1. The World Trade Organization regulates and ensures fairness and efficiency in
global trade and investment.
2. Integration of world financial markets makes it impossible for internationally
active firms to raise capital, borrow funds and engage in fo
1. A long-term commitment, as well as a large amount of financial and human
resources, are required of firms that enter foreign markets through licensing
2. Firms that engage in FDI avoid problematic trade barriers because the physical
1. Ethics are legal principles that govern the behaviour of people, firms or
2. Ethical dilemmas are similar to legal questions in which there are clear-cut
right and wrong behaviours in every international business situation.
3. In resolv
1. Focal firms, intermediaries and facilitators represent the demand side of
2. Foreign distributors are located in a host country and work under contract for
exporters to distribute their products.
3. Selling products online ha
1. The transition economies of China and Russia have attracted FDI because of
2. It is often difficult to estimate the true market potential of emerging markets
due to limited data, unreliable information, or the high cost of doing marke
1. Subjective elements of a culture include values, customs, and ideas, while
objective elements include buildings, roads, and tools.
2. A cultural metaphor is a generalisation about a group of people that may or
may not be factual.
3. English is spoke
1. A foreign firms entry strategy, operations, and performance are often dictated
by foreign investment laws.
2. Employees working in foreign nations are used by firms to evaluate the
political and cultural environment for any potential risks or threat
1. Companies often locate offshore to be closer to key customers and supply
2. The two primary types of cross-border investment are portfolio investment
and foreign direct investment.
3. Cross-cultural risk is posed by differences in languages
1. Global integration is a plan of action that accounts for competition on a
2. The home replication strategy is often employed as a vehicle for extending a
products lifecycle in a foreign market.
3. Assessing organisational r
1. In theory, nations that adhere to the absolute advantage principle will have
higher standards of living than nations that follow principles of mercantilism.
According to Porters diamond model, competitive advantage at both the