Question 1

_____ is selling domestically produced products to customers in foreign countries.

Accepted Answer

A)  Domestic trade 
B)  Entrepot trade 
C)  Importing 
D)  Exporting 
A)  Domestic trade 
B)  Entrepot trade 
C)  Importing 
D)  Exporting

Question 2

The government of Diarmina recently passed a law that requires foreign companies to partner with Diarminian companies if they want to conduct their business in the country. Many investors and companies started to pull their funds and business out of the country because of this. This scenario exemplifies _____.

Accepted Answer

A)  political uncertainty 
B)  cost uncertainty 
C)  policy uncertainty 
D)  control uncertainty 
A)  political uncertainty 
B)  cost uncertainty 
C)  policy uncertainty 
D)  control uncertainty

Question 3

Westburn Inc., a fast-food restaurant chain in Beachden, a European country, opens six outlets in Valcoast, an Asian country. It customizes the menu for the new outlets according to the preferences of the people of Valcoast. This scenario most likely exemplifies the concept of _____.

Accepted Answer

A)  global consistency 
B)  local adaptation 
C)  licensing 
D)  franchising 
A)  global consistency 
B)  local adaptation 
C)  licensing 
D)  franchising

Question 4

The government of Bicana recently passed a law requiring every foreign country operating in Bicana to pay 50% of its earnings in taxes. As a result, many foreign companies are planning to shut down their ventures in the country. This is a type of _____ faced by companies that want to conduct business in Bicana.

Accepted Answer

A)  political uncertainty 
B)  cost uncertainty 
C)  policy uncertainty 
D)  control uncertainty 
A)  political uncertainty 
B)  cost uncertainty 
C)  policy uncertainty 
D)  control uncertainty

Question 5

In the context of nontariff barriers, which of the following is a similarity between quotas and voluntary export restraints?

Accepted Answer

A)  Both impose a complete ban on any kind of trade with a specific country. 
B)  Both limit the amount of a product that can be imported annually. 
C)  Both are imposed by the exporting country rather than the importing country. 
D)  Both levy a direct tax on imported goods. 
A)  Both impose a complete ban on any kind of trade with a specific country. 
B)  Both limit the amount of a product that can be imported annually. 
C)  Both are imposed by the exporting country rather than the importing country. 
D)  Both levy a direct tax on imported goods.

Question 6

Oldhust Corp., an electronics company in the country of Bigmount, bought Specden Corp., an electronics company in the country of Vertholt. This scenario is an example of _____.

Accepted Answer

A)  strategic alliance 
B)  direct foreign investment 
C)  direct export 
D)  joint venture 
A)  strategic alliance 
B)  direct foreign investment 
C)  direct export 
D)  joint venture

Question 7

Ingente Corp. and Ventruni Corp. will be combining their resources to build the largest railway system in the world. Both companies will equally share costs and profits from this venture. This form of global business is an example of a _____.

Accepted Answer

A)  strategic alliance 
B)  wholly owned affiliate 
C)  conglomerate 
D)  franchise 
A)  strategic alliance 
B)  wholly owned affiliate 
C)  conglomerate 
D)  franchise

Question 8

_____ is a government's use of trade barriers to shield domestic companies and their workers from foreign competition.

Accepted Answer

A)  Protectionism 
B)  Developmentalism 
C)  Economic nationalism 
D)  Centralism 
A)  Protectionism 
B)  Developmentalism 
C)  Economic nationalism 
D)  Centralism

Question 9

Jimpeg, a manufacturer of imaging and optical products based in the U.S., operates under the name of Pixpem and SetJpeg in six different countries. The company operates using different names, but it sells the same products in every country. The revenue generated in the different countries goes back to the parent company. Which of the following methods for conducting global business has Jimpeg used in this scenario?

Accepted Answer

A)  The formation of a joint venture 
B)  The establishment of a strategic alliance 
C)  The formation of wholly owned affiliates 
D)  The establishment of a cooperative contract 
A)  The formation of a joint venture 
B)  The establishment of a strategic alliance 
C)  The formation of wholly owned affiliates 
D)  The establishment of a cooperative contract

Question 10

FitForLife Gym, a large U.S. based fitness center, receives royalty payments from WeWelness, a small Canadian company, for using its name and gym equipment. The FitForLife Gym brand is well known across the world and many fitness centers use its brand to attract customers. This form of agreement is an example of _____.

Accepted Answer

A)  direct foreign investment 
B)  exporting 
C)  licensing 
D)  protectionism 
A)  direct foreign investment 
B)  exporting 
C)  licensing 
D)  protectionism

Question 11

Which of the following is an advantage of licensing?

