Mgmt Exam 3

What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price? a. Differentiation b. Distinctive competence c. Diversification d. Divestment

a. Differentiation

What term describes what a firm does well relative to its competitors? a. Distinctive competence b. Cost leadership c. Related diversification d. Unrelated diversification

a. Distinctive competence

Which of the following characteristics relates to a business-level strategy? a. The area of responsibility usually assigned to the divisional-level managers b. Short-term goals that are addressed to first-line managers and usually apply to specific work operations that lead to the production of goods or services c. The scope and resource deployment components of strategy for the enterprise as a whole d. Plans that are intended to achieve operational goals

a. The area of responsibility usually assigned to the divisional-level managers

Which of the following characteristics relates to a joint venture? a. When a company that wants to do business in another country finds a local partner (occasionally, the host nation itself) to share the costs and operation of the business b. A tax levied by a nation on goods bought outside its borders and imported into the country c. Exporting that involves bartering products for other products instead of for currency d. A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business

a. When a company that wants to do business in another country finds a local partner (occasionally, the host nation itself) to share the costs and operation of the business

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of garments being imported from China and Vietnam by imposing a. a quota. b. an exchange control. c. a trade deficit. d. an embargo.

a. a quota.

When Reebok has some of its athletic shoes produced by a Korean company, but the Reebok name still appears on the shoes, this illustrates a. contract manufacturing. b. licensing. c. direct investment. d. exporting.

a. contract manufacturing.

China's arrangement with the Congo to barter infrastructure in exchange for metals is an example of a a. countertrade agreement. b. quota. c. balance of trade. d. protective tariff.

a. countertrade agreement.

The purchase of goods and services from a foreign source defines a. importing b. countertrade c. exporting d. free trade

a. importing

If companies do research to learn about cultural differences before engaging in trade in a particular country, then problems arising from these cultural differences can be a. minimized b. exploited. c. completely avoided. d. unaffected.

a. minimized

A corporation that operates in several countries without significant ties to any of them is a a. multinational. b. strategic alliance. c. cartel. d. joint venture.

a. multinational.

Which of the following characteristics relates to global business (globalization)? a. The buying, selling, and trading of goods and services across national boundaries b. A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business c. Allows selected American firms desiring international trade to form monopolies in order to compete with foreign cartels d. Acquires goods in one country and sells them to buyers in another country

b. A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business

Which of the following refers to the initial stage of the product life cycle when the product is introduced? a. Growth b. Birth c. Maturity d. Focus

b. Birth

What term describes a group of firms or nations that agree to act as a monopoly and not compete with each other? a. World Trade Organization (WTO) b. Cartel c. Global business (globalization) d. Embargo

b. Cartel

What term describes a business-level strategy aimed at achieving the overall lowest cost structure in an industry? a. Distinctive competence b. Cost leadership c. Related diversification d. SWOT analysis

b. Cost leadership

What term describes the purchase of overseas production and marketing facilities, in which a company may control the facilities outright, or it may be the majority stockholder in the company that controls the facilities? a. International business b. Direct investment c. Joint venture d. Strategic alliance

b. Direct investment

Which of the following characteristics relates to the World Bank? a. Basic mission is to oversee the international monetary system and help ensure stable currencies and exchange rates throughout the world b. Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries c. A partnership formed to create competitive advantage on a worldwide basis d. A global association of member countries that promotes free trade

b. Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries

Which of the following refers to an economic and political union of 28 member nations that are located primarily in Europe? a. World Trade Organization (WTO) b. European Union (EU) c. International Monetary Fund d. World Bank

b. European Union (EU)

What name is given to the ratio at which one nation's currency can be exchanged for another nation's currency or for gold? a. Quota b. Exchange rate c. Exchange controls d. Direct investment

b. Exchange rate

The basic mission of which of the following is to oversee the international monetary system and help ensure stable currencies and exchange rates throughout the world? a. World Bank b. International Monetary Fund (IMF) c. World Trade Organization (WTO) d. Organization of Economic Cooperation and Development (OECD)

b. International Monetary Fund (IMF)

