Chapter 05: Navigating the Global Environment

What approach to international business is Mainstreet Collection using to source its goods? Exporting Franchising Importing Licensing

Importing

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

India

Should we invest in our own manufacturing facility in an emerging market?

Plan

An affinity for change and new opportunities

uncertainty acceptance

Can we expect for deadlines to be respected?

Control

What will most motivate employees of different cultural backgrounds?

Lead

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 Targeting countries with government stability Targeting countries with minimal government controls on international trade Assessing the attractiveness of the economic systems of the respective country markets

Understanding the cultural environments in the respective country markets

A high premium on material possessions and money

aggressive goal behavior

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 a tax agreement a restricted trade agreement an imported restraint agreement

an export restraint agreement

The cultural belief that a person comes before the group

individualism

Respect for the right of someone to hold power

power respect

How much authority and span of control should we give our local managers in each country facility?

Organize

Because Argentina is a mixed market economy rich in oil reserves, it is similar to the ___________________________

Middle East

Monsanto, a division of Bayer, is a chemical and biotechnology company that provides seeds, fertilizers, and herbicides to farmers around the world. The company is based in St. Louis, Missouri, but has administrative and sales offices, manufacturing plants, seed production facilities, and research centers around the world. What level of international activity best describes Monsanto? Global business International business Domestic business Multinational business

Multinational business

Which aspect of Argentina's economic environment are international businesses most likely to perceive as attractive? Natural resources Educational system Infrastructure Economic system

Natural resources

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. Access to foreign markets Control No need to adapt products to local preferences Low capital investment needed

Access to foreign markets Control

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? EU Mercosur USMCA BRIC

Mercosur

The global economy is dominated by three mature market systems, which include North America, Europe, and _________________________. Africa Pacific Asia Oceania South America

Pacific Asia

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

Promote trade among nations

Because Walmart's retail approach is big stores with a large selection of merchandise at discount prices, in which country should Walmart experience the most success? A country with a complex and indirect channel of distribution A country characterized by large populations with very low incomes A country that values material goods at discount prices A country like Singapore, with a preference for foreign brands

A country that values material goods at discount prices