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BUSI 3250 Exam 1 Questions And Answers With Verified Study Solutions, Exams of Business Economics

BUSI 3250 Exam 1 Questions And Answers With Verified Study Solutions

Typology: Exams

2024/2025

Available from 11/25/2024

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BUSI 3250 Exam 1 Questions And Answers With Verified

Study Solutions

What are the 3 P's of sustainability? people, planet, profit Meeting the needs of the future without compromising the ability of future generation's to meet their needs Sustainable Development C.K. Prahalad popularized the term "Bottom of the Pyramid" What does "Bottom of the Pyramid" refer to? refers to the approximately 3 billion people who survive on less than $2 per day, where basic survival needs are just barely met. Prahalad suggested that this large mass of humanity should be viewed as having tremendous market potential with untapped purchasing power 3 largest regional trade regions are EU (27 member countries), NAFTA, and? ASEAN How much of the world's exports does ASEAN make up? 55% ___________ is what makes us who we are and what we believe Culture Ethnocentricity The belief that your own culture is superior to other cultures In what dimension and level (high/low) does consultative leadership dominate, and informality tend to be the norm? Low, Power Distance (ex. The US) Hofstede's Cultural Dimension that measures degree to which people in the culture are integrated into groups Individualism-collectivism People in highly individualistic cultures are more... loosely connected and look after themselves and their immediate family (high, individualism-collectivism dimension) People in highly collectivistic cultures belong to... strong, cohesive in-groups that look after them in exchange for loyalty (low, individualism-collectivism)

Remember, the nail that sticks out gets hammered down - - Collectivism Hofstede's Culture Dimension that is extent to which members of a society expect power to be distributed unequally and accept it Power Distance In large-power-distance societies, seniority, age, rank, and title are important; formality is emphasized (high, power distance; Kia example, the title more important than name on card) In small-power-distance environments, a consultative style of leadership predominates; informality tends to be the norm (low power distance; ex. The US) Hofstede's Culture Dimension that describes a society's level of comfort with uncertainty. Uncertainty avoidance Strong uncertainty avoidance cultures resist change; they expect clear procedures and preserve the status quo (high uncertainty avoidance) Weak uncertainty avoidance culture see conflict as having positive aspects; they expect innovation, encourage risk taking and reward change (low uncertainty avoidance) Hofstede's Culture Dimension that describes the distribution of roles between the sexes Masculinity-femininity Masculinity-femininity Women's roles across cultures vary less than men's; men's values vary widely. Dimension addresses the gap between men's and women's roles in a culture. In feminine cultures, quality of work life is important (low masculinity/femininity) in masculine cultures, economic growth is central and business performance is primary goal (more assertive, high masculinity/femininity) Hofstede's Cultural Dimension that describes a culture's tendency either to allow relatively free gratification of human desires or suppress human drives though strict social norms Indulgence versus restraint

In indulgent cultures, people believe they have personal control over their lives (high indulgence) In restraining cultures, much more energy is dedicated to establishing order and structure, and individuals are not "indulged." (low restraining) Typically, one might think that indulgent correlates with individualism and restraining with collectivism Typically, one might think that indulgent correlates with individualism and restraining with collectivism Hofstede's Cultural Dimensions were identified to? help managers understand how cultural differences affect organizations and management methods (concerned primarily with work values) Hofstede's Cultural Dimension that is the measure of how people deal with the unexplainable in their lives Pragmatic versus Normative In normative societies, there is strong desire to explain and to know the absolute Truth. Respect for tradition, a low propensity to save, and a focus on quick results (low normative) A pragmatic orientation suggests people not concerned with understanding so much because life as a complex process is a given (high pragmatic) How many modes of supply are there? 4 How much of the world's oil passes through the Strait of Hormuz? 20% How much of the world's commerce happen over water? 80% Extent to which members of a society expect power to be distributed unequally and accept it Power Distance About how many people live on less than $2 a day? 3 billion

