Untitled Deck

Question 1

What is the World Trade Organization (WTO)?

Answer 1

An international institution that promotes free trade

Question 2

What is the role of the International Monetary Fund (IMF)?

Answer 2

The IMF provides short-term financial assistance and macroeconomic stabilization to countries facing balance of payments crises.

Question 3

What does the World Bank do?

Answer 3

The World Bank provides long-term development financing for infrastructure and poverty reduction.

Question 4

What is the World Economic Forum (WEF)?

Answer 4

An international organization that brings together business

Question 5

What is the International Organization for Standardization (ISO)?

Answer 5

An organization that develops international standards to ensure quality

Question 6

What is Transparency International?

Answer 6

An organization that measures and reports corruption levels globally.

Question 7

What is multipolarity?

Answer 7

A global system in which multiple countries share economic and political influence rather than one dominant superpower.

Question 8

Has globalization collapsed due to US tariffs?

Answer 8

No

Question 9

Why do tariffs conflict with WTO principles?

Answer 9

Tariffs restrict free trade and reduce the efficiency gains predicted by comparative advantage theory.

Question 10

What is country risk analysis?

Answer 10

The systematic evaluation of political

Question 11

What are the four main categories of country risk?

Answer 11

Political risk

Question 12

What is political risk?

Answer 12

Risk arising from government instability

Question 13

What is economic risk?

Answer 13

Risk related to GDP growth

Question 14

What is exchange rate risk?

Answer 14

The risk that currency value fluctuations will affect investment returns.

Question 15

What is sovereign risk?

Answer 15

The risk that a government will default on its debt obligations.

Question 16

What is transfer risk?

Answer 16

The risk that a government will restrict the movement of capital out of the country.

Question 17

What is legal/institutional risk?

Answer 17

Risk related to weak rule of law

Question 18

What are the main modes of foreign market entry?

Answer 18

Exporting

Question 19

Why do firms often begin with exporting or licensing?

Answer 19

To minimize risk and gain market experience before committing significant capital.

Question 20

What factors influence target market selection?

Answer 20

Market size

Question 21

What is the CAGE framework?

Answer 21

A model that evaluates Cultural

Question 22

What is cultural distance?

Answer 22

Differences in language

Question 23

What is administrative distance?

Answer 23

Differences in political systems

Question 24

What is geographic distance?

Answer 24

Physical distance

Question 25

What is economic distance?

Answer 25

Differences in income levels

Question 26

What characterizes the new global trade regime?

Answer 26

High volatility

Question 27

What immediate actions should firms take in trade wars?

Answer 27

Create tariff war rooms

Question 28

What long-term actions help firms manage trade volatility?

Answer 28

Build organizational flexibility and reconfigure or relocate operations to reduce tariff exposure.

Question 29

What are liabilities of origin?

Answer 29

Disadvantages firms face due to negative perceptions about their home country.

Question 30

How can late-mover firms overcome liabilities of origin?

Answer 30

By benchmarking industry leaders

Question 31

What is a value curve?

Answer 31

A representation of where a firm competes in terms of value creation within its industry.

Question 32

What is first-mover advantage?

Answer 32

The competitive advantage gained by entering a market early.

Question 33

What is a late-mover strategy?

Answer 33

A strategy where firms enter later but compete through benchmarking

Question 34

What is climate transition risk?

Answer 34

The financial risk firms face as economies shift toward a low-carbon system.

Question 35

How is carbon exposure measured?

Answer 35

By calculating carbon emissions per unit of revenue.

Question 36

What are Scope 1 emissions?

Answer 36

Direct emissions from a firm’s own operations.

Question 37

What are Scope 2 emissions?

Answer 37

Indirect emissions from purchased electricity.

Question 38

What are Scope 3 emissions?

Answer 38

Indirect upstream and downstream emissions across a firm’s value chain.

Question 39

What are the three firm-level factors influencing transition risk?

Answer 39

Exposure

Question 40

What is carbon sensitivity?

Answer 40

The financial impact per ton of CO2 emissions on a firm.

Question 41

What is organizational adaptability?

Answer 41

A firm’s ability to adjust operations and strategy to manage climate risks and seize opportunities.

Question 42

What are barriers to adaptability?

Answer 42

Cognitive barriers

Question 43

What are planetary boundaries?

Answer 43

Scientific thresholds defining the safe operating space for humanity within Earth’s ecosystems.

Question 44

Why must businesses consider planetary KPIs?

Answer 44

To identify environmental risks

Question 45

What is a science-based target?

Answer 45

A publicly stated emissions reduction goal aligned with climate science.

Question 46

What is UN SDG Goal 17?

Answer 46

A Sustainable Development Goal emphasizing partnerships and collaboration to achieve sustainability objectives.

Question 47

Why is sustainability integration important for firms?

Answer 47

Because environmental change creates financial risk and competitive opportunities that require strategic adaptation.