Chapter 5 Quizzes

social relationships

Unlike people who exhibit aggressive goal behavior, people who adopt passive goal behavior place a higher value on:

d. China

Which of the following countries remains largely underdeveloped but has a high-potential economy? a. Cuba b. Japan c. Taiwan d. China

a. Market protection through limitation on other importers

Which of the following incentives for international trade is a less-developed country likely to offer? a. Market protection through limitation on other importers b. Minimal tax breaks c. Increased taxes d. Free access to multiple exporters

c. Leading

Which of the following is a basic organizational function that international management has implications for? a. Predicting b. Specializing c. Leading d. Demonstrating

market economy

A _____ is an economy based on the private ownership of business and allows factors such as supply and demand to determine business strategy.

d. reduce trade barriers through multilateral negotiations.

A basic goal of the World Trade Organization (WTO) is to: a. restrict animal trade between countries. b. promote international trade flow by adopting discriminatory trade policies. c. take the first step toward the formation of a North American economic community. d. reduce trade barriers through multilateral negotiations.

global business

A business that is NOT committed to a single home country is referred to as a(n)

d. transcends national boundaries and is not committed to a single home country.

A global business: a. buys raw materials and sells finished products to a single country. b. borrows money from a single country to manufacture and sell its products and services. c. restricts its trade operations to within the home country and its neighboring countries. d. transcends national boundaries and is not committed to a single home country.

c. Markets dominated by large and successful companies

A major challenge of entering markets economies is a. Private ownership of property b. Complicated an unclear "rules of the game" c. Markets dominated by large and successful companies d. Restrictive trade agreements

the value of time

A major cultural difference between the United States and many other countries relates to

b. The collapse of communism

A recent economic development that will have long-term effects on the world is a. The formation of the Pacific Asia market system b. The collapse of communism c. Strategic alliances d. Globalization

domestic business

A(n) _____ is a business that acquires all of its resources and sells all of its products or services within a single country.

international business

A(n) _____ is a business that is based primarily in a single country but acquires some meaningful share of its resources or revenues (or both) from other countries

strategic alliances

Cooperative arrangements between U.S. and Japanese automobile manufactures are examples of

is more complete

Direct investment is advantageous because managerial control:

d. need to organize to implement their plans.

International managers: a. have a minimal understanding of environmental issues. b. do not interact with those who are lower in the hierarchy. c. are not required to develop control mechanisms. d. need to organize to implement their plans.

infrastructure

Lack of an adequate _______ is a barrier to economic development.

a. Transportation costs are expensive

Licensing may be the preferred strategy for internationalization when a. Transportation costs are expensive b. Taxes and tariffs are low c. Flexibility is important d. Labor costs are low

direct investment

Low tax rates and low labor costs often lead a firm to use and internationalization strategy of

competitive

Managers are most likely required to have a broad-based understanding of _____ issues to plan and make decisions in a global economy.

a. Market systems

NAFTA and EU are examples of a. Market systems b. Strategic alliances c. Joint venture d. Mature markets

c. Expanded trade between the US, Canada, and Mexico

NAFTA has resulted in a. Decreased trade and tourism b. Unlimited expansion of business in Mexico c. Expanded trade between the US, Canada, and Mexico d. Increased government regulation within the free trade zone

b. Economic dominance

Post- World War II was a time of ________ for the United States. a. Economic rebuilding b. Economic dominance c. Economic devastation d. Economic isolation

b. International business

Sears is an example of a(n) a. Domestic business b. International business c. Multinational business d. Global business

protecting domestic business

Tariffs, Quotas, and Export restrain agreements are means of

General Agreement on Tariffs and Trade (GATT)

The _____ was a major stimulus to international trade after it was first ratified in 1948 by 23 countries.

large multinational organizations

The broadest level of international management expertise is found in

social

The importance of the individual versus the group is reflected in Hofstede's ______ orientation dimension

Direct Investment

The most complex, risky, and expensive way of entering the international market is

a. The lack of wealth of potential consumers

Which of the following is a primary challenge presented by developing countries to those interested in international business? a. The lack of wealth of potential consumers b. The lack of distribution systems c. The lack of economic potential d. The lack of foreign direct investment laws

d. Complete private ownership

Which of the following is a pure type of property ownership? a. Communal ownership b. Complete open access c. Joint tenancy d. Complete private ownership

a. Increased profitability

Which of the following is an advantage of licensing? a. Increased profitability b. Increased flexibility c. Decreased exploitation d. Decreased competition

c. They transfer capital and information from one market to another.

Which of the following is true of Multinational Corporations (MNCs)? a. Their employees are not accountable to a central authority. b. Their primary goal is to expand within the domestic market. c. They transfer capital and information from one market to another. d. They do not give their managers discretion to address regional issues.

d. Motivational processes vary across cultures.

Which of the following is true of culture in a global economy? a. Group processes are independent of cultural background. b. Leadership roles remain the same across cultures. c. Communication is uniform across cultures. d. Motivational processes vary across cultures.

a. The economic environment

Which of the following serves as an environmental challenge faced by managers in a global context? a. The economic environment b. The biotic environment c. The physical environment d. The consumer environment

d. deal with human resources.

While performing the function of organizing in a global economy, managers should: a. avoid change. b. promote organizational inflexibility. c. eliminate the responsibility of local managers. d. deal with human resources.