GMS 520 FINAL EXAM Questions with 100% correct Answers Latest Updates 2024 GRADE A+, Exams of Nursing

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GMS 520 FINAL EXAM Questions with 100%

correct Answers Latest Updates 2024

GRADE A+

1. free market economy: ✓✓✓ goverment has little interventjon, market/prices are deter-mined exclusively by forces of demand and supply, private enterprises control the economy
2. global governance: - ✓✓✓ supernational bodies that regulate international transac-tions in the case there are legal issues between two different countries

• ex. wto (world trade organization), wipo, nato, uno, world bank

3. international management: ✓✓✓ - the process of developing strategies, designing operating systems, and working with people around the world to ensure sustainedcompetitive advantage

• maintaining competitive advantage, stagnant no fluctuation
• new app, new tech, etc.

4. globalization: ✓✓✓ - global competition characterized by networks of

international linkages that bind countries, institutions, and people in an interdependent globaleconomy

• the worldwide interdependence of resource flows, product markets, and business competition that characterize our economy

5. cultures in international business: - culture affects our ways of life values and behaviours

• it can affect business relationships and decisions certain cultures conduct business differently culture intelligence
• avoid ethnocentric (assume your own culture is the best)
• have cultural literacy
• political, economic, legal, technological systems differ
• contrast of rules, laws, cultures, etc.

6. international business: conducting for-profit transactions of goods and services

across national boundaries

7. businesses go global in search of: - customers (larger market, gain market share)

• suppliers
• capital (less/lower taxes)
• labour (cheap labour, labour intensive companies)
• risk diversification (less risks in different markets, don't put all assets in one market)

8. how companies go global: - global sourcing

• exporting
• importing
• licensing agreement
• franchising
• foreign direct investment

9. global sourcing: the process of purchasing materials or services around the world for local use

10. exporting: selling locally made products in foreign markets
11. importing: buying foreign-made products and selling them domestically
12. licensing agreement: one firm pays fee for rights to make or sell another company's products
13. franchising: a fee is paid for rights to use another firm's name, branding, and methods
14. foreign direct investment (fdi): carry a portfolio, go overseas, set new branch, have your own investment
15. brownfield investment: - buy/invest existing, have 5 candidates, bring lawyers, accountants to look at prior company's books to see facts behind figures

• find the right guys

16. greenfield: from scratch, buy building, build
17. five key global trends: 1. changing balance of growth towards emerging mar- kets
18. need for increased productivity and consumption in developed countries
19. increasing global interconnectivity

make world smaller

4. increasing gap between supply and demand of natural resources
5. challenge for governments to develop policies for economic growth and financial stability
6. challenges to globalism: - backlash against capitalism and rekindling of na- tionalism (some countries want to be more protectionist)

• increased protectionism of high-demand resources (anti - globalization and free trade, setting taxes and duties on foreign goods)
• need to develop top managers with international understanding and experience
• increasing pressure and publicity for companies to consider the social responsibility of their actions

19. effects of globalization on corporations: - global companies are becoming less tied to specific locations

• companies that desire to remain competitive will have to develop a cadre of

experienced international managers

• small companies are also affected by, and in turn, affect globalism

20. the globalization of human capital: - while firms still offshore manufacturing jobs, some are reshoring jobs to lower shipper costs

• firms are outsourcing white-collar jobs to other countries such as India
• for global firms, winning the war for talent is a pressing issue

21. regional trading blocs: - economic agreements to reduce and remove tariff and nontariff barriers (usmca)

• free flow of goods, services, and factors of production
• trade blocs continually expand their borders to include neighboring countries
• much of today's world trade takes place within these three regional free-trade blocs: western europe, asia, and the americas

22. regional economic groups: - free trade area (free flow of trades and services)

• customs union (agreement remove barriers, have custom policy; uniform policy for non-members, common rules)
• common market
• economic union (eu)
• political union (all become one country)

23. the political and economic environment: - sustainability - economic, political, social, and environmental - has become a significant worldwide issue

• top four risks - government regulation country financial risks, currency risks, political and social disturbances
• regions view risks differently - cyber security is the top risk of north america
• ethnicity is a driving force behind political instability

• religious disputes lie at the heart of differences

24. political risk: - any governmental action or politically motivated event that could adversely affect the long-term profitability or value of a firm

• ex. political unrest, civil wars, etc.

