate hard currency balances (hard currencies are stable currencies which can be traded and exchanged internationally

A

Exchange Control

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24
Q

to support native industries

A

Import Restrictions

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25
Q

MNCs may be forced to depend on local sources of supply for the needed raw materials

A

Import Restrictions

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26
Q

government of a country sometimes imposes control to prevent foreign companies from competing in certain markets.

A

Market Control

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27
Q

government may also impose excessive and unconventional taxes on foreign business

A

Tax Control

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28
Q

price regulations on basic commodities, utilities and gasoline

A

Price Control

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29
Q

presence of labor unions; labor demands transformed into law

A

Labor Restrictions

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30
Q

formed through regular elections and have different party systems (different parties hold different views on how the country’s economy can be strengthened)

A

Democracy

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31
Q

strict obedience to authority;

A

Authoritarianism and totalitarianism

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32
Q

lack of personal freedom

A

Authoritarianism and totalitarianism

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33
Q

rigidly regulated by complete government control of all business activities

A

Communism

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34
Q

Countries that practice Communism

A

North Korea, Cuba, Myanmar/Burma

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35
Q

authoritarian regimes

A

Dictatorship

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36
Q

run by military / civilian dictators

A

Dictatorship

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37
Q

Countries that has Political System Based on Religious Principles

A

Saudi Arabia (monarch)
Iran (democratically electedPresident)
Islamic Republic

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38
Q

government whose ruler derives power through inheritance; power is in a single individual

A

Monarchy

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39
Q

one head of state and head of the government

A

Pure Monarchy

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40
Q

one titular head of the state and one head of the government (Chancellor, Prime Minister, President)

A

Constitutional Monarchy

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41
Q

Country with Pure Monarchy

A

Brunei

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42
Q

Country with Constitutional Monarchy

A

Great Britain

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43
Q

a tax that government levies on exports/imports

A

tariffs

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44
Q

offering large blocks of products on a market at low prices to undercut competition

A

Dumping

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45
Q

obtaining licenses before engaging in trade across national boundaries

A

Export/import licensing

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46
Q

includes policies on screening criteria, ownership, fiancé, employment and training, technology transfer, dispute settlement

A

Foreign investment regulations

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47
Q

T/F
Tariffs are a tax that governments impose on exports and imports.

A

T

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48
Q

T/F
An export duty is a tax levied on imports.

A

False

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49
Q

An import/customs duty is a tax imposed on goods brought into a country.

A

True

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50
Q

A subsidy is considered a reverse tariff because it provides financial assistance to foreign products.

A

True

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51
Q

T/F
Dumping refers to selling products at prices higher than the market value in a foreign country to undercut competition.

A

F

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52
Q

T/F
Dumping refers to selling products at prices higher than the market value in a foreign country to undercut competition.

A

F

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53
Q

T/F
Anti-dumping laws are implemented to prevent unfair competition from foreign companies.

A

T

54
Q

T/F
Dumping typically involves selling large amounts of products in a market at very low prices to gain market share.

A

T

55
Q

T/F
Export licensing is the process of obtaining government authorization before shipping goods abroad.

A

T

56
Q

T/F
One reason for requiring an export license is to track export activities.

A

T

57
Q

T/F
An import license is necessary to track which goods are exported from a country.

A

F

58
Q

T/F
An import license is necessary to track which goods are exported from a country.

A

F

59
Q

T/F
Export/import licenses help in controlling the unnecessary purchase of goods from other countries.

A

T

60
Q

T/F
Foreign investment regulations often include policies regarding ownership structures in joint ventures.

A

T

61
Q

T/F
Foreign investment regulations focus only on financial transactions between countries.

A

F

62
Q

T/F
Technology transfer regulations are part of foreign investment laws to ensure that a country gains technology when it allows foreign investments.

A

T

63
Q

T/F
Employment and training requirements for foreign investors are usually included in foreign investment regulations.