Accepted Answer

A)  It allows companies to earn additional profits without investing more money. 
B)  It provides licensors an exclusive right to conduct business in a particular location. 
C)  It allows companies to bear only part of the costs and the risks of that business. 
D)  It gives the parent company complete control over the foreign facilities. 
A)  It allows companies to earn additional profits without investing more money. 
B)  It provides licensors an exclusive right to conduct business in a particular location. 
C)  It allows companies to bear only part of the costs and the risks of that business. 
D)  It gives the parent company complete control over the foreign facilities.

Question 12

Which of the following is a disadvantage of franchising?

Accepted Answer

A)  Franchisors face tariff and nontariff barriers when trying to enter a market. 
B)  Franchisors face a loss of control when they sell businesses to franchisees who are thousands of miles away. 
C)  Franchisors face power struggles and a lack of leadership when trying to adapt the franchisee's management practices. 
D)  Franchisors can eventually become competitors, especially when a licensing agreement includes access to important technology or proprietary business knowledge. 
A)  Franchisors face tariff and nontariff barriers when trying to enter a market. 
B)  Franchisors face a loss of control when they sell businesses to franchisees who are thousands of miles away. 
C)  Franchisors face power struggles and a lack of leadership when trying to adapt the franchisee's management practices. 
D)  Franchisors can eventually become competitors, especially when a licensing agreement includes access to important technology or proprietary business knowledge.

Question 13

Two factors that help companies determine the growth potential of foreign markets are purchasing power and foreign competitors.

Accepted Answer

A) True 
 B)False

Question 14

Rinsen Corp., a U.S.-based firm, is allowing Blink Traders, a firm based in Ireland, to conduct Rinsen's business in its country. Rinsen Corp. is going to provide training, equipment, and advertising assistance to Blink Traders for initial fee plus royalties. This form of global business is an example of a _____.

Accepted Answer

A)  wholly owned affiliate 
B)  conglomerate 
C)  franchise 
D)  joint venture 
A)  wholly owned affiliate 
B)  conglomerate 
C)  franchise 
D)  joint venture

Question 15

The cultural difference of _____ is the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.

Accepted Answer

A)  long-term orientation 
B)  individualism 
C)  power distance 
D)  uncertainty avoidance 
A)  long-term orientation 
B)  individualism 
C)  power distance 
D)  uncertainty avoidance

Question 16

Which of the following is a difference between global consistency and local adaptation?

Accepted Answer

A)  Unlike global consistency, local adaptation is typically preferred by overseas managers who are charged with making the local business successful in other countries. 
B)  Unlike global consistency, a company following a policy of local adaptation follows the same rules and regulations across all its offices in different countries. 
C)  Unlike global consistency, a company following a policy of local adaptation modifies its standard operating procedures to adapt to differences in foreign customers, governments, and regulatory agencies. 
D)  Unlike global consistency, local adaptation simplifies decisions. 
A)  Unlike global consistency, local adaptation is typically preferred by overseas managers who are charged with making the local business successful in other countries. 
B)  Unlike global consistency, a company following a policy of local adaptation follows the same rules and regulations across all its offices in different countries. 
C)  Unlike global consistency, a company following a policy of local adaptation modifies its standard operating procedures to adapt to differences in foreign customers, governments, and regulatory agencies. 
D)  Unlike global consistency, local adaptation simplifies decisions.

Question 17

Which of the following is a similarity between licensing and franchising?

Accepted Answer

A)  Under both, the produced goods are subject to tariff and nontariff barriers. 
B)  Both require the parent company to invest in production equipment and facilities to produce the
Product. 
C)  Both are types of cooperative contracts. 
D)  Under both, the parent company retains complete control over the quality of the product or service sold by another company. 
A)  Under both, the produced goods are subject to tariff and nontariff barriers. 
B)  Both require the parent company to invest in production equipment and facilities to produce the
Product. 
C)  Both are types of cooperative contracts. 
D)  Under both, the parent company retains complete control over the quality of the product or service sold by another company.

Question 18

Aldhurst Corp., a software manufacturing firm in Lochmount, a European country, bought Fairden Corp., a software manufacturing firm in Vertholt, an Asian country. This scenario is an example of _____.

Accepted Answer

A)  a strategic alliance 
B)  direct foreign investment 
C)  licensing 
D)  a joint venture 
A)  a strategic alliance 
B)  direct foreign investment 
C)  licensing 
D)  a joint venture

Question 19

If companies focus too much on local adaptation, they run the risk of:

Accepted Answer

A)  using management procedures poorly suited to particular countries' markets, cultures, and employees. 
B)  losing the cost effectiveness and productivity that result from using standardized rules and procedures throughout the world. 
C)  losing control over the quality of the product or service sold by the foreign licensee. 
D)  failing to benefit from an active global strategy. 
A)  using management procedures poorly suited to particular countries' markets, cultures, and employees. 
B)  losing the cost effectiveness and productivity that result from using standardized rules and procedures throughout the world. 
C)  losing control over the quality of the product or service sold by the foreign licensee. 
D)  failing to benefit from an active global strategy.

