Question 1

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_________ .
A) multidomestic global company
B) multinational corporation
C) ethnocentric organization
D) acculturated corporation
E) macro-marketer

Accepted Answer

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

Question 2

Several Arab countries boycott Coca-Cola products because the soft-drink company maintains product distributors in Israel. This boycott is an example of________ .
A) geocentrism
B) nationalism
C) nationalization
D) a trade barrier
E) acculturation

Accepted Answer

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

Question 3

Which of the following countries has the largest direct foreign investment in the United States?
A) Netherlands
B) Germany
C) Japan
D) Canada
E) United Kingdom

Accepted Answer

The Netherlands is the largest direct foreign investor in the United States, with a total investment of $472.5 billion in 2020.

Question 4

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_________ .
A) a voluntary government restriction
B) geocentrism
C) protectionism
D) a security quota
E) a bureaucratic subsidy

Accepted Answer

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

Question 5

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) ____.
A) tariff
B) nontariff barrier
C) import boycott
D) industry subsidy
E) industry nationalization

Accepted Answer

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

Question 6

Protectionism is the use of trade barriers to protect local companies and their workers from__________ .
A) international unions
B) foreign competition
C) trademark infringements
D) patent violations
E) all of these

Accepted Answer

This is the definition of protectionism.

Question 7

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 surveys conducted by various organizations and scholars have consistently shown that the adjustment and satisfaction of an expatriate's spouse and family play a significant role in the success of an international assignment. A content and well-adjusted family can positively impact the expatriate's performance and commitment to the job, while an unhappy and struggling family can lead to early termination of the assignment.

Question 8

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 9

A___________ is a nontax method of increasing the cost or reducing the volume of imported goods.
A) tariff
B) nontariff barrier
C) trade roadblock
D) risk-aversive boycott
E) subsidy quota

Accepted Answer

Nontariff barriers are nontax methods used to increase the cost or reduce the volume of imported goods. Examples of nontariff barriers include quotas, licensing requirements, and technical barriers to trade. Tariffs, on the other hand, are taxes imposed on imported goods, which increase their price and make them less competitive in the domestic market. Trade roadblocks and risk-aversive boycotts are not commonly used terms in international trade, and a subsidy quota would actually be a form of government support for domestic producers, rather than a nontax method of limiting imports.

Question 10

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.
A) tariff
B) nontariff barrier
C) trade roadblock
D) boycott quota
E) import subsidy

Accepted Answer

Tariffs are defined as a direct tax on imported goods.

Question 11

Global business is defined as_________ .
A) the buying and selling of goods and services to people from different countries
B) includes any sale of goods and services
C) only involves companies with more than 50 employees
D) refers to sales made to people from different cultures, different regions, and different nations
E) is unregulated

Accepted Answer

This is the definition of global business.

Question 12

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

Accepted Answer

This is a correct statement as avoidance, control, and cooperation are three common strategies used by businesses to deal with political risks when operating in a global market.

Question 13

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.
A) import quotas
B) customs classifications
C) import standards
D) tariffs
E) boycotts

Accepted Answer

Tariffs are defined as a direct tax on imported goods.

Question 14

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)____________ .
A) import duty
B) voluntary import restraint
C) subsidy
D) financial boycott
E) tariff

Accepted Answer

Tariffs are defined as a direct tax on imported goods.

Question 15

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

Accepted Answer

Deciding where to expand your company globally is crucial in determining the success of your international business ventures. Factors such as cultural differences, market demand, political stability, and legal requirements must be taken into consideration when selecting potential locations for expansion.

Question 16

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 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.

Question 17

_______is a method of investment in which a company builds a new business or buys an existing business in a foreign country.
A) A strategic alliance
B) Direct foreign investment
C) A global new venture
D) A joint venture
E) Direct exporting

Accepted Answer

Direct foreign investment is a method of investment in which a company builds a new business or buys an existing business in a foreign country. Strategic alliances involve partnerships between companies, while joint ventures involve two or more companies collaborating to create a new business entity. Global new ventures are newly created businesses with a global focus. Direct exporting involves a company selling its products or services directly to customers in a foreign country.

Question 18

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 19

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

Accepted Answer

Choosing a location for an office or manufacturing facility involves factors such as proximity to suppliers, access to transportation, cost of real estate, and availability of labor. On the other hand, entering a foreign market involves factors such as cultural differences, legal regulations, political stability, market demand, and competition. Therefore, the criteria for both are different.

Question 20

The two general kinds of trade barriers are___________ .
A) government import standards and industry import standards
B) qualitative and quantitative barriers
C) voluntary and involuntary barriers
D) nationalistic and geocentric barriers
E) tariff barriers and nontariff barriers

Accepted Answer

Tariff barriers refer to taxes or duties imposed on imported goods, while nontariff barriers are any other measure used to restrict or regulate international trade, such as quotas, subsidies, embargoes, and regulations. Therefore, E is the best choice as it accurately describes the two general kinds of trade barriers.

Quiz 8: Section 1: Global Management

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_________ .

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

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

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_________ .

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) ____.

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

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.

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

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

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.

Global business is defined as_________ .

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

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.

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) ____________ .

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

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.

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

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

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

The two general kinds of trade barriers are___________ .