A

T

64
Q

T/F
Dispute settlement mechanisms in foreign investment laws are established to protect investors from unfair treatment by host countries.

A

T

65
Q

T/F
Foreign investment regulations are irrelevant to the control of labor and training standards.

A

F

66
Q

T/F
Anti-dumping laws discourage companies from selling products at below-market prices in foreign markets.

A

True

67
Q

T/F
Subsidies are typically used to make domestic goods more competitive compared to foreign imports.

A

T

68
Q

T/F
An export duty is typically applied to control the outflow of goods from a country.

A

T

69
Q

T/F
Host country laws are enacted to control foreign businesses operating within their economies.

A

T

70
Q

T/F
Countries enact laws to control ownership and taxes related to foreign businesses.

A

T

71
Q

T/F
Countries enact laws to control ownership and taxes related to foreign businesses.

A

T

72
Q

T/F
Reciprocity laws are not important for countries when forming trade agreements with other nations.

A

F

73
Q

T/F
ASEAN is a regional organization that includes countries like Brunei Darussalam, Cambodia, and Vietnam.

A

T

74
Q

T/F
Under the ASEAN-Korea Free Trade Agreement, zero tariffs apply to all products exported to Korea, including rice and sugar.

A

F

75
Q

T/F
The Rules of Origin (ROO) determine which goods qualify for preferential tariff treatment under free trade agreements.

A

T

76
Q

T/F
Wholly-obtained goods are considered to have originated from a country for tariff purposes.

A

T

77
Q

T/F
Substantially-transformed goods are those that have undergone significant changes to qualify for preferential tariff treatment under the Rules of Origin.

A

T

78
Q

T/F
Under the ASEAN-Australia-New Zealand Free Trade Area, no citizen of these countries can work while on holiday.

A

F

79
Q

T/F
The Working Holiday Scheme allows 100 citizens from each participating country to work while on holiday in the other country.

A

F

80
Q

T/F
The Working Holiday Scheme is only available to citizens of ASEAN countries.

A

False

81
Q

T/F
Under the ASEAN-Korea Free Trade Agreement, certain products, such as rice and sugar, are exempt from the zero tariff law.

A

True

82
Q

T/F
The political aim of host country laws can include protection of some local industries.

A

T

83
Q

T/F
Host country laws always provide complete tariff exemptions for foreign businesses.

A

F

84
Q

T/F
Foreign businesses must comply with specific regulations such as the Rules of Origin (ROO) to qualify for preferential tariff treatment.

A

T

85
Q

T/F
ASEAN-Korea trade agreements allow zero tariffs for all products except motor vehicle parts.

A

F

86
Q

T/F
In the ASEAN-Australia-New Zealand Free Trade Area, tourists can work while holding a tourist visa if they are from the participating countries.

A

T

87
Q

T/F
Under the ASEAN-Korea Agreement, products like motor vehicle parts are included in the zero-tariff treatment.

A

F

88
Q

T/F
Host country laws regarding foreign investment are often influenced by political goals.

A

T

89
Q

T/F
The primary goal of host country laws is to encourage unlimited foreign investment and trade.

A

F

90
Q

T/F
Democracies are formed through regular elections where different political parties hold different views on how to strengthen the economy.

A

T

91
Q

T/F
Authoritarianism and totalitarianism involve strict obedience to authority and typically lack personal freedom.

A

T

92
Q

T/F
Communist nations, such as North Korea and Cuba, have complete government control over all business activities.

A

T

93
Q

T/F
In a dictatorship, the government is typically run by a military or civilian dictator who holds absolute power.

A

T

94
Q

T/F
Religious-based political systems are only found in Islamic countries, such as Saudi Arabia and Iran.

A

F

95
Q

T/F
A monarchy is a system of government where the ruler derives power through inheritance, and the power is held by a single individual.

A

T

96
Q

T/F
Absolute monarchy is where the monarch is both the head of state and head of government, with no separation of powers (e.g., Brunei).

