Question 1

​Tugstinia is one of only two countries in the world that produces a mineral required in the manufacturing of cellular phones. Several mining companies recently moved their operations out of the region due to a civil war resulting from a change in rulers. This is an example of how can influence global business.

Accepted Answer

A) ​political uncertainty 
B) ​policy uncertainty 
C) ​economic risk 
D) ​infrastructure failure 
E) ​nationalization

Question 2

Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of lipstick annually in Japan. It has no physical presence in Japan beyond the fact that its products are sold there. Which of the following technique does the company adopt to reach the Japanese market?

Accepted Answer

A) Franchising 
B) Direct investment 
C) Licensing 
D) Strategic alliance 
E) Exporting

Question 3

An expatriate is someone who _____.

Accepted Answer

A) claims dual citizenship 
B) lives and works outside his or her own country 
C) believes strongly in nationalization 
D) is unhappy with his or her present residence 
E) desires to be employed in a country other than his or her own country

Question 4

Expatriate trainees who were assigned work in China were placed in a Chinese neighborhood for a day to interact with the citizens and to gather information about the country and its culture. In this context, the trainees were engaged in _____.​

Accepted Answer

A) ​field simulations 
B) ​documentary training 
C) ​adaptability screening 
D) ​cultural simulations 
E) ​cultural briefing

Question 5

A(n) _____ is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.

Accepted Answer

A) exporting agreement 
B) cooperative contract 
C) joint venture 
D) strategic alliance 
E) free­trade agreement

Question 6

Sodima is a French cooperative that owns the name, the trade secrets, and the patents of Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of _____.

Accepted Answer

A) licensing 
B) a global joint venture 
C) exporting 
D) a strategic alliance 
E) direct investment

Question 7

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. In this scenario, the EU abolished the _____ for Malta-manufactured merchandise.

Accepted Answer

A) import quotas 
B) customs classification 
C) import standards 
D) tariffs 
E) tonnage duty

Question 8

What are the strategies that can be used to minimize or adapt to the political risk inherent in global business?

Accepted Answer

A) Protectionist, avoidance, and offensive strategies 
B) Creative, cooperative, and defensive strategies 
C) Cooperative, customary, and nationalistic strategies 
D) Avoidance, protectionist, and guerrilla strategies 
E) Control, avoidance, and cooperation strategies

Question 9

Managing global joint ventures can be difficult because they:

Accepted Answer

A) ​represent a merging of four cultures. 
B) ​increase the number of tariffs that have to be paid. 
C) ​can only be used by large companies that already have an international presence. 
D) ​use local consistency in marketing. 
E) ​help companies to allow nontariff barriers to entry.

Question 10

The General Agreement on Tariffs and Trade (GATT) _____.

Accepted Answer

A) increased both tariffs and nontariff barriers 
B) removed limits on government subsidies 
C) imposed tariffs on specific industries 
D) protected intellectual property 
E) increased tariffs by 40 percent on average worldwide

Question 11

A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In this context, which of the following is a determining factor in its global strategy?

Accepted Answer

A) Purchasing power 
B) Political uncertainty 
C) Expropriation potential 
D) Infrastructure costs 
E) Sociocultural trends

Question 12

Which of the following is a trend that has allowed companies to skip the phase model when going global?

Accepted Answer

A) Quick, reliable air travel 
B) The globalization of the trend 
C) A critical need for resources 
D) The complete metamorphosis of marketplaces 
E) Cheap labor in developing countries

Question 13

Which of the following factors helps a company determine the growth potential of a foreign market?

Accepted Answer

A) Political uncertainty 
B) Purchasing power 
C) Type of infrastructure 
D) Land availability 
E) Policy uncertainty

Question 14

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

Accepted Answer

A) True 
 B)False

Question 15

Global business is defined as the buying and selling of goods and services by people from different countries.

Accepted Answer

A) True 
 B)False

Question 16

What are trade barriers and identify the two general kinds of trade barriers used by governments. Give one example of each.

