International Business and Globalization Concepts
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Questions and Answers

What is the definition of Gross National Product (GNP)?

  • The value of all goods and services produced domestically only.
  • The total income of a country's citizens including wages and dividends.
  • The measure of a country's economic growth excluding imports.
  • The value of all goods and services produced by a country's domestic and international activities in a year. (correct)

    • Which of the following is NOT a benefit of globalization of markets?

  • Levels uneven income streams.
  • Creates new market opportunities.
  • Restricts local buyer's needs. (correct)
  • Reduces marketing costs.

    • What characterizes Foreign Direct Investment (FDI)?

  • Purchase of physical assets or a significant amount of ownership in a company abroad. (correct)
  • Investment in local companies without ownership.
  • Investment exclusively in public companies in domestic markets.
  • Financial trading without management control.

    • Which of the following is considered a driver of globalization?

    <p>Decreasing communication and transportation costs.</p> Signup and view all the answers

    What is a Multinational Corporation (MNC)?

    <p>A business that has direct investments in multiple countries.</p> Signup and view all the answers

    What is a trade surplus?

    <p>When the value of a nation's exports is greater than its imports.</p> Signup and view all the answers

    Which of the following is a limitation of the mercantilism theory?

    <p>It assumes transportation costs are negligible.</p> Signup and view all the answers

    What does comparative advantage imply for a nation?

    <p>A nation should focus on producing goods it can make more efficiently than others.</p> Signup and view all the answers

    What occurs during a trade deficit?

    <p>The value of a nation's imports is greater than its exports.</p> Signup and view all the answers

    Which assumption does not hold true according to the limitations outlined?

    <p>There are always multiple countries producing numerous goods.</p> Signup and view all the answers

    What is the main characteristic of Monochronic Time (M-Time)?

    <p>Value placed on efficiency in time management</p> Signup and view all the answers

    Which political system is characterized by strict control and lack of tolerance for opposing views?

    <p>Totalitarianism</p> Signup and view all the answers

    What does cultural diffusion refer to?

    <p>The spread of cultural traits between cultures</p> Signup and view all the answers

    In the Hofstede Framework, which dimension contrasts the importance placed on the individual versus the group?

    <p>Individualism vs. Collectivism</p> Signup and view all the answers

    What is meant by cultural imperialism?

    <p>Replacement of one culture's practices with another's</p> Signup and view all the answers

    According to the Kluckhohn-Strodtbeck Framework, what do cultures believe about their relationship to the environment?

    <p>They are part of nature and its cycles</p> Signup and view all the answers

    Which term best describes the traits represented by a culture's lifestyle, including gestures and traditions?

    <p>Cultural Trait</p> Signup and view all the answers

    What is a defining feature of Polychronic Time (P-Time)?

    <p>Encouragement of multitasking</p> Signup and view all the answers

    What is the primary distinction between denationalization and internationalization?

    <p>Denationalization involves reducing the relevance of national boundaries.</p> Signup and view all the answers

    Which key term best defines the belief that one's own culture is superior to others?

    <p>Ethnocentricity</p> Signup and view all the answers

    What characteristic should a person possess to be considered inquisitive in cross-cultural literacy?

    <p>Interest in exploring new ideas and activities.</p> Signup and view all the answers

    Which type of group is characterized by a small number of close personal relationships?

    <p>Primary Group</p> Signup and view all the answers

    What does the term 'material culture' refer to?

    <p>All technology used to manufacture goods.</p> Signup and view all the answers

    Which of the following best describes social mobility?

    <p>The ease of moving up or down the social ladder.</p> Signup and view all the answers

    What is a defining feature of folk customs?

    <p>Traditions dating back several generations.</p> Signup and view all the answers

    What type of social stratification allows for movement based on personal ability?

    <p>Class System</p> Signup and view all the answers

    How does the physical environment impact culture?

    <p>It influences consumers' product needs.</p> Signup and view all the answers

    What is a common misconception regarding language blunders in communication?

    <p>They always lead to misunderstandings.</p> Signup and view all the answers

    What is an example of a reference group?

