Question 1

The American IBM subsidiary manager in Brazil learns that a shipment of imported IBM computers is sitting unprocessed at the customs office.At the customs office,he pays 20 reais (Brazilian currency)to the customs official to get the imports processed and released that day.The subsidiary manager has ____.

Accepted Answer

The answer of The American IBM subsidiary manager in Brazil...

Question 2

The Russian government asks bidders on a contract to submit a US$150,000 fee with their bid to weed out firms that are not serious about the contract or are too small to handle the contract.This is an example of a governmental ____ screen that is common during government purchases in developing countries.

Accepted Answer

This is an example of an eligibility screen, as it is intended to ensure that bidders are qualified and serious about the contract. Procedural screens relate to rules and procedures for the bidding process, linkage screens relate to requirements for local content or use of local suppliers, and influence screens relate to corruption or undue influence in the bidding process.

Question 3

The Dell distributor in Indonesia learns that a shipment of imported Dell computers is sitting unprocessed at the customs office.At the customs office,he pays 10 ringit to the customs official to get the imports processed and released that day.This is an example of ____.

Accepted Answer

This is an example of an expediting payment, which is a payment made to speed up a routine government action, such as processing imports through customs. Bribery involves making an illegal payment to an official in exchange for a specific favor or action, which does not appear to be the case here. Linkage screening and procedural screening are not relevant to this situation.

Question 4

The Indian government purchased 100 airplanes from Boeing.This is an example of ____.

Accepted Answer

The purchase of airplanes by the Indian government from Boeing is a transaction under government procurement, where the government is obtaining goods or services from a supplier.

Question 5

Explorasis,an American company,pays their Swiss lawyer US$1 million and asks them to give the money to a Russian general.They hope that the US$1 million will encourage the Russian general to choose their contract bid.Explorasis has ____.

Accepted Answer

The payment of money to a foreign official with the intention of influencing their decision-making process is a violation of the Foreign Corrupt Practices Act (FCPA). Additionally, the FCPA applies to US companies and individuals, even when they are operating outside the US.

Question 6

Texas Instruments assigns special account executives and service teams to handle the needs of valuable but demanding global buyers.Texas Instruments practices ____.

Accepted Answer

Texas Instruments' practice of assigning specialized account executives and service teams to handle the needs of valuable, demanding global buyers is an example of global account management. This strategy aims to build long-term relationships with key customers through personalized attention, customized solutions, and dedicated support. It recognizes that some customers have unique requirements and preferences that need to be addressed globally, rather than locally or regionally. By implementing global account management, Texas Instruments can improve customer retention, increase customer satisfaction, and drive revenue growth from key accounts.

Question 7

To be considered as a supplier to the Bolivian government,a company must follow numerous bureaucratic procedures and fill out numerous long forms.This is an example of a governmental ____ screen that is common during government purchases in developing countries.

Accepted Answer

This is an example of a procedural screen, as it involves following specific bureaucratic procedures and completing extensive paperwork, which are procedural requirements for becoming a supplier to the government.

Question 8

The final step in the bidding process in which firms are required to identify the final,key decision makers and meet their needs is known as the ____________________ screen.

Accepted Answer

The answer of The final step in the bidding process...

Question 9

Buyers who search the world for products that are to be used in a single country are known as ____________________.

Accepted Answer

The answer of Buyers who search the world for products...

Question 10

If a U.S.company pays a customs official an extra US$100 to speed up the clearance of their shipment of US$1 million of goods through customs,it is ____.

Accepted Answer

The answer of If a U.S.company pays a customs official...

Question 11

During the bidding process with the Brazilian government,American computer giant,Dell,had to explain how local Brazilian firms would participate in the production of the computers Dell wanted to sell to the Brazilian government.Dell argued that local Brazilian companies would supply component parts and assemble the computers.In Brazil,Dell was negotiating the ____ screen that is common in developing countries.