Accepted Answer

The answer of What are trade barriers and identify the...

Question 17

_____ occurs when a company sells domestically produced products to customers in foreign countries.

Accepted Answer

A) Direct foreign investment 
B) Franchising 
C) Licensing 
D) Exporting 
E) Cooperative contract

Question 18

_____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies in special industries.

Accepted Answer

A) Quotas 
B) Voluntary export restraints 
C) Cooperative contracts 
D) Subsidies 
E) Tariffs

Question 19

Most companies have used the _____ to successfully enter foreign markets.

Accepted Answer

A) phase model of globalization 
B) global new venture technique 
C) ripple method 
D) market echo approach 
E) guerrilla approach

Question 20

A married manager with two children has been offered the opportunity to go abroad on an expatriate assignment for the company for a period of three years. If the manager chooses to accept the assignment, he or she wants to perform very well in order to continue moving up the corporate ladder. What sorts of preparations should the manager expect the company to provide in order to ensure his or her success on the assignment? Comment on these training and preparatory expectations that the manager will probably face in an ideal world as well as in the real world.

Accepted Answer

The answer of A married manager with two children has...

Exam 8: Global Management

Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of lipstick annually in Japan. It has no physical presence in Japan beyond the fact that its products are sold there. Which of the following technique does the company adopt to reach the Japanese market?

An expatriate is someone who _____.

Expatriate trainees who were assigned work in China were placed in a Chinese neighborhood for a day to interact with the citizens and to gather information about the country and its culture. In this context, the trainees were engaged in _____.

A(n) _____ is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.

Sodima is a French cooperative that owns the name, the trade secrets, and the patents of Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of _____.

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. In this scenario, the EU abolished the _____ for Malta-manufactured merchandise.

What are the strategies that can be used to minimize or adapt to the political risk inherent in global business?

Managing global joint ventures can be difficult because they:

The General Agreement on Tariffs and Trade (GATT) _____.

A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In this context, which of the following is a determining factor in its global strategy?

Which of the following is a trend that has allowed companies to skip the phase model when going global?

Which of the following factors helps a company determine the growth potential of a foreign market?

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

Global business is defined as the buying and selling of goods and services by people from different countries.

What are trade barriers and identify the two general kinds of trade barriers used by governments. Give one example of each.

_____ occurs when a company sells domestically produced products to customers in foreign countries.

_____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies in special industries.

Most companies have used the _____ to successfully enter foreign markets.

Exam 8: Global Management

Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of lipstick annually in Japan. It has no physical presence in Japan beyond the fact that its products are sold there. Which of the following technique does the company adopt to reach the Japanese market?

An expatriate is someone who _____.

Expatriate trainees who were assigned work in China were placed in a Chinese neighborhood for a day to interact with the citizens and to gather information about the country and its culture. In this context, the trainees were engaged in _____.​

A(n) _____ is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.

Sodima is a French cooperative that owns the name, the trade secrets, and the patents of Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of _____.

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. In this scenario, the EU abolished the _____ for Malta-manufactured merchandise.

What are the strategies that can be used to minimize or adapt to the political risk inherent in global business?

Managing global joint ventures can be difficult because they:

The General Agreement on Tariffs and Trade (GATT) _____.

A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In this context, which of the following is a determining factor in its global strategy?

Which of the following is a trend that has allowed companies to skip the phase model when going global?

Which of the following factors helps a company determine the growth potential of a foreign market?

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

Global business is defined as the buying and selling of goods and services by people from different countries.

What are trade barriers and identify the two general kinds of trade barriers used by governments. Give one example of each.

_____ occurs when a company sells domestically produced products to customers in foreign countries.

_____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies in special industries.

Most companies have used the _____ to successfully enter foreign markets.

Expatriate trainees who were assigned work in China were placed in a Chinese neighborhood for a day to interact with the citizens and to gather information about the country and its culture. In this context, the trainees were engaged in _____.