Question 1

Which of the following approaches tends to be most important to making an international business successful in any given country?
A)global consistency  
B)local adaptation  
C)domestic synergy  
D)predetermined benchmarks

Accepted Answer

Local adaptation tends to be the most important approach to making an international business successful in any given country. This includes adapting products, marketing strategies, and operations to fit the local market. It shows respect for local culture and customs, which can lead to better relationships with customers and stakeholders. While global consistency and predetermined benchmarks have their place, they are not always the most important factor in achieving success in foreign markets. Domestic synergy may be important for in-country operations, but is not as relevant for international business success.

Question 2

Historically,which of the following have most companies used to successfully enter foreign markets?
A)a phase model of globalization  
B)a global new venture approach  
C)a ripple approach  
D)a market echo approach

Accepted Answer

A phase model of globalization is historically the most common approach used by companies to enter foreign markets. This model involves gradually entering new markets in phases, starting with countries that have the least cultural and economic differences, and progressively moving to more challenging markets.

Question 3

Quebec produces about 75 percent of the world's maple syrup,and distributes it globally. What does Quebec use to distribute this tasty product?
A)franchising  
B)direct investment  
C)licensing  
D)exporting

Accepted Answer

Quebec uses exporting to distribute their maple syrup globally. This means that they sell their products to other countries and do not have a physical presence in those markets.

Question 4

If Canada were to seek admittance as a full member to the Association of Southeast Asian Nations (ASEAN),what would Canada be preparing to become part of?
A)a zone of ethnocentricity  
B)a regional trading zone  
C)a neutral trading area  
D)an international cartel

Accepted Answer

ASEAN is primarily a regional trading bloc consisting of ten Southeast Asian countries. If Canada were to seek admittance as a full member, it would be preparing to become part of a regional trading zone, promoting economic cooperation and integration with ASEAN member states. Choices A, C, and D do not accurately describe ASEAN's goals or character.

Question 5

All global new ventures share two common factors. One factor is that the company founders successfully develop and communicate the company's global vision. What is the other factor?
A)the bringing of a good or service to several different foreign markets at the same time  
B)the use of local adaptation strategy  
C)a mechanistic organizational culture  
D)the ability to respond quickly and efficiently to any changes in the external environment

Accepted Answer

Global new ventures typically bring a good or service to several different foreign markets simultaneously, leveraging their global vision to expand rapidly.

Question 6

T.I.P Ltd. was featured on the Discovery Channel for its ability to encapsulate very fragile natural items into a solid clear medium. After the Discovery Channel feature,T.I.P's customer base expanded beyond Canada. T.I.P started selling its products all over North America,Europe,Asia,and the Caribbean. What is T.I.P's expansion of sales to other countries an example of?
A)foreign direct investment  
B)franchising  
C)licensing  
D)exporting

Accepted Answer

T.I.P's expansion of sales to other countries is an example of exporting, which refers to the sale of goods and services from a domestic company to a foreign country.

Question 7

What is a multinational company said to be acting with when it has offices,manufacturing plants,and distribution facilities in different countries and runs them all based on the same rules,guidelines,policies,and procedures?
A)policy certainty  
B)global consistency  
C)global adaptation  
D)global certainty

Accepted Answer

When a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them based on the same rules, guidelines, policies, and procedures, it is said to be practicing global consistency. This ensures that the company maintains its standard operating procedures no matter where it operates globally.

Question 8

Mountain Province Diamonds and De Beers partnered to open Gahcho Kué,a diamond mine in the Northwest Territories,in late 2016. What does the two companies working together to open the mine exemplify?
A)exporting  
B)licensing  
C)a joint venture  
D)a cooperative contract

Accepted Answer

Mountain Province Diamonds and De Beers forming a partnership to open Gahcho Kué exemplifies a joint venture, as they collaborated and contributed resources to develop the mine together.

