Chapter 8

they emphasize modesty

According to Hofstede, which of the following is true of feminine cultures?

control strategy

A firm using a(n) _____ to prevent or reduce political risks will lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt its business in that country.

cooperative strategy

A(n) _____ is implemented by firms to minimize or adapt to the political risk inherent in global business by using joint ventures and collaborative contracts.

avoidance strategy

A(n) _____ is one of the several strategies that can be used to minimize or adapt to the political risk inherent in global business.

Its ultimate goal is to create a free trade area across all fifty-four African Union states by 2017.

In the context of regional trading zones, identify a true statement about the Tripartite Free Trade Area (TFTA).

cultural simulation

Jilzen Corp., a U.S.-based company, plans to open a branch in China by sending its American employees to China. Before doing so, the company educates its employees about China with the help of photos, audios, videos, etc. to present real-world situations. While preparing for an international assignment, this type of training would be given to employees during _____.

represent a merging of different cultures of the two companies

Managing global joint ventures becomes difficult because they:

joint venture

Medzone Inc., a pharmacy company, has collaborated with Bit Corp., a food manufacturing company, to come up with a third company, MedBit Inc. This new company manufactures nutritious food and snacks with added vitamins and minerals. In this context, MedBit Inc. is a _____.

political uncertainty

Moondust Inc. is expanding its global operations into South Fordland in spite of the frequent changes in its government due to the assassinations of its prominent leaders. In this scenario, as Moondust Inc. expands into South Fordland, it must deal with _____.

Globulus, a U.S.-based toy manufacturing company, selling its toys in the U.S., Germany, and France

Which of the following best exemplifies the process of exporting?

Unlike joint ventures, wholly owned affiliates are 100 percent owned by their parent company.

Which of the following is a difference between wholly owned affiliates and joint ventures?

access to a growing market

Which of the following is the most important factor in an attractive business environment?

Two existing companies collaborate to form a third company, with both the companies remaining intact and unchanged.

Which of the following is true of a joint venture?

New global ventures bring a product or service to market in several foreign markets at the same time.

Which of the following is true of global new ventures?

In individualistic societies, employees put loyalty to themselves first and loyalty to their company and work group second.

Which of the following is true of individualism?

The licensor gives up control over the quality of the product sold by the foreign licensee.

Which of the following statements is true of a licensing agreement?

The American employees of a company based in Washington who are transferred to Japan for a special assignment

Who among the following can be considered expatriates?

establish global consistency

Zinocorp Inc., a multinational firm with headquarters in Asia, wants to open new divisions in Germany and the Netherlands. The company wants the new divisions to follow the same set of rules and regulations that the parent company follows. It is evident from the scenario that Zinocorp Inc. wants to:

national culture

_____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country.

adaptability screening

_____ is used to assess how well managers and their families are likely to adjust to foreign cultures.