Question 1

A _____ is an agreement in which companies combine key resources, costs, risks, technology, and people.

Accepted Answer

A)  strategic alliance 
B)  business acquisition 
C)  merger 
D)  divestiture 
A)  strategic alliance 
B)  business acquisition 
C)  merger 
D)  divestiture

Question 2

Petnro, a bike manufacturing firm based in the U.S., operates bike manufacturing plants in China, Japan, Taiwan, and Singapore under the name of BikMe. The parent company receives all the profits made by these facilities, and it has complete control over all the different segments of the plants. Which of the following methods for conducting global business has Petnro 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 3

_____ can help reduce uncertainty about how to act and decrease misunderstandings between expatriates and their families and locals.

Accepted Answer

A)  Cross-cultural training 
B)  Socialization training 
C)  Transculturation 
D)  Interculturalism 
A)  Cross-cultural training 
B)  Socialization training 
C)  Transculturation 
D)  Interculturalism

Question 4

LyTV, a large U.S. based broadcast network, receives royalty payments from TipTV, a small Ukrainian broadcast network, for using its channels and television programs. TipTV hopes to improve the viewership of its network by making use of LyTV's popularity. 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 5

Local adaptation is typically preferred by managers who are charged with making the international business successful in their countries, whereas managers at the headquarters of multinational companies value global consistency because it simplifies decisions.

Accepted Answer

A) True 
 B)False

Question 6

Pancken Corp. has never operated outside the country it is based in and wants to open a branch in a different country. It plans on sending some of its employees to the new country. Before doing so, it trains all its employees by showing them videos about the new country. It also guides them in taking part in roleplays where they are presented with real-world situations related to the new country. In the context of preparing for an international assignment, when would this type of training be given to employees?

Accepted Answer

A)  During documentary training 
B)  During cultural simulation 
C)  During field simulation 
D)  During adaptive screening 
A)  During documentary training 
B)  During cultural simulation 
C)  During field simulation 
D)  During adaptive screening

Question 7

Ritzuo Corp. is going to send its employees to China for a business venture, so it is training all its employees about Chinese culture. The trainees are asked to explore a nearby neighborhood and talk to the residents about Chinese politics, customs, and day-to-day living. In the context of preparing for an international assignment, when would this type of training be given to employees?

Accepted Answer

A)  During documentary training 
B)  During cultural simulation 
C)  During field simulation 
D)  During adaptive screening 
A)  During documentary training 
B)  During cultural simulation 
C)  During field simulation 
D)  During adaptive screening

Question 8

Emeremen Corp., an automobile manufacturer in Mallowdeer, plans to enter a foreign market. It wants to establish its new office in Ostview. Which of the following is a qualitative factor that should be considered by Emeremen Corp. while choosing a new office location?

Accepted Answer

A)  Company strategy 
B)  Tariff and nontariff barriers 
C)  Transportation costs 
D)  Exchange rates 
A)  Company strategy 
B)  Tariff and nontariff barriers 
C)  Transportation costs 
D)  Exchange rates

Question 9

Which of the following is a disadvantage of wholly owned affiliates?

Accepted Answer

A)  The high risk of losing intellectual property 
B)  The slow execution of strategic priorities 
C)  The cost of selling existing business 
D)  The expense of building new operations 
A)  The high risk of losing intellectual property 
B)  The slow execution of strategic priorities 
C)  The cost of selling existing business 
D)  The expense of building new operations

Question 10

Which of the following statements is true of the Maastricht Treaty of Europe?

Accepted Answer

A)  Its purpose was to liberalize trade between countries so that businesses could plan for one market rather than for three separate markets. 
B)  Its purpose was to transform twelve different economies and currencies into one common economic market with one common currency. 
C)  Its purpose was to eliminate most product tariffs and prevent the member countries from increasing existing tariffs or introducing new ones. 
D)  Its purpose was to permit free movement between nations, creating a common infrastructure that includes an interoceanic highway. 
A)  Its purpose was to liberalize trade between countries so that businesses could plan for one market rather than for three separate markets. 
B)  Its purpose was to transform twelve different economies and currencies into one common economic market with one common currency. 
C)  Its purpose was to eliminate most product tariffs and prevent the member countries from increasing existing tariffs or introducing new ones. 
D)  Its purpose was to permit free movement between nations, creating a common infrastructure that includes an interoceanic highway.

Question 11

The government of Diamza recently passed a law making it mandatory for any foreign company that wants to do business in its country to only use raw materials made in Diamza and only hire citizens. This is a type of _____ faced by companies that want to conduct business in Diamza.

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 12

Which of the following is the most important factor in determining the success and failure of an international assignment?