A

T

97
Q

T/F
Constitutional monarchy includes a monarch who serves as the ceremonial head of state, while another individual (such as a prime minister) holds executive powers (e.g., Great Britain).

A

T

98
Q

T/F
Government stability is important because changes in government may affect the implementation of agreements made by the previous regime.

A

T

99
Q

T/F
Public unrest such as demonstrations and riots can be a symptom of government instability.

A

T

100
Q

T/F
Government crises, including opposition conflicts, are often signs of a stable government.

A

F

101
Q

T/F
Armed attacks by groups within the country or from neighboring countries may indicate government instability.

A

T

102
Q

T/F
Politically motivated assassinations may point toward a government’s instability.

A

T

103
Q

T/F
A coup is an event that typically strengthens a government, rather than destabilizing it.

A

F

104
Q

T/F
Host countries must manage their economies according to “sound economic principles,” not based on “political emotions.”

A

T

105
Q

T/F
Many developing countries have a fear of domination and exploitation by foreign investors.

A

T

106
Q

T/F
A government’s international stance can be measured by its relationship with other countries, respect for international laws, and its membership in international organizations.

A

T

107
Q

The relationship between a host country and the parent company’s home government has little effect on foreign investment decisions.

A

False

108
Q

T/F
The relationship between a host country and the parent company’s home government has little effect on foreign investment decisions.

A

F

109
Q

T/F
Administrative procedures in host countries can vary significantly and impact the ease of doing business there.

A

T

110
Q

T/F
Expropriation refers to the official seizure of foreign property by a host country with the intention of using the seized property in the interest of the public.

A

T

111
Q

T/F
Expropriation always involves the confiscation of foreign property without any compensation.

A

F

112
Q

T/F
Confiscation is the same as expropriation, but without the compensation given to the firm for the seized property.

A

T

113
Q

T/F
Domestication is a gradual process that involves reducing the control of foreign firms through various measures such as transferring ownership to nationals.

A

T

114
Q

T/F
In domestication, a host country may promote nationals to higher levels of management in foreign firms.

A

T

115
Q

T/F
A key feature of domestication is the gradual transfer of ownership to foreign nationals over time.

A

T

116
Q

T/F
Exchange controls regulate the flow of soft currencies that are not stable for international trade

A

F

117
Q

T/F
Under exchange controls, MNCs may face difficulties in transferring profits or capital back to the parent company.

A

T

118
Q

T/F
Exchange controls allow MNCs to import raw materials and machinery freely without restrictions.

A

F

119
Q

T/F
Import restrictions are often imposed to support local industries, making it difficult for MNCs to source

A

T

120
Q

T/F
Import restrictions apply only to specific companies and not to entire industries within the host country.

A

F

121
Q

T/F
When faced with import restrictions, MNCs may have to rely on local raw materials, which could affect the quality of the finished product.

A

T

122
Q

T/F
In some cases, MNCs may face shortages of local raw materials, which could hinder production in the host country.

A

T

123
Q

T/F
Market control refers to the ability of a government to prevent foreign companies from competing in certain markets.

A

T

124
Q

T/F
Host countries often impose market control to encourage competition from foreign firms, rather than discourage it.

A

F

125
Q

T/F
Tax control is a method used by host countries to impose excessive and unconventional taxes on foreign businesses.

A

T

126
Q

T/F
Tax controls are often used as an indirect way of signaling that an MNC is no longer welcome in the host country.

A

T

127
Q

T/F
Price control is commonly applied to regulate the prices of basic commodities, utilities, and gasoline in the host country.

A

T

128
Q

T/F
Price control is commonly applied to regulate the prices of basic commodities, utilities, and gasoline in the host country.

A

T

129
Q

T/F
Labor unions generally have no impact on the operations of foreign firms in host countries.

A

F

130
Q

T/F
Labor restrictions can result from the demands of labor unions, which may be transformed into laws that affect foreign firms’ operations.

A

T