Hugtök frá kennara fyrir próf 1

Question 1

Globalized markets

Answer 1

a large market created by combining separate national markets

Question 2

Global convergence

Answer 2

the spread of common prefrence across national borders

Question 3

Arbitrage

Answer 3

The search for deals on production across geographic boundaries

Question 4

Multinational corporation

Answer 4

organizations formed between three or more nations to work on issues that relate to their joint interests

Question 5

Globalization of production

Answer 5

the sourcing of land, labor, capital from different nations rather than obtaining everything locally

Question 6

The world trade organization

Answer 6

Its purpose is to ensure that international trade runs freely and fairly between countries. And that member nations impose the minimal restrictions on each other

DÆMI: Mexican tomatoes into the US

Question 7

theoretical goverment

Answer 7

a form of totalitarian goverment in which leaders rule by a mandated from god by interpreting religious law

Question 8

Tatlitarianism

Answer 8

an extreme form of autocratic political system in which the goverment regulates evry aspect of puplic and private life

Question 9

Anarchism

Answer 9

extreme indivituals who belive that all goverment or organization of society should exist only voluntarily and that individuals should govern themselves

Question 10

Democracy

Answer 10

a political system characterized by citizen participation in the political process

Question 11

Parliamentary democracy

Answer 11

a system of goverment in which a constitution outlines the separation of political power into branches, the ministers are chosen by the parliament

Question 12

presidential democracy

Answer 12

a system of goverment in which a constitution outlines the separation of political power into brances, the president is often elected directly in a presidental vote

Question 13

Political risk

Answer 13

the risk that political conditions in a host country might change negatively affecting foreign businesses

Question 14

property rights

Answer 14

the rights of companies and individuals to own resources ,make decisions about how to use it and rap the returns or losses of business activities

Question 15

liability of foreigness

Answer 15

A liability foreign firms face as the geographic economic cultural or administrative differences between the foreign markets and the domestic market increase

Question 16

PEST

Answer 16

Political
Economic
Sociocultural
Technological

Question 17

Ethnocentrism bias

Answer 17

A bias indicating that customers prefer local brands over foreign brands and are willing to pay more for local brands even wean the quality in inferior

Question 18

Franchising

Answer 18

Is a unique from of licensing in which a partner, called the franchisee is given the right to use the franchisors brand and other intellectual property, while the franchisor takes an active role in the ongoing operations of the firm such as advertising training staff and managing inventory

Question 19

advantages of franchising

Answer 19

are two fold
1. The franchisor can seek global growth with limited financial risk yet maintain direct involvement with the franchisee. Thus it can learn directly from local markets and transfer that knowledge to other markets

2. The franchisor can benefit from flexibility in a licensing arrangement that enables a franchisee to respond to local customers needs

Question 20

Licensing

Answer 20

Is a contractual agreement between two parties known as the licensor and the licensee that grants the license certain rights such as the right to produce or sell the licensor patented goods, display the licensors brand name or trademark or use the licensors intellectual property

Question 21

disadvantages in franchising

Answer 21

Finding suitable franchisees is one of the key challenges and to build franchise interest in foreign markets

Question 22

advantages in licensing are many

Answer 22

the licensing firm takes on very little risk in entering foreign markets. It allows a company to grow quickly by leveraging its brand or tech and to enter geographic or product markets that are outside their own strategic goals and it can help solve the problems of pricing a good across markets.

Question 23

disadvantages in licensing

Answer 23

a licensor becomes one step removed from the opportunity to get feedback directly from them, and they only provide limited control over the way in which licensed brand is used.

Question 24

Turnkey

Answer 24

In a turnkey project a company builds a facility in a foreign market for a client, makes it operational and then hands over the “keys” to the client, which will own and operate the facility

Question 25

Advanatages of using a turnkey project

Answer 25

as an entry mode is that they enable foreign firms to enter technologically complex markets and politically sensitive environments

Question 26

Disadvantages of using a turnkey project

Answer 26

that once the firm hands over operations to the costumer it has no further financial interests in the business

Question 27

Joint ventures

Answer 27

An international joint venture is a new legal entity created and owned by two or more exciting companies from different countries. The parent companies can have very different degrees of ownerships in the joint venture ranging from 50/50 to 99/1 ownership structure depending on their goals

Question 28

Advantages of joint ventures

Answer 28

for an entering firm er reduced political risk, the opportunity to leverage local knowledge and share cost

Question 29

Disadvantages of joint ventures

Answer 29

sometimes partners have different goals, joint ventures can also lead to loss of intellectual property if the less technologically advanced partner takes advantage of the relationship.

Question 30

Exporting

Answer 30

Is the process of producing a good or service in one country and selling it in another country

Question 31

Advantages of exporting

Answer 31

a key advantage of exporting is the associated low cost of entering a foreign market

Question 32

Disadvantages of exporting

Answer 32

is the first exports of goods and services often subject to import tariffs

Question 33

Wholly owned subsidiaries

Answer 33

A new legal entity set up for operations in a foreign market that's legally a separate company but is fully owned by the parent firm

Question 34

Advantages of a wholly owned subsidiaries

Answer 34

by retraining ownership control of the subsidiary the parent company protects its intellectual property

Question 35

Disadvantages of a wholly owned subsidiaries

Answer 35

It is an expensive undertaking, companies must bear initial costs and establish distribution entirely by themself and that means putting a large investment in the line. Also the company entered by this wholly owned subsidiary bears the entire risk there is no easy exit strategy other than giving up the investment.

Question 36

Human capital the four categories

Answer 36

Local human capital Subsidiary human capital Corporate human capital International human capital

Question 37

Local human capital

Answer 37

the knowledge, skills, abilities, and other attributes that makeup the location specific experiences of employees in a particular country or market

Question 38

Subsidiary human capital

Answer 38

company knowledge within a specific location

Question 39

Corporate human capital

Answer 39

Company specific knowledge, skills and abilities that transcend any particular location within the entire global company, not simply the collective knowledge of the staff at headquarters

Question 40

International human capital

Answer 40

Knowledge of global best practises, global industry standards, international trade laws, modular systems and processes, crossborder industry networks and other experience applicable across multiple companies and countries

Question 41

HR practise

Answer 41

Tasks focused on attracting, training, motivation and retaining peoble

Question 42

Competitive advantage

Answer 42

A condition that puts a company in a superior business position

Question 43

Global HR wheel

Answer 43

a guide to help align employee skills and behaviors with a companies strategic objectives

Question 44

KIP's

Answer 44

Key performance indicators, clear cut instruments to quantify whether individuals are on the right track to helping a company achieve its strategic objectives

Question 45

Expatriates / / expats

Answer 45

Employees assigned from a headquarters or another location to work in a foreign market

Question 46

Which of the following is a political system in which a goverment branch chooses ministers who run the goverment a. Terrorist organizations b. Parlamentary democracy c. Democracy D. State owned enterprise

Answer 46

B. Parlamentary democracy

Question 47

In the context of global human resource function, the key goal of those who fill the HR expertiese role is to

Answer 47

Develop a deep level of expertise in an area as change management

Question 48

Linda wants to purchase a new car. she visits a few of the car showrooms in her city to select the brand of car that would be affordable to her as well as the one that she will be proud to own. After careful research, she decides to choose a car manufactures by a local brand. Althougth Linda had the option to choose cars from foreign brands that were priced much lesser than the cr she chose from the local brand, she preferred the car from the local brand to the car from the foreign brand. the approach shown by Linda in this senario exemplifies an______________

Answer 48

Ethnocentrism bias