Question 1

Franchising would most likely be used to globalize by a ________.

Accepted Answer

A)Franchising is popular with service firms,such as restaurants and hotels.Licensing is usually limited to manufacturers.

Question 2

Wilson Enterprises has corporate units in a number of countries that are integrated to operate as one organization worldwide.Wilson Enterprises is most likely a(n)________.

Accepted Answer

A)Global corporations have corporate units in a number of countries that are integrated to operate as one organization worldwide.A multinational corporation (MNC)is a firm that is based in one country (the parent or home country)and produces goods or provides services in one or more foreign countries (host countries).

Question 3

A multinational corporation is based in one country and produces goods or provides services in one or more foreign countries.

Accepted Answer

A multinational corporation (MNC)is a firm that is based in one country (the parent or home country)and produces goods or provides services in one or more foreign countries (host countries).A multinational corporation directs manufacturing and marketing operations in several countries; these operations are coordinated by a parent company,usually based in the firm's home country.

Question 4

Research shows that ________ of the total amount of consumers worldwide resides in the United States.

Accepted Answer

B)Only 5 percent of the total amount of consumers worldwide resides in the United States.

Question 5

Hartford Toys is a small business that wants to enter the global market.What is the most common way for small businesses such as Hartford Toys to enter the global market?

Accepted Answer

C)Exporting entails selling abroad,either directly or indirectly,by retaining foreign agents and distributors.It is a way that many small businesses enter the global market.Licensing is usually limited to manufacturers.

Question 6

Procter & Gamble is best categorized as a ________ corporation.

Accepted Answer

C)Not many years ago,Procter & Gamble was primarily a U.S.business investing heavily in food brands.Now it is a truly global corporation with more than 300 brands in more than 180 countries crossing the Americas,Europe,the Middle East and Africa,and Asia.P&G shifted from an MNC to a GC.

Question 7

Licensing is typically used by manufacturing firms that want to globalize.

Accepted Answer

Licensing is an arrangement whereby an organization grants a foreign firm the right to use intellectual properties such as patents,copyrights,manufacturing processes,or trade names for a specific period of time.Licensing is usually limited to manufacturers.

Question 8

Which of the following is based in one country (the parent or home country)and produces goods or provides services in one or more foreign countries (host countries)?

Accepted Answer

B)A multinational corporation (MNC)is a firm that is based in one country (the parent or home country)and produces goods or provides services in one or more foreign countries (host countries).A multinational corporation directs manufacturing and marketing operations in several countries; these operations are coordinated by a parent company,usually based in the firm's home country.

Question 9

Jenny's Jewelry is a small firm that sells its products abroad,either directly or indirectly,by retaining foreign agents and distributors.Jenny's Jewelry is most likely involved in ________.

Accepted Answer

B)Exporting entails selling abroad,either directly or indirectly,by retaining foreign agents and distributors.Foreign investing,licensing,and franchising are other methods for firms globalizing.

Question 10

Franchising is an option whereby the parent company grants another firm the right to do business in a prescribed manner.

Accepted Answer

Franchising is an option whereby the parent company grants another firm the right to do business in a prescribed manner.For example,Subway shops must follow marketing procedures established by the headquarters.Franchising arrangements involve integration of operations with trademark usage.

Question 11

An organization that has corporate units in a number of countries that are integrated to operate as one organization worldwide is a multinational corporation.

Accepted Answer

A multinational corporation (MNC)is a firm that is based in one country (the parent or home country)and produces goods or provides services in one or more foreign countries (host countries).Many firms have evolved beyond being multinational to becoming global corporations (GCs),an organization that has corporate units in a number of countries that are integrated to operate as one organization worldwide.

Question 12

What type of firm directs manufacturing and marketing operations in several countries,and these operations are coordinated by a parent company,usually based in the firm's home country?

Accepted Answer

C)A multinational corporation (MNC)is a firm that is based in one country (the parent or home country)and produces goods or provides services in one or more foreign countries (host countries).A multinational corporation directs manufacturing and marketing operations in several countries; these operations are coordinated by a parent company,usually based in the firm's home country.

Question 13

Which of the following would most likely globalize through licensing?

Accepted Answer

D)Licensing is an arrangement whereby an organization grants a foreign firm the right to use intellectual properties such as patents,copyrights,manufacturing processes,or trade names for a specific period of time.Licensing is usually limited to manufacturers.Franchising is popular with service firms,such as restaurants and hotels.

Question 14

PEC Enterprises is based in the U.S.and produces plastic cooking utensils at plants in Taiwan and India.All operations are coordinated from the firm's U.S.headquarters.PEC Enterprises is most likely a(n)________.

Accepted Answer

D)A multinational corporation (MNC)is a firm that is based in one country (the parent or home country)and produces goods or provides services in one or more foreign countries (host countries).A transnational corporation moves work to the places with the talent to handle the job and the time to do it at the right cost.PEC has headquarters only in the U.S.so it is most likely an MNC.

Question 15

An arrangement whereby the parent company grants another firm the right to do business in a prescribed manner is referred to as ________.

Accepted Answer

D)Franchising is an option whereby the parent company grants another firm the right to do business in a prescribed manner.Licensing is an arrangement whereby an organization grants a foreign firm the right to use intellectual properties such as patents,copyrights,manufacturing processes,or trade names for a specific period of time.

Question 16

Licensing entails selling abroad,either directly or indirectly,by retaining foreign agents and distributors.It is a way that many small businesses enter the global market.

Accepted Answer

Exporting entails selling abroad,either directly or indirectly,by retaining foreign agents and distributors.It is a way that many small businesses enter the global market.Licensing is an arrangement whereby an organization grants a foreign firm the right to use intellectual properties such as patents,copyrights,manufacturing processes,or trade names for a specific period of time.

Question 17

Dailey Enterprises is a mid-sized business that is considering expanding its operations globally.Which of the following is LEAST likely to occur as a result of Dailey globalizing?

Accepted Answer

A)There are a number of benefits for the small- to mid-sized business going global.First,of course,is that having a global customer base provides some protection against domestic business cycles.Companies that tend to export tend to be more profitable,better organized and more competitive than are companies that are exclusively domestically focused.The selection process will not necessarily improve.

Question 18

Exporting is an arrangement whereby an organization grants a foreign firm the right to use intellectual properties such as patents,copyrights,manufacturing processes,or trade names for a specific period of time.

Accepted Answer

Licensing is an arrangement whereby an organization grants a foreign firm the right to use intellectual properties such as patents,copyrights,manufacturing processes,or trade names for a specific period of time.Exporting entails selling abroad,either directly or indirectly,by retaining foreign agents and distributors.It is a way that many small businesses enter the global market.

Question 19

Modern Mosaics,an American firm,has granted a Chinese firm the right to use the Modern Mosaics manufacturing processes for a specific period of time.Modern Mosaics is most likely involved in ________.

Accepted Answer

C)Licensing is an arrangement whereby an organization grants a foreign firm the right to use intellectual properties such as patents,copyrights,manufacturing processes,or trade names for a specific period of time.Franchising is an option whereby the parent company grants another firm the right to do business in a prescribed manner.

Question 20

Which of the following sells similar products throughout the world with components that are made in different countries?

Accepted Answer

D)Global corporations sell essentially the same products throughout the world with components that may be made and/or designed in different countries.Expectations are that as the world becomes more globally open,the globalization of corporations will become much more commonplace.A multinational corporation directs manufacturing and marketing operations in several countries; these operations are coordinated by a parent company,usually based in the firm's home country.

Quiz 14: Global Human Resource Management