Deck 11: Global/International Issues

Question 1

More time and effort are required to identify and evaluate external trends and events in domestic corporations than in multinational ones.

Answer 1

False

Question 2

In today's global climate,many companies may find it difficult to survive by relying solely on domestic markets.

Answer 2

True

Question 3

Trade barriers are one of the unique and diverse risks that face multinational corporations.

Answer 3

True

Question 4

The social,cultural,demographic,environmental,political,governmental,legal,technological,and competitive opportunities and threats that face a multinational corporation are almost limitless.

Question 5

It is an exaggeration to say that in an industry that is global,the riskiest possible posture is to remain a domestic competitor.

Question 6

While multinational corporations face almost limitless social,cultural,demographic,environmental,political,governmental,legal,technological,and competitive opportunities and threats,the number and complexity of these factors do not dramatically increase with the number of products produced and the number of geographic areas served.

Question 7

To see and appreciate the world from the perspective of others has become a matter of survival for business.

Question 8

The strategic-management process is conceptually different for multinational firms than for purely domestic firms.

Question 9

It is possible to obtain insurance from the U.S.government 's OPIC to eliminate all risks associated with doing business internationally.

Question 10

The strategic-management process is more complex for international firms due to more variables and relationships.

Question 11

Philips Electronics NV is one of the many firms moving into emerging markets,and in 2008 alone it acquired firms in Italy,India,and Brazil.

Question 12

Mass communication and high technology have led to highly individualized and distinct patterns of consumption in diverse cultures worldwide.

Question 13

Organizations that conduct business operations across national borders are called international firms or multinational corporations.

Question 14

Perhaps the greatest advantage of international operations to a firm is the ability to gain new customers for its products and services,thus increasing revenues.

Question 15

As long as the price and quality of a firm's products and services are competitive on a local basis,they have nothing to worry about.

Question 16

Although growth in revenues and profits is a common expectation of shareholders,it is not a measure of organizational success.

Question 17

Before entering international markets,firms should do research to try and diminish the risk of doing business in new markets.

Question 18

Geographic distance and cultural differences are two of the factors that can make communication between domestic headquarters and overseas operations difficult.

Question 19

With the rise in world commerce,government regulatory bodies are no longer able to closely monitor foreign business practices.

Question 20

One of the dangers of remaining a local competitor is that more aggressive companies will use their global growth to capture economies of scale and learning.

Question 21

Language,culture,and value systems differ among countries,which can create barriers to communication and problems managing people.

Question 22

Former U.S.Trade Representative Susan Schwab dismisses the issue of commercial piracy of American goods in China as merely,"a handbag here or a logo item there."

Question 23

In China pirated goods such as Nike running shoes or Microsoft software can be purchased for a fraction of their actual prices on many streets.

Question 24

Although a firm's power and prestige in domestic markets may be significantly enhanced when the firm competes globally,this rarely translates into improved negotiating power among creditors,suppliers,or distributors.

Question 25

When China joined the WTO in 2001,it agreed to respect copyright protections and liberalize restrictions on the import and distribution of foreign-made goods.

Question 26

Protectionism refers to countries imposing tariffs,taxes,and regulations on firms outside the country to favor their own companies and people.

Question 27

Brazil offers skilled labor and technology,while Germany offers abundant natural resources and rapidly developing markets.

Question 28

Chinese pirating of products is an external threat facing many firms.

Question 29

One aspect of the global challenge faced by U.S.business involves gaining and maintaining exports to other nations.

Question 30

Many countries became less protectionist during the recent global economic recession.

Question 31

Weaknesses of competitors in foreign lands are often underestimated,and strengths are often overestimated.

Question 32

Firms are often motivated to initiate international operations because competitors in foreign markets may not exist,or competition may be less intense than in domestic markets.

Question 33

Foreign banks currently operate and compete in most parts of the United States.

Question 34

Keeping informed about the number and the nature of competitors is easier when doing business internationally,since foreign competitors are generally weaker and fewer in number.

