MGMT 309 - Chapter 5

cultural environment

The language, values, symbols, and beliefs that guide behavior in a country are that country's _____. -cultural environment -internal environment -general environment -external environment

Small cash outlay and little risk

What is an advantage of importing or exporting over other approaches to internationalization? -Enhanced control of existing infrastructure -Small cash outlay and little risk -Extended profitability -Access to materials and technology

Whether the firm should focus on regionalism or globalism

What is one of the key questions that must be addressed by a manager who wants to be effective in the international market? -Whether to limit international operations -Whether to import or export products -Whether to expand direct investments into developing nations -Whether the firm should focus on regionalism or globalization

Freedom of choice

What is the key element for managers in a mature market economy? -Natural resources -Freedom of choice -Infrastructure -Property ownership

To promote trade by reducing barriers

What was the goal of GATT when it was developed? -To encourage nondiscriminatory and predictable trade -To encourage multilateral negotiations -To establish procedures for resolving trade disputes -To promote trade by reducing barriers

The European Union

Which economic community is considered to be one of the most important in the world? -India -China -The United States -The European Union

To establish impartial procedures for resolving trade disputes

Which of the following is a goal of the World Trade Organization? -To limit the value of all goods that can be traded -To promote trade benefits to the most favored nations -To establish impartial procedures for resolving trade disputes -To promote human rights over globalization

private ownership

Which of the following is a typical characteristic of a market economy? -Mixed models of resource allocation -Private ownership -High levels of trade -High potential for growth

direct investment

Which of the following occurs when a firm headquartered in one country purchases operating facilities in a foreign country? -Licensing -Direct investment -A strategic alliance -Exporting

General Agreement of Tariffs and Trade (GATT)

Which trade agreement was a major stimulus to international trade after it was first ratified in 1948 by 23 countries? -The European Union -WTO -North American Free Trade Agreement (NAFTA) -General Agreement on Tariffs and Trade (GATT)

market economy

Which type of economy is based on the private ownership of business? -Mixed models -High-potential/high-growth -Market system -Market economy

international

Which type of organization is primarily based in one country, but it acquires some resources or revenues from other countries? -International -Global -Joint venture -Maquiladoras

European Union

Which was the first, and often considered the most important, economic community in the world? -General Agreement on Tariffs and Trade -World Trade Organization -European Union -North American Free Trade Agreement

deal with human resources

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

greater economic risk

A disadvantage of direct investment is _____. -high transportation costs -inflexibility -greater economic risk -government restrictions

is an easy way to enter a market with a small outlay of capital

An import/export operation is advantageous because it _____. -avoids paying low taxes and tariffs to the government -is an easy way to enter a market with a small outlay of capital -adapts a product to local conditions easily -is subject to low transportation expenses

quota

Armen runs a profitable jewelry manufacturing company and sells in many international markets. However, one country he sells to has just placed a limit as to how his company can sell in that country. Which of the following will now limit how much Armen can sell? -"Buy national" legislation -Export restraint agreement -Tariff -Quota

planning and decison making in a global environment

Having a broad-based understanding of both environmental issues and competitive issues is an essential function of _____. -planning and decision making in a global environment -controlling in a global economy -organizing in a global environment -leading in a global economy

Power tolerance orientation

During a recent staff meeting, Arayla's employees had questions about one of her decisions, and they discussed alternatives even though the decision had already been made. What is this an indication of? -Time orientation -Power tolerance orientation -Uncertainty acceptance -Aggressive goal behavior

controlling

Geert has managers who work all over the world. Each month, all managers are included in an online meeting. In order to accommodate the time differences for all managers, Geert varies the time of day or evening these meetings take place. Which management function is used when considering the needs of all his international employees? -Planning -Leading -Organizing -Controlling

A global business is not committed to a single home country

In what way is a global business different from a multinational business? -A global business is based in one country but buys raw materials and sells products all over the world. -A global business is not committed to a single home country. -A global business operates in a market economy. -A global business must be a member of the World Trade Organization.

Public

In which type of economic system does the government own and operate the companies that conduct business? -European Union -Public -Private -Collectivism

time orientation

Nila's construction firm was awarded a contract to build a new hospital in a Middle Eastern country. However, the construction project was already three months behind schedule because they could not secure the required permits. When Nila met with her local counterparts, they seemed very unconcerned about this delay. Which of the following accounts for this different perspective about the delay? -Goal orientation -Uncertainty orientation -Social orientation -Time orientation

it was taken over by the government

Nita's organization has been doing business in foreign countries for many years, and it has built plants in the local communities overseas. Recently, her company has been nationalized. What does that mean for Nita? -It was taken over by the government. -It will be taxed on goods shipped across national boundaries. -It will now have a quota to fill. -It received additional incentives to expand.

multinational

Nour's organization buys raw materials from all over the world, and in turn, sells finished goods worldwide. Which type of organization does Nour run? -Domestic -Maquiladora -Multinational -International

organizing

Payal has just accepted a three-year assignment to run the overseas division of her organization. Before she transfers, Payal and her family are required to take several classes on culture, housing, language, and lifestyle. Which element of management is Payal's organization preparing her for? -Planning -Organizing -Controlling -Leading

Direct investment

Question Content Area Keane Industries is a privately owned firm that manufactures and installs large, deep well digging equipment that can be operated with little technical expertise. The company has a cash surplus due to a highly profitable decade of sales in its domestic market. Now ready to enter foreign markets, the biggest priority for the owners is to maintain full control of any new operations. Which level of international business activity is Keane Industries seeking? -Direct investment -Licensing -Exporting -Strategic alliances

Provide tax incentives

What can a government do to encourage international trade? -Use export restraint agreements -Provide tax incentives -Impose tariffs -Establish quotas

infrastructure

Woojin is looking at expanding his organization to overseas markets. Part of his consideration on where to open a new facility is based on the ability to move goods in and out of the country. Woojin needs to look carefully at _____. -incentives for international trade -the economic environment -natural resources -infrastructure

Individualism

Yui prefers to use a pay system that rewards her employees based on their contribution to the success of the organization. Which type of social orientation does Yui support? -Individualism -Power respect -Uncertainty -Goal behavior