What theory explains why a product that begins as a nation's export eventually becomes its import? (The role of innovation in trade patterns) International Product Life Cycle (IPLC) Four Stages of IPLC Export, foreign production, foreign competition, import competition What theory is useful in explaining trade and investment behavior when international firms introduce new products in home markets first? International Product Life Cycle Economies of Scale predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases. Experience Curve rising scale on which efficiency improves as a result of cumulative experience and learning National competitiveness nation's relative ability to design, produce, distribute, or service products within an international trading context while earning increasing returns on its resource What is it called when companies tend to cluster based on expertise/needs which allows for creating competitive advantages national competitiveness Regional clusters (like Alabama's automotive industry) give firms the upper or lower hand? the upper hand because they can pool a labor force, use specialized local suppliers, and share technological information The Japanese roof tile commercial is an example of which Hofstede's dimesions? Collectivism Quality of work life balance considered important low, feminism United Nations Global Compact is voluntary reporting scheme for businesses that covers critical areas affecting the conduct of international business—10 principles of the UN Global Compact which are found in 4 categories: human rights, labor, the environment, and anti-corruption efforts Internationalization of businesses really didn't gain traction until 100 years ago Most obvious and distancing cultural distinction is Language

In a ____________ culture, people believe they have personal control in their lives Indulgent Stakeholder theory forces forces a business to address underlying values and principles, because of this what becomes the result of value creation rather than primary driver? Profit Stakeholder Theory an understanding of how business operates that takes into account all identifiable interest holders. What theory gives all stakeholders a voice? stakeholder theory According to the stakeholder theory, what should managers do? Managers should consider the network of tensions caused by competing internal and external demands that surrounds the business. What percent of jobs in Alabama depend on international trade? 20% About how many jobs in Alabama are supported by trade? 500, Business that is carried out across national borders International Business What does international business include? Includes international trade and foreign manufacturing, as well as the service industry like transportation, tourism, advertising....retailing and more. International business deals with... domestic, foreign, and international Are foreign business and international business interchangeable? Yes Foreign Business denotes the operations of a company outside its home or domestic market International Company a company with operations in multiple countries

Is a domestic firm entirely free from foreign or international environmental forces NO (this is due to competition) all of the forces influencing the life and development of the firm Environment Uncontrollable Forces external forces that management has no direct control over For uncontrollable forces, one can use what? PESTLE - political, environmental, socio-cultural, technological, legal, and economic PESTLE Political, Economic, Social, Technological, Legal, Environmental T/F: To be a successful international business, you must adapt to the uncontrollable forces True International managers have three choices in deciding what to do with a concept or a technique employed in domestic operations: transfer it intact, adapt it to local conditions, or not use it overseas Most multinationals are based in... developed nations, but there has been a recent surge in the number arising in emerging economies The rapid urbanization of populations combined with industrialization in the emerging markets is quickly shifting the world's economic center of gravity from Europe and the Americas and back to where? Asia Transnational Corporation An enterprise made up of entities in more than one nation, operating under a decision-making system that allows a common strategy and coherent policies It is estimated there are more than _____________ transnationals with nearly __________ foreign affiliates 103,000 (transnationals); 900,000 (foreign affiliates) Transnationals collectively account for how much of the world trade and what percent of world GDP? more than half of world trade and 10% of world gross domestic product

For TNCs, do some have an annual revenue large than GDP of other countries? Yes (some TNCs have annual revenue that is larger than GDP of some countries) T/F: The subsidiaries of foreign companies have become increasingly important in the industrial and economic life of many nations True Foreign Direct Investment (FDI) Measures where and how fast internationalization is taking place. The transportation of any domestic good or service to a destination outside a company or region Exporting A large amount of international business is... exporting rather than FDI The transportation of any good or service into a country or region, from a foreign origination point Importing Exports in 2017 were _______ times larger than they were in 1980 and almost __________ times larger than in 2000 9 (larger than 1980); 3 (larger than 2000) Five major kinds of drivers, all based on change, are leading international firms to internationalize their operations: political, technological, market, cost, competitive The tendency toward an international integration and interdependency of goods, technology, information, labor and capital, or the process of making this integration happen Economic Globalization What percent of CEOs view sustainability as important to the success of their companies 90% What percent of S&P companies publish sustainability reports and what percent use GRI standards 90%; 51% State in which the demands placed upon the environment by people and commerce can be met without reducing the capacity of the environment to provide for future generations Environmental Sustainability Sustainable development says Don't take away what has been given/offered freely without replenishing in some way. Once about make a profit, now about approaching/using the 3 Ps - people (social), profit (economy), and planet (environment)

