Question 1

A(n)__________is someone who lives and works outside his or her native country.
A) source
B) patriot
C) pariah
D) expatriate

Accepted Answer

An expatriate is someone who lives and works outside their native country.

Question 2

In the context of firm strategies,__________is an active strategy to prevent or reduce political risks.
A) control
B) negotiation
C) coercion
D) portfolio

Accepted Answer

The answer of In the context of firm strategies,__________is an...

Question 3

Cad Cream Inc., an ice cream company, has collaborated with Bite Snack Inc., a food manufacturing company, to come up with a third company, Cream Bite Inc. This new company manufactures energy bars with a variety of flavors. In this context, Cream Bite Inc. is a _____.
A) joint venture
B) global new venture
C) multinational franchise
D) wholly owned affiliate

Accepted Answer

Cream Bite Inc. is a joint venture as it is a new company formed through the collaboration of two existing companies.

Question 4

For initial fee plus royalties, Inding Inc., a U.S.-based firm, will provide Caliste Works, a firm based in Singapore, with an exclusive right to conduct Inding's business in its country. This form of global business is an example of a _____.
A) wholly owned affiliate
B) conglomerate
C) franchise
D) joint venture

Accepted Answer

The given scenario describes a franchise, where Inding Inc. is giving Caliste Works the permission to conduct its business exclusively in Singapore in exchange for an initial fee and ongoing royalties. This does not involve the creation of a wholly owned affiliate, conglomerate, or a joint venture.

Question 5

Worthen, an information technology firm based in the U.S., was created with the goal of standardizing its services in all the developing nations of the world. Rather than strategizing for one country at a time, Worthen's plan is to focus on all the nations at the same time. Worthen is an example of a _____.
A) licensee
B) strategic alliance
C) global new venture
D) franchise

Accepted Answer

Worthen's approach of standardizing its services in all developing nations at the same time is indicative of a global new venture. A licensee is a party to whom a license is granted to use a company's technology, trademark, or other intellectual property. A strategic alliance refers to a partnership between two or more firms to achieve a common goal. A franchise is a business model in which a company licenses its brand and operating model to another party in exchange for a fee or a percentage of the franchisee's revenue.

Question 6

The government of Mentlands levies large taxes and has set up a limit on the amount of goods FarTrek, a foreign sports goods manufacturer, can sell in Mentlands. In this scenario, FarTrek is most likely involved in _____.
A) direct foreign investment
B) exporting
C) licensing
D) protectionism

Accepted Answer

The answer of The government of Mentlands levies large taxes...

Question 7

_____ is a government's use of trade barriers to shield domestic companies and their workers from foreign competition.
A) Protectionism
B) Developmentalism
C) Economic nationalism
D) Centralism

Accepted Answer

Protectionism is the government's use of trade barriers such as tariffs and quotas to protect domestic industries from competition with foreign markets. Developmentalism refers to government policies that promote economic growth and development, while economic nationalism emphasizes the importance of a country's economy and industrial sectors. Centralism is a political philosophy that advocates centralized government control over economic and social issues.

Question 8

Ingente Corp. and Ventruni Corp. will be combining their resources to build the largest railway system in the world. Both companies will equally share costs and profits from this venture. This form of global business is an example of a _____.
A) strategic alliance
B) wholly owned affiliate
C) conglomerate
D) franchise

Accepted Answer

A strategic alliance is a type of partnership between two or more companies that agree to work together to achieve a specific goal while remaining independent organizations. In this case, Ingente Corp. and Ventruni Corp. are coming together to build a railway system, but they will still maintain their own separate identities and operations. Both companies will share costs and profits equally, which is a common characteristic of a strategic alliance.

Question 9

Orsten Corp. sent all its trainees to go and talk to the residents of a Swedish neighborhood because these trainees will be sent to Sweden on a business assignment. In the context of preparing for an international assignment, when would this type of training be given to employees?
A) During documentary training
B) During cultural simulation
C) During field simulation
D) During adaptive screening

Accepted Answer

The answer of Orsten Corp. sent all its trainees to...

