Question 1

The evidence clearly shows that __________ is the most important factor in determining the success or failure of an international assignment.&#10;A) the amount of language training provided to the expatriate&#10;B) the amount of cross-cultural training provided to the expatriate&#10;C) how well an expatriate's spouse and family adjust to the foreign culture&#10;D) how willing the expatriate was to accept the foreign assignment&#10;E) the similarity of the foreign language to the expatriate's native language

Accepted Answer

C

Question 2

The General Agreement on Tariffs and Trade (GATT):&#10;A) replaced the United Nations court system&#10;B) eliminated government subsidies&#10;C) eliminated tariffs in ten specific industries&#10;D) operated in a fashion similar to the Chamber of Commerce&#10;E) did all of these

Accepted Answer

GATT was an international trade agreement aimed at reducing tariffs and other trade barriers; it did not replace the UN court system, eliminate government subsidies, or operate like the Chamber of Commerce.

Question 3

A country or region that has an attractive business climate for companies that want to go global has:&#10;A) a large population of unskilled workers&#10;B) an effective and cost-efficient place to build an office or manufacturing site&#10;C) a small youth population&#10;D) natural boundaries&#10;E) all of these

Accepted Answer

An effective and cost-efficient place to build an office or manufacturing site is a key factor in creating an attractive business climate for companies looking to go global. This is because companies want to operate in a location that allows them to maximize profit and minimize costs. A large population of unskilled workers (A) may actually be a disadvantage if the company requires skilled labor. A small youth population (C) may limit the market for the company's products/services. Natural boundaries (D) may not necessarily affect the business climate.

Question 4

Hofstede's research has shown there are:&#10;A) no cultural differences among nations in which Spanish is the national language&#10;B) two distinct methods for dealing with cultural differences--adaptation and continuation&#10;C) direct relationships existing between type of infrastructures and growth potential&#10;D) five consistent dimensions of cultural differences across countries&#10;E) four factors upon which a company should base its decision to globalize

Accepted Answer

Hofstede's research has identified five consistent dimensions of cultural differences across countries, which include power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, and long-term vs. short-term orientation.

Question 5

Which of the following represents the correct sequence for the phase model of globalization?&#10;A) exporting; wholly owned affiliates; cooperative contracts; strategic alliances&#10;B) exporting; cooperative contracts; wholly owned affiliates; strategic alliances&#10;C) exporting; cooperative contracts; strategic alliances; wholly owned affiliates&#10;D) exporting; strategic alliances; cooperative contracts; wholly owned affiliates&#10;E) home country sales; exporting; job ventures; strategic alliances, and direct investment

Accepted Answer

The correct sequence for the phase model of globalization is exporting, followed by cooperative contracts, then strategic alliances and finally wholly owned affiliates. This is because companies typically start with exporting as a way to enter new markets without incurring too much risk or investment. As they become more familiar with the market, they may enter into cooperative contracts with local firms to gain further access to distribution channels or local knowledge. Strategic alliances come next, which involve more strategic and long-term partnerships with local firms. Finally, when the company is fully invested in the market, they may establish wholly owned affiliates to have full control over operations.

Question 6

Managing global joint ventures can be difficult because they:&#10;A) represent a merging of four cultures&#10;B) increase the number of tariffs that have to be paid&#10;C) can only be used by large companies that already have an international presence&#10;D) use local consistency in marketing&#10;E) do all of these

Accepted Answer

Smaller companies can use joint ventures as a tool for growth. The four cultures are the countries and the organizations of the two companies that are collaborating.

Question 7

What are the strategies that can be used to minimize or adapt to the political risk inherent to global business?&#10;A) protectionist, avoidance, and offensive strategies&#10;B) creative, cooperative, and defensive strategies&#10;C) cooperative, customary, and nationalistic strategies&#10;D) avoidance, protectionist, and guerrilla strategies&#10;E) control, avoidance, and cooperative strategies

Accepted Answer

Control strategies involve actively managing political risk through comprehensive risk assessments and developing contingency plans. Avoidance strategies involve limiting exposure to political risk by choosing to do business only in politically stable regions or avoiding certain industries or countries altogether. Cooperative strategies involve working with local governments and other stakeholders to mitigate political risk through collaboration and negotiation. These three strategies provide a comprehensive approach to minimizing or adapting to political risk in global business.

Question 8

Two factors help determine the growth potential of foreign markets. They are foreign competition and:&#10;A) communications and transportation systems&#10;B) purchasing power&#10;C) political stability&#10;D) creative differences&#10;E) product diffusion rate

Accepted Answer

Purchasing power is a key factor in determining the growth potential of foreign markets, as it indicates the ability and willingness of consumers to buy and invest in products and services. Strong purchasing power can lead to higher demand for goods and services, which can drive market growth. Foreign competition, communications and transportation systems, political stability, creative differences, and product diffusion rate can also affect market growth potential, but purchasing power is a critical factor to consider.

Question 9

An expatriate is someone who:&#10;A) claims dual citizenship&#10;B) lives and works outside of his or her own country&#10;C) believes strongly in nationalization&#10;D) is unhappy with his or her present residence&#10;E) desires to be employed in a country outside of his or her own

Accepted Answer

An expatriate is someone who lives and works outside of his or her own country. This can include individuals who are sent abroad by their employers or who choose to live and work in a different country for personal reasons. Dual citizenship, nationalization beliefs, and personal happiness are not necessarily factors in defining an expatriate. Desiring to be employed in a different country may be a factor, but it does not necessarily make someone an expatriate until they actually live and work there.

Question 10

The two general kinds of trade barriers are:&#10;A) government import standards and industry import standards&#10;B) qualitative and quantitative barriers&#10;C) voluntary and involuntary barriers&#10;D) nationalistic and geocentric barriers&#10;E) tariff barriers and nontariff barriers

Accepted Answer

Tariff barriers refer to taxes or fees imposed by a government on imported goods, while nontariff barriers refer to various other restrictions on imports, such as quotas, embargoes, and regulations. These are the two general kinds of trade barriers.

Question 11

One of the major questions that a company must typically answer once it has decided to go global is:&#10;A) How many additional employees will the company need?&#10;B) To what extent should the company standardize or adapt business procedures?&#10;C) To what extent should a company abide by global or regional trade agreements?&#10;D) Will the organization's mission statement need to be changed?&#10;E) How many new shareholders will be influenced by global activities?

Accepted Answer

The answer of One of the major questions that a...

Question 12

Global business:&#10;A) is the buying and selling of goods and services to people from different countries&#10;B) includes any sale of goods and services&#10;C) only involves companies with more than 50 employees&#10;D) refers to sales made to people from different cultures, different regions, and different nations&#10;E) is unregulated

Accepted Answer

The answer of Global business:&#10;A) is the buying and selling...

Deck 8: Global Management: Part B