Mgmt chpt 8
Two factors help determine the growth potential of foreign markets. They are foreign competition and:
purchasing power
Which of the following factors helps a company determine the growth potential of a foreign market?
purchasing power
Global business is defined as____.
the buying and selling of goods and services to people from different countries
____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.
Direct foreign investment
____ occurs when a company sells domestically produced products to customers in foreign countries.
Exporting
____ are both examples of cooperative contracts.
Franchising and licensing
The acronym GATT stands for the ____.
General Agreement on Tariffs and Trade
The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the:
General Agreement on Tariffs and Trade
____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of people from a particular country.
National culture
____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries.
Subsidies
One of the major questions that a company must typically answer about its future, once it has decided to go global is ____.
To what extent should the company standardize or adapt business procedures?
A country or region that has an attractive business climate for companies that want to go global has ____.
an effective but cost-efficient place to build an office or manufacturing site
The ____ strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts.
cooperation
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.
cooperative contract
Which of the following factors should be considered when choosing an office/manufacturing location in the Brazilian market for a U.S. company that operates cinemas and wants to open a chain of movie theatres there?
exchange rates tariff and nontariff barriers the strategy of the movie theater chain work force quality
Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of its lipstick annually in Japan. It has no physical presence within the country beyond the fact its products are sold there. Fran Wilson Creative Cosmetics uses ____ to reach the Japanese market.
exporting
Which of the following represents the correct sequence for the phase model of globalization?
exporting; cooperative contracts; strategic alliances; wholly owned affiliates
Hofstede's research has shown there are:
five consistent dimensions of cultural differences across countries
According to Hofstede, when people in a culture are oriented to the present and seek immediate gratification, that culture is described as ____.
having a short-term orientation
What are the two types of political risk that affect companies conducting global business?
political uncertainty and policy uncertainty
The evidence clearly shows that ____ is the most important factor in determining the success or failure of an international assignment.
how well an expatriate's spouse and family adjust to the foreign culture
The evidence clearly shows that __________ is the most important factor in determining the success or failure of an international assignment.
how well an expatriate's spouse and family adjust to the foreign culture
An expatriate is someone who:
lives and works outside of his or her own country
In terms of Hofstede's cultural differences, the people who are described as happy-go-lucky and are people who are comfortable with an unstructured life and deal well with sudden changes. In terms of Hofstede's cultural differences, these people have a ____.
low degree of uncertainty avoidance
All global new ventures share two common factors. One is the bringing of a good or service to several different foreign markets at the same time. The other is ____.
none of these
Historically, most companies have used the ____ to successfully enter foreign markets
phase model of globalization
Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continent's nations. As Starbucks expands into South America, it must deal with ____.
political uncertainty
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) ____.
tariff
The two general kinds of trade barriers are:
tariff barriers and nontariff barriers
The term ____ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
uncertainty avoidance
