management chapter 5

The leadership team asks you to diagnose the aspects of the international environment with which it has struggled the most. What is your diagnosis?

Understanding the cultural environments in the respective country markets

How would you describe the nature of property ownership for businesses in Argentina? -Pure public ownership -Shared ownership -Pure private ownership -A mix of public and private ownership with some risk of nationalization

A mix of public and private ownership with some risk of nationalization -Like most countries, Argentina has a mix of public and private property ownership. Its government has nationalized private property in the past, which suggests there is some risk in the future.

Which strategy for entering new country markets do you recommend for Walmart

Acquisition of existing business -Acquisition of existing businesses in new country markets will be an effective strategy for Walmart because it will lower the costs of opening outlets in foreign countries, and increase the number of managers in Walmart who understand and are comfortable with foreign cultures.

Vacasa is a vacation rental and property management company headquartered in Portland, Oregon, that has a network of over 25,000 properties across the United States, from New Hampshire to Hawai'i. What level of international activity best describes Vacasa?

Domestic Business

As you assess the upside of expanding into Argentina, you research its existing trade agreements with other countries. Of which economic community is Argentina a part? -BRIC -Mercosur -USMCA -EU

Mercosur -Argentina is part of Mercosur, a trade agreement among countries in Latin America. BRIC stands for the four largest emerging economies: Brazil, Russia, India, and China. USMCA is the United States-Mexico-Canada Agreement, the successor to the North American Free Trade Agreement (NAFTA). The EU is the European Union.

The presence or absence of power plants, railroads, highways, communication systems, and ports _______ is a major concern to businesses.

a country's infrastructure

A high premium on material possessions and money

aggressive goal behavior

Can we expect for deadlines to be respected?

control

Disney invested approximately $4 billion to construct a Disney theme park and resort near Shanghai, China. What considerations were important to Disney in choosing its approach to international business? Check all that apply. -Control -Low capital investment needed -No need to adapt products to local preferences -Access to foreign market

control and access to foreign markets

The cultural belief that a person comes before the group

individualism

Kirin Brewery, Japan's largest producer of beer, allows the Eagle Brewery in England to manufacture beer to Kirin's specifications and market the beer as Kirin Beer. Kirin Brewery earns a royalty on the beer sold in England. Which approach to international business is Kirin Brewery using?

licensing

The economies of the United States, Japan, and Germany are all economies , in that they allow the factors of supply and demand to determine business strategy.

market economies

What benefits should we offer expatriates

organize

How strong is the infrastructure in our prospective markets?

plan

Should we enter an emerging market?

plan

Respect for the right of someone to hold power

power respect

What is the primary mission of the World Trade Organization? -Improve the quality of life globally -Reduce international human trafficking -Promote trade among nations -Promote sustainability initiatives globally

promote trade among nations

An affinity for change and new opportunities

uncertainty acceptance

Which country could best be described as a high-potential/high-growth economy? -Japan -Germany -Saudi Arabia -India

India -India is a high-growth/high-potential economy. Japan and Germany are mature markets. Saudi Arabia is classified as neither a mature market economy nor a high-potential economy. Despite its great wealth it has a high dependence on a single sector (oil production) and the potential for political instability.

If Argentina was concerned that the United States might impose higher tariffs or quotas on Argentine wines being exported into the United States, Argentina could agree to ________ , which would voluntarily limit the volume or value of the wine Argentina exports.

an export restraint agreement -Export restraint agreements voluntarily limit the volume or value of a country's exports into another country. Countries take this action when they wish to encourage the other country to keep minimal controls against imports.