International Business Concepts Quiz

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Questions and Answers

What is a disadvantage of forming a strategic alliance between companies?

Expansion of liabilities for both companies

Trade secrets may be exploited by the other party (correct)

Required sharing of profits equally

Increased management costs for both parties

Which of the following best describes foreign direct investment (FDI)?

Entering partnerships without major risks or costs

Buying property and operating in a foreign country (correct)

Investing exclusively in domestic markets

Only selling goods internationally without ownership

What are the potential benefits of foreign direct investment to the local community?

Guaranteed profit for the parent company

Loss of local jobs

Elimination of regulatory requirements

Increased revenue and job creation (correct)

What does the acronym BRICS represent in the global market context?

Emerging markets with significant economic growth potential Signup and view all the answers

What is one challenge faced when entering emerging markets like BRICS?

Diverse values and varying infrastructure Signup and view all the answers

Which framework is suggested for evaluating global opportunities in emerging markets?

PEST analysis Signup and view all the answers

Which of the following is NOT a challenge associated with foreign direct investment?

Ability to share profits readily Signup and view all the answers

What opportunity does Canada have in expanding its global trading relationships?

To tap into markets with large growing middle classes Signup and view all the answers

What impact has the shift to online platforms had on newspaper companies?

Decreased paper news sales but increased online subscriptions Signup and view all the answers

How does the number of supplier options affect the bargaining power of suppliers?

Fewer suppliers give them more power and control prices Signup and view all the answers

What effect does a low bargaining power of customers have on industry attractiveness for new entrants?

Makes the industry more attractive Signup and view all the answers

What aspect may limit the usefulness of understanding the competitive environment for new entrants?

Emphasis on current power relationships Signup and view all the answers

Why might the dominance of resources and firm size not be clearly captured?

Due to rapid technology changes affecting industries Signup and view all the answers

What is one of the critical elements of business management that involves understanding consumer behavior?

Planning business Signup and view all the answers

Which factor is cited as a primary cause of small business failure?

Lack of record keeping Signup and view all the answers

What was a significant reason for the failure of Sears as a retail giant?

Inability to adapt to technological changes Signup and view all the answers

How did Target Canada’s approach to expansion differ from its operations in the U.S.?

Higher prices due to geographical complexity Signup and view all the answers

In the context of globalization, which benefit do employees gain from increased connectivity?

Connectivity with global counterparts Signup and view all the answers

What is a key concern for businesses when considering global market participation?

Complexity of managing supply chains Signup and view all the answers

What concept describes the trend of countries building their own skills and technology capacity post-pandemic?

Localization Signup and view all the answers

What should businesses consider to manage supply chain risks effectively?

Rethinking long and complex supply chains Signup and view all the answers

Which statement about the financial management of a business is accurate?

Proper budgeting ensures informed spending Signup and view all the answers

What might happen to a business like Amazon in the long term if they fail to understand their customer base?

Long-term profitability risks Signup and view all the answers

What does TBL stand for in the context of reporting?

Triple Bottom Line Signup and view all the answers

Which of the following is NOT a component of the B corp certification?

Marketing strategies Signup and view all the answers

What is a challenge associated with TBL reporting?

No widely agreed upon measurement standards Signup and view all the answers

How do ethical and responsible behaviors affect shareholder wealth?

They drive profitability by building trust. Signup and view all the answers

What is the primary purpose of a social audit?

To report on social responsibility progress. Signup and view all the answers

Which stakeholder group is known for advocating for reporting on social and environmental performance?

Socially conscious investors Signup and view all the answers

What is Tentree’s approach to carbon impact?

Net zero carbon impact Signup and view all the answers

What role do accounting professionals play in sustainability standards?

They promote consistency in measuring ESG matters. Signup and view all the answers

What is the primary function of organizing in management?

To put plans into action by arranging resources and people Signup and view all the answers

Which type of skill is LESS required for top management in comparison to first-line management?

Technical skills Signup and view all the answers

What is the main advantage of cross-functional teams in organizations?

Enhanced information sharing and decision-making Signup and view all the answers

In Maslow's hierarchy of needs, which level comes immediately after physiological needs?

Safety Signup and view all the answers

Which leadership style is characterized by decision-making without consulting others?

Autocratic Signup and view all the answers

What can be a challenge associated with the autocratic leadership style?

Employee disempowerment and reduced job satisfaction Signup and view all the answers

What is one of the primary roles of the C-suite in an organization?

To drive the company towards its vision and support company culture Signup and view all the answers

How does the contemporary trend in management structure affect levels of middle management?

Collapsing hierarchies to reduce middle management levels Signup and view all the answers

What is a defining characteristic of laissez-faire leadership?

Setting goals but allowing employees freedom in achieving them Signup and view all the answers

Which of the following best describes human skills in management?

Interpersonal skills for relationship management Signup and view all the answers

What is one of the modern workplace design trends mentioned?

Implementing open-concept spaces Signup and view all the answers

Which leadership style is particularly effective for generating ideas and creativity?

Democratic Signup and view all the answers

What role does motivation play in leadership according to the content?

It is essential for fostering employee engagement Signup and view all the answers

What is considered a primary focus during the maturity phase of a business?

Maintaining and growing market share Signup and view all the answers

Which is a key component of planning for business growth?

Streamlining processes and developing a growth strategy Signup and view all the answers

What advantage does buying an existing business provide?

Access to an established customer base and reputation Signup and view all the answers

What is a potential drawback of franchising?

Lack of control over product and operational decisions Signup and view all the answers

What is the primary role of incubators for new businesses?

Offer support in various operational aspects and networking Signup and view all the answers

Which source of funding is primarily geared towards early-stage businesses?

Angel investors Signup and view all the answers

What is a key benefit of using crowdfunding to raise capital?