Question 20

Dustind Inc. is expanding its global operations into Arcland in spite of the constant threat of war between Arcland and its neighboring countries over petroleum reserves. As Dustind Inc. expands its operations into Arcland, it must deal with _____.

Accepted Answer

A)  political uncertainty 
B)  purchase uncertainty 
C)  policy uncertainty 
D)  pandemic uncertainty 
A)  political uncertainty 
B)  purchase uncertainty 
C)  policy uncertainty 
D)  pandemic uncertainty

_____ is selling domestically produced products to customers in foreign countries.

Westburn Inc., a fast-food restaurant chain in Beachden, a European country, opens six outlets in Valcoast, an Asian country. It customizes the menu for the new outlets according to the preferences of the people of Valcoast. This scenario most likely exemplifies the concept of _____.

In the context of nontariff barriers, which of the following is a similarity between quotas and voluntary export restraints?

Oldhust Corp., an electronics company in the country of Bigmount, bought Specden Corp., an electronics company in the country of Vertholt. This scenario is an example of _____.

Ingente Corp. and Ventruni Corp. will be combining their resources to build the largest railway system in the world. Both companies will equally share costs and profits from this venture. This form of global business is an example of a _____.

_____ is a government's use of trade barriers to shield domestic companies and their workers from foreign competition.

Which of the following is an advantage of licensing?

Which of the following is a disadvantage of franchising?

Two factors that help companies determine the growth potential of foreign markets are purchasing power and foreign competitors.

The cultural difference of _____ is the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.

Which of the following is a difference between global consistency and local adaptation?

Which of the following is a similarity between licensing and franchising?

Aldhurst Corp., a software manufacturing firm in Lochmount, a European country, bought Fairden Corp., a software manufacturing firm in Vertholt, an Asian country. This scenario is an example of _____.

If companies focus too much on local adaptation, they run the risk of:

Dustind Inc. is expanding its global operations into Arcland in spite of the constant threat of war between Arcland and its neighboring countries over petroleum reserves. As Dustind Inc. expands its operations into Arcland, it must deal with _____.

Management

The History of Management

Organizational Environments and Cultures

Ethics and Social Responsibility

Planning and Decision Making

Organizational Strategy

Innovation and Change

Designing Adaptive Organizations

Managing Teams

Managing Human Resource Systems

Managing Individuals and a Diverse Workforce

Motivation

Leadership

Managing Communication

Control

Managing Information

Managing Service and Manufacturing Operations

Filters

Exam 8: Global Management

_____ is selling domestically produced products to customers in foreign countries.

Westburn Inc., a fast-food restaurant chain in Beachden, a European country, opens six outlets in Valcoast, an Asian country. It customizes the menu for the new outlets according to the preferences of the people of Valcoast. This scenario most likely exemplifies the concept of _____.

In the context of nontariff barriers, which of the following is a similarity between quotas and voluntary export restraints?

Oldhust Corp., an electronics company in the country of Bigmount, bought Specden Corp., an electronics company in the country of Vertholt. This scenario is an example of _____.

Ingente Corp. and Ventruni Corp. will be combining their resources to build the largest railway system in the world. Both companies will equally share costs and profits from this venture. This form of global business is an example of a _____.

_____ is a government's use of trade barriers to shield domestic companies and their workers from foreign competition.

Which of the following is an advantage of licensing?

Which of the following is a disadvantage of franchising?

Two factors that help companies determine the growth potential of foreign markets are purchasing power and foreign competitors.

The cultural difference of _____ is the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.

Which of the following is a difference between global consistency and local adaptation?

Which of the following is a similarity between licensing and franchising?

Aldhurst Corp., a software manufacturing firm in Lochmount, a European country, bought Fairden Corp., a software manufacturing firm in Vertholt, an Asian country. This scenario is an example of _____.

If companies focus too much on local adaptation, they run the risk of:

Dustind Inc. is expanding its global operations into Arcland in spite of the constant threat of war between Arcland and its neighboring countries over petroleum reserves. As Dustind Inc. expands its operations into Arcland, it must deal with _____.

Management

The History of Management

Organizational Environments and Cultures

Ethics and Social Responsibility

Planning and Decision Making

Organizational Strategy

Innovation and Change

Designing Adaptive Organizations

Managing Teams

Managing Human Resource Systems

Managing Individuals and a Diverse Workforce

Motivation

Leadership

Managing Communication

Control

Managing Information

Managing Service and Manufacturing Operations

Filters