Life Cycle Assessment helps us understand the cumulative impact of the products we purchase Life Cycle Assessment An evaluation of the environmental aspects of a product or service throughout its life cycle What assesses the cumulative impact of a product? Life Cycle Assessment Emerging "product stewardship" shows companies accepting responsibility for impact of their activities Nation's relative ability to design, produce, distribute, or service products within an international trading context while earning increasing returns on its resources National Competitiveness Do companies tend to cluster? Companies tend to cluster based on expertise/needs which allows for creating competitive advantages Why do regional clusters (like Alabama's automotive industry) give firms the upper hand? because they can pool a labor force, use specialized local suppliers, and share technological information Aesthetics refers to a culture's sense of beauty and good taste Aesthetics - Expressed through art, drama, music, folklore, dance, etc

  • Also applies to ideas about body and physical beauty
  • Folklore conveys powerful connotations and emotions: must be used carefully in marketing (ex. Fang-like teeth in Japan) Religion important component of culture; responsible for many attitudes and beliefs. How can religion impact a government? Religion can impact how a government is run - theocracies - examples include Vatican City Yemen Saudi Arabia Sudan Iran Mauritania Afghanistan Religion impacts how people... think and influences their actions

Family planning - Catholicism and abortion is an example of how... religion impacts government policies How many languages in the world are there? 7,000 languages in the world What percent of languages in the world are in danger of extinction? 40% are in danger of extinction, many with less than 1,000 people speaking the language How many languages account for more than ½ the world's population 23 languages What does Hall's high and low context do? Classifies cultures based on communication styles and role of context In high context cultures, much of communication is conveyed by __________ context high-context culture - Japan, China, many other Asian, Latin American, and African cultures.

  • Social ties are long-standing and close; communication tends to be implicit and indirect.
  • Tends to be polychronic In low context cultures, most communication carried in ________________ words low-context culture - U.S., Canada, other Anglo cultures, Germany, and Scandinavian cultures.
  • Social ties are of shorter duration; communication is explicit.
  • Tends to be monochronic High Context - Less verbally explicit communication; less written/formal information
  • More internalized understandings of what is communicated
  • Multiple cross-cutting ties and intersections with others
  • Long-term relationships
  • Strong boundaries—insider/outsider
  • Knowledge is situational, relational
  • Decisions and activities focus around personal face-to-face relationships, often around a central authority person Low Context - Rule oriented, people play by external rules
  • More knowledge is codified, public, external, and accessible
  • Sequencing, separation—of time, of space, of activities, of relationships
  • More interpersonal connections of shorter duration
  • Knowledge is more often transferable
  • Task-centered; decisions and activities focus around what needs to be done; division of responsibilities Would you consider US laws to be high context or low context? LOW Map-Bridge-Integrate model (MBI) is useful for discerning... what matters across cultures A global mind-set involves an openness to diversity along with an ability to synthesize across diversity Culture is learned, we are not born with True The various aspects of culture are _______________ interrelated Culture is... shared, patterned, and mutually constructed through social interaction Culture defines the boundaries of different groups What's the world's largest sustainability initiative? United Nations Global Compact The GRI (Global Reporting Initiative) Standards create... a common language for organizations (large or small, private or public) to report on their sustainability impacts in a consistent and credible way. This enhances global comparability and enables organizations to be transparent and accountable The GRI Standards help organizations understand and disclose their impacts in a way that meets the needs of multiple stakeholders

In addition to reporting companies, the GRI Standards are highly relevant to many other groups, including: investors, policymakers, capital markets, and civil society An economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners Comparative Advantage When a nation can produce more of a good or service than another country for the same or lower price Absolute Advantage To increase wealth, government policies should promote exports and discourage imports Mercantilism the amount by which the value of imports into a nation exceeds the value of exports Trade deficit (imports>exports) the amount by which the value of a nation's exports exceeds the value of its imports Trade surplus (exports>imports)