Deck 5: The Global Environment

Question 1

______ leads in optics,solid-state physics,engineering,chemistry and process metallurgy.

A)Japan
B)France
C)The U.S.
D)Germany

Answer 1

A

Question 2

A(n)______ orientation believes that the values and priorities of the parent organization should guide the strategic decision making of all its operations.

A)Ethnocentric
B)Polycentric
C)Regiocentric
D)Geocentric

Answer 2

A

Question 3

The most involved strategy level in the evolution of a global corporation in characterized by

A)Technology transfer
B)Export-import operations
C)Foreign licensing
D)A substantial increase in foreign investment

Answer 3

D

Question 4

Direct penetration of foreign markets makes sense as a competitive weapon because a firm can drain vital ____ from a foreign competitor's domestic operations.

A)cash flows
B)export sales
C)dividends
D)debt

Question 5

The evolution of a global corporation often entails progressively involved strategy levels.What level has the minimal effect on existing product lines?

A)Foreign licensing
B)Export-import
C)Technology transfer
D)Direct investment

Question 6

The 100 largest U.S.global earn an average of ___ percent of their operating profits abroad.

A)12
B)69
C)54
D)37

Question 7

______ is the use of a common product,service,and message across all markets to create a strong brand image.

A)Globalization
B)Horizontal integration
C)Standardization
D)Customization

Question 8

At what level do firms begin to emerge as global enterprises with global approaches to production,sales,finance,and control?

A)Third
B)Fourth
C)Second
D)First

Question 9

Firms at what strategy level are called multinational corporations (MNCs)?

A)First
B)Second
C)Third
D)Fourth

Question 10

Which one of the following is NOT a strategic orientation of global firms?

A)Omnicentric
B)Ethnocentric
C)Polycentric
D)Regiocentric

Question 11

______ is the development of modified products and services,and the use of somewhat tailor-made messages,to meet the demands of a local population

A)Globalization
B)Horizontal integration
C)Customization
D)Standardization

Question 12

The change in customer _______ behavior was the beginning of an evolution in international strategy.

A)saving
B)living
C)purchase
D)moving

Question 13

MNCs are involved mainly in which of the following strategies?

A)Direct overseas investment
B)Capital repatriation
C)Joint research
D)Host financial policies

Question 14

In the past 30 years,the U.S.has ______ in terms of technological advantage.

A)Substantially enhanced
B)Maintained a status quo
C)Declined dramatically
D)Reaches the number one spot in the world

Question 15

______ refers to the strategy of pursuing opportunities anywhere in the world that enable a firm to optimize its business functions in the countries in which it operates.

A)Vertical integration
B)Horizontal integration
C)Globalization
D)Franchising

Question 16

Overall,in less than 20 years,______ countries will be overshadowed by ______ countries in their produced share of the world's output.

A)Oil producing; rich industrial
B)Rich industrial; developing
C)Developing; oil producing
D)Oil producing; gold producing

Question 17

Which of these represent the second level in the evolution of a global corporation?

A)Foreign licensing
B)Direct investment
C)Export-import
D)Bartering

Question 18

Firms from which country lead the way in "direct foreign investment" in the United States?

A)Japan
B)India
C)China
D)United Kingdom

Question 19

Which country is expected to have a commanding lead in the size of its economy by 2020?

A)The United States
B)India
C)China
D)Japan

Question 20

Which country leads in chemicals and pharmaceuticals,precision and heavy machinery,heavy electrical goods and surface transport equipment?

A)France
B)Germany
C)Japan
D)The U.S.

Question 21

American firms often adopt a ______ orientation for pursuing strategies in Europe.

A)polycentric
B)regiocentric
C)geocentric
D)ethnocentric

Question 22

Understanding the ______ risk involved is a key element in the decision to do business in a foreign nation.

A)financial
B)economic
C)social
D)political

Question 23

In which of these orientations is repatriations of profits to home country a key priority?

A)Polycentric
B)Ethnocentric
C)Geocentric
D)Regioentric

Question 24

Careful examination of critical global environmental features with particular attention to the status of the host nation is called:

A)Internal assessment
B)External assessment
C)Ethnocentric orientation
D)Cultural assessment

Question 25

Top-down governance structure is evident in which orientation of a global firm?

A)Ethnocentric
B)Regiocentric
C)Geocentric
D)Polycentric

Question 26

Internal assessment involves identification of the basic ______ of a firm's operations.

A)Opportunities
B)Strengths
C)Threats
D)Competitors

Question 27

In which of these orientations is national responsiveness a key strategic priority?

A)Ethnocentric
B)Polycentric
C)Geocentric
D)Regioentric

Question 28

In which of these orientations is governance bottom-up?

