Exam 4: Managing in a Global Environment

Countertrade refers to any situation where a purchaser from a foreign country argues for a reduction in the terms of trade (especially with regards to export purchases).

Difficulties in mining operations in Bougainville,Papua New Guinea,have been extremely costly to a number of Australian companies.The inherent form of risk here is __________ risk.

A company in the international stage often uses an international division to deal with the marketing of products in several countries individually.

A(n)______________________ (two words)represents the most risky type of direct investment,in which a company builds a subsidiary from scratch in a foreign country.

In the __________ stage,market potential is limited to home country,with all production and marketing facilities located at home.

The __________ rate is the rate at which one country's currency is exchanged for another country's currency.

In relationship-oriented societies,leaders should:

List three examples of a 'political risk'.

__________________ represents an entry strategy in which an organisation in one country makes certain resources available to organisations in another in order to participate in the production and sale of its products abroad.

Changes in monetary exchange rates can have major implications for the profitability of international operations.

Global outsourcing means engaging in the international division of labour so that manufacturing occurs in countries with the cheapest sources of labour and supplies.

Germany's cultural preference is for achievement,heroism,assertiveness and material success.This would be considered:

Interest rates measure the annual rate of growth of prices in the Australian economy,while inflation rates measure the cost of borrowing money.

In which stage does the company usually adopt a multi-domestic approach?

List the key factors in the economic,legal/political and sociocultural contexts.

High _______________________ (two words)means that members of a society feel uncomfortable with uncertainty and ambiguity,and thus support beliefs that promise certainty and conformity.

In the ____________________ stage,an organisation's market potential is limited to the home country.

List the three examples of direct investing mentioned in the text.

______________________ (two words)represents an entry strategy in which the organisation is involved in managing its production facilities in a foreign country.

The risk of loss due to actions by host country governments is known as ____________________ risk.