Exam 8: Global Management

Direct foreign investment is an increasingly important and common method of conducting global business.

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

Briefly explain the phase model of globalization and list its stages in sequential order.

The acronym GATT stands for the _____.

What were the basic provisions of the General Agreement on Tariffs and Trade (GATT)? Give three examples of how it benefited US industries.

Identify the two basic types of political risk facing organizations when conducting global business. Which one is more common?

For an initial fee and royalties, Lemmongrass Inc. has licensed its entire business to an organization called Powersurge, located in another country. It has provided this organization with training and marketing assistance to successfully run the business. In this context, Powersurge is a(n) _____.

What is the phase model of globalization? Identify the factors that have allowed companies to follow different paths to globalization. Also, explain the nature of a global new venture. Comment on the extent to which it is likely that this latter approach to globalization will increase.

Global joint ventures can be difficult to manage because they represent a merging of four cultures.

Which of the following represents the correct sequence of the phase model of globalization?

One of the disadvantages of global joint ventures is that, like licensing and franchising, they help companies avoid tariff and nontariff barriers to entry.

The most important factor in an attractive business climate is the _____.

German chip manufacturer, Infineon AG, has joined with Motorola Inc. and Agere Systems Inc. to establish a new company in order to develop and license chip designs for cellphones. These three companies have created a _____.

_____ are two kinds of cooperative contracts.

Briefly describe a regional trade agreement and a worldwide trade agreement.

The two kinds of cooperative contracts are licensing and franchising.

Briefly comment on the types of training that should be provided AND to whom that training should be provided in order to ensure the success of managers who go on international assignments.

Define direct foreign investment. Name one of the top five countries with the largest direct foreign investment in the United States.

The Candinia government continues to impose high tariffs on rice to make sure local farmers can earn a living. The tariff on rice is an example of _____.

Stardust Inc. is expanding its global operations into South Fordland in spite of the terrorist activities in the country. As Stardust Inc. expands into South Fordland, it must deal with _____.