____ refers to business norms that are not regulated or ruled by law, but are practices considered legitimate in a particular environment.

____ refers to business norms that are not regulated or ruled by law, but are practices considered legitimate in a particular environment.

Answer: Normative Issues.

A country's legal system regulates what three things?

A country's legal system regulates what three things?

1. its business practices
2. the manner in which business transactions are executed
3. the rights and obligations involved in any business transaction between parties

List the factors to be considered in determining the distribution system for a country.

List the factors to be considered in determining the distribution system for a country.

1. overall sales potential
2. amount and type of competition
3. cost and product
4. geographical size and density
5. investment policies
6. exchange rates and controls
7. level of political risk
8. overall marketing plan
9. infrastructure

New products in a country are created based on what?

New products in a country are created based on what?

Answer: The conditions and infrastructure operant in that country.

Two Advantages of Entrepreneurial Partnering

Two Advantages of Entrepreneurial Partnering are

1. facilitates business transactions
2. updates the entrepreneur on business, economic, and political conditions

Three Impacts of Trade Barriers

Three Impacts of Trade Barriers

1. Increase costs of exporting products to a country
2. Limit entrepreneurs' ability to sell products in a country from production facilities outside the country
3. Necessitate re-locating production facilities to conform to local regulations

_____ are hindrances to doing international business.

_____ are hindrances to doing international business.

Answer: Trade Barriers

______ is a conglomerate merger involving the consolidation of two essentially unrelated firms.

______ is a conglomerate merger involving the consolidation of two essentially unrelated firms.

Answer: Diversified activity merger

______ is a type of merger that combines two firms that produce the same products but sell them in different geographic markets.

______ is a type of merger that combines two firms that produce the same products but sell them in different geographic markets.

Answer: Market extension merger

______ is combining two or more firms in successive stages of production.

______ is combining two or more firms in successive stages of production.

Answer: Vertical Merger

_____ is combining two firms that produce same or closely related products in the same geographic area.

_____ is combining two firms that produce same or closely related products in the same geographic area.

Answer: Horizontal Merger

____ is the purchase of over 50 percent of the equity in a foreign business.

____ is the purchase of over 50 percent of the equity in a foreign business.

Answer: Majority Interest

_____ is the joining of two firms in order to form a third company in which the equity is shared.

_____ is the joining of two firms in order to form a third company in which the equity is shared.

Answer: Joint Ventures

_____ is when an investing entrepreneur holds a minority ownership position in the foreign venture.

_____ is when an investing entrepreneur holds a minority ownership position in the foreign venture.

Answer: Minority Interests

_____ is obtaining sales and profits without direct equity investment in the foreign market.

_____ is obtaining sales and profits without direct equity investment in the foreign market.

Answer: Nonequity Arrangements

______ is using independent distributors or the company's own overseas sales office for international business.

______ is using independent distributors or the company's own overseas sales office for international business.

Answer: Direct Exporting

_____ is using a foreign purchaser in the local market or an export management firm.

_____ is using a foreign purchaser in the local market or an export management firm.

Answer: Indirect Exporting

Besides providing overall socialization, _____ develop a person's concept of self and provide a baseline for compliance with norm groups.

Besides providing overall socialization, _____ develop a person's concept of self and provide a baseline for compliance with norm groups.

Answer: reference groups

_____ in any culture provide value and attitudes that influence behavior.

_____ in any culture provide value and attitudes that influence behavior.

Answer: reference groups

What are the three components of the nonverbal (or hidden) language of a culture?

What are the three components of the nonverbal (or hidden) language of a culture?

1. Time (How flexible are meeting times? Does 5:00 mean 5:00 on the dot or somewhere between 5:00 and 5:30?)
2. Space (Amount of physical space between individuals while talking)
3. Business relationships (how are business relationships formed and maintained?)