Chapter 1: Intro to International Business

What is the primary reason why countries cannot produce goods at a low cost?

Due to uneven distribution of natural resources

What is the primary reason why foreign countries can employ labor from India at cheap rates?

Due to unemployment in India

What is the primary reason why businesses go abroad to enter new markets?

To spread the risk

Who is the founder of the Juran Institute?

Joseph Juran Signup and view all the answers

What is the primary reason why businesses go abroad to attract new talents?

Due to lack of availability of quality HR at low cost in the home country Signup and view all the answers

What is the primary reason why businesses go abroad due to nearness to raw materials?

To reduce transportation costs Signup and view all the answers

What was one of the consequences of World War I?

An economic crisis known as the Great Depression. Signup and view all the answers

What was a factor that contributed to the Great Depression?

High tariffs on imported goods. Signup and view all the answers

What was a characteristic of multinational corporations (MNCs) in the post-World War II period?

They controlled much of global trade. Signup and view all the answers

What was a result of the digital revolution of the late 20th and early 21st centuries?

The transformation of international trade. Signup and view all the answers

What is a characteristic of global supply chains in the digital era?

They are interconnected, allowing for efficient production, distribution, and consumption of goods. Signup and view all the answers

What was a factor that contributed to unemployment rates hitting 25% in some places?

Lower demand for goods and services. Signup and view all the answers

What was established in 1995 to facilitate international business?

The World Trade Organization (WTO) Signup and view all the answers

Which of the following is a key benefit of international business?

Permitting the acquisition of a wider variety of products Signup and view all the answers

What is a characteristic of a multinational corporation (MNC)?

It operates in multiple countries Signup and view all the answers

What is a factor contributing to the fast growth of international business?

Growing consumer pressures Signup and view all the answers

What is included in the definition of international business?

The transfer of goods, services, technology, and capital Signup and view all the answers

Which of the following is a key to successful international performance?

Effectiveness, Efficiency, and Competitive Strength Signup and view all the answers

What is the primary focus of international business managers when dealing with cross-national cooperation?

Developing cross-cultural communication skills Signup and view all the answers

What type of international business involves the transfer or exchange of intangible goods?

Exports and imports of services Signup and view all the answers

What is a management contract in the context of international business?

An agreement between a firm and a management company to oversee operational functions Signup and view all the answers

What is the primary skill required for success in international business?

Cross-cultural communication skills Signup and view all the answers

What type of international business involves the transfer of tangible goods?

Export-import trade Signup and view all the answers

What is the primary objective of international business managers when collaborating with foreign partners?

To facilitate collaboration and emotional intelligence Signup and view all the answers

What is the primary objective of a management contract?

To take over the responsibility of managing certain aspects of another company Signup and view all the answers

What is a key difference between franchising and licensing?

Franchising is used in connection with service business, while licensing is used in connection with production and marketing of goods Signup and view all the answers

What type of investment involves investing directly in the machinery and plant in another country?

Direct investment Signup and view all the answers

What is the fee charged by the licensor known as?

Royalty Signup and view all the answers

What is a characteristic of franchising compared to licensing?

Franchising has stricter rules and regulations Signup and view all the answers

What is the term for investing money in a foreign country in exchange for a profit?

Foreign investment Signup and view all the answers