Unit 3 - The Environment of International Business

Question 1

It refers to the surroundings.

Answer 1

Environment

Question 2

It refers to the surroundings.

Answer 2

Environment

Question 3

It means the factors/activities that surround or encircle international business

Answer 3

International Business Environment

Question 4

This refers to factors that affect or influence multinational corporations.

Answer 4

Business Environment

Question 5

This affects or influences the business from within. They include human resource management, trade unions, organizational structure, financial management, marketing management, and production management, as well as management/leadership styles.

Answer 5

Internal Environmental Factors

Question 6

This includes customers, competitors, market intermediaries, raw material suppliers, finance providers, shareholders, and stakeholders.

Answer 6

Microexternal Environmental Factors

Question 7

This includes social and cultural factors, technological, economic, political, and government factors, and international, and natural factors.

Answer 7

Macro-external Environmental Factors or External Macroenvironmental Factors

Question 8

What does INTERNAL ENVIRONMENTAL FACTORS reveal?

Answer 8

Company’s strengths and weaknesses

Question 9

What does MICRO and MACRO EXTERNAL ENVIRONMENTAL FACTORS highlight?

Answer 9

growth opportunities

Question 10

This helps businesses develop effective strategies.

Answer 10

SWOT Analysis

Question 11

These are forces in the global environment that directly increase or decrease a company’s sales revenues or operating costs

Answer 11

External Microenvironment

Question 12

These are individuals and companies that provide a company with the resources that it needs to produce goods or services.

Answer 12

Suppliers

Question 13

They are responsible for searching out the lowest cost, best quality inputs no matter where they are located.

Answer 13

Purchasing Managers of MNCs

Question 14

They link companies that make products with the customers who buy them.
They make it easier for stores to locate the goods they will sell.

Answer 14

Distributors

Question 15

They vie to obtain a larger share of the market.

Answer 15

Competitors

Question 16

Unstable political environment may be caused by? (CAC)

Answer 16

1. Civil difficulties
2. Acts of terrorism
3. Conflicts between countries in a particular region

Question 17

It focuses on prosecuting individuals for serious crimes like genocide, war crimes, and crimes against humanity.

Answer 17

ICC (International Criminal Court)

Question 18

It settles legal disputes between states and gives advisory opinions on international legal issues.

Answer 18

ICJ (International Court of Justice)

Question 19

Nations that span in more than one continent.
These countries have territories located in two or more continents, often resulting in diverse cultures, languages, and geography.

Answer 19

Transcontinental Countries
Example: Russian (Europe and Asia) and Egypt (Africa and Asia)

Question 20

Five biggest countries in the world by land area

Answer 20

1. Russia
2. Canada
3. China
4. USA
5. Brazil

Question 21

Group that is tagged by government as TERRORISTS

Answer 21

CPP-NPA (Communist Party of the Philippines - New People’s Army: armed wing)

Question 22

Two main sources of political problems

Answer 22

Political Sovereignty
Political Conflict

Question 23

It refers to a country’s desire to assert its authority over foreign business through various sanctions.

Answer 23

Political Sovereignty

Question 24

T or F
Many of the less-developed countries impose restrictions on foreign business to protect their independence.

Answer 24

True

Question 25

T or F Among the developed countries, multi-nationalism of business is not politically acceptable and economically desirable.

Answer 25

False

Question 26

It refers to an instant upheaval on a massive scale against an established regime.

Answer 26

Turmoil

Question 27

It is a large scale, organized violence against a government.

Answer 27

Internal War

Question 28

It represents an instant, planned act of violence against those in power.

Answer 28

Conspiracy

Question 29

Direct effects of political conflict a. changes in policy b. violence against firms

Answer 29

B

Question 30

Indirect effects of political conflict a. changes in policy b. violence against firms

Answer 30

A

Question 31

It is a decision on the part of the host country government that may force a change in the operations, policies, and strategies of a firm.

Answer 31

Political Intervention

Question 32

Ways on how a host country can intervene (IM LEP TED)

Answer 32

I - Import Restrictions M - Market Control L - Labor Restrictions E - Expropriation P - Price Control T - Tax Control E - Exchange Control D - Domestication

Question 33

This is the official seizure of foreign property by a host country whose intention is to use the seized property in the interest of the public. - with prompt compensation at FMV in convertible currencies

Answer 33

Expropriation

Question 34

It is a creeping expropriation. It is a process by which controls and restrictions placed on a foreign firm gradually reduce the control of the owners.

Answer 34

Domestication

Question 35

It is to regulate hard currency balances.