A)Ethnocentric
B)Polycentric
C)Geocentric
D)Regioentric

Question 29

In which of these orientations is governance top-down?

A)Polycentric
B)Ethnocentric
C)Geocentric
D)Regioentric

Question 30

Host country culture is a dominant factor in which orientation of a global firm?

A)Ethnocentric
B)Regiocentric
C)Geocentric
D)Polycentric

Question 31

Closed countries typically have _______ policies.

A)Open
B)Isolationist
C)Many
D)Few

Question 32

Repatriation of profits to home country represents which orientation of a global firm?

A)Ethnocentric
B)Regiocentric
C)Geocentric
D)Polycentric

Question 33

A(n)______ orientation exists when the parent attempts to blend its own predisposition with those of the region under consideration.

A)Polycentric
B)Regiocentric
C)Ethnocentric
D)Geocentric

Question 34

In which of these orientations are we likely to see hierarchical product divisions?

A)Polycentric
B)Ethnocentric
C)Geocentric
D)Regioentric

Question 35

Global personnel development and placement occurs in which orientation of a global firm?

A)Ethnocentric
B)Regiocentric
C)Geocentric
D)Polycentric

Question 36

A firm with a _______ orientation adopts a global systems approach to strategic decision making,thereby emphasizing global integration.

A)polycentric
B)geocentric
C)regiocentric
D)ethnocentric

Question 37

External and internal assessments are conducted ______ a firm enters global markets.

A)after
B)during
C)before
D)once

Question 38

If a corporations has a(n)______ orientation,then the culture of the country in which a strategy is to be implemented is allowed to dominate the decision-making process.

A)Polycentric
B)Ethnocentric
C)Regiocentric
D)Geocentric

Question 39

A company with a ______ orientation adopts a global systems approach to strategic decision making,thereby emphasizing global integration.

A)Ethnocentric
B)Polycentric
C)Regiocentric
D)Geocentric

Question 40

______ countries maintain their stability by restricting the flow of money,goods,services,people,and information across their borders.

A)Open
B)Closed
C)Most
D)Few

Question 41

The demands placed on the global firm by the foreign environments in which it operates,principally by foreign governments is called

A)Globalization
B)Localization
C)Formalization
D)Stakeholder activism

Question 42

According to Business International Corporation,variables to be included under labor factors include:

A)Degree of skill
B)Availability of raw materials
C)Degree of anti foreign discrimination
D)Cost of local borrowing

Question 43

Strategic management planning must be global for six reasons.One of them is:

A)The increased cope of the global management task
B)Decreased globalization of firms
C)Increase in global monopolies
D)Slowing technology

Question 44

A ______ is one in which competition crosses national borders.

A)Stakeholder activism
B)Multidomestic industry
C)Polycentric environment
D)Global industry

Question 45

The expanding list of global industries include all of these EXCEPT

A)Automobiles
B)Mainframe computers
C)Insurance
D)Commercial aircraft

Question 46

Among the factors that make for the creation of a global industry are all of these EXCEPT

A)Economies of scale
B)The presence of heterogeneous product needs across markets
C)A low level of trade regulation
D)A high level of R & D expenditures on products

Question 47

Rapid technological development:

A)Requires less management control
B)Has no affect on product life cycles
C)Lengthens product life cycles
D)Shortens product life cycles

Question 48

A global planning process provides:

A)Cross purposes for subsidiaries
B)An ordered means for assembling,analyzing and distilling information
C)A means for misinformation to occur
D)Another information explosion

Question 49

Factors that increase the degree to which an industry is multidomestic include:

A)A need for standardized products
B)Fragmented industry with few competitors
C)Distribution channels unique to each country
D)The existence of economics of scale

Question 50

Which one of the following is NOT a factor that contributes to the increase in complexity of the global environment?

A)Globals face multiple political,economic,legal,social and cultural environments
B)Interactions between the national and foreign environments are complex
C)Geographic closeness impacts communication
D)Cultural and national differences make control difficult

Question 51

Political factors in choosing a foreign manufacturing site include:

A)Attitude toward foreign investment
B)Cost of local borrowing
C)Degree of labor force in management
D)Currency rate

Question 52

Which of the following is NOT an aspect of global business that makes global planning necessary?

A)Shorter distances
B)Greater distances
C)The interrelationship of global operations
D)Differences in environmental factors in different countries

Question 53

Which of the following is NOT a geographic factor in choosing a foreign manufacturing site?

A)Efficiency of transport
B)Proximity of site to export markets
C)Availability of local raw materials
D)Availability of tariff protection

Question 54

A ______ is one in which competition is essentially segmented from country to country.

