IB FInal

Which scenario demonstrates the concept of guanxi?

A Chinese businessman would not commit to a project with an American company until he established a relationship with the local representative.

What is a characteristic of a geocentric staffing policy?

It selects the best person for each job, without considering national origin

Is the WTO's idea of "fair competition" really a code phrase for free trade?

Not really. Trade relationships...

Green Turf Lawn Corp. developed a product that eliminates weeds with just one application. The company has been overwhelmed by the number of new markets asking for the product and has to find a way to create groups with common characteristics that it can market to. What can the company use to achieve this?

cluster analysis

Environmental scanning is mostly used

during the planning process to assess world threats

Quick Stop Fashion House produces "fast fashion" clothes that represent the current fad. In the foreign environment, this type of product is considered

highly sensitive

A drawback of ethnocentric staffing policies is that

home-country employees may not have experience with the languages and culture of the host country

Economic Integration often progresses

in stages, from free trade area to customs union to common market.

As Corrine's business grew, it struggled to keep up with the maintenance and repair of her products, so she started buying these services from another company. This is called

indirect procurement

The continuum from insensitive to sensitive to foreign environment begins with ________ and ends with ________.

industrial products; high style and faddish consumer products

Relatively low levels of authority and decision making in headquarters is associated with

polycentric staffing

It has been argued that the ultimate goal of effective supply chain management systems is to

reduce inventory

What is a good promotional strategy to use when target markets vary little in regard to product use and consumer attitudes?

same product-same meanings

Which of these products would be easiest to assess the basic needs potential of a market?

snow shovel

The New Development Bank, headquartered in Shanghai, China was formed by

the BRICS group

A polycentric staffing policy is appropriate when

there are low levels of pressure for cost reduction and high levels for local responsiveness

A drawback of polycentric staffing policies is that

there can be a conflict of loyalty between the host country and the employer

Does the IMF lend money?

yes, but as a last resort

Matmann Floor Coverings didn't feel it would be successful in the foreign market because all of the countries it wanted to enter had tight price controls on the products the company produced. Which aspect of segment screening would reveal this to the company?

Actionable

The WTO has made progress on trade-related intellectual property rights (TRIPS). An example of this progress is

An agreement that property rights should not take precedence over public health

Kenneth thought the company should promote the new product in foreign markets by having a contest in which the winner would receive a one-year supply of the product. Which type of advertising strategy is Kenneth suggesting?

Kenneth thought the company should promote the new product in foreign markets by having a contest in which the winner would receive a one-year supply of the product. Which type of advertising strategy is Kenneth suggesting?

Urban Necessities is planning its promotional strategy as it enters the foreign marketplace. The company's line of clothing serves the same function around the world so it can be promoted in the same way. However, the company will need to make slight changes to some of the clothing to meet local customer needs. Which promotion strategy should the company use?

Product adoption-same message

Why does McDonald's use the color hunter green as the background for its golden arches logo in Europe when it uses red in the United States?

The green is viewed as eco-friendly

The main difference between a free trade area and a customs union is that in a customs union, there is

a common external tariff

A policy of hiring and promoting based on ability and experience without considering race or citizenship is

a geocentric policy

Hilton Hotels provides management for foreign hotels that use the Hilton name. What is this an example of?

a management contract

Con-Tractors Inc. decided not to conduct business in some parts of South America after it learned that governments hold all imports for up to 18 months before releasing to the importing country. What aspect of segment screening fostered this decision?

accessible

A policy of hiring and promoting based on the parent company's home-country frame of reference is

an ethnocentric policy

An example of a political force of concern in market screening is

an import quota

In the market screening process, a personal visit to a market is meant to

appraise the suitability of the company's current marketing mix

In a free trade area, members drop internal tariffs. External tariffs

are maintained independently by each member

During the initial screening process, Carlock Inc. decided not to pursue activity in South America because consumers weren't interested in purchasing high-end door locks for their automobiles. What was Carlock assessing in the initial process?

basic needs potential

The major motivation for immigration is a

better economic situation

Developing nations are greatly concerned when highly-skilled professionals such as scientists, IT specialists, teachers, and health care professionals leave the country to seek better living arrangements. What term is given to this type of emigration?

brain drain

The ability to ship products quickly may mean that

companies don't need to rely on the traditional distribution structures

Which item or service is least likely to be included within indirect procurement?

components

The need to change the color of packaging when selling a product in a new market is generally a result of the influence of

cultural differences

When considering international advertising efforts, a company that adopts a "glocal" approach is

developing a cost-effective common strategy for large regions

The executives from the Japanese company did not like the advertisement created by the U.S. agency. The executives said that telling the consumers about the benefits of the product was too pushy and would be viewed as arrogant. Which cultural dimension are the executives concerned with?

directness

Fairway Golf Inc. traditionally received a telephone order for its products and shipped them out. Since the packaging was bulk, customers would receive their order in about three weeks. The company has recently promoted overnight delivery service and find that most customers are willing to pay the price for this faster shipping method. What trend does this represent?

