IBT Finals

Question 1

From the organizational participants intemational business begins from the __________

Answer 1

Focal firms

Question 2

The firm involved in promoting the product of the local firm is the _____

Answer 2

Distribution channel/intermediary

Question 3

_____ are the drivers of economies of many countries in the world including the Phillippines and Indonesia.

Answer 3

SMEs

Question 4

The _________ is the idea businesses due to some gains derived from operating in foreign lands.

Answer 4

The Theory of International New Ventures

Question 5

The ________ the problem stemming from a company not knowing fully the things it takes to operate in a different county.

Answer 5

Liability of foreignness

Question 6

The other term for tariffs is ___

Answer 6

duties

Question 7

Customs procedures and quotas are examples of _____

Answer 7

Non- Tariff Barriers

Question 8

_____ limits the accumulation. of foreign firms in the country.

Answer 8

Investment Restriction

Question 9

Mc Donald’s Phillippines’ use of locally grown vegetables for its Big Mac is a manifestation of its adherence to ____

Answer 9

Local Content Requirements.

Question 10

_____ government assistance in the form of or low cost of borrowed

Answer 10

Subsidies

Question 11

is a govemment policy of shielding local industries from overseas competition.

Answer 11

Protectionism

Question 12

Govemment subsidies benefit both the local firms and ______

Answer 12

MNE’s.

Question 13

In privatization, private investors buy

Answer 13

State owned enterprises.

Question 14

is a local government’s way of governing and managing the repatriation of money of companies in their home countries.

Answer 14

Currency Contol

Question 15

The home country of Jco

Answer 15

Indonesia

Question 16

steers the way do their trade.

Answer 16

World trade organization

Question 17

The United Nations is responsible in preserving peace and

Answer 17

Global stability

Question 18

advances the economic goals of industrialized countries.

Answer 18

OECD/ ORGANIZATION OF ECONOMIC COOPERATION AND DEVELOPMENT

Question 19

The OPEC mainly controls ____ which affect business operations.

Answer 19

Oil Prices

Question 20

The __ is like the mother of all Central Banks due to its role as the ultimate financial institution for countries with distressed economies.

Answer 20

IMF/ International monetary fund

Question 21

is a formal agreement between countries to lessen or case trade barriers and facilitate the better flow of goods and services.

Answer 21

Free Trade Agreement

Question 22

When free trade it is between two countries, it is called

Answer 22

Bilateral

Question 23

The Philippines’ first bilateral FTA was with the country of___ signed in 2006.

Answer 23

Japan

Question 24

ASEAN FTA is a ____ between china, india, korea, japan Australia and New Zealand.

Answer 24

Multilateral FTA

Question 25

ASEAN is a regional economic integration composed of __ countries.

Answer 25

10

Question 26

The ______ is the econimic union of countries in the world smallest continent.

Answer 26

European Union

Question 27

USSR is an example of

Answer 27

Political Union.

Question 28

In customs union, _____ is highly encouraged t to be practiced by firms.

Answer 28

Competition

Question 29

Among the countries with competition law are the United States and __

Answer 29

China

Question 30

The management implications of regional Integration are internationalization by firms inside andoutside the economic, rationalization of operations,regional products and marketing strategy, and ___

Answer 30

Mergers and acquisitions

Question 31

is a mechanism for the conversion of foreign currencies.

Answer 31

Foreign exchange system

Question 32

In a foreign exchange system, the amount of conversion of a currency depends on the current

Answer 32

Exchange rate

Question 33

is the result of exchanging a currency with a value that has declined.

Answer 33

Currency risk

Question 34

is the inflow and outflow of foreign currencies in a certain country.

Answer 34

Balance of payment

Question 35

When there are more entering the country, there is balance of payment surplus.

Answer 35

Foreign currencies

Question 36

represents the cost of borrowing money.

Answer 36

Interest

Question 37

Higher interest rates may attract more foreign capital, causing the to rise.

Answer 37

Exchange rate

Question 38

is an exchange rate system where the country's currency price is determined by the relative supply and demand of other currencies.

Answer 38

Floating exchange rate

Question 39

is the amount of money by the Central Bank to the commercial banks to be kept to meet liabilities in case of sudden withdrawals.

Answer 39

Reserve requirement

Question 40

For commercial banks to gain from the money they borrowed from the Central Bank, they must impose a higher interest rate than the ___ rate charged by the latter.

Answer 40

Rediscount

Question 41

1.-4. Factors that impact the currency supply and demand.

Answer 41

Economic growth Interest rate Market psychology Political action

Question 42

5.-7. Composition of global financial system

Answer 42

Central banks Commercial banks Stock exchanges

Question 43

8.-10. Monetary systems.

Answer 43

Floating exchange rate Fixed exchange rate Managed (dirty) float

Question 44

1.-3. Groups involved in international business

Answer 44

Firms Government Institution

Question 45

4.-6. Organizations comprising the international or global value chain

Answer 45

Focal firm Distribution channel intermediary Facilitator

Question 46

7.-11. Key concepts in international business

Answer 46

Liability of foreignness Firm specific advantage Country specific advantage Global integration Local responsiveness

Question 47

12.-17. Government interventions in international business

Answer 47

Trade barriers Non tariff barriers Investment restriction Currency controls Local content requirements Subsidies

Question 48

18.-24, Institutions that regulate the global business system

Answer 48

World trade organization International monetary fund World bank United nations OECD BRICS OPEC

Question 49

25.-29. Countries comprising the BRICS

Answer 49

Brazil Russia India China South africa

Question 50

30.-34. Economic integration.

Answer 50

Free trade area Customs union Common market Economic union Political union

Question 51

35.-44. ASEAN member countries

Answer 51

Brunei Cambodia Indonesia Laos Myanmar Malaysia Philippine Singapore Thailand Vietnam