    <p>A peer group used as a standard for comparison.</p> Signup and view all the answers

    Which of the following is NOT a characteristic associated with cooperative behavior in cross-cultural contexts?

    <p>Assertion of one's own superiority.</p> Signup and view all the answers

    In the context of culture, what does the term 'aesthetics' encompass?

    <p>Perceptions of good taste in art and design.</p> Signup and view all the answers

    What is cross-cultural literacy primarily concerned with?

    <p>Knowledge about a culture to work effectively within it.</p> Signup and view all the answers

    What characterizes theocracy as a political system?

    <p>It is governed by totalitarian religious leaders.</p> Signup and view all the answers

    Which feature does NOT typically describe a market economy?

    <p>Government planning of economic activities.</p> Signup and view all the answers

    What is a primary responsibility of government in a market economy?

    <p>To enforce antitrust laws.</p> Signup and view all the answers

    What defines a centrally planned economy?

    <p>The government plans and controls all economic activities.</p> Signup and view all the answers

    Which of the following is a feature of totalitarianism?

    <p>Imposed authority over the populace.</p> Signup and view all the answers

    How do patents protect intellectual property?

    <p>By granting exclusive rights to inventors.</p> Signup and view all the answers

    What best describes the role of trademarks?

    <p>To signify ownership of a company's product identity.</p> Signup and view all the answers

    What is a common misunderstanding about antitrust laws?

    <p>They are designed to promote monopolies.</p> Signup and view all the answers

    What distinguishes a representative democracy?

    <p>Citizens elect representatives to make decisions for them.</p> Signup and view all the answers

    What is a value-added tax (VAT)?

    <p>A tax imposed on each stage of production that adds value.</p> Signup and view all the answers

    In a market economy, what primarily influences the price of a good?

    <p>Consumer demand and producer supply.</p> Signup and view all the answers

    What is the definition of domestic trade?

    <p>Sale and exchange within a single country.</p> Signup and view all the answers

    What is the basis for the benefits of trade?

    <p>Ability to produce goods more efficiently than other nations.</p> Signup and view all the answers

    What does copyright protect?

    <p>The specific expression of original works.</p> Signup and view all the answers

    Study Notes

    International Business

    • Imports are goods and services bought from another country and brought into the importing country.
    • Exports are goods and services sold to another country and sent out of the exporting country.

    Key Globalization Terms

    • Gross Domestic Product (GDP): Value of all goods and services produced within a country's domestic economy during a one-year period.
    • Gross National Product (GNP): Value of all goods and services produced by a country's domestic and international activities during a one-year period.

    Globalization of Markets

    • It facilitates marketing cost reduction, creating new market opportunities.
    • It also helps to level uneven income streams, which is important for local buyer needs and achieving global sustainability.

    Globalization of Production

    • It provides access to lower-cost workers, technical expertise, and production inputs.

    Drivers of Globalization

    • Falling Barriers to Trade and Investment: This is driven by organizations like the World Trade Organization (WTO), the World Bank, and the International Monetary Fund (IMF).
    • Global E-Commerce: The advancement of technology has made international trade more accessible.
    • Digital Transformation: Continued technological advancements are driving globalization.

    Culture

    • It is defined as a set of values, beliefs, rules, and institutions held by a specific group of people.
    • Ethnocentricity is the belief that one's own ethnic group or culture is superior to other cultures

    Cross-Cultural Literacy

    • Cultural Literacy is the detailed knowledge about a culture that enables a person to work happily and effectively within it.

    Attributes of Cultural Literacy

    • Inquisitive
    • Understanding
    • Impartial
    • Tolerant
    • Cooperative
    • Flexible

    Skills and Knowledge

    • Multilingual: The ability to speak, write, and read in native and foreign languages.
    • Self-Awareness: Understanding your own values and how others perceive you.
    • Collaborative: Working productively with others to achieve objectives.
    • Communicative: Utilizing effective and appropriate communication skills.
    • Resilience: Pursuing goals despite difficulties and setbacks.
    • Active Learning: Engages in continuous learning and development.