Ability to gauge customer interest in an idea Signup and view all the answers

What is the Business Development Bank of Canada's primary role?

Supporting small and medium-sized companies through financing and advice Signup and view all the answers

Why might an entrepreneur choose an incubator for launching their business idea?

To benefit from a structured environment and community support Signup and view all the answers

What is included in a value proposition?

Tasks customers want to accomplish, obstacles faced, and desired outcomes Signup and view all the answers

How can an entrepreneur enhance their leadership skills?

Train and recognize employees while delegating tasks Signup and view all the answers

What factor should not be considered when buying an existing business?

Who the original owner was Signup and view all the answers

What does a franchising agreement typically include?

Requirements for royalty and fee payments Signup and view all the answers

What is a common characteristic of successful crowdfunding campaigns?

Projects typically asking for $10,000 or less Signup and view all the answers

Study Notes

Future of Work

Tasks and responsibilities of jobs are changing due to technological innovations, leading to concerns about job losses.
By 2030, an estimated 85% of jobs in existence today won't exist.
Technological advancements are being adopted faster than ever, creating new job opportunities.
Examples include the use of automated robots in Amazon's fulfillment centers.

International Business and Ethics

International businesses need to consider global competition and ethical considerations.
Competition for customers exists both locally and globally.
Business decisions should consider where to source materials, talent, and facilities.

Companies need to consider ethical behavior in their business practices.
Sustainability of business practices should consider positive environmental impacts.

Your Toolkit to Become Future-Proof

To become future-proof, students need to develop digital literacy, entrepreneurial abilities, and social intelligence.

Mindset for Upcoming Units

The accounting profession is evolving.
There's a challenge to go beyond traditional financial reporting and include other social matters for long-term business success.

Understanding Business as a Financial Leader

Understanding industry changes, anticipating future developments, and capitalizing on new opportunities are crucial for financial leaders.

Introduction to Business

Canada has a mixed economy, with a combination of market allocation and government regulation.
Crown corporations are owned by the federal or provincial government.
Privatization of state-owned companies can result in improved efficiency and reduced costs.

Learning from Failure

Businesses that are easier to enter often have the lowest growth potential and highest failure rates.
Difficulty entering a market may limit competition, which can benefit long-term success.
Business failure is related to poor planning, poor management, insufficient financing, and poor execution.

Impact of Globalization

Globalization benefits consumers, employees, and business owners offering wider product options, access to global talent, and expanded markets.
Globalization presents challenges due to complex supply chains, diverse cultural norms, labor regulations, and varying levels of economic development.

Reasons for Trading With Other Countries

Nations trade to take advantages of various global opportunities.
There are benefits to importing and exporting resources not available or less expensive to countries.

Canada Perspective on Entering Global Markets

Small businesses account for the majority of exports.
The advantage for small businesses is their ability to react faster to changes in global markets.
International corporations have larger presence across the globe.

Strategies to Enter Global Markets

Licensing involves allowing foreign companies to make a product in exchange for fees.
Exporting involves selling products to another country.
Franchising involves licensing a brand to another party.
Contract manufacturing involves outsourcing to a third-party manufacturer.

Future Opportunities and Challenges

Canada is expanding its trade relationships beyond the US.
Potential for success in emerging markets with large populations and growing middle classes.
Risks in other countries, including varied degrees of political, economic, and social development.

Business Environment

PEST analysis evaluates political, economic, social, and technological factors affecting businesses.
Porter's five forces: examines competitive landscape by analyzing competitive rivalry, threat of new entrants, potential for substitutes, bargaining power of suppliers, and bargaining power of buyers.

Background and Tools

Environment scanning helps to see what current/potential factors impact business growth and success.

PEST

Government (federal, provincial, and municipal) plays a role in multiple areas affecting business operations such as environmental regulations, business licensing, etc.

Economic Environment

Microeconomics looks at individual/business decisions while macroeconomics focuses on the larger economy.
Business cycles: trough (low), recovery, expansion (high), and contraction (low).

Demographics: age, education, income, and diversity of the population
Social trends/attitudes influence business practices and consumer preferences.

Technological Environment

Technology shapes workplace practices by offering convenience, improved data analysis capabilities, and automating tasks.

Competitive Landscape

Porter's five forces analyze industry attractiveness and competitiveness

Building on Your Toolkit to Assess an Organization

SWOT analysis identifies internal strengths and weaknesses and external opportunities and threats.

Ethical Dilemma

Ethical dilemmas require tough choices, often without optimal solutions, based on factors such as cultural norms, respect, and ethical standards.

A company's social responsibility is its ethical and social duties.
CSR can improve a company's financial standing by improving brand reputation, relations with stakeholders, and increase their attractiveness.

Sustainability Practices

Companies should consider keeping sustainability in mind for various business practices to maintain good reputation and trust/customer loyalty, and for long-term success.

Operations Management

Company's aim to create good products for customers efficiently and at a reasonable cost, through proper planning and management of available resources.
Operations management focuses on managing resources, planning, and execution of work processes to create finished products and/or services.

Operations Planning

Facility location and layout are key considerations for a successful business.
Outsourcing can help manage the process and reduce costs.

Operations Control

Production involves many processes at various stages, each requiring careful management to ensure timely and quality deliverables.
Companies should use resources efficiently to produce good results in terms of revenue and profit.

Supply Chain Management

Efficient supply chains are crucial in managing logistics from resource acquisition to final customer receipt.
Effective management involves supplier relationships, distribution networks, and quality control at every stage.

Pert and Gant Charts

Tools that help in operations control and ensure that work flow is effective and within timeframe.

Decision-Making and Future of Operations

Companies use R&D to launch/improve products and create effective operations management plans.