When a product has been on the market for many years, such as the automobile, and its growth is slow at best, what stage of the product life cycle is it said to be in? a. Decline b. Maturity c. Growth d. Stagnation

b. Maturity

Which of the following refers to a definition of an organization's fundamental purpose and its basic philosophy? a. Strategy b. Mission c. Plan d. Focus

b. Mission

Which of the following refers to a set of activities intended to achieve goals, whether for an entire organization, department, or an individual? a. Mission b. Plan c. Goal d. Strategy

b. Plan

You are the international marketing manager for Brides & Grooms, Inc., a designer and manufacturer of wedding apparel. This year's fashions are featuring white for the entire wedding party. You scheduled this year's Asian kick-off for next Monday in Tokyo, when you discover that white is the Japanese color of mourning. What did you overlook? a. Competitors' designs b. Social and cultural differences c. Asian marketing trends d. Asian fashion taste

b. Social and cultural differences

Which of the following refers to a general statement of actions an organization intends to take or is taking that is based on the fit of the organization with its external environment? a. SWOT analysis b. Strategy c. Diversification d. Operational plans

b. Strategy

Which of the following characteristics relates to the product life cycle? a. A business-level strategy aimed at achieving the overall lowest cost structure in an industry b. The cycle of birth, growth, maturity, and decline of a product c. A business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price d. A definition of an organization's fundamental purpose and its basic philosophy

b. The cycle of birth, growth, maturity, and decline of a product

What is an embargo? a. The market value of a nation's total output of goods and services for a given period b. The suspension of trade in a particular product by the government c. The buying, selling, and trading of goods and services across national boundaries d. The maximum number of units of a particular product that may be imported into a country

b. The suspension of trade in a particular product by the government

Which of the following characteristics relates to a joint venture? a. Exporting that involves bartering products for other products instead of for currency b. When a company that wants to do business in another country finds a local partner (occasionally, the host nation itself) to share the costs and operation of the business c. A tax levied by a nation on goods bought outside its borders and imported into the country d. A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business

b. When a company that wants to do business in another country finds a local partner (occasionally, the host nation itself) to share the costs and operation of the business

The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of a. a contract manufacturer. b. a direct investment. c. a trading company. d. licensing.

b. a direct investment.

In SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called a. a weakness. b. a strength. c. an opportunity. d. a threat.

b. a strength.

MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make it a "cleaner" utility company. In high-tech renewable energy, this company has a a. rare synergy. b. distinctive competence. c. successful strategy. d. consumer monopoly.

b. distinctive competence.

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company a. is increasing the trade deficit. b. is exporting the lenses. c. is importing the lenses. d. has an absolute advantage.

b. is exporting the lenses.

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as a. exporting. b. licensing. c. direct investment. d. a joint venture.

b. licensing.

What is the World Trade Organization (WTO)? a. An international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy; recommends and promotes policies to improve the well-being of consumers and societies across the world b. An economic and political union of 28 member nations that are located primarily in Europe c. A global association of member countries that promotes free trade d. Comprised of ten Southeast Asian countries with the goal to promote economic growth and overall progress in the area via trade and security

c. A global association of member countries that promotes free trade

What are strategic goals? a. A set of activities intended to achieve goals, whether for an entire organization, department, or an individual b. A business-level strategy aimed at achieving the overall lowest cost structure in an industry c. Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services d. Alternate courses of action to be undertaken if certain organizational or environmental conditions change

c. Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services

What term describes an international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy, and that recommend and promote policies to improve the well-being of consumers and societies across the world? a. World Bank b. European Union (EU) c. Organization of Economic Cooperation and Development (OECD) d. International Monetary Fund (IMF)

c. Organization of Economic Cooperation and Development (OECD)

"Improving people's lives by providing gas and electric services in a sustainable way -- affordable, reliable and clean" is an example of a. an operational goal. b. an operational plan. c. a mission statement. d. a strategic goal.

c. a mission statement.

When a company produces a high-tech, expensive bicycle aimed at serious and affluent bike enthusiasts, it is using the business-level strategy called a. focus. b. cost leadership. c. differentiation. d. cult marketing.

c. differentiation.

