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43. The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of . a. a subsidy b. an involuntary import restraint c. geocentrism d. expropriation e. a government import standard

e. a government import standard

102. is used to assess how well managers and their families are likely to adjust to foreign cultures. a. cultural awareness screening b. sociocultural analysis c. sensitivity screening d. sociocultural diagnostics e. adaptability screening

e. adaptability screening

73. Which of the following forms of organizing a global business help companies to avoid tariff and nontariff barriers to entry of a given foreign market? a. licensing b. franchising c. global joint ventures d. wholly owned affiliates e. all of these

e. all of these

85. 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? a. work force quality b. the strategy of the movie theater chain c. tariff and nontariff barriers d. exchange rates e. all of these

e. all of these

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

e. control, avoidance, and cooperative strategies

46. The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the . a. Maastricht Treaty of Europe b. North American Free Trade Agreement c. World Trade Organization d. Mercosur e. Asian Free Trade Arrangement

World Trade Organization

47. The signing of the created a regional trading zone in Europe. a. Maastricht Treaty b. Pact for Free Trade Agreement c. Global Agreement for Transactional Trading (GATT) d. South-East Asia Pact e. all of these

a. Maastricht Treaty

30. Which of the following countries has the largest direct foreign investment in the United States? a. Netherlands b. Germany c. Japan d. Canada e. United Kingdom

a. Netherlands

90. Uganda is one of only two countries in the world that produce a mineral required in the manufacturing of cellular phones. A company which mines that rare mineral decided to not invest in the country due to a bloody civil war resulting from a change in rulers. The mining company used a(n) . a. avoidance strategy b. control strategy c. cooperative strategy d. elimination strategy e. self-protection strategy

a. avoidance strategy

80. A country or region that has an attractive business climate for companies that want to go global has found an . a. easy access to growing markets b. experienced marketplace metamorphosis c. eliminated all political risks d. a limited infrastructure e. all of these

a. easy access to growing markets

82. The most important factor used by a globalizing company for determining if a country or a region has an attractive business climate is . a. easy access to growing markets b. marketplace metamorphosis c. global synergy d. a large, unskilled workforce e. natural boundaries

a. easy access to growing markets b. marketplace metamorphosis

79. New companies with sales, employees, and financing in different countries that are found with an active global strategy are called . a. global new ventures b. strategic alliances c. wholly owned affiliates d. franchisees e. subsidized corporations

a. global new ventures

70. A is a strategic alliance in which two existing companies collaborate to form a third, independent company. a. joint venture b. Franchise c. wholly owned affiliate d. global new venture e. cooperative contract

a. joint venture

61. Sodima is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of . a. licensing b. a global joint venture c. exporting d. a strategic alliance e. direct investment

a. licensing

55. Historically, most companies have used the to successfully enter foreign markets. a. phase model of globalization b. global new venture approach c. ripple approach d. market echo approach e. guerrilla approach

a. phase model of globalization

67. 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 ____. a. political uncertainty b. economic uncertainty c. infrastructure regulation d. nationalistic equity e. strategy risk

a. political uncertainty

87. Uganda is one of only two countries in the world that produce a mineral required in the manufacturing of cellular phones. Several mining companies recently moved their operations out of the region due to a bloody civil war resulting from a change in rulers. This is an example of how can influence global business. a. political uncertainty b. policy uncertainty c. economic risk d. infrastructure failure e. nationalization

a. political uncertainty

86. What are the two types of political risk that affect companies conducting global business? a. political uncertainty and policy uncertainty b. policy uncertainty and expropriation potential c. cultural strength and political risks d. infrastructure dynamism and political uncertainty e. nationalism and economic uncertainty

a. political uncertainty and policy uncertainty

84. A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In other words, which of the following would be a determining factor in its global strategy? a. purchasing power b. political uncertainty c. expropriation potential d. infrastructure e. sociocultural trends

a. purchasing power

78. Which of the following is a trend that has allowed companies to skip the phase model when going global? a. quick, reliable air travel b. the globalization of the cocooning trend c. a critical need for resources d. the metamorphosis of marketplaces e. all of these

a. quick, reliable air travel

42. Russia imposed limits on how much poultry, beef, and pork could be imported into the nation from the European Union (EU) in retaliation to limits the EU placed on how much grain Russia could export. What type of nontariff barrier did Russia use to control the amount of poultry, beef, and port it imported from the EU? a. quotas b. subsidies c. boycotts d. customs classifications e. duties