Question 10

Which of the following trends has allowed companies to skip the phase model of globalization when going global?
A) Countries with growing levels of purchasing power are good choices for attractive global markets.
B) Low-cost communication technologies make it easier to communicate with global customers.
C) Companies do not have to establish a manufacturing location in each country they enter.
D) Masculinity and femininity capture the difference between highly assertive and nurturing cultures.

Accepted Answer

The answer of Which of the following trends has allowed...

Question 11

DepDevs, an investment company in the country of Onimount, has purchased several small companies in Primelom, a third world country. DepDevs plans to revive these companies by investing their funds in them and improving their performances in the market. This scenario is an example of _____.
A) strategic alliance
B) direct foreign investment
C) direct export
D) joint venture

Accepted Answer

This scenario is an example of direct foreign investment because an investment company from one country (DepDevs) is investing in and taking control of companies in another country (Primelom).

Question 12

Aldhurst Corp., a software manufacturing firm in the country of Lochmount, bought Fairden Corp., a software manufacturing firm in the country of Vertholt. This scenario is an example of__________.
A) strategic alliance
B) direct foreign investment
C) direct export
D) joint venture

Accepted Answer

This scenario is an example of Direct Foreign Investment (DFI), as Aldhurst Corp. has bought a software manufacturing firm in a foreign country, Vertholt. DFI refers to companies investing in and owning a foreign subsidiary or facility, allowing for more control and involvement in the foreign market.

Question 13

Crimson Corp., an electronics manufacturer in Mallowdeer, plans to enter a foreign market. It wants to establish its new office in Ostview. Which of the following is a qualitative factor that Crimson Corp. should consider while choosing the new office location?
A) Company strategy
B) Tariff and nontariff barriers
C) Transportation costs
D) Exchange rates

Accepted Answer

Qualitative factors are non-numeric and cannot be easily measured. Company strategy is a qualitative factor because it includes aspects such as the company's long-term goals, culture, and values. The decision of where to establish the new office should be aligned with the company strategy to ensure successful operation and growth in the foreign market. Tariff and nontariff barriers, transportation costs, and exchange rates are all quantitative factors that can be measured and compared.

Question 14

Which of the following statements is true of the World Trade Organization (WTO)?
A) It ensures that trade between nations flows as predictably and freely as possible.
B) It transforms different economies and currencies into one common economic market.
C) It aims to create a unified South America by permitting free movement between nations.
D) It aims to establish regions in Europe as a single market by eliminating all tariffs by 2019.

Accepted Answer

The World Trade Organization (WTO) aims to ensure that trade between nations flows as predictably and freely as possible by setting and enforcing rules and resolving disputes. It does not transform economies and currencies into one common economic market, nor does it aim to create a unified South America or establish regions in Europe as a single market by eliminating all tariffs by 2019.

Question 15

Bardron, an information technology company in the country of Conimount, wanted to start its business in the country of Bertholt. Hence, it bought Lecden Corp, a severely underperforming information technology company in the country of Bertholt. This scenario is an example of _____.
A) strategic alliance
B) direct foreign investment
C) direct export
D) joint venture

Accepted Answer

The scenario describes Bardron buying an underperforming company in another country, which is an example of direct foreign investment. Strategic alliance involves two or more companies collaborating for mutual benefit, joint venture involves two or more companies forming a new entity, and direct export involves selling goods or services to another country without establishing a physical presence there.

Question 16

Which of the following is a disadvantage of wholly owned affiliates?
A) The high risk of losing intellectual property
B) The slow execution of strategic priorities
C) The cost of selling existing business
D) The expense of building new operations

Accepted Answer

The answer of Which of the following is a disadvantage...

Question 17

The government of Bicana recently passed a law requiring every foreign country operating in Bicana to pay 50% of its earnings in taxes. As a result, many foreign companies are planning to shut down their ventures in the country. This is a type of _____ faced by companies that want to conduct business in Bicana.
A) political uncertainty
B) cost uncertainty
C) policy uncertainty
D) control uncertainty

Accepted Answer

Policy uncertainty refers to the uncertainty and unpredictability of government policies that may affect business operations. In this case, the new law passed by the government of Bicana creates policy uncertainty for foreign companies operating in the country since they will be required to pay 50% of their earnings in taxes. This uncertainty can lead to companies deciding to shut down their ventures in the country.

