Question 1

After Malta was permitted to join the European Union (EU), the other countries of the EU removed all taxes on the import of goods manufactured in Malta. Malta was preparing to become part of a(n) ____.

Accepted Answer

A) zone of ethnocentricity 
B) regional trading zone 
C) high tariff trading zone 
D) international cartel 
E) global market

Question 2

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

A) True 
 B)False

Question 3

_____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country.

Accepted Answer

A) National mindset 
B) National culture 
C) Cultural nationalization 
D) Cultural diversity 
E) National diversity

Question 4

The _____ created a regional trading zone in Europe.

Accepted Answer

A) Free Trade Agreement 
B) ​Maastricht Treaty 
C) Global Agreement for Transactional Trading 
D) Asia­Pacific Economic Cooperation 
E) Association of Southeast Asian Nations

Question 5

Explain how the concepts of global consistency and local adaptation are relevant to the success of a global business. Give one example of a good or service that would be likely to succeed with the use of global consistency. Give one example of a good or service that would be likely to succeed with the use of local adaptation.

Accepted Answer

The answer of Explain how the concepts of global consistency...

Question 6

Briefly explain how companies can assess the growth potential of new markets.

Accepted Answer

The answer of Briefly explain how companies can assess the...

Question 7

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) _____.

Accepted Answer

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

Question 8

​Global business:

Accepted Answer

A) ​is 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) ​is the setting up of a factory in a country other than the parent country. 
E) ​is unregulated.

Question 9

A joint venture is an example of a strategic alliance.

Accepted Answer

A) True 
 B)False

Question 10

A _____ is a strategic alliance in which two existing companies collaborate to form a third, independent company.

Accepted Answer

A) joint venture 
B) franchise 
C) wholly owned affiliate 
D) global new venture 
E) cooperative contract

Question 11

The biggest disadvantage associated with licensing is that the licensor gives up control over the quality of the good or service sold by the foreign licensee.

Accepted Answer

A) True 
 B)False

Question 12

Clive Motor Company solely owns and operates manufacturing plants in Brazil, Chile, Germany and India. Which of the following methods for conducting global business has Clive Motor Company used in this example?

Accepted Answer

A) Joint venture 
B) Strategic alliance 
C) Cooperative contract 
D) Wholly owned affiliate 
E) Strategic franchise

Question 13

Multinational corporations are corporations that own businesses in two or more countries.

Accepted Answer

A) True 
 B)False

Question 14

Hofstede's research has shown that there are _____.

Accepted Answer

A) no cultural differences among nations in which Spanish is the national language 
B) two distinct methods for dealing with cultural differences­­ adaptation and continuation 
C) direct relationships existing between type of infrastructures and growth potential 
D) five consistent dimensions of cultural differences across countries 
E) four factors upon which a company should base its decision to globalize

Question 15

In a multinational company, managers at company headquarters value global consistency as it simplifies decision making.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The phase model of globalization is one in which a company makes the transition from a domestic company to a global company in three sequential phases. The three phases are exporting, wholly owned subsidiaries, and strategic alliances.

Accepted Answer

A) True 
 B)False

Question 18

The Xenonian government has banned the import of snow skis from other countries as there were many fatal accidents involving poorly built snow skis. As a result, all snow skis marketed in Xenonia must now be manufactured in Xenonia. This is an example of a(n) _____.

Accepted Answer

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

Question 19

_____ is a method in which a company builds a new business or buys an existing business in a foreign country.

Accepted Answer

A) Strategic alliance 
B) Direct foreign investment 
C) Global new venture 
D) Joint venture 
E) Direct exporting

Question 20

Starshine Inc., a toy manufacturing company, has collaborated with Capsidy Corp., a book publishing company, to come up with a third company, Starcap Inc., which manufactures educational toys and games for preschool children. In this context, Starcap is a(n) _____. ​

Accepted Answer

A) ​franchise 
B) ​strategic alliance 
C) ​licensee 
D) ​joint venture 
E) ​exporter

Exam 8: Global Management

After Malta was permitted to join the European Union (EU) , the other countries of the EU removed all taxes on the import of goods manufactured in Malta. Malta was preparing to become part of a(n) ____.

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.

_____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country.

The _____ created a regional trading zone in Europe.

Briefly explain how companies can assess the growth potential of new markets.

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) _____.

Global business:

A joint venture is an example of a strategic alliance.

A _____ is a strategic alliance in which two existing companies collaborate to form a third, independent company.

The biggest disadvantage associated with licensing is that the licensor gives up control over the quality of the good or service sold by the foreign licensee.

Clive Motor Company solely owns and operates manufacturing plants in Brazil, Chile, Germany and India. Which of the following methods for conducting global business has Clive Motor Company used in this example?

Multinational corporations are corporations that own businesses in two or more countries.

Hofstede's research has shown that there are _____.

In a multinational company, managers at company headquarters value global consistency as it simplifies decision making.

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

The phase model of globalization is one in which a company makes the transition from a domestic company to a global company in three sequential phases. The three phases are exporting, wholly owned subsidiaries, and strategic alliances.

The Xenonian government has banned the import of snow skis from other countries as there were many fatal accidents involving poorly built snow skis. As a result, all snow skis marketed in Xenonia must now be manufactured in Xenonia. This is an example of a(n) _____.

_____ is a method in which a company builds a new business or buys an existing business in a foreign country.

Starshine Inc., a toy manufacturing company, has collaborated with Capsidy Corp., a book publishing company, to come up with a third company, Starcap Inc., which manufactures educational toys and games for preschool children. In this context, Starcap is a(n) _____.

Exam 8: Global Management

After Malta was permitted to join the European Union (EU) , the other countries of the EU removed all taxes on the import of goods manufactured in Malta. Malta was preparing to become part of a(n) ____.

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.

_____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country.

The _____ created a regional trading zone in Europe.

Briefly explain how companies can assess the growth potential of new markets.

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) _____.

​Global business:

A joint venture is an example of a strategic alliance.

A _____ is a strategic alliance in which two existing companies collaborate to form a third, independent company.

The biggest disadvantage associated with licensing is that the licensor gives up control over the quality of the good or service sold by the foreign licensee.

Clive Motor Company solely owns and operates manufacturing plants in Brazil, Chile, Germany and India. Which of the following methods for conducting global business has Clive Motor Company used in this example?

Multinational corporations are corporations that own businesses in two or more countries.

Hofstede's research has shown that there are _____.

In a multinational company, managers at company headquarters value global consistency as it simplifies decision making.

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

The phase model of globalization is one in which a company makes the transition from a domestic company to a global company in three sequential phases. The three phases are exporting, wholly owned subsidiaries, and strategic alliances.

The Xenonian government has banned the import of snow skis from other countries as there were many fatal accidents involving poorly built snow skis. As a result, all snow skis marketed in Xenonia must now be manufactured in Xenonia. This is an example of a(n) _____.

_____ is a method in which a company builds a new business or buys an existing business in a foreign country.

Starshine Inc., a toy manufacturing company, has collaborated with Capsidy Corp., a book publishing company, to come up with a third company, Starcap Inc., which manufactures educational toys and games for preschool children. In this context, Starcap is a(n) _____. ​

Global business:

Starshine Inc., a toy manufacturing company, has collaborated with Capsidy Corp., a book publishing company, to come up with a third company, Starcap Inc., which manufactures educational toys and games for preschool children. In this context, Starcap is a(n) _____.