25. typical political risks: - expropriation and confiscation

• nationalization
• terrorism
• discriminatory treatment
• barriers to repatriation of funds
• interference in managerial decision making
• dishonesty by government officials

26. political risk assessment: - helps companies manage exposure to risk and minimize financial loss

• two forms:
• consultation with experts
• development of internal staff capabilities - increasingly common

27. managing political risk : avoidance and adaptation: - equity and sharing

• participating management
• localization of the operation
• development assistance

28. managing political risk: dependency: - input control

• technology control
• expatriate position control

• distribution control
• political risk insurance (opic and fcia)
• local debt financing

29. economic risk: - currency change (variations in loss is not due to exchange rate)

• capital control
• closely related to political risk
• economic risk is related to debt
• credit rating is bad, b or less
• determined by a country's ability or intention to meet its financial obligations
• historically, most industrialized nations have posed little risk of economic instability

• however, the level of economic risk in europe is of concern in the eurozone due to debt problems in some eu member countries

30. categories of economic risk: - loss of profitability due to abrupt changes in monetary and fiscal policies

• loss of profitability due to changes in foreign investment policies
• risk of currency exchange-rate volatility results in currency translation exposure

31. the legal environment: consists of the local laws and legal systems of those countries in which an international company operates, and of international law - which governs relationships between sovereign countries
32. types of legal systems: - common law

• civil law
• islamic law

33. approaches to contract law: - common law - details must be written in the contract to be enforced

• civil law - assumes promises will be enforced without specifying the details
• in asia, the contract may be in the relationship, not on the paper

34. other regulatory games: - protectionist policies, such as tariffs or quotas and other import and trade restrictions (laws to favour their own country)

• the attractiveness of the tax system (controlled or fee)
• the level of government involvement in the economic and regulatory environment varies among countries (exchange rates can make you lose money->manage by investing back in the community; legal or compliance unit)

35. globalization of information technology: - the speed and accuracy of infor- mation transmission are changing the nature of international managers' jobs

• cultural barriers are being lowered gradually
• technology gets dispersed around the world by mne's

• explosive growth for information technology is both a cause and effect of globalism (issue of low internet penetration in different high IT countries)

36. developing skills for enhance your career: - communication

• critical thinking
• collaboration
• knowledge application/analysis
• business ethics/social responsibility

37. the social responsibility of mncs: - csr dilemma

• profit is mnc's only goal
• mncs should anticipate and solve social needs financial commitment is costly for csr

38. how do you balance profit motives with csr?: - funding projects that drives increase in demands and customer loyalty

• start inside the company itself to attract employees
• try to sensitize shareholders on the need for csr

39. agency problem: where the actions or choices of a manager differ from those of the owners of the company
40. stakeholders: - agents those whose actions affects the firm and who are equally affected by the firm's operations

• find a way to reconcile multiple expectations from home country and host country stakeholders

41. business benefits from csr: - improved access to capital

• secured license to operate (ex. samsung unsafe work environment, sued in korea)
• revenue increase and cost and risk reduction
• improved brand value and reputation with customer attraction and retention
• improved employee recruitment, motivation, and retention

42. global corporate culture: - an integration of the business environments in which firms currently operate

• different countries may adopt strikingly different positions that can be traced to history and culture
• can focus on different things

43. contingency approach: - dependent on...

• csr/management style you use should be dependent on the environment

44. dealing with confusion about cross-cultural dilemmas: - engaging stake- holders (and sometimes ngos) in a dialogue

• establishing principles and procedures for addressing difficult issues such as labor standards for suppliers, environmental reporting, and human rights
• adjusting reward systems to reflect the company's commitment to csr

45. moral universalism: addressing the need for a moral standard that is accepted by all cultures

46. ethnocentric approach: applying the morality used in home country - regard- less of the host's country system of ethics
47. ethical relativism: - adopting the local moral code of whatever country in which a firm is operating

• best option: ethical relativism provided that such actions are not against the norms/laws in the home country

48. international business ethics: - refers to the business conduct or morals of mncs in their relationships with individuals and entities

• ethics vary based on cultural value system and generally accepted ways of doing business in each country or society

49. three tests of ethical corporate actions: - is it legal?