Question 18

WindWing Inc., an airline company with great success in the domestic market, started WingDream Ventures with the goal of bringing its airline services to all the major countries in the world. WingDream is an example of a _____.
A) licensee
B) strategic alliance
C) global new venture
D) franchise

Accepted Answer

WingDream Ventures is a global new venture, which is a startup company that aims to exploit a unique innovative idea, product or service on a global scale. WingDream is a spin-off venture of WindWing Inc., with the goal of bringing airline services to major countries worldwide. It is not a licensee, franchise or strategic alliance as WingDream is a new, independent entity.

Question 19

Upstart Corp. was formed when Bencanc Corp. and Torperd Corp. pooled their resources to work on a construction project for the government. The project had a short turnaround time along with intensive requirements that could not be fulfilled by one company alone. In this context, Upstart Corp. is a _____.
A) joint venture
B) global new venture
C) multinational franchise
D) wholly owned affiliate

Accepted Answer

Upstart Corp. is a joint venture because it was formed by two companies pooling their resources to work on a specific project.

Question 20

Pancken Corp. has never operated outside the country it is based in and wants to open a branch in a different country. It plans on sending some of its employees to the new country. Before doing so, it trains all its employees by showing them videos about the new country. It also guides them in taking part in roleplays where they are presented with real-world situations related to the new country. In the context of preparing for an international assignment, when would this type of training be given to employees?
A) During documentary training
B) During cultural simulation
C) During field simulation
D) During adaptive screening

Accepted Answer

This type of training that includes videos and roleplays related to the new country is known as cultural simulation. Cultural simulation is a type of cross-cultural training that aims to familiarize employees with the cultural norms of the host country and teaches them to adjust to unfamiliar cultural situations. This training is typically given before employees are sent on international assignments.

Quiz 8: Global Management

A(n) __________is someone who lives and works outside his or her native country.

In the context of firm strategies,__________is an active strategy to prevent or reduce political risks.

Cad Cream Inc., an ice cream company, has collaborated with Bite Snack Inc., a food manufacturing company, to come up with a third company, Cream Bite Inc. This new company manufactures energy bars with a variety of flavors. In this context, Cream Bite Inc. is a _____.

For initial fee plus royalties, Inding Inc., a U.S.-based firm, will provide Caliste Works, a firm based in Singapore, with an exclusive right to conduct Inding's business in its country. This form of global business is an example of a _____.

The government of Mentlands levies large taxes and has set up a limit on the amount of goods FarTrek, a foreign sports goods manufacturer, can sell in Mentlands. In this scenario, FarTrek is most likely involved in _____.

_____ is a government's use of trade barriers to shield domestic companies and their workers from foreign competition.

Ingente Corp. and Ventruni Corp. will be combining their resources to build the largest railway system in the world. Both companies will equally share costs and profits from this venture. This form of global business is an example of a _____.

Orsten Corp. sent all its trainees to go and talk to the residents of a Swedish neighborhood because these trainees will be sent to Sweden on a business assignment. In the context of preparing for an international assignment, when would this type of training be given to employees?

Which of the following trends has allowed companies to skip the phase model of globalization when going global?

DepDevs, an investment company in the country of Onimount, has purchased several small companies in Primelom, a third world country. DepDevs plans to revive these companies by investing their funds in them and improving their performances in the market. This scenario is an example of _____.

Aldhurst Corp., a software manufacturing firm in the country of Lochmount, bought Fairden Corp., a software manufacturing firm in the country of Vertholt. This scenario is an example of__________.

Crimson Corp., an electronics manufacturer in Mallowdeer, plans to enter a foreign market. It wants to establish its new office in Ostview. Which of the following is a qualitative factor that Crimson Corp. should consider while choosing the new office location?

Which of the following statements is true of the World Trade Organization (WTO) ?

Bardron, an information technology company in the country of Conimount, wanted to start its business in the country of Bertholt. Hence, it bought Lecden Corp, a severely underperforming information technology company in the country of Bertholt. This scenario is an example of _____.

Which of the following is a disadvantage of wholly owned affiliates?

WindWing Inc., an airline company with great success in the domestic market, started WingDream Ventures with the goal of bringing its airline services to all the major countries in the world. WingDream is an example of a _____.