Question 1

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

Accepted Answer

When conducting global business, companies should attempt to identify two types of political risk: political uncertainty and policy uncertainty.

Question 2

____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.

Accepted Answer

Direct foreign investment is the method of investment in which a company builds a new business or buys an existing business in a foreign country. A strategic alliance is a partnership formed between two companies to pursue a specific opportunity while sharing resources and risks. A global new venture is a start-up business that focuses on global markets from the beginning. A joint venture is a partnership formed between two or more companies to jointly own and operate a business. Direct exporting is a method of international trade in which a company sells its products directly to buyers in another country without the involvement of intermediaries.

Question 3

The two general kinds of trade barriers are ____.

Accepted Answer

Tariff barriers include taxes on imports, while nontariff barriers include quotas, subsidies, and regulations that make it difficult or expensive for foreign companies to import goods. These are the most common and broadly recognized types of trade barriers. The other answer options are either irrelevant to the concept of trade barriers or overly specific.

Question 4

A(n) ____ is a direct tax on imported goods designed to make it more expensive to buy those goods, instituted in hopes of reducing the volume of those imported goods in a given country.

Accepted Answer

Tariffs are defined as a direct tax on imported goods.

Question 5

Deciding where to "go global" is just as important as deciding how your company will go global.

Accepted Answer

The location or region that a company chooses to target when going global can greatly impact its success or failure. Therefore, deciding where to go global is just as important as deciding on the approach or strategy for going global.

Question 6

An attractive business climate is defined by one single dimension: Does the business minimize the political risk to the company?

Accepted Answer

An attractive global business climate has three characteristics: (1) it positions the company for easy access to growing markets, (2) it is an effective but cost-efficient place to build an office or manufacturing site, and (3) it minimizes the political risk to the company.

Question 7

The criteria for choosing an office/manufacturing location are different from the criteria for entering a foreign market.

Accepted Answer

Choosing an office/manufacturing location involves considerations such as proximity to suppliers, transportation infrastructure, and availability of skilled labor. On the other hand, entering a foreign market involves considerations such as cultural differences, legal and political systems, and competition. Therefore, the criteria for these two decisions are different.

Question 8

In 2000, the United States imposed a tax on all steel imports in an effort to protect about 5,000 jobs. This tax is an example of a(n) ____.

Accepted Answer

Tariffs are defined as a direct tax on imported goods.

Question 9

Global business is defined as____.

Accepted Answer

This is the definition of global business.

Question 10

Protectionism is the use of trade barriers to protect local companies and their workers from ____.

Accepted Answer

This is the definition of protectionism.

Question 11

Which of the following countries has the largest direct foreign investment in the United States?

Accepted Answer

The answer of Which of the following countries has the...

Question 12

The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign culture is the most important factor in determining the success or failure of an international assignment.

Accepted Answer

Studies and research have consistently found that the happiness and well-being of an expat's spouse and family have a significant impact on the expat's job performance and overall satisfaction with the assignment, ultimately determining the success or failure of the international assignment.

Question 13

The Japanese government has proclaimed that its snow is different from that found in any other region of the world. As a result, all snow skis marketed in Japan must be manufactured in Japan. This is an example of a(n) ____.

Accepted Answer

Nontariff barriers are defined as nontax methods of increasing the cost or reducing the volume of imported goods.

Question 14

Nestlé is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of a ____.

Accepted Answer

A multinational corporation is defined as a corporation that owns businesses in two or more countries.

Question 15

Two factors that help companies determine the growth potential of foreign markets are the purchasing power of the consumers and types of foreign competitors already in the market.

Accepted Answer

The purchasing power of the consumers and types of foreign competitors already in the market are two important factors that companies consider when determining the growth potential of foreign markets. The higher the purchasing power of the consumers, the more attractive the market is for companies. The types of competitors already in the market can also give companies an idea of the level of competition they will face and whether there are already established players dominating the market.

Question 16

The Japanese government continues to use the high tariffs to make sure local farmers can earn a living. The tariff on rice is an example of ____.

Accepted Answer

The aim of the Japanese policy is to shield domestic competitors from foreign competition, an aim consistent with protectionism.

Question 17

As Malta got ready for its admittance into the European Union (EU), the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished ____ for Malta-manufactured merchandise.

Accepted Answer

Tariffs are defined as a direct tax on imported goods.

Question 18

Several Arab countries boycott Coca-Cola products because the soft-drink company maintains product distributors in Israel. This boycott is an example of ____.

Accepted Answer

Trade barriers are defined as government imposed regulations that increase the cost and restrict the number of imported goods.

Question 19

The three strategies used to minimize or to adapt to the political risk inherent to global business are avoidance, control, and cooperation.

Accepted Answer

The statement is true. These are the three common strategies used to minimize or adapt to political risk in global business. Avoidance involves steering clear of high-risk countries, control involves taking measures to manage and reduce the impact of political risk, while cooperation involves working with host governments and other stakeholders to mitigate political risk.

Question 20

A ____ is a nontax method of increasing the cost or reducing the volume of imported goods.

Accepted Answer

A nontariff barrier is a method of restricting imports that is not a direct tax or duty. This can include measures such as quotas, licensing requirements, and technical barriers to trade.

Quiz 8: Global Management

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.

The two general kinds of trade barriers are ____.

A(n) ____ is a direct tax on imported goods designed to make it more expensive to buy those goods, instituted in hopes of reducing the volume of those imported goods in a given country.

Deciding where to "go global" is just as important as deciding how your company will go global.

An attractive business climate is defined by one single dimension: Does the business minimize the political risk to the company?

The criteria for choosing an office/manufacturing location are different from the criteria for entering a foreign market.

In 2000, the United States imposed a tax on all steel imports in an effort to protect about 5,000 jobs. This tax is an example of a(n) ____.

Global business is defined as____.

Protectionism is the use of trade barriers to protect local companies and their workers from ____.

Which of the following countries has the largest direct foreign investment in the United States?

The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign culture is the most important factor in determining the success or failure of an international assignment.

The Japanese government has proclaimed that its snow is different from that found in any other region of the world. As a result, all snow skis marketed in Japan must be manufactured in Japan. This is an example of a(n) ____.

Nestlé is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of a ____.

Two factors that help companies determine the growth potential of foreign markets are the purchasing power of the consumers and types of foreign competitors already in the market.

The Japanese government continues to use the high tariffs to make sure local farmers can earn a living. The tariff on rice is an example of ____.

As Malta got ready for its admittance into the European Union (EU) , the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished ____ for Malta-manufactured merchandise.

Several Arab countries boycott Coca-Cola products because the soft-drink company maintains product distributors in Israel. This boycott is an example of ____.

The three strategies used to minimize or to adapt to the political risk inherent to global business are avoidance, control, and cooperation.

A ____ is a nontax method of increasing the cost or reducing the volume of imported goods.