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MSB 430 EXAM QUESTIONS AND VERIFIED ANSWERS
What is a sovereign nation? - answer Country that governs itself What is globalization? - answer Increasing interconnectedness among countries through exchange of goods, info, ideas According to Amartya Sen globalization ______ - answer potential to be good economically, but also inequality and social justice According to Joseph Stiglitz globalization - answer economic benefits but winners and losers. According to Critics of globalization say that it leads to (3) - answer Exploitation of workers Environmental degradation erosion of culture What is a globalized market? - answer Market on global scale. Goods/services flow freely across borders What is global convergence + example - answer tastes, preferences become similar across different countries Popularity of mcdonalds What are consumer products? - answer products and services used by people for their personal use What are industrial products + example - answer B2B products, used for production processes. Machinery and raw materials Factors of production + examples - answer resources used in production of goods/services land, labor, capital What is globalization of production + example - answer Sourcing production factors from other companies
company that manufactures in multiple countries to optimize costs and skills What is arbitrage? - answer taking advantage of price differences for the same good in different markets What is flat world + example - answer globalized world where barriers have been eliminated due to tech Amazon delivers to whole world What is round world argument? - answer Significant challenges for some countries and globalization can lead to inequality Multilateral org + examples - answer International institutions that adress global issues WTO, IMF, UN World Bank + examples - answer Provides loans/grants for projects in developing countries Infrastructure projects (roads, clean h2O) IMF + examples - answer Financial assistance to member countries facing challeneges Korea UN - answer Promote peace/cooperation. Address global issues WTO + examples - answer Address global rules of trade, enforceable framework for trade Resolve trade disputes, negotiating trade agreements Micro-multinational corp + example - answer small enterprises that operate internationally software dev teams in India Emerging market - answer Rapid economic growth, urbanization recently. Good investment Difference between emerging and developing market - answer E = Process of achieving developed status D = Early stages of development still
, build trust, cross cultural communication How do you boost overall sales by setting up operations in other countries? (3) - answer new markets large customer base low production costs Born global - answer Organizations that are formed as global firms from the outset. PEST - answer political, economic, sociocultural, and technological factors that can impact business operations Political factors - answer government stability, trade policies, and regulations. Economic factors - answer inflation rates, exchange rates, and economic growth. Sociocultural factors - answer cultural norms, consumer preferences, and social attitudes. Tech factors - answer advancements in technology, infrastructure, and digital connectivity
What is a host country - answer country where a foreign company establishes operations or conducts business. What has technology done to employment in manufacturing? - answer automating processes and replacing some manual labor with machines. This has led to job displacement in certain industries. Franchising + example - answer where a company grants the rights to another party to operate a business using its brand, products, and processes. KFC Liscensing - answer company grants permission to another party to use its intellectual property, such as patents or trademarks, in exchange for royalties or fees. Disney for toys What are the similarities between Franchising and licensing - answer Grnat permission of using IT or business models What are the differences between Franchising and licensing - answer Level of control F = support and guidance L = hands off Exporting + example - answer Sales of goods/products in one country to customers in another
concentrated at the top and flow down through different levels Hierarchy with CEO Horizontal structure - answer division of a company into different functional units or departments, such as marketing, finance, and operations. Industry expertise - answer Having a deep understanding of a specific industry Functional Excellence - answer Ability to perform tasks/activities at a high proficiency level Emotional Intelligence - answer the ability to perceive, understand, manage, and use emotions Market Savvy - answer having a deep understanding of local markets, customer needs, and cultural nuances. Strong Corp Vision - answer a clear and compelling direction for the company's future. It involves setting ambitious goals and inspiring employees Politicial Ideology - answer set of beliefs, values, and principles that guide political behavior and policy preferences. Liberal + conservative Politicial system - answer set of institutions, laws, and processes through which a country
is governed. It determines how power is distributed, how decisions are made, and how conflicts are resolved. Democracy, communism political risk - answer potential for adverse political actions or events to impact businesses operating in a particular country macro/micro political risk - answer Ma = all companies in country Mi = specific companies Indirect effects of political risk (2) - answer Loss of profits Operational challenges (currency and trade restrictions) Individualistic - answer importance of individual rights, and freedom. It values personal autonomy and individual achievements. Anarchist - answer someone who seeks to abolish all forms of government and authority Collectivist + example - answer prioritizes the interests of the group or community over individual interests. Socialism
state-owned enterprises (SOEs) + example - answer Company owned by govt. Brazilian oil and gas company Privatization + example - answer transfer of ownership and control of state-owned enterprises to private individuals or entities telecommunications sector in MX Expropriation - answer the seizure of private property by a government Venezuela Trade control + example - answer government policies and regulations that restrict or regulate international trade. Tariffs, quotas Currency control + example - answer refers to government policies that restrict or regulate the exchange of currencies. Rate restrictions A company is planning to expand its operations globally. To make an informed decision regarding which countries to enter and which countries to avoid, a company should conduct a ______ - answer political risk anaylsis
Property rights - answer legal rights and protections that individuals or businesses have over their assets, including land, buildings, and intellectual property. When was freedom house organized? - answer 1941, defend human rights globally Heritage Foundation - answer conservative think tank that conducts research and promotes conservative policies related to economics, politics, and society. Fiscal freedom - answer ability of individuals and businesses to keep and use their own income and resources without excessive government interference. Labor freedom - answer ability of individuals and businesses to freely engage in employment and labor practices without excessive government regulation. A country is relatively free market, customers are likely to what? (3) - answer more choices lower prices higher quality products Refugee crisis - answer large-scale movement of people who are forced to leave their home countries due to conflict, persecution, or other reasons. Partial State Owned Enterprise - answer Companies where govt holds partial ownership
with countries that have a dominant religion Civil law - answer legal system that is based on a comprehensive set of laws and codes. It is often associated with countries that have a written constitution Supranational laws - answer laws that are agreed upon and binding on multiple countries or regions. International law - answer body of laws and principles that govern the interactions between nations. public vs private international law - answer Pu = war, criminal, refugee Pr = legal disputes Arbitration - answer resolving legal disputes outside of traditional court systems. It involves the use of a neutral third party, called an arbitrator, Intellectual Property - answer refers to creations of the mind, such as inventions, literary and artistic works, and symbols, names, and images used in commerce. Global regulation + example - answer regulations and standards that are applied globally to address issues such as trade, environment, and human rights WTO
Regulations governing international businesss - answer include laws and policies that regulate cross-border trade, investment, and business activities Reactive vs proactive firms - answer R = that respond to changes and challenges in the business environment after they occur. P = anticipate and prepare for changes and challenges in advance. Sustainable + example - answer refer to actions and strategies that promote environmental, social, and economic sustainability. Examples include reducing carbon emissions, _______ is a law signed by President Jimmy Carter in 1977 that made it illegal to pay foreign government officials for their assistance in obtaining or retaining business. (Test questions) - answer FCPA In 1988, the ____ was expanded to cover foreign companies that operate in or have securities (stocks or bonds) listed in the United States. - answer FCPA Facilitation pmts - answer refer to small bribes or payments made to government officials or individuals in positions of power to speed things up FTC - answer regulatory agency in the United States that is responsible for enforcing laws related to consumer protection and promoting fair competition in the marketplace.
