GEB Chapter 11

Which of the following is a potential advantage of conducting international operations? A) Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets. B) Dealing with two or more monetary systems can complicate international business operations. C) Differing language, culture, and value systems can make communication difficult. D) Gaining an understanding of regional organizations is difficult but is often required in doing business internationally. E) All of the above

A) Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets.

________ countries are market leaders in labor-intensive industries and ________ offers abundant natural resources and rapidly developing markets. A) East Asian; Brazil B) South American; Germany C) East Asian; Germany D) South American; Brazil E) European; Japan

A) East Asian; Brazil

Marketing managers in Japan see making a sale ________ the selling process. A) as the beginning of B) as the end of C) as the midpoint of D) as unrelated to E) None of the above

A) as the beginning of

Mass communication and high technology have ________ in diverse cultures worldwide. A) created similar patterns of consumption B) resulted in highly individualized patterns of consumption C) rendered patterns of consumption identical D) had little to no effect on patterns of consumption E) ignored patterns of consumption

A) created similar patterns of consumption

Multinational corporations face unique and diverse risks, which include all of the following EXCEPT A) favorable foreign court interpretations of contracts and agreements B) currency losses through exchange rate fluctuations C) social/political disturbances D) import/export restrictions E) tariffs

A) favorable foreign court interpretations of contracts and agreements

Desire for ________ is a part of the social fabric in worker-manager relations in Mexico. A) harmony B) friction C) conflict D) independence E) punctuality

A) harmony

In general, U.S. managers feel the day has been productive if it is spent A) rushing to meetings and conferences. B) resting. C) listening. D) meditating. E) thinking.

A) rushing to meetings and conferences.

Americans place an exceptionally high priority on ________ whereas many foreigners place more worth on ________. A) time; relationships B) relationships; time C) silence; time D) silence; relationships E) formality; informality

A) time; relationships

A firm's power and prestige in domestic markets may be significantly enhanced if the firm competes globally, ________. A) which can translate into improved negotiating power among important groups B) though this rarely results in a practical advantage C) but this can hurt its bargaining power with suppliers and distributors D) yet this does nothing to improve its position with creditors E) which can alienate the firm from its domestic creditors, suppliers, and distributors

A) which can translate into improved negotiating power among important groups

Exports of goods and services from the U.S. were valued at $1.6 trillion in 2009, which accounted for ________ percent of the U.S. gross domestic product. A) 5 B) 11 C) 25 D) 31 E) 51

B) 11

________ can enable firms to learn the technology, culture, and business practices of other people and to make contacts with potential customers, suppliers, creditors, and distributors in foreign countries. A) Economies of scale B) Joint ventures C) Low-cost production facilities D) Reduced tariffs E) Domestic operations

B) Joint ventures

Which of the following nations has the highest corporate tax rate? A) Ireland B) The United States C) Great Britain D) France E) Germany

B) The United States

The strategic-management process for multinational firms is ________ for purely domestic firms, and the process is ________ for international firms. A) conceptually the same as; more simple B) conceptually the same as; more complex C) conceptually different than; more simple D) conceptually different than; more complex E) conceptually the same; simplistic

B) conceptually the same as; more complex

The various opportunities and threats that face multinational corporations are almost limitless, and the number and complexity of these factors ________ the number of products and the number of geographic areas served. A) decrease dramatically with B) drastically increase with C) drop slightly with D) are constant despite E) are unaffected by

B) drastically increase with

In South Korea, activities involve concern for ________, or harmony based on respect of hierarchical relationships, including obedience to authority. A) guanxi B) inhwa C) feng shui D) nemaswashio E) wa

B) inhwa

U.S. managers in Japan have to be careful about ________, whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting. A) feng shui B) nemaswashio C) wa D) guanxi E) inhwa

B) nemaswashio

In an industry that is, or is rapidly becoming global, the riskiest possible posture is to A) become a global competitor. B) remain a domestic competitor. C) remain a global competitor. D) expand beyond the role of domestic competitor. E) none of the above

B) remain a domestic competitor.