• does it work in the long run?
• can it be talked about?

50. policies to help mncs to confront concerns about ethical behaviour and social responsibility: - develop worldwide code of ethics

• build ethical policies into strategy development plan regular assessment of the company's ethical posture
• if ethical problems cannot be resolved, withdraw from that market (mostly applies in oil, gas, and mining sectors - > if you can't get a license, leave)

51. steps to an ethical decision: - consult the laws of both the home and the host countries

• consult the international codes of conduct for mnes
• consult the company's role of ethos and established norms
• weigh stakeholders' rights
• follow your own conscience and moral code

52. common criticisms of mnc subsidiary activities (1): - some mncs locally raise their needed capital, contributing to a rise in interest rates in host countries (hard for local companies to enter markets and have access to capital, exploit resources and own it, no room for host country/locals successes/opportunities)

• the majority of the stock of subsidiaries is owned by the parent company; host country people have little control over the operations within their borders
• mncs must learn to accommodate the needs of other organizations and countries
• interference in local politics
• disregard of local culture and belief systems
• mncs reserve the key managerial and technical positions for expatriates (abroad), instead of developing host-country personnel (no room to learn, no technology transfer)

53. common criticisms of mnc subsidiary activities (2): - mncs do not adapt technology to the conditions in host countries

• mncs concentrate research and development activities at home, restricting tech- nology transfer and know-how to host countries
• mncs create a demand for luxury goods in host countries at the expense of

consumer goods

• mncs start foreign operations by purchasing existing firms, not by developing new facilities in host countries
• mncs dominate major industrial sectors, contributing to inflation, by stimulating demand for scarce resources and earning excessively high profits and feeds
• mncs are not accountable to host nations but only respond to home-country governments; they are not concerned with host-country plans for development

54. benefits of mnc subsidairy: - creating jobs

• stimulate economy
• increasing global collaboration/put countries in global supply chain
• can influence positive relations between governments
• invest in csr/give back to community

55. recommendations mncs operating in developing countries: - do no inten-

tional harm, including respect for the integrity of the ecosystem and consumer safety

• produce more good than harm for the host country
• contribute by their activity to the host country's development
• respect the human rights of their employees
• to the extent that local culture does not violate ethical norms, respect the local culture and work with and not against it
• mncs should pay their fair share of taxes to the host country
• cooperate with the rival government in developing and enforcing just background institutions

56. dimensions of sustainability: - economic

• social

• environmental
• a sustainable business has to consider future generations, biodiversity, animal protection, human rights, life cycle impacts, accountability, transparency, openness, education, and learning, and local action and scale

57. cultureq: a set of shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations
58. cultural sensitivity/empathy: an awareness of an honest caring about another individual's culture
59. why do businesses need to respect culture?: - losing business relationships = losing opportunities = losing money

• broaden target market

60. core management functions: - planning

• organizing
• leading

• controlling

61. culture and the management function: - poor intercultural communication skills still constitute a major management problem

• managers' knowledge of other cultures lags far behind their understanding of other organizational processes
• one study found that up to 40% of expatriate managers leave their assignments early because of poor performance or poor adjustment to the local environment
• cross-cultural differences are the cause of failed negotiations and interactions, resulting in losses to U.S firms of more than $2 billion a year for failed expatriate assignments alone
• however, cross-cultural training is effective in developing skills and enhancing adjustment and performance

62. national variables: - economic system

• legal system

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• political system
• physical situation
• technological know-how

63. socioculture variables: - religion

• education
• language

64. cultural variables: - values

• norms
• beliefs

65. attitudes variables: - work

• time

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• materialism
• individualism
• change

66. individual and group employee job behaviour: - motivation

• productivity
• commitment
• ethics

67. organizational culture: 1. exists within and interacts with societal culture
68. varies a great deal from one organization, company, institution, or gorup to another
69. represent those expectations, norms, and goals held in common by members of that group