a. quotas

40. A(n) is a direct tax on imported goods designed to make it more expensive to buy those goods, instituted in hopes of reducing the volume of those imported goods in a given country. a. tariff b. nontariff barrier c. trade roadblock d. boycott quota e. import subsidy

a. tariffs

65. All global new ventures share two common factors. One is that the company founders successfully develop and communicate the company's global vision from the start. The other is . a. the bringing of a good or service to several different foreign markets at the same time b. the use of local adaptation strategy c. a mechanistic organizational culture d. the ability to respond quickly and efficiently to any changes in the external environment e. the development of culturally-specific implementation policies

a. the bringing of a good or service to several different foreign markets at the same time

28. Global business is defined as . a. 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. refers to sales made to people from different cultures, different regions, and different nations e. is unregulated

a. the buying and selling of goods and services to people

29. is a method of investment in which a company builds a new business or buys an existing business in a foreign country. a. A strategic alliance b. Direct foreign investment c. A global new venture d. A joint venture e. Direct exporting

b. Direct foreign investment

60. are both examples of cooperative contracts. a. Licensing and joint ventures b. Franchising and licensing c. Direct investment and indirect investment d. Direct exporting and indirect exporting e. Joint ventures and strategies alliances

b. Franchising and licensing

94. is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of people from a particular country. a. National mindset b. National culture c. Cultural nationalization d. Cultural diversity e. National diversity

b. National culture

52. One of the major questions that a company must typically answer about its future, once it has decided to go global is ____. a. How many additional employees will the company need? b. To what extent should the company standardize or adapt business procedures? c. To what extent should a company abide by global or regional trade agreements? d. Will the organization's mission statement need to be changed? e. How many new shareholders will be influenced by global activities?

b. To what extent should the company standardize or adapt business procedures?

81. A country or region that has an attractive business climate for companies that want to go global has . a. a large population of unskilled workers b. an effective but cost-efficient place to build an office or manufacturing site c. a small youth population d. natural boundaries e. all of these

b. an effective but cost-efficient place to build an office or manufacturing site

93. A firm using a strategy to prevent or reduce political risks will lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt their business in that country. a. defensive b. control c. cooperative d. protectionist e. avoidance

b. control

59. 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. a. exporting agreement b. cooperative contract c. joint venture d. strategic alliance e. direct investment

b. cooperative contract

97. According to Hofstede's research on cultural dimensions, modesty, caring for the weak, and quality of life. a. economic-based b. feminine c. relationship-oriented d. individualistic e. masculine

b. feminine

36. Protectionism is the use of trade barriers to protect local companies and their workers from . a. international unions b. foreign competition c. trademark infringements d. patent violations e. all of these

b. foreign competition

53. A multinational company that acts with has offices, manufacturing plants, and distribution facilities in different countries all which run based on the same rules, guidelines, policies, and procedures. a. policy certainty b. global consistency c. global adaptation d. global certainty e. regiocentrism

b. global consistency

99. An expatriate is someone who . a. claims dual citizenship b. lives and works outside of 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 outside of his or her own

b. lives and works outside of his or her own country c. believes strongly in nationalization

64. In terms of Hofstede's cultural differences, the people who are described as happygolucky 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 . a. culture based on equity b. low degree of uncertainty avoidance c. masculine culture d. high degree of uncertainty avoidance e. feminine culture

b. low degree of uncertainty avoidance

31. Nestlé is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of a . a. multidomestic global company b. multinational corporation c. ethnocentric organization d. acculturated corporation e. macro-marketer

b. multinational corporation

37. The Japanese government has proclaimed that its snow is different from that found in any other region of the world. As a result, all snow skis marketed in Japan must be manufactured in Japan. This is an example of a(n) ____. a. tariff b. nontariff barrier c. import boycott d. industry subsidy e. industry nationalization

b. nontariff barrier

39. A is a nontax method of increasing the cost or reducing the volume of imported goods. a. tariff b. nontariff barrier c. trade roadblock d. risk-aversive boycott e. subsidy quota