By requiring products to be sold for not less than what it costs to produce them, the United States is attempting to prohibit a. embargoes. b. quotas. c. dumping. d. surpluses.

c. dumping.

You sell Gourmet Mushrooms (GMs) at $100 an ounce. You have a secret source of supply, jealously guarded. Your GMs are better than your competitors' mushrooms, and only the very wealthiest Americans buy them. You are using the business strategy called a. strategic analysis. b. differentiation. c. focus. d. premium pricing.

c. focus.

What is meant by focus? a. A course of action for implementing strategic plans and achieving strategic goals b. A business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price c. The product life cycle stage marked by decreases in the product's market share d. A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

d. A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

What name is given to the final result that a firm wishes to achieve? a. Focus b. Mission c. Plan d. Goal

d. Goal

If Peru wants to purchase machine parts from a German company but lacks German marks, it will probably go to which of the following institutions to borrow the marks? a. The World Bank b. The International Bank c. Citigroup Bank d. International Monetary Fund

d. International Monetary Fund

Which of the following refers to the buying, selling, and trading of goods and services across national boundaries? a. North American Free Trade Agreement (NAFTA) b. Global business (globalization) c. Importing d. International business

d. International business

What name is given to the evaluation of the organization's internal strengths and weaknesses and the opportunities and threats associated with the business's external environment? a. Business-level strategy b. Corporate strategy c. Strategic management d. SWOT analysis

d. SWOT analysis

What is meant by corporate strategy? a. A course of action for implementing strategic plans and achieving strategic goals; a general statement of actions an organization intends to take or is taking that is based on the fit of the organization with its external environment b. The intermediate goals of the firm, which are designed to stimulate actions necessary for achieving the strategic goals c. The area of responsibility usually assigned to the divisional-level managers d. The scope and resource deployment components of strategy for the enterprise as a whole

d. The scope and resource deployment components of strategy for the enterprise as a whole

Which of the following refers to the acquisition of goods in one country and the selling of them to buyers in another country? a. Joint venture b. Cartel c. Outsourcing d. Trading company

d. Trading company

When a nation pays for imports with its own goods, it is using a. an embargo. b. a quota. c. an ad valorem tariff . d. a countertrade agreement.

d. a countertrade agreement.

According to the text, a blueprint of acceptable behavior that is passed from one generation to the next is called a. personal space. b. dumping. c. etiquette. d. culture.

d. culture.

When a firm offers a unique good or service to a customer at a premium price, it is following the business-level strategy of a. market penetration. b. cost leadership. c. premium branding. d. differentiation.

d. differentiation.

The ratio at which one nation's currency can be exchanged for another nation's currency or gold is the a. monetary exchange. b. currency ratio. c. international rate. d. exchange rate.

d. exchange rate.

Strategic planning differs from general planning in that it focuses on a. creating a distinctive corporate mission. b. the rational allocation of resources. c. internal problems affecting long-term problems. d. the external environment and long-term goals.

d. the external environment and long-term goals.

Which of the following refers to the market value of a nation's total output of goods a. Exchange rate b. Quota c. Gross domestic product (GDP) d. Joint venture

c. Gross domestic product (GDP)

Because many countries do not permit foreigners to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a a. direct investment. b. contract manufacturing arrangement. c. joint venture. d. sole proprietorship.

c. joint venture.

At even the largest and most affluent corporation, the strategic management process begins with a. perceived failure. b. strong leadership. c. limited resources. d. an illuminating vision.

c. limited resources.

In SWOT analysis, an environmental circumstance that is potentially beneficial for the firm is called a. a strength. b. a threat. c. a weakness. d. an opportunity.

d. an opportunity.

What name is given to a form of licensing in which a company agrees to provide a name, logo, methods of operation, advertising, products, and other elements associated with the company's business, in return for a financial commitment and the agreement to conduct business in accordance with the company's standard of operations? a. Franchising b. Licensing c. Outsourcing d. Exporting

a. Franchising

What term is used to describe the product life cycle stage characterized by dramatic increases in the product's market share? a. Growth b. Focus c. Maturity d. Cash Cow

a. Growth

_____ of a plan is where the organization goes from the "thinking" mode to the "doing" mode. a. Implementation