Answer 35

Exchange Control

Question 36

It is to set quota. It is to support native industries. MNCs may be forced to depend on local sources of supply for the needed raw materials.

Answer 36

Import Restrictions

Question 37

The government of a country sometimes imposes control to prevent foreign companies from competing in certain markets.

Answer 37

Market Control

Question 38

An indirect way of warning that MNC is no longer wanted in the country. When a country is in dire need of new resources.

Answer 38

Tax Control

Question 39

Price regulations on basic commodities, utilities, and gasoline

Answer 39

Price Control

Question 40

Presence of labor unions Labor demands transformed into law

Answer 40

Labor Restrictions

Question 41

Three types of political system

Answer 41

1. Democracy 2. Authoritarianism and Totalitarianism 3. Monarchy

Question 42

It is formed through regular elections and have different party systems that hold different views on how the country’s economy can be strengthened.

Answer 42

Democracy

Question 43

Strict obedience and lack of personal freedom

Answer 43

Authoritarianism and Totalitarianism

Question 44

It is rigidly regulated by complete government control of all business activities.

Answer 44

Communism Examples: North Korea, Cuba, Myanmar/Burma

Question 45

It is rigidly regulated by complete government control of all business activities.

Answer 45

Communism Examples: North Korea, Cuba, Myanmar/Burma

Question 46

Authoritarian regime

Answer 46

Dictatorship

Question 47

Government whose ruler derives power through inheritance Power is in a single individual

Answer 47

Monarchy

Question 48

One head of state and head of the government

Answer 48

Pure/Absolute Government

Question 49

One titular head of the state and one head of the government

Answer 49

Constitutional Monarchy

Question 50

A group that commits unlawful acts just to promote their interests.

Answer 50

Terrorism

Question 51

Symptoms that could point toward the instability of government (GAPCoPo)

Answer 51

- Government crises (opposition vs. government - Armed Attacks by one group of people on another, or by groups from a neighboring country - Public unrest (demonstrations, riots) - Coup - Politically motivated assasinations

Question 52

Host country must manage its economy according to “______” and not by “_____.”

Answer 52

sound economic principles political emotions

Question 53

Most developing countries are afraid of ______ and ______.

Answer 53

domination exploitation

Question 54

It can be measured by its relationship with the rest of the world. Has respect for international laws and membership in international and regional organizations.

Answer 54

International Stance of the Government

Question 55

ASEAN countries (BCLIMMPSTV)

Answer 55

Brunei Darussalam Cambodia Laos Indonesia Myanmar Malaysia Philippines Singapore Thailand Vietnam

Question 56

Three reasons of having host country laws

Answer 56

1. to control foreign businesses in their economies 2. to allow reciprocity with nations on good trading terms 3. may have political aims

Question 57

Host Country Laws (FEAT)

Answer 57

1. Tariffs 2. Anti-dumping Laws 3. Export/Import Licensing 4. Foreign Investment Regulations

Question 58

A tax that government levies om exports/imports.

Answer 58

Tariffs

Question 59

Offering large blocks of production on a market at low prices to undercut competition

Answer 59

Dumping

Question 60

Obtaining licenses before engaging in trade accross national boundaries

Answer 60

Export/Import Licensing

Question 61

Includes policies on screening criteria, ownership, fiancé, employment and training, technology transfer, dispute settlement, etc.

Answer 61

Foreign Investment Regulations

Question 62

The goods of material nature. They can be perceived by senses.

Answer 62

Tangible Assets

Question 63

The goods of immaterial nature. They are incapable of being perceived by the senses.

Answer 63

Intangible Assets

Question 64

It is acquired by occupation and intellectual creation.

Answer 64

Ownership (Article 712 of CCP)

Question 65

_____ and _____ have become the most important resource, replacing land, energy, and raw materials.

Answer 65

Intellectual capital ideas Innovations

Question 66

Most important asset of a company

Answer 66

Intellectual Property

Question 67

It refers to any creation or product of the human mind.

Answer 67

Intellectual Property

Question 68

It may be expressed in the form of original ideas, expressions, and processes.

Answer 68

Intellectual Property

Question 69

It describes ideas, inventions, technologies, artworks, music, and literature, that are intangible when first created, but become valuable in tangible form as products.

Answer 69

Intellectual Property

Question 70

It is a specialized agency of the UN that aims to promote and protect intellectual property (IP) rights globally.

Answer 70

WIPO (World Intellectual Property Organization)

Question 71

It comes from the Latin phrase, LITTERAE PATENTES, which means an open letter.

