Deck 5: The Global Environment

Question 1

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

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

Answer 1

C

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

In recent times,as companies go global,standardization is steadily being replaced by _____.

A) globalization
B) customization
C) democratization
D) vulcanization

Answer 3

B

Question 4

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 5

______ 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 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

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 8

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 9

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

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

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

______ 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 12

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 13

______ 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 14

The direct foreign investment of foreign-based globals that operate in the United States now exceeds

A) 200 billion
B) 20 billion
C) 90 billion
D) 9 billion

Question 15

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

Question 16

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 17

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 18

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 19

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 20

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

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

Question 21

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

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

Question 22

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

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

Question 23

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 24

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

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

Question 25

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

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

Question 26

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

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

Question 27

In which of these orientations is governance bottom-up?

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

Question 28

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 29

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

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

Question 30

______ 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 31

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 32

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

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

Question 33

Closed countries typically have _______ policies.

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

Question 34

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 35

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

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

Question 36

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

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

Question 37

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 38

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 39

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

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

Question 40

In which of these orientations is governance top-down?

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

Question 41

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 42

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 43

The retailing industry is an example of a _______ industry.

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

Question 44

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 45

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 46

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 47

A ______ is one in which competition crosses national borders.

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

Question 48

Although industries can be characterized as global or multidomestic,few ___ cases of either type exist.

A) "combined"
B) "blended"
C) "hybrid"
D) "pure"

Question 49

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 50

The automobile industry is an example of a _______ industry.

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

Question 51

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 52

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 53

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 54

The expanding list of global industries include all of these EXCEPT

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

Question 55

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 56

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 57

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 58

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 59

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 60

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 61

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 62

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 63

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

A) functional
B) strategic
C) contractual
D) public

Question 64

As the industry becomes increasingly _____,a firm must begin to coordinate an increasing number of functional activities to effectively compete across country

A) multidomestic
B) global
C) competitive
D) big

Question 65

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

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

Question 66

The transfer of an industrial property right is called

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

Question 67

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 68

Little coordination of functional activities across countries may be necessary in a ____ industry .

A) technological
B) global
C) multidomestic
D) industrial

Question 69

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 70

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

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

Question 71

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 72

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 73

Which strategy shows the highest commitment to international market?

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

Question 74

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 75

A global firm competing in a ______ industry cannot totally ignore opportunities to utilize intracorporate resources in competitive positioning.

A) Multidomestic
B) Specific
C) Hypercompetitive
D) Dynamic

Question 76

In a ____ industry,competition occurs within each country.

A) technological
B) industrial
C) global
D) multidomestic

Question 77

______ usually requires minimal capital investment.

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

Question 78

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 79

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 80

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