disintermediation

One reason manufacturers are using global advertising is because identical products are easier to make which allows the company to take advantage of

economies of scale

WTO agreement on TRIPS had led to member agreement to

enforce 20-year patents and 50-year copyrights

Outsourcing has become an increasingly common option for companies because it Which activity represents an extension of the make-or-buy decisions of earlier eras?

enhances flexibility and improves speed of response

Companies in which there is little pressure to reduce costs or adjust for local responsiveness and where most decisions are made using the home country's frame of reference have adopted which type of staffing policy?

ethnocentric

Companies that use a polycentric staffing policy would

face pressures for local responsiveness

Generally, as marketers go down the economic and social strata in each country, they will tend to find

greater dissimilarities among countries in social and cultural values

Computer memory chips are the same everywhere in the world. This means they are ________ to the foreign environment.

insensitive

Country screening differs from segment screening in that

it looks at the country level, while segment screening is within a country

How does Starbucks adapt the design of its stores to local conditions in China?

large tables and movable furniture

Jet Spray Water Equipment Corp. decided to pull out of doing business in Europe when it learned that some governments required more than 50 percent of the product be made in that country. Which foreign environmental force is causing the company to make this decision?

legal

Worldwide, labor tends to be

mobile

An equity-based entry mode means that a company faces ________ risk and ________ control.

more; more

The economic integration of the EU is based on

national willingness to forego sovereignty in some areas.

Joe's Jumpers has always made its clothing in the United States, but as prices have gotten more competitive it has had to move some of its production to China. This demonstrates

offshoring

Prada's employees were overwhelmed with work, so she sent some accounting functions to India and kept the rest in-house. Prada was engaging in

outsourcing

Which activity represents an extension of the make-or-buy decisions of earlier eras?

outsourcing

Which outsourcing arrangement is common in the clothing industry

overseas independent contractor

Generalizations about TCNs are difficult because

people achieve the TCN status in different ways.

Electronic procurement exchanges can

permit bid/quote systems

Which products are especially influenced by laws that regulate product ingredients and labeling?

pharmaceuticals

Gibson Baking Company sells its brownie mixes all over the world. The company includes directions on the package for baking the product at high altitude levels since this can affect baking times. Which type of environmental force caused this decision?

physical

Market screening is used by a company to

pinpoint the most attractive approach

A turnkey project includes

plant design and technology supply.

Local content restrictions are an example of a

political and legal force

The staffing policy at Super Food International is based on the specific local context in which the company's subsidiaries operate. What type of staffing policy does this reflect?

polycentric

A manager from a U.S. company is negotiating with a Japanese company for goods. What is most likely to be the American's most important criteria in the purchasing decisions?

price

Donaldson Equipment Corp. began marketing in parts of Europe last year. It has found that the best way to reach its customer base is by placing advertisements on the sides of concrete trucks..

promotion

Following the oil tanker spill, E-Source Energy Company needed to foster goodwill with its foreign consumers. The company launched a campaign that showed the cleanup efforts and new technologies that would prevent future disasters. What type of global advertising strategy was the company using?

public relations

Casey Conglomerates only hires regional employees to fill key positions in host countries. What type of staffing policy is the company using

regiocentric

The European Union is organized into nine institutions with functions similar to those performed by a national government. These institutions

represent the people of Europe and member-states

Elizabeth is a highly sought after scientific researcher.... demonstrates the idea of

reverse brain drain

The WTO is the only international organization designed to establish and help implement

rules of trade between nations

During the past century, there has been a noticeable shift in the workforce from

rural to urban settings

The EU's impact on international business is

significant, since EU standards, especially in the areas of the environment and sustainability, impact any firm that wants to do business in the EU.

Callie lives in Europe and received a survey in the mail from a U.S. company wanting to know how her family used disposable paper towels. Callie never uses paper towels but she doesn't want to reveal that in the survey so she answers the questions to please the company. Callie's response is an example of

social desirability bias

Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product?

sociocultural

What global membership institution provides information on economic and other activities within its member-nations and serves as a forum for discussion of shared economic and social policy issues, including publishing research on international business?

the Organization for Economic Co-Operation and Development (OECD)

Which nonmember country of the EU uses the euro as its official currency?

the Vatican

What is the motivation behind brain drain?

the desire to seek improved economic situations

The idea that WTO members treat all members equally is known as

the most favored nation (MFN) principle

A local labor market is made up of

the pool of available employees with the necessary skills and who are within commuting distance.

At Mighty-Tuf Industrial Products Group, 30 percent of its employees are neither a citizen...

third-country nationals

The Doha Round began in 2001 to work on what agenda?

trade-related issues between developed and developing countries

Rather than try to find an existing facility to purchase, Barton Manufacturing Group decided to hire a company to build a manufacturing facility in the overseas market that would erect the plant, supply the process technology, train personnel, and conduct a trial run of operations. Once that was complete, the facility would be turned over to Barton ready to use. What form of entry does this represent?

turnkey operation