    Physical Environment

    • It is a visible and foundational feature of culture, influencing personal communication.
    • It impacts consumers' product needs and the creation of distribution systems.

    Material Culture

    • It encompasses all the technology used within a culture to manufacture goods and provide services.
    • Material culture serves as a measure of a nation's technological advancement in its markets and industries.

    Aesthetics

    • It represents a culture's concept of "good taste" in the arts, imagery, and symbolism of certain colors.

    Values

    • They represent ideas, beliefs, and customs to which individuals are emotionally attached.

    Attitudes

    • Represent positive or negative evaluations, feelings, and tendencies that are associated with objects or concepts.

    Manners

    • They are appropriate ways of behaving, speaking, and dressing in a culture.

    Customs

    • They are habits or ways of behaving in specific circumstances that are passed down through generations.

    Folk Customs

    • They are behaviors dating back several generations that are practiced by a homogeneous group of people.
    • They are behaviors shared by a heterogeneous group or by several groups.

    Gift-Giving Customs

    • While offering token gifts to business and government associates is customary in many cultures, the appropriate type of gift varies.

    Social Structure

    • It outlines the fundamental organization of a culture, including social groups, institutions, and the distribution of resources.

    Social Group Associations

    • Groups of two or more individuals who identify and interact with one another.  

    Types of Social Groups

    • Primary Group: A small group with close personal relationships that form early in life and endure over time.
    • Secondary Group: Larger, less personal, established later in life to achieve a specific goal
    • Reference Group: A group used as a standard for personal preferences, beliefs, attitudes, and behaviors.

    Social Status

    • People's positions in the social hierarchy.

    Social Mobility

    • The ease with which individuals move up or down the social ladder.

    Social Stratification

    • The ranking of people into social layers or classes.

    Class System

    • A system where social status and mobility are determined by personal ability and actions.

    Caste System

    • A system where people are born into a social ranking with limited opportunity for social mobility.

    Brain Drain

    • This involves highly educated individuals leaving a profession, geographic region, or nation for another.

    Reverse Brain Drain

    • The return of highly educated individuals back to their original profession, region, or nation.

    Education

    • The quality of a nation's education system is often tied to its level of economic development.

    Religion

    • It shapes people's views on work, savings, and material goods.
    • It exists across national boundaries and can be practiced within a single nation.

    Personal Communication

    • The system of conveying thoughts, feelings, knowledge, and information through speech, writing, and nonverbal behavior.

    Language Blunders

    • Carefully translated advertising slogans and company documents ensure messages are received accurately.

    Linguistic Translation

    • Machine translation is available for language translation.

    Lingua Franca

    • A shared language understood by two or more parties speaking different native languages.

    Body Language

    • It communicates through unspoken cues like hand gestures, facial expressions, physical greetings, eye contact, and the manipulation of physical space.

    Perception of Time

    • Polychronic Time (P-Time) emphasizes doing things according to one's own schedule with less advanced planning.
    • Monochronic Time (M-Time) focuses on pre-defined schedules and efficient time use.

    Cultural Change

    • Cultural Trait: Represents elements of a culture's way of life, encompassing gestures, material objects, traditions, and concepts.
    • Cultural Diffusion: The spread of cultural traits from one culture to another.
    • Cultural Imperialism: Replacement of one culture's traditions, folk heroes, and artifacts with substitutes from another culture.

    Kluckhohn-Strodtbeck Framework

    • Examines how people view their relationship with the environment.

    Hofstede Framework

    • Examines cultural dimensions like Individualism vs. Collectivism, Power Distance, Uncertainty Avoidance, Masculinity vs. Femininity, Long-Term Orientation, and Indulgence vs. Restraint.

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    International Business and Trade Notes PDF

    Description

    Explore the essential concepts of international business including imports, exports, and key globalization terms like GDP and GNP. Understand how globalization impacts markets and production, and learn about the drivers of globalization that facilitate trade and investment. This quiz is designed to enhance your knowledge of global economic interactions.

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