Question 1

Which of the following is NOT a disadvantage of doing business in China?

Accepted Answer

High health care costs are not typically listed as a disadvantage of doing business in China. However, human rights violations, piracy and counterfeiting, and pollution problems are common concerns for businesses operating in China.

Question 2

Bianca is president of a premium home furnishings manufacturer in the United States.After visiting Rio on vacation,she is interested in doing business with Brazil.Which of the following is NOT a potential risk that could give Bianca second thoughts?

Accepted Answer

The answer of Bianca is president of a premium home...

Question 3

Poorvi's company produces organic snack foods.To meet growing demand,she can expand the existing production,packing and shipping facility.Instead,Poorvi will expand production in-house and subcontract packing and shipping to companies in an adjacent industrial park.Which process is Poorvi implementing?

Accepted Answer

Poorvi is implementing outsourcing by subcontracting packing and shipping to other companies. Offshoring involves shifting production to another country, job migration involves moving jobs to a different location, and diversification involves expanding into new product lines or markets.

Question 4

Which EU member does not use the euro as its currency?

Accepted Answer

Great Britain is the EU member that does not use the euro as its currency. They have chosen to keep using their currency, the British pound (GBP).

Question 5

Manuel is an economic analyst in Argentina.One of his projects is running models to determine the most effective approach to creating a single market system with neighboring countries.Which of the following is the focus of Manuel's work?

Accepted Answer

Manuel's work is focused on the potential creation of a single market system with neighboring countries, indicating a likely focus on regional integration in Latin America. UNASUR (Union of South American Nations) is a regional integration organization comprising 12 South American countries, making it the most likely choice among the options provided. NAFTA (North American Free Trade Agreement) and CAFTA (Central American Free Trade Agreement) are trade agreements between specific countries in North America and Central America, respectively. APEC (Asia-Pacific Economic Cooperation) is a forum for economic cooperation among 21 Pacific Rim countries, making it an unlikely choice for Manuel's work focused specifically on Latin America.

Question 6

Tony's pizza chain experienced amazing growth throughout the United States.When he expanded into foreign markets,he retained the same menu that drove the company's initial success.In three years,all the foreign restaurants failed.What was Tony's strategic error?

Accepted Answer

The answer of Tony's pizza chain experienced amazing growth throughout...

Question 7

Tamara is planning to establish a company,and wants to secure resources and marketing channels in multiple countries at the same time.What is the best strategy for Tamara to achieve the company's goals?

Accepted Answer

Using a global new venture start-up model would be the best strategy for Tamara to secure resources and marketing channels in multiple countries at the same time. This model involves simultaneously entering several countries and establishing a presence through partnerships, joint ventures, or wholly-owned subsidiaries. It allows for faster and more efficient scaling, as well as access to local knowledge and resources. Establishing licensing agreements, emphasizing hybridization of operations, or focusing on ramping up exports may not provide the same level of reach or control as the global new venture start-up model.

Question 8

Tricia recently began a new job in a formerly isolated socialist country that is transitioning into a market-based economy.Walking around the fast-growing city,she is surprised to see billboards glorifying the country's leaders and policies.What is Tricia experiencing?

Accepted Answer

Tricia is experiencing propaganda, which is a systematic effort to manipulate public opinion using various forms of media. The billboards she observes are likely promoting the government's policies and trying to shape public perception.

Question 9

Supporters of globalization claim that it will end poverty by ________.

Accepted Answer

Supporters of globalization argue that multinational corporations investing in underdeveloped regions will stimulate economic growth and create job opportunities, leading to an increase in the standard of living and a decrease in poverty. They argue that this investment will lead to the transfer of technology, knowledge, and skills that will benefit local populations in the long run.

Question 10

Ahmed is CEO of Cook-Rite,a company that manufactures kitchen appliances.Recently he decided to add a third shift to help lower the company's per-unit production costs.What business strategy is Ahmed implementing?

Accepted Answer

Ahmed is implementing the economy of scale business strategy by adding a third shift to lower the company's per-unit production costs. This is because the increased production volume would spread out fixed costs over a larger number of units, resulting in a lower per-unit cost of production.

