Quiz 3 BUS 101
the globalization of markets and the globalization of production means that -companies can take one product to international markets without having to adapt it -people are no longer in control of their own lives -we are all connected by the Web -companies design products for global markets and can produce them offshore
companies design products for global markets and can produce them offshore
active ownership of a foreign company, with direct investors having either a controlling or a large minority interest in the firm is called a(n): -direct foreign investment -limited partnership -cooperative cartel -international corporation -international cooperative
direct foreign investment
when Grand Metropolitan, a British company, purchased U. S. based Pillsbury Co. in order to expand its product line and the market for its existing consumer products, it was an example of a(n): -international corporation -cooperative cartel -limited partnership -direct foreign investment -international cooperative
direct foreign investment
in 1997, Russia and Ukraine exported carbon steel plate into the U.S. at a price much lower than the countries were found guilty of charging the identical steel in their home markets. Russia and Ukraine, were engaged in: -export pricing -dumping -dunking -unloading -add-on pricing
dumping
In communicating with other countries or cultures, it's valuable to understand all the following except_____ -the fact that different cultures have different communication styles -certain subtle differences between cultures -that cultural stereotypes shouldn't dictate interactions -english, which is the prevalent language of business
english, which is the prevalent language of business
Both manufacturing and nonmanufacturing functions can be _____ to nations with lower _____ -sold/mortality rates -outsourced/labor costs -licensed/taxes -charged/levels of corruption
outsourced/labor costs
when researching global business opportunities, firms must grasp the cultural, legal. economic, and _____ differences between the home country and the host country -linguistic -political -religious -hygienic
political
in many countries, American firms may be at a disadvantage in communicating with the general public because only ____ speak English -military personnel -the wealthy -the educated class -other businesspeople
the educated class
All of the following are common criticisms of MNCs (multinational corporations) except: - they destroy the livelihoods of home-country workers by exporting jobs -their constant demand for resources jeopardizes the physical environments of host countries -they weaken and Americanize the cultures and values of host countries -they inflate standards of living in host countries
they inflate standards of living in host countries
international trade-dependent jobs have grown at a rate three times the growth of U. S. dependent jobs true or false
true
outsourcing some involves moving the production of a product from a domestic location to a foreign location true or false
true
the International Monetary Fund (IMF) was created to promote trade through financial cooperation by working to eliminate trade barriers true or false
true
a strategic alliance between a U.S. firm and a German firm can achieve all of the following benefits except ____ -enhancing marketing efforts -improving products -reducing production and distribution costs -guaranteeing increased market share
guaranteeing increased market share
in a ____ culture, the numerous interlocking personal and family connections that hold people together have an effect on almost all interactions -low-context -high-context -contextually saturated -homogeneous
high-context
the difference in value between a country's imports and exports is called its balance of trade true or false
true
the opposite of free trade is protectionism true or false
true
trade barriers include tools like embargos, quotas, and local content requirements true or false
true
when Coca-Cola sends cases of Coke to France and receives sparkling water as payment, a countertrade has taken place true or false
true
when a company sells its product in a foreign country at a cheaper price than usual, and sometimes even at a loss, it is dumping products true or false
true
Entering a foreign market through a strategic alliance does mean your business loses its independence true or false
false
a well-designed product transcends cultural barriers. it does not need to be changed to suit different countries of cultures true or false
false
_____ is a common motto among MNCs (multinational corporations) -"think culturally, act politically" -"think strategically, act locally" -"think globally, act locally" -"think strategically, act politically"
"think globally, act locally"
the theory of comparative advantage indicates that: -a country should sell to other countries the products it produces most efficiently and buy from other countries the products that it cannot produce as efficiently -a limit is placed on the amount of goods and services that can be traded -international trade will force domestic businesses to lose market share to foreign competitors -countries that participate in international trade will have a higher standard of living
a country should sell to other countries the products it produces most efficiently and buy from other countries the products that it cannot produce as efficiently
by forming a foreign subsidiary, Cane Productions Ltd. hopes to realize such advantages as ____ -getting full access to local markets -exempting itself from regulations that hamper the activities of foreign firms -all of these
all of these
which of the following arguments is advanced in favor of increased MNC activities -Infant mortality rates have decreased in many nations -literacy has improved in many nations -the standard of living has risen in many nations -all of these
all of these
all of the following are conducive to economic growth except _____ -a reliable banking system -an unfavorable balance of trade and payments -a strong stock market and a government that discourages corruption -government policies that encourage investment and competition
an unfavorable balance of trade and payments
the ____ is defined as the difference in value of a country's exports and imports over a period of time -balance of trade -balance of payments -federal deficit -federal surplus -balance of exchange
balance of trade
among other things, many MNCs (multinational corporations) have increased their sensitivity to local market conditions by _____ -centralizing decision making -decentralizing decision making -hiring more local workers and managers -use foreign advertisement firms
decentralizing decision making
having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises true or false
false
the exchange rate is the interest rate that foreign banks receive when borrowing money from the United States true or false
false
when a domestic company allows a foreign firm to use its brand in exchange for royalty fees, it is called a joint venture true or false
false
a country that exports more goods than its imports is said to have a(n): -favorable balance of trade -positive trade deficit -negative trade deficit -unfavorable balance of trades -favorable balance of payment
favorable balance of trade
the _____ prohibit(s) the distribution of bribes and other favors among American businesspeople conducing business with foreign officials and business people -foreign corrupt practices act -anti-bribery act -ten commandments -sarbanes-oxley principles
foreign corrupt practices act
usually driven by the size and attractiveness of the foreign market, _____ is generally the most expensive commitment that a company can make in an overseas market - foreign direct investment -a joint venture -foreign licensing -a strategic alliance
foreign direct investment
if a foreign currency ____ relative to the U.S. dollar, Americans must pay more for goods and services bought from sellers in the country that issues the currency -goes up -goes down -varies -is unstable
goes up