Question 35

A primary reason why most domestic firms are engaging in global operations is that growth in demand for goods and services outside the U.S.is considerably higher than inside.

Question 36

A potential advantage to initiating,continuing,or expanding international operations is that foreign operations can absorb excess capacity,reduce unit costs,and spread economic risks over a wider number of markets.

Question 37

Chinese counterfeiters can be criminally prosecuted for commercial piracy when caught in possession of even just one counterfeit item.

Question 38

The availability,depth,and reliability of economic and marketing information in different countries vary extensively.

Question 39

American firms that seem insulated from foreign competition today may be vulnerable tomorrow.

Question 40

Although the sale of pirated American goods is rampant in China,the Chinese government has removed all barriers to the sale of authentic U.S.-made copyrighted products.

Question 41

The smile is one form of communication that works the same worldwide.

Question 42

Joint ventures and partnerships between domestic and foreign firms are becoming the exception rather than the rule.

Question 43

In Mexico,business associates usually entertain each other at their homes.

Question 44

A global strategy means considering individual countries distinctly,one at a time,when designing,producing,and marketing products.

Question 45

The need to amortize massive R&D investments over many markets is a major reason why the aircraft manufacturing industry became global.

Question 46

The understanding of Asian cultures is a strength U.S.firms have in competing with Pacific Rim firms.

Question 47

Foreign revenue as a percentage of total company revenues is approaching 20 percent for Colgate-Palmolive.

Question 48

In socialist countries such as France,Belgium,and the United Kingdom,the only grounds for immediate dismissal from work is a criminal offense.

Question 49

In China,to show that you enjoyed your meal you should completely finish your food.

Question 50

In the United States,an amicable relationship is often mandatory before conducting business.

Question 51

Punctuality is generally revered in all cultures of the world.

Question 52

The U.S.furniture manufacturing industry is not yet greatly challenged by foreign competitors.

Question 53

Almost 70 percent of the world's population lives outside of the U.S.

Question 54

In China,business relations revolve around guanxi,or personal relations.

Question 55

Time spent with the family and the quality of relationships are more important in some cultures than the personal achievement and accomplishments espoused by the traditional U.S.manager.

Question 56

While there are a few U.S.industries that are not yet greatly challenged by foreign competitors,many products and components within these industries too are now manufactured in foreign countries.

Question 57

The British pound reached a 23-year low against the U.S.dollar in January 2009.

Question 58

An important business activity in Japan is entertaining because it strengthens Wa.

Question 59

Europeans are especially motivated by pay-for-performance,commission salaries,and objective measurement and reward systems.

Question 60

Mexican workers expect and desire a work environment in which self-expression and initiative are encouraged.

Question 61

_______ countries are market leaders in labor-intensive industries and _______ offers abundant natural resources and rapidly developing markets.

A) East Asian; Brazil
B) South American; Germany
C) East Asian; Germany
D) South American; Brazil
E) European; Japan

Question 62

Communication between domestic headquarters and overseas operations is often made difficult by

A) geographic distance.
B) cultural differences.
C) variations in business practices.
D) national differences.
E) all of the above

Question 63

In March 2009 the World Trade Organization issued a report on global trade,citing that it would _______ in 2009.

A) increase by 3%
B) increase by 12%
C) decrease by 9%
D) decrease by 20%
E) be stagnant

Question 64

All of the following are potential advantages to initiating,continuing,and/or expanding international operations except:

A) firms can gain new customers for their products.
B) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
C) foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor.
D) foreign operations could be seized by nationalistic factions.
E) foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.

Question 65

_______ can enable firms to learn the technology,culture,and business practices of other people and to make contacts with potential customers,suppliers,creditors,and distributors in foreign countries.

A) Economies of scale
B) Joint ventures
C) Low-cost production facilities
D) Reduced tariffs
E) Domestic operations

Question 66

Mass communication and high technology have _______ in diverse cultures worldwide.