Question 11

Which of the following is NOT considered a key competency for working in another country?

Accepted Answer

While global finance may be a useful skill, it is not considered a key competency for working in another country. The other three options (adaptability, communication, and organizational awareness) are crucial for success in a cross-cultural work environment.

Question 12

Which of the following is a primary function of the World Trade Organization?

Accepted Answer

The primary function of the World Trade Organization is to settle trade disputes between member countries. It serves as a forum for negotiations and enforces rules and regulations for international trade. It is not directly involved in setting wages or protecting against global warming.

Question 13

Donell is researching the benefits and challenges of doing business in China for his economics class.Which of the following is NOT considered a potential disadvantage to doing business with China?

Accepted Answer

Health care costs are not typically considered a disadvantage to doing business with China. Safety standards, human rights violations, and environmental sustainability are often cited as potential disadvantages.

Question 14

Estella has always wanted to help make a positive impact on the world in her career.So she is excited to start her new job with a nonprofit organization that combines the talents of business,political,social,and intellectual leaders around the world.Where does Estella work?

Accepted Answer

The World Economic Forum is a nonprofit organization that brings together business, political, social, and intellectual leaders from around the world to address global issues and make positive change. This matches Estella's desire to work in a role that makes a positive impact on the world. The other options do not necessarily have the same focus on addressing global issues through collaboration between leaders from different sectors.

Question 15

Seth is CEO of U.S.-based Fun Tyme Toys.For the past ten years the company has manufactured its products in Southeast Asia.Following the 2008 global recession,Seth began shifting production to the Midwest in the U.S.What practice is Fun Tyme Toys implementing?

Accepted Answer

Fun Tyme Toys is implementing the practice of localization by shifting production to the Midwest in the U.S. This is an example of producing goods closer to the market they are being sold in, rather than outsourcing production to another country, which is a common practice in globalization. Hybridization refers to a mixing or blending of different cultures, which is not relevant in this scenario. McDonaldization refers specifically to the standardized and efficient processes used in fast-food restaurants, and is not applicable to this situation.

Question 16

Troy's small startup software company,Zapp App,has experienced tremendous growth and is ready to go international.However,he has concerns about losing revenue to pirating and counterfeiting.Which country poses the greatest risk for Zapp App?

Accepted Answer

China is a known hub for counterfeit goods, including software piracy. It has a vast and complex market with varying levels of intellectual property protection, making it difficult for foreign companies to protect their products. Therefore, it poses the greatest risk for Zapp App.

Question 17

You are thinking of launching an Internet campaign to promote your new band,Global Warning.In which country would your campaign have the lowest penetration based on Internet access?

Accepted Answer

The answer of You are thinking of launching an Internet...

Question 18

Jamal is chief economic advisor in the government of one of the world's top-level economies.One of his responsibilities is to travel with the country's leader to attend the meetings of the ________.

Accepted Answer

The Group of Eight (G8) consists of the world's major advanced economies, and it's common for top-level economic advisors like Jamal to attend such meetings with their country's leader to discuss global economic issues.

Question 19

Laurent is CEO of a software firm in central France.After monitoring the Russian economy since the end of the Cold War,Laurent feels it is time to explore business opportunities in the country.Which of the following issues would present a challenge to Laurent's mission?

Accepted Answer

Russian law can be complex and difficult to navigate for foreign businesses. Without a thorough understanding of the legal system and business regulations, operating in Russia can be challenging and potentially risky. The other options (A, B, and D) may also be factors to consider, but are generally not seen as major obstacles to doing business in Russia.

Question 20

Tam is working on a research project for school; assessing the impacts of a particular trade alliance on its members' countries.Compared to his classmates,Tam feels lucky because he only needs to examine three countries.What is the focus of Tam's project?

Accepted Answer

Tam's project focuses on NAFTA, which originally included three countries: the United States, Canada, and Mexico.

Quiz 14: Globalization: Managing Effectively in a Global Economic Environment