b. nontariff barrier

88. The Japanese government decreed that Japanese snow was different from all others and required that all snow equipment marketed in the country be made in Japan for safety reasons. The elimination of non-Japanese companies from the market is an example of how can influence global business. a. infrastructure modifications b. policy uncertainty c. political uncertainty d. competitive uncertainty e. sociocultural modifications

b. policy uncertainty

83. Which of the following factors helps a company determine the growth potential of a foreign market? a. political uncertainty b. purchasing power c. type of infrastructure d. land availability e. natural boundaries

b. purchasing power

48. As Malta got ready for its admittance into the European Union (EU), all taxes on the importation of goods manufactured in Malta were eliminated. Malta was preparing to become part of a(n) . a. zone of ethnocentricity b. regional trading zone c. neutral trading area d. international cartel e. global market

b. regional trading zone

62. Robert Mondavi Wineries entered into an agreement with Baron Philippe de Rothschild, owner of Boreaux's First Growth chateau, to produce a top quality wine in California. The two companies working together to create a new product is an example of . a. exporting b. licensing c. a joint venture d. a cooperative contract e. a wholly-owned subsidiary

c. a joint venture

49. The acronym GATT stands for the . a. Global Agreement on Temporal Trade b. Governing Agreement on Trade and Transactions c. General Agreement on Tariffs and Trade d. Government Aid of Trade and Transactions e. Global Arrangement for Trade and Taxes

c. General Agreement on Tariffs and Trade

92. The strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts. a. defensive b. control c. cooperation d. avoidance e. offensive

c. cooperation

68. Starbucks is a chain that is rapidly expanding its global operation. As it expanded into South America, its research showed that Chileans on average drink only 150 cups of coffee annually, and people in Argentina only drink about half that amount. An average citizen of the United States drinks 345 cups annually. These differences in annual coffee consumption most likely reflect . a. policy uncertainties b. nationalistic motivations c. cultural differences d. economic uncertainties e. differences in internal marketing strategies

c. cultural differences

56. Which of the following represents the correct sequence for the phase model of globalization? a. exporting; wholly-owned affiliates; cooperative contracts; strategic alliances b. exporting; cooperative contracts; wholly-owned affiliates; strategic alliances c. exporting; cooperative contracts; strategic alliances; wholly-owned affiliates d. exporting; strategic alliances; cooperative contracts; wholly-owned affiliates e. home country sales; exporting; job ventures; strategic alliances, and direct investment

c. exporting; cooperative contracts; strategic alliances; wholly-owned affiliates

69. A news article on Latin America read, "Mexico is the closest Latin America gets to the U.S. both geographically and culturally." According to Hofstede, this means the Mexican culture . a. does not support individualism b. is strong in power distance c. has a masculine orientation d. is not oriented towards individualism e. is accurately described by all of these

c. has a masculine orientation

96. According to Hofstede, when people in a culture are oriented to the present and seek immediate gratification, that culture is described as . a. having a long-term orientation b. masculine c. having a short-term orientation d. individualistic e. feminine

c. having a short-term orientation

101. The evidence clearly shows that international assignment. is the most important factor in determining the success or failure of an a. the amount of language training provided to the expatriate b. the amount of cross-cultural training provided to the expatriate c. how well an expatriate's spouse and family adjust to the foreign culture d. how willing the expatriate was to accept the foreign assignment e. the similarity of the foreign language to the expatriate's native language

c. how well an expatriate's spouse and family adjust to the foreign culture d. how willing the expatriate was to accept the foreign assignment

38. The Japanese government continues to use the high tariffs to make sure local farmers can earn a living. The tariff on rice is an example of . a. a voluntary government restriction b. geocentrism c. protectionism d. a security quota e. a bureaucratic subsidy

c. protectionism

33. Several Arab countries boycott Coca-Cola products because the soft-drink company maintains product distributors in Israel. This boycott is an example of . a. geocentrism b. nationalism c. nationalization d. a trade barrier e. acculturation

d. a trade barrier

58. occurs when a company sells domestically produced products to customers in foreign countries. a. Direct foreign investment b. Franchising c. Licensing d. Exporting e. A joint venture

d. Exporting

51. The is a regional trade agreement that liberalizes trade between countries more than any other such agreement. a. Maastricht Treaty of Europe b. Association of South East Nations c. Asia-Pacific Economic Cooperation agreement d. North American Free Trade Agreement e. Free Trade Area of South America