All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT A) Firms confront different social, cultural, and political forces when doing business internationally, which can make communication in the firm difficult. B) Keeping informed about the number and nature of competitors is more difficult when doing business internationally. C) Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. D) Dealing with two or more monetary systems can complicate international business operations. E) Foreign operations could be seized by nationalistic forces.

C) Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.

All of the following are things that many cultures around the world value more than the competitiveness that is so important in the U.S. EXCEPT A) modesty B) team spirit C) individualism D) collectivity E) patience

C) individualism

Whereas ________ businesses embody individualism, achievement, competition, and informality, ________ businesses stress collectivism, continuity, cooperation, and formality. A) Japanese; Mexican B) Mexican; Japanese C) Mexican; American D) American; Mexican E) Japanese; American

D) American; Mexican

Which of the following is NOT true concerning the Japanese concept of Wa? A) Nearly all corporate activities in Japan encourage Wa among managers and employees. B) Discussions potentially disruptive to Wa are generally conducted in very formal settings. C) The potential attractiveness of alternative business decisions are evaluated in terms of their long-term effect on the group's Wa. D) Entertaining is an important business activity in Japan because it strengthens Wa. E) The Wa concept involves group loyalty and consensus.

D) Entertaining is an important business activity in Japan because it strengthens Wa.

All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT A) Firms can gain new customers for their products. B) Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. C) Foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor. D) Foreign operations could be seized by nationalistic factions. E) Foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.

D) Foreign operations could be seized by nationalistic factions.

Which of the following is NOT a typical characteristic of most Japanese managers? A) Reserved B) Quiet C) Distant D) Impulsive E) Introspective

D) Impulsive

How does life in Mexico compare to life in the United States? A) It is faster. B) It is more hectic. C) It is more punctuality-driven. D) It is slower. E) It is more competitive.

D) It is slower.

Which of the following is NOT true regarding European workers and workplaces? A) Most European workers are unionized. B) Most European workers enjoy more frequent vacations and holidays than U.S. workers. C) Guaranteed permanent employment is typically a part of employment contracts in Europe. D) Many Europeans respond enthusiastically to pay-for-performance, commission salaries, and objective measurement reward systems. E) Many Europeans find the notion of team spirit difficult to grasp.

D) Many Europeans respond enthusiastically to pay-for-performance, commission salaries, and objective measurement reward systems.

Which of the following statements is NOT true? A) America's economy is becoming much less American. B) A world economy and monetary system are emerging. C) Corporations in every corner of the globe are taking advantage of the opportunity to obtain customers globally. D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices. E) Innovative transport systems are accelerating the transfer of technology.

D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices.

Joint ventures and partnerships between domestic and foreign firms are A) falling out of favor. B) increasingly difficult to engineer. C) the exception rather than the rule. D) extremely commonplace. E) subject to too many regulations to be feasible.

D) extremely commonplace.

In Europe it is generally true that the farther ________ on the continent, the more participatory the management style. A) south B) east C) west D) north E) southeast

D) north

In which of the following industries is the U.S. NOT yet greatly challenged by foreign competitors? A) auto industry B) electronics C) manufacturing D) retailing E) None of the above

D) retailing

Communication between domestic headquarters and overseas operations is often made difficult by A) geographic distance. B) cultural differences. C) variations in business practices. D) national differences. E) all of the above

E) all of the above

The ________ opportunities and threats that face a multinational corporation are almost limitless. A) social B) cultural C) environmental D) political E) all of the above

E) all of the above

Protectionism involves countries doing all of the following EXCEPT A) levying tariffs against firms outside the country B) imposing taxes on firms outside the country C) imposing regulations on firms outside the country D) restricting imports from firms outside the country E) liberalizing restrictions on the import of foreign goods

E) liberalizing restrictions on the import of foreign goods