Answer 71

Patent

Question 72

Such letters were used by medieval monarchs to confer rights and privileges. With a royal seal, the letters served as proof of those rights, for all to see.

Answer 72

Patent

Question 73

Patent - generally acknowledged that the first informal system was developed in _____.

Answer 73

Renaissance Italy

Question 74

Patent system was introduced into the rest of Europy by ______ to protect their skills against those of local workers,

Answer 74

émigré Venetian glass-blowers

Question 75

The first recorded patent of invention was granted to ______ by ______.

Answer 75

John of Utynam King Henry VI

Question 76

In 1449, John of Utynam was awarded a ______ for glass-making process.

Answer 76

20-year monopoly

Question 77

These are supra-national patent-issuing authorities. These bodies enable patent applications to be filed simultaneously in a number of countries.

Answer 77

European Patent Office and WIPO

Question 78

Intellectual Property Code of the Philippines

Answer 78

RA 8293

Question 79

It is the government agency in charged with the implementation of the law protecting intellectual property rights in the Philippines provided under RA 8293.

Answer 79

IPOPHL (IP Office of the Philippines)

Question 80

Current director general of IPOPHL

Answer 80

Rowel Barba

Question 81

It is the legal protection extended to the owner of the rights in an original work.

Answer 81

Copyright

Question 82

This is a grant issued by the government through IPOPHL.

Answer 82

Patent

Question 83

It is an exclusive right granted for a product, process, or an improvement of a product or process which is new, involves inventive step, and is industrially applicable.

Answer 83

Patent

Question 84

Informations on the patent is available to the public through _____.

Answer 84

IP Philippines Official Gazette and Library

Question 85

It is any technical solution to a problem in any field of human activity which is new (novel), involves an inventive step, and is industrially applicable.

Answer 85

Patentable Invention

Question 86

Can an invention be considered new if it forms part of a prior art?

Answer 86

No

Question 87

This is everything made available to the public by means of written description, oral description, by use, or any other way before the filing date of the application.

Answer 87

Prior Art

Question 88

If you have already disclosed or published your inventions in a journal, demonstrate, sell or discuss your invention in public, you can still file a patent within _____ from the date of disclosure or publication.

Answer 88

Grace Period or Non-Prejudicial Disclosure of 1 YEAR

Question 89

It is not obvious to a person skilled in the art.

Answer 89

Inventive Step

Question 90

- Lacking an inventive step - Does not go beyond the normal progress of technology - Follows plainly or logically from the prior art - Does not involve the exercise of any skill or ability beyond that to be expected of a person skilled in the art

Answer 90

Obvious

Question 91

A fictional person with no inventive ability

Answer 91

Person Skilled in the Art

Question 92

It is any tehcnical solution of a problem in any field of human activity which is new and is industrially applicable.

Answer 92

Utility Model

Question 93

- Any composition of lines or colors - Any 3D form - Given special appearance and serves as pattern to an industrial product or handicraft

Answer 93

Industrial Design

Question 94

- Any composition of lines or colors - Any 3D form - Given special appearance and serves as pattern to an industrial product or handicraft

Answer 94

Industrial Design

Question 95

The design must be NEW or ORIGINAL, ORNAMENTAL, useful, and can be mass produced.

Answer 95

Industrial Design

Question 96

Designs that are new and industrially applied to articles

Answer 96

Registrable Designs

Question 97

Designs that are contrary to public policy or morality

Answer 97

Non-Registrable Designs

Question 98

Are designs not new or original considered registrable designs?

Answer 98

No (Non-Registrable Designs)

Question 99

Can registered designs be licensed or sold?

Answer 99

Yes

Question 100

These are signs that are used to distinguish the goods or services of a company from those of others.

Answer 100

Trademarks

Question 101

- Original topography (picture of a surface) of elements - 3D disposition prepared for an IC intended for manufacture

Answer 101

Layout-Design or Topographies of Integrated Circuits

Question 102

It is any visible sign capable of distinguishing the goods or services produced or provided by one enterprise from those of other enterprise.

Answer 102

Trademark

Question 103

Your mark will not be registered if it is:

Answer 103

1. Descriptive (describes the characteristics) 2. Misleading (likely to deceive or have the tendency to misinform) 3. Generic and customary to trade 4. Contrary to public policy and morality (common in everyday language or usage) 5. Marks that may cause confusion (identical)

Question 104

Identify a good as originating in territory, region, or locality, where given quality, reputation, or other characteristic of the good is essentially attributable to its geographical origin.

Answer 104

Geographical Indications