d. North American Free Trade Agreement

44. are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries. a. Quotas b. Voluntary export restraints c. Cooperative contracts d. Subsidies e. Tariffs

d. Subsidies

91. The Green Giant consumer products company learned that it could not use their Jolly Green Giant character in parts of Asia where a green hat worn by a man signifies that he has an unfaithful wife. This is an example of a(n) that influenced global marketing. a. geocentric attitude b. control strategy c. cooperative strategy d. cultural difference e. avoidance strategy

d. cultural difference

95. Hofstede's research has shown that there are . 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

d. five consistent dimensions of cultural differences across countries

54. In a multinational firm, managers at company headquarters typically prefer an emphasis on simplifies decisions. a. local consistency b. local adaptation c. global adaptation d. global consistency e. domestic adaptation

d. global consistency

41. The Japanese government has proclaimed that its snow is different from that found in any other region of the world and as a result ensures that all snow skis marketed for sale in Japan must be manufactured in Japan. This is an example of a(n) . a. tariff b. government subsidy c. voluntary export restraint d. government import standard e. subsidy

d. government import standard

77. German chip manufacturer Infineon AG has joined with Motorola Inc. and Agere Systems Inc. to establish a new company to develop and license chip designs for cellphones. These three companies have created a . a. license facilitator b. subsidized corporation c. global new venture d. joint venture e. export merchant

d. joint venture

100. The purpose of pre-departure language and cross-cultural training is to . a. cater to employees who require affective learning b. increase job empathy c. encourage job specialization d. reduce the uncertainty for those becoming expatriates e. avoid legal problems in the future

d. reduce the uncertainty for those becoming expatriates e. avoid legal problems in the future

32. As Malta got ready for its admittance into the European Union (EU), the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished for Malta-manufactured merchandise. a. import quotas b. customs classifications c. import standards d. tariffs e. boycotts

d. tariffs

98. The term is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations. a. power distance b. masculinity c. short-term/long-term orientation d. uncertainty avoidance e. risk aversion

d. uncertainty avoidance

63. Ernst & Young, an international accounting and management consulting company, entered Hungary first by establishing a joint venture with a local firm. Ernst & Young later acquired the company with which it had the alliance. As a result Ernst & Young then had a(n) in Hungary. a. franchise b. licensing arrangement c. cooperative contract d. wholly owned affiliate e. export agency

d. wholly owned affiliate

75. Ford Motor Company owns and operates a $1.9 billion manufacturing plant in Brazil. What method for organizing for global business has Ford used in this example? a. joint venture b. strategic alliance c. cooperative contract d. wholly owned affiliate e. strategic franchise

d. wholly owned affiliate

76. The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is . a. dumping b. countertrading c. nontariff barriers d. acculturation e. costs

e. costs

50. The General Agreement on Tariffs and Trade (GATT) . a. decreases both tariffs and nontariff barriers b. puts stricter limits on government subsidies c. eliminates tariffs in ten specific industries d. protects intellectual property, such as trademarks, patents, and copyright e. does all of these

e. does all of these

57. 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. a. franchising b. direct investment c. licensing d. a strategic alliance e. exporting

e. exporting

74. In Canada, two automobile companies have entered into a to create CAMI Automotive. One firm's management runs the plant, which makes the other's cars. The agreement gives one access to the other's dealers to sell its brand of vehicles. a. licensing agreement b. subsidiary arrangement c. cooperative contract d. exporting agency e. joint venture

e. joint venture

66. 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 . a. the development of culturally-specific implementation policies b. the use of local adaptation strategy c. a mechanistic organizational culture d. the ability to respond quickly and efficiently to any changes in the external environment e. none of these

e. none of these

45. To protect its farmers, Japan put limitations on the amount of mushrooms and leeks that could be imported into Japan from China. This limitation is an example of a(n) . a. tariff b. voluntary import restraint c. subsidy d. agricultural import standard e. quota

e. quota

35. 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) . a. import duty b. voluntary import restraint c. subsidy d. financial boycott e. tariff

e. tariff

34. The two general kinds of trade barriers are . a. government import standards and industry import standards b. qualitative and quantitative barriers c. voluntary and involuntary barriers d. nationalistic and geocentric barriers e. tariff barriers and nontariff barriers

e. tariff barriers and nontariff barriers