Studying international business is a complex task. The nature of the topic demands a generalist approach that (0)……………….. not just diverse countries, but cultures, industry sectors and specific firms. Whereas international trade has existed for millennia, it has grown from an estimated 6% of world GDP in the early 19th Century to approximately 60% in the early 21st Century – a tenfold rise. At its most basic, it includes the sale of goods and services between countries. Yet, varying forms ofinternational business can be observed. For example, a business that produces components or goods overseas but sells them (1)……………….. can be considered an international business, as can a firm that (2)……………….. services, such as call centers, to locations where labor expenses might be cheaper. For most organizations, decisions around building, producing, and selling products or services are informed by many factors. Fundamentally, a firm’s ability to succeed internationally is determined by a unified (3)……………….. built around an understanding of the ‘rules of the game’ that are effectively imposed by the so-called formal and informal institutions, and the presence of the firm-specific resources and capabilities that (4)………………..some form of advantage internationally . The idea that country context influences economic behaviour has a long tradition. At a country level, all national markets have a formal institutional background that needs to be understood. The primary role of formal institutions is that of reducing (5)……………….., regulating transaction costs and (6)……………… opportunism for firms in the market. Typically formal institutions are considered in a tripartite model considering the political, legal, and economic environments. . In an autocratic political system a firm may have to operate in an environment where one person or political party is able to exercise (7)………………. control on market operations, thereby enhancing the possibility of corruption and lack of transparency being present. Risk can be defined as the effects of uncertainty on objectives and often manifests itself in risk to property and ownership, operations, and (8)……………… of funds. Democratic systems are tipically considered to be better for international businesses as transparency and accountability are prioritized, thereby (9)……………… uncertainty and by extension, risk. Economic systems are generally considered in terms of their degree of (10)………………. In liberal market economies (LMEs), companies are predominantly financed through the stock market, while (11)……………… markets are highly flexible. In coordinated market economies (CMEs), businesses, governments, trade unions, industry associations and other economic actors coordinate their (12)……………… not only through markets. A pure market economy is characterized by a laissez-faire approach and implies total control by market forces. This concept is largely theoretical as it implies that the three questions of allocation can be satisfactorily answered in the absence of a formal institutional environment.

Fill in the gaps (1 word per gap), there are extra words.

Studying international business is a complex task. The nature of the topic demands a generalist approach that (0)……………….. not just diverse countries, but cultures, industry sectors and specific firms. Whereas international trade has existed for millennia, it has grown from an estimated 6% of world GDP in the early 19th Century to approximately 60% in the early 21st Century – a tenfold rise. At its most basic, it includes the sale of goods and services between countries. Yet, varying forms ofinternational business can be observed. For example, a business that produces components or goods 
overseas but sells them (1)……………….. can be considered an international business, as can a firm that (2)……………….. services, such as call centers, to locations where labor expenses might be cheaper. For most organizations, decisions around building, producing, and selling products or services are informed by many factors. Fundamentally, a firm’s ability to succeed internationally is determined by a unified (3)……………….. built around an understanding of the ‘rules of the game’ that are effectively imposed by the so-called formal and informal institutions, and the presence of the firm-specific resources and capabilities that (4)………………..some form of advantage internationally .

The idea that country context influences economic behaviour has a long tradition. At a country level, all national markets have a formal institutional background that needs to be understood. The primary role of formal institutions is that of reducing (5)……………….., regulating transaction costs and (6)……………… opportunism for firms in the market. Typically formal institutions are considered in a tripartite model considering the political, legal, and economic environments. . 

In an autocratic political system a firm may have to operate in an environment where one person or political party is able to exercise (7)………………. control on market operations, thereby enhancing the possibility of corruption and lack of transparency being present. Risk can be defined as the effects of uncertainty on objectives and often manifests itself in risk to property and ownership, operations, and (8)……………… of funds. Democratic systems are tipically considered to be better for international businesses as transparency and accountability are prioritized, thereby (9)……………… uncertainty and by extension, risk. 

Economic systems are generally considered in terms of their degree of (10)………………. In liberal market economies (LMEs), companies are predominantly financed through the stock market, while (11)……………… markets are highly flexible. In coordinated market economies (CMEs), businesses, governments, trade unions, industry associations and other economic actors coordinate their (12)……………… not only through markets. A pure market economy is characterized by a laissez-faire approach and implies total control by market forces. This concept is largely theoretical as it implies that the three questions of allocation can be satisfactorily answered in the absence of a formal institutional 
environment.