Question 9

Typically,what major question must a company answer once it has decided to go global?
A)How many additional employees will the company need?  
B)To what extent should the company standardize or adapt business procedures?  
C)To what extent should a company abide by global or regional trade agreements?  
D)Will the organization's mission statement need to be changed?

Accepted Answer

Once a company decides to go global, it must decide whether it will standardize or adapt its business procedures to the new market. This involves considerations such as cultural differences, regulatory environments, and local competition. The other options do not directly address this major question.

Question 10

All global new ventures share two common factors. One factor is the bringing of a good or service to several different foreign markets at the same time. What is the other factor?
A)the development of culturally specific implementation policies  
B)the company founders successfully developing and communicating the company's global vision from inception  
C)a mechanistic organizational culture  
D)the ability to respond quickly and efficiently to any changes in the external environment

Accepted Answer

The other common factor among global new ventures is the presence of founders who are committed to and capable of building a globally-oriented company from the start. This involves developing and communicating a clear global vision, as well as being able to navigate the challenges of expansion into multiple foreign markets simultaneously. Factors A, C, and D may also be important for global new ventures, but they are not universal across all such ventures.

Question 11

Which of the following do managers in a multinational firm at company headquarters typically prefer to emphasize in order to simplify decisions?
A)local consistency  
B)local adaptation  
C)global adaptation  
D)global consistency

Accepted Answer

Managers in a multinational firm at company headquarters typically prefer to emphasize global consistency in order to simplify decisions. This means ensuring that products, services, and management practices are consistent across all countries and regions in which the company operates. By doing so, companies can take advantage of economies of scale, reduce costs, and improve efficiency. However, it is important to balance global consistency with local adaptation, as local market conditions and cultural differences can also impact the success of the company's operations.

Question 12

Sodima is a French cooperative that owns the name,the trade secrets,and the patents on Yoplait yogurt. Ultima Foods pays Sodima for the right to sell Yoplait yogurt in Canada. What is this arrangement an example of?
A)licensing  
B)a global joint venture  
C)exporting  
D)a strategic alliance

Accepted Answer

This arrangement is an example of licensing, where Ultima Foods pays Sodima for the right to sell Yoplait yogurt in Canada.

Question 13

What does the acronym GATT stand for?
A)Global Agreement on Temporal Trade  
B)Governing Agreement on Trade and Transactions  
C)General Agreement on Tariffs and Trade  
D)Government Aid of Trade and Transactions

Accepted Answer

The acronym GATT stands for General Agreement on Tariffs and Trade, which was a multilateral agreement signed in 1947 aimed at promoting international trade by reducing tariffs and other barriers to trade. It was replaced by the World Trade Organization (WTO) in 1995.

Question 14

Which of the following regional trade agreements liberalizes trade between countries more than any other such agreement?
A)Maastricht Treaty of Europe  
B)Association of South East Nations  
C)Asia-Pacific Economic Cooperation agreement  
D)North American Free Trade Agreement

Accepted Answer

The North American Free Trade Agreement (NAFTA) is a regional trade agreement between Canada, Mexico, and the United States that has eliminated tariffs and other trade barriers between the member countries more than any other regional trade agreement.

Question 15

Ernst & Young,an international accounting and management consulting company,entered Hungary first by establishing a joint venture with a local firm. Ernst & Young later acquired the company with which it had the alliance. Which type of entity did Ernst & Young then have in Hungary?
A)a franchise  
B)a licensing arrangement  
C)a cooperative contract  
D)a wholly owned affiliate

Accepted Answer

Since Ernst & Young acquired the company with which it had the alliance, it became a wholly owned affiliate in Hungary.

Question 16

What is the correct sequence for the phase model of globalization?
A)exporting;wholly owned affiliates;cooperative contracts;strategic alliances  
B)exporting;cooperative contracts;wholly owned affiliates;strategic alliances  
C)exporting;cooperative contracts;strategic alliances;wholly owned affiliates  
D)exporting;strategic alliances;cooperative contracts;wholly owned affiliates

Accepted Answer

The correct phase model of globalization sequence is exporting, which is followed by cooperative contracts, then strategic alliances, and then finally wholly owned affiliates. This sequence represents the gradual increase in the level of commitment and investment in foreign markets. Therefore, option C is the correct sequence.

