1. International Business: Context & Strategies Review Session – 6/25

2. Review Questions The IMF: a) Provides loans to countries at rates comparable to many commercial banks b) Provides loans that countries can use as they see best fit to improve their economies c) Has been criticized for making inappropriate policy recommendations d) Prefers not to make loans to troubled states because of the risks involved

3. Review Questions Which of the following best describes the technological change that has been a driver of globalization? a) Communications has not kept pace with other areas b) The microprocessor may be the single most important innovation c) The Internet is important for gaming and within the domestic economy but has yet to realize promise in globalization d) Despite the widespread use of cotainerization, transportation costs continue to rise.

4. Review Questions In the early 1960s, the U.S. was by far the world’s dominant industrial power, but: a) Even with the relative decline, it is still the largest industrial power b) Germany, France, and Italy have growth rates that suggest they may soon overtake the U.S. c) China’s share of world GDP is still small given its large population d) Though some Asian countries have increased their share of world exports, the US will remain the world’s leading exporter for some time to come

5. Review Questions ________ has its roots in the philosophies of Aristotle. a) Totalitarianism b) Socialism c) Individualism d) Collectivism

6. Review Questions Which of the following is not true about contracts in common law system? a) Contracts tend to be vague and ambiguous because the courts will sort out problems b) Due to the length and complexity, it tends to be more expensive to draw up contracts c) Contracts tend to be flexible d) Differences between countries’ legal systems mean international contracts drawn up in the common law systems must be especially sensitive to others

7. Review Questions The likelihood that economic mismanagement will cause drastic changes in a country’s business environment that hurt the profit and other goals of a particular business enterprise is an example of: a) Legal risk b) Political risk c) Economic risk d) Fiscal risk

8. Review Questions Product liability laws: a) Have reduced the cost of doing business by protecting businesses from frivolous law suits b) Protect businesses even if they do not confirm to required safety standards c) Are typically least extensive in developed countries d) Could be either civil or criminal laws or both

9. Review Questions Norms are abstract ideas about what a group believes to be good, right, and desirable True or False?

10. Review Questions What is the most widely spoken language in the world? What is the most common primary language spoken?

11. Review Questions What was the average cost of a 3 minute call from NY to London in 1930? a) $199.34 b) $295.10 c) $306.04 d) $244.65

12. Review Questions Approximately how many internet users are there today? a) 800 million b) 1 billion c) 1.4 billion d) 2.1 billion

13. Sample Case Study “Creating a Single European Market in Financial Services”

14. Sample Final Project “Victoria’s Secret in Brazil”

15. Questions Individual Group Questions Case Study Questions Final Project Questions Anything?