Accepted Answer

The negotiation over the involvement of local Brazilian companies in supplying component parts and assembling the computers suggests that Dell was negotiating a linkage agreement, which requires foreign companies to involve local firms in their operations. This is common in developing countries to boost local economic development.

Question 12

To influence the buying decision of the Egyptian general,an American manager at Lockheed-Martin transferred US$1 million into his Swiss bank account.The manager ____.

Accepted Answer

The transfer of $1 million into the Swiss bank account of the Egyptian general would be considered a bribe and a violation of the Foreign Corrupt Practices Act (FCPA), which prohibits the bribing of foreign officials to gain business advantages. Therefore, choice A is the best answer. Choice B is incorrect because the transfer of money does violate the FCPA. Choice C is not applicable as the question does not mention any linkage screen. Choice D is incorrect as only choice A is correct.

Question 13

When considering which foreign construction company would be awarded a contract for India's new highway project,the Indian government weighed each bidding company's experience,reputation,and cultural sensitivity in addition to the price.In this example,the Indian government is executing the ____ screen that is common during government purchases in developing countries.

Accepted Answer

The competitive screen is used to evaluate the technical and financial capabilities of bidders, as well as their experience and reputation. In this case, the Indian government is using the competitive screen to evaluate the foreign construction companies bidding on the new highway project.

Question 14

The first stage in a bidding process in which governments seek to weed out not-so-serious firms or firms that are too small to handle the contract is known as the ____________________ screen.

Accepted Answer

The answer of The first stage in a bidding process...

Question 15

In poor countries,the income earned by poor people often is not reported,and they are said to participate in the ____________________ sector of the economy.

Accepted Answer

The answer of In poor countries,the income earned by poor...

Question 16

The Turkish Iznik Tile company sends the Egyptian education minister and his family on a one-week cruise throughout the Mediterranean in the hope that the minister will choose the Iznik Tile company as the tile supplier for three new university locations in Cairo.This is an example of ____.

Accepted Answer

This scenario describes an act of bribery, where the Turkish Iznik Tile company is providing a luxury cruise to the Egyptian education minister and family to influence their decision in favor of their company.

Question 17

McDonald's Big Mac,sold in markets all over the world,consists of two all beef patties,purchased from Spain;special sauce,purchased from the U.S. ;lettuce,purchased from Holland;cheese,purchased from New Zealand;pickles,purchased from the U.S. ;onions and sesame seeds,purchased from Mexico;and wheat,sugar,and oil,purchased from Brazil.From this description,McDonald's appears to be a ____ global buyer.

Accepted Answer

McDonald's is a multinational buyer because it sources its ingredients from multiple countries all over the world.

Question 18

In a business to business transaction,when the objective of the manufacturer is to maximize profit,the critical buying criteria will focus on the performance of the product purchased versus its cost.This is known as the ____________________ criteria.

Accepted Answer

The answer of In a business to business transaction,when the...

Question 19

To influence the buying decision of the Indian general,Airbus transferred 1 million Euros into his Swiss bank account.This is an example of ____.

Accepted Answer

The transfer of 1 million Euros into the Indian general's Swiss bank account is an example of bribery, which is the act of giving or receiving something of value in exchange for a favor or influence. An expediting payment is a payment made to speed up a routine service, and a linkage screen is a tool used to identify potential negative impacts of a business decision on other areas. Neither of these concepts apply to the situation described in the question.

Question 20

Raytheon is preparing to sell radar equipment to the Taiwanese government.A Raytheon saleswoman recognizes that a certain general will be particularly influential in the government's buying decision-making process.She meets with the general to ensure that Raytheon's sales proposal will meet his needs and expectations.The Raytheon saleswoman is striving to make sure that her company successfully proceeds through the ____ screen that is common during government purchases in developing countries.

Accepted Answer

The Raytheon saleswoman is attempting to influence the influential general in order to secure the sale, indicating that the company is trying to navigate the "influence screen" that is often present in government purchases in developing countries. The other options do not accurately describe the actions of the saleswoman or the type of barrier that the company is attempting to overcome.

Quiz 5: Global Markets