A) created similar patterns of consumption
B) resulted in highly individualized patterns of consumption
C) rendered patterns of consumption identical
D) had little to no effect on patterns of consumption
E) ignored patterns of consumption

Question 67

Which of the following is a potential advantage of conducting international operations?

A) Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets.
B) Dealing with two or more monetary systems can complicate international business operations.
C) Differing language, culture, and value systems can make communication difficult.
D) Gaining an understanding of regional organizations is difficult but is often required in doing business internationally.
E) All of the above

Question 68

The strategic-management process for multinational firms is _______ for purely domestic firms,and the process is _______ for international firms.

A) conceptually the same as; more simple
B) conceptually the same as; more complex
C) conceptually different than; more simple
D) conceptually different than; more complex
E) conceptually the same; simplistic

Question 69

The U.S.government's OPIC

A) offers insurance to offset some risks of doing business internationally.
B) provides insurance to eliminate all of the risks of doing business internationally.
C) gives informational seminars about the risks associated with doing business internationally.
D) requires that paperwork be filed by American companies desiring to do business internationally.
E) discourages foreign companies from doing business in the United States.

Question 70

Most economists argue that protectionism _______ the world economy because it _______ trade among countries.

A) helps; inhibits
B) helps; encourages
C) harms; inhibits
D) harms; encourages
E) doesn't impact; doesn't affect

Question 71

Strengths of competitors in foreign lands are often _______,and weaknesses are often _______.

A) overestimated; overestimated
B) overestimated; underestimated
C) underestimated; underestimated
D) underestimated; overestimated
E) made too much of; ignored

Question 72

Organizations that conduct business operations across national borders are called

A) protectionists.
B) national firms.
C) multinational corporations.
D) domestic companies.
E) all of the above

Question 73

The various opportunities and threats that face multinational corporations are almost limitless,and the number and complexity of these factors _______ the number of products and the number of geographic areas served.

A) decrease dramatically with
B) drastically increase with
C) drop slightly with
D) are constant despite
E) are unaffected by

Question 74

In an industry that is,or is rapidly becoming global,the riskiest possible posture is to

A) become a global competitor.
B) remain a domestic competitor.
C) remain a global competitor.
D) expand beyond the role of domestic competitor.
E) None of the above

Question 75

A firm's power and prestige in domestic markets may be significantly enhanced if the firm competes globally,

A) which can translate into improved negotiating power among important groups.
B) though this rarely results in a practical advantage.
C) but this can hurt its bargaining power with suppliers and distributors.
D) yet this does nothing to improve its position with creditors.
E) which can alienate the firm from its domestic creditors, suppliers, and distributors.

Question 76

The _______ opportunities and threats that face a multinational corporation are almost limitless.

A) social
B) cultural
C) governmental
D) political
E) all of the above

Question 77

The global challenge faced by U.S.business involves

A) how to gain exports to other nations.
B) how to maintain exports to other nations.
C) how to defend domestic markets against imported goods.
D) all of the above
E) none of the above

Question 78

Multinational corporations face unique and diverse risks,which include all of the following except:

A) favorable foreign court interpretations of contracts and agreements.
B) currency losses through exchange rate fluctuations.
C) social/political disturbances.
D) import/export restrictions.
E) tariffs.

Question 79

Which of the following statements is not true?

A) America's economy is becoming much less American.
B) A world economy and monetary system are emerging.
C) Corporations in every corner of the globe are taking advantage of the opportunity to obtain customers globally.
D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices.
E) Innovative transport systems are accelerating the transfer of technology.

Question 80

All of the following are potential disadvantages to initiating,continuing,or expanding business across national borders except:

A) firms confront different social, cultural, and political forces when doing business internationally, which can make communication in the firm difficult.
B) keeping informed about the number and nature of competitors is more difficult when doing business internationally.
C) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
D) dealing with two or more monetary systems can complicate international business operations.
E) foreign operations could be seized by nationalistic forces.