Accepted Answer

A)  The willingness of an expatriate's spouse to leave his or her present job 
B)  How fluent an expatriate is in foreign languages 
C)  An expatriate's willingness to go for a preassignment trip 
D)  How well an expatriate's spouse and family adjust to the foreign culture 
A)  The willingness of an expatriate's spouse to leave his or her present job 
B)  How fluent an expatriate is in foreign languages 
C)  An expatriate's willingness to go for a preassignment trip 
D)  How well an expatriate's spouse and family adjust to the foreign culture

Question 13

Pinkmake Inc. is expanding its global operations into Jartainia in spite of the frequent changes in its government due to the assassination attempts on its prominent leaders. As Pinkmake Inc. expands into Jartainia, 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

Question 14

Which of the following is an advantage of joint ventures?

Accepted Answer

A)  They provide companies an exclusive right to conduct business in a particular location. 
B)  They give companies training and assistance with marketing and advertising. 
C)  They help companies avoid tariff and nontariff barriers to entry. 
D)  They allow companies to earn additional profits without investing more money. 
A)  They provide companies an exclusive right to conduct business in a particular location. 
B)  They give companies training and assistance with marketing and advertising. 
C)  They help companies avoid tariff and nontariff barriers to entry. 
D)  They allow companies to earn additional profits without investing more money.

Question 15

The difference between voluntary export restraints and quotas is that:

Accepted Answer

A)  unlike quotas, voluntary export restraints limit the amount of a product that can be imported annually. 
B)  unlike quotas, voluntary export restraints are imposed by the importing company. 
C)  unlike quotas, voluntary export restraints limit the amount of a product that can be exported annually. 
D)  unlike quotas, voluntary export restraints are imposed by the exporting company. 
A)  unlike quotas, voluntary export restraints limit the amount of a product that can be imported annually. 
B)  unlike quotas, voluntary export restraints are imposed by the importing company. 
C)  unlike quotas, voluntary export restraints limit the amount of a product that can be exported annually. 
D)  unlike quotas, voluntary export restraints are imposed by the exporting company.

A _____ is an agreement in which companies combine key resources, costs, risks, technology, and people.

_____ can help reduce uncertainty about how to act and decrease misunderstandings between expatriates and their families and locals.

Local adaptation is typically preferred by managers who are charged with making the international business successful in their countries, whereas managers at the headquarters of multinational companies value global consistency because it simplifies decisions.

Emeremen Corp., an automobile manufacturer in Mallowdeer, plans to enter a foreign market. It wants to establish its new office in Ostview. Which of the following is a qualitative factor that should be considered by Emeremen Corp. while choosing a new office location?

Which of the following is a disadvantage of wholly owned affiliates?

Which of the following statements is true of the Maastricht Treaty of Europe?

The government of Diamza recently passed a law making it mandatory for any foreign company that wants to do business in its country to only use raw materials made in Diamza and only hire citizens. This is a type of _____ faced by companies that want to conduct business in Diamza.

Which of the following is the most important factor in determining the success and failure of an international assignment?

Pinkmake Inc. is expanding its global operations into Jartainia in spite of the frequent changes in its government due to the assassination attempts on its prominent leaders. As Pinkmake Inc. expands into Jartainia, it must deal with _____.

Which of the following is an advantage of joint ventures?

The difference between voluntary export restraints and quotas is that:

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

A _____ is an agreement in which companies combine key resources, costs, risks, technology, and people.

_____ can help reduce uncertainty about how to act and decrease misunderstandings between expatriates and their families and locals.

Local adaptation is typically preferred by managers who are charged with making the international business successful in their countries, whereas managers at the headquarters of multinational companies value global consistency because it simplifies decisions.

Emeremen Corp., an automobile manufacturer in Mallowdeer, plans to enter a foreign market. It wants to establish its new office in Ostview. Which of the following is a qualitative factor that should be considered by Emeremen Corp. while choosing a new office location?

Which of the following is a disadvantage of wholly owned affiliates?

Which of the following statements is true of the Maastricht Treaty of Europe?

The government of Diamza recently passed a law making it mandatory for any foreign company that wants to do business in its country to only use raw materials made in Diamza and only hire citizens. This is a type of _____ faced by companies that want to conduct business in Diamza.

Which of the following is the most important factor in determining the success and failure of an international assignment?

Pinkmake Inc. is expanding its global operations into Jartainia in spite of the frequent changes in its government due to the assassination attempts on its prominent leaders. As Pinkmake Inc. expands into Jartainia, it must deal with _____.

Which of the following is an advantage of joint ventures?

The difference between voluntary export restraints and quotas is that:

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