Question 17

What did the General Agreement on Tariffs and Trade (GATT)attempt to accomplish?
A)decreasing both tariff and nontariff barriers  
B)eliminating taxes on trading goods between Canada,the United States,and Mexico  
C)eliminating tariffs between China and Japan  
D)protecting the exploitation of workers in third world countries

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) aimed to decrease both tariff and nontariff barriers, with the ultimate goal being to increase international trade and facilitate economic growth. It was in effect from 1948 to 1994 and was replaced by the World Trade Organization (WTO).

Question 18

Which of the following are two kinds of cooperative contracts?
A)licensing and joint ventures  
B)franchising and licensing  
C)direct investment and indirect investment  
D)direct exporting and indirect exporting

Accepted Answer

Franchising and licensing are two types of cooperative contracts that allow companies to collaborate without forming a new entity, sharing technology, trademarks, or business models under agreed terms.

Question 19

What is the term for an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country?
A)exporting agreement  
B)cooperative contract  
C)joint venture  
D)strategic alliance

Accepted Answer

The term for an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country is a cooperative contract. This is a type of licensing agreement, in which the foreign business owner pays a fee to use a company's intellectual property or business model to conduct business in their own country. This allows the foreign business owner to enter a new market without having to invest in costly research and development or marketing efforts.

Question 20

Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continent's nations. Which of the following must Starbucks deal with as it expands into South America?
A)political uncertainty  
B)economic uncertainty  
C)infrastructure regulation  
D)nationalistic equity

Accepted Answer

Starbucks must deal with political uncertainty as it expands into South America due to the potential for civil wars and terrorist activities, which can affect the stability and governance of the region.

Quiz 7: Global Management

Which of the following approaches tends to be most important to making an international business successful in any given country?

Historically,which of the following have most companies used to successfully enter foreign markets?

Quebec produces about 75 percent of the world's maple syrup,and distributes it globally. What does Quebec use to distribute this tasty product?

If Canada were to seek admittance as a full member to the Association of Southeast Asian Nations (ASEAN) ,what would Canada be preparing to become part of?

All global new ventures share two common factors. One factor is that the company founders successfully develop and communicate the company's global vision. What is the other factor?

What is a multinational company said to be acting with when it has offices,manufacturing plants,and distribution facilities in different countries and runs them all based on the same rules,guidelines,policies,and procedures?

Mountain Province Diamonds and De Beers partnered to open Gahcho Kué,a diamond mine in the Northwest Territories,in late 2016. What does the two companies working together to open the mine exemplify?

Typically,what major question must a company answer once it has decided to go global?

All global new ventures share two common factors. One factor is the bringing of a good or service to several different foreign markets at the same time. What is the other factor?

Which of the following do managers in a multinational firm at company headquarters typically prefer to emphasize in order to simplify decisions?

Sodima is a French cooperative that owns the name,the trade secrets,and the patents on Yoplait yogurt. Ultima Foods pays Sodima for the right to sell Yoplait yogurt in Canada. What is this arrangement an example of?

What does the acronym GATT stand for?

Which of the following regional trade agreements liberalizes trade between countries more than any other such agreement?

Ernst & Young,an international accounting and management consulting company,entered Hungary first by establishing a joint venture with a local firm. Ernst & Young later acquired the company with which it had the alliance. Which type of entity did Ernst & Young then have in Hungary?

What is the correct sequence for the phase model of globalization?

What did the General Agreement on Tariffs and Trade (GATT) attempt to accomplish?

Which of the following are two kinds of cooperative contracts?

What is the term for an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country?

Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continent's nations. Which of the following must Starbucks deal with as it expands into South America?