A)Stakeholder activism
B)Multidomestic industry
C)Globalized economy
D)Polycentric environment

Question 55

The automobile industry is an example of a _______ industry.

A)multidomestic
B)global
C)transnational
D)multinational

Question 56

According to Business International Corporation,the variables to be included under capital-source factors include:

A)Proximity of site to export market
B)Modern banking-systems
C)Availability of tariff protection
D)Current currency rate

Question 57

State of marketing and distribution systems is a variable included under which category (as outlined by Business International Corporation)?

A)Political factors
B)Business factors
C)Transportation factors
D)Distribution factors

Question 58

Business International Corporation recommends that 7 broad categories of factors be considered in a corporation's assessment of a foreign manufacturing site.Which of the following described one of these categories?

A)Size of GNP
B)Tax factors
C)Technical factors
D)Social factors

Question 59

Factors that drive the success of global companies include

A)Regional management teams
B)Regional marketing
C)Multidomestic strategy
D)Global financing

Question 60

The retailing industry is an example of a _______ industry.

A)global
B)multidomestic
C)transnational
D)multinational

Question 61

All of these are factors that drive the success of global companies EXCEPT

A)Multidomestic strategy
B)Global financing
C)Global management team
D)Global marketing

Question 62

The primary niche for the market approach for exporting:

A)Begins with a mutually agreeable pooling of capital
B)Involves the transfer of some industrial property right
C)Is to modify select product performance or measurement characteristics to special foreign demands
D)Utilizes a foreign branch extension to distribute

Question 63

A global firm competing in a global industry must:

A)Be responsive to global conditions only
B)Be responsive to both global and local conditions
C)Be responsive to local conditions only
D)Compete in multi-domestic industry also

Question 64

Which of the following is NOT a competitive strategy for firms in foreign markets?

A)Licensing
B)Vertical integration
C)Franchising
D)Joint venture

Question 65

As its industry becomes increasingly ______,a firm must begin to coordinate an increasing number of functional activities to effectively compete across countries.

A)local
B)global
C)multidomestic
D)regional

Question 66

Which strategy shows the highest commitment to international market?

A)Export
B)Joint venture
C)Licensing
D)Wholly owned foreign subsidiary

Question 67

The transfer of an industrial property right is called

A)Franchising
B)Licensing
C)Exporting
D)Bartering

Question 68

The complexity of a strategy refers to:

A)The breadth of a firm's business lines
B)A continuum of possible strategic choices
C)The diversity of the products
D)The number of critical success factors required

Question 69

Diversity in a firm's product line refers to

A)The length of a firm's business lines
B)The breadth of the firm's business lines
C)The number of critical success factors
D)The quality of the product

Question 70

A multi-national corporation:

A)Has limited location options for functional activities
B)Should not have different locations for marketing and operations
C)Should spread research and development functions across facilities
D)Must determine how to coordinate activities

Question 71

Standardized products in all markets include ______

A)dolls
B)toilets
C)trucks
D)petrochemicals

Question 72

Companies between exporting and an equity position on foreign soil:

A)Can pool capital in a joint venture
B)Can choose to establish a contractual arrangement such as licensing
C)Extend the company with a foreign branch
D)Extend the company with a foreign subsidiary

Question 73

Which one of the following is a key dimension of customer demand in foreign markets?

A)Customer acceptance of standardized products
B)The number of suppliers in that foreign market
C)The company's desire to propagate its brand name
D)Loose coordination of geographic activities

Question 74

Licensing and contract manufacturing types of strategies are used best in

A)Small-sized companies
B)Companies large enough to have a combination of international strategic activities
C)Firms with broadly diversified products in high margin industries
D)Firms with highest level of commitment to international markets

Question 75

Which of these strategies shows the lowest commitment to international market?

A)Export
B)Joint venture
C)Licensing
D)Wholly owned foreign subsidiary

Question 76

Which one of the following is a key dimension of customer demand in foreign markets?

A)Customer's acceptance of sub-standard products
B)The rate of product innovation desired
C)The company's desire to propagate its brand name
D)The number of suppliers in that foreign market

Question 77

When a company offers many product lines,____ is high.

A)complexity
B)diversity
C)integration
D)planning

Question 78

An industry can be ranked along a continuum that ranges between _____ at one extreme and ____ at the other.

A)regiocentric,polycentric
B)international,global
C)ethnocentric,regiocentric
D)multidomestic,global

Question 79

All markets can be arrayed along a continuum from markets in which products are ____ to markets in which products must be _____ for customers from market to market.

A)imported,exported
B)exported,imported
C)standardized,customized
D)manufactured,ordered

Question 80

______ usually requires minimal capital investment.

A)Joint venture
B)Exporting
C)Foreign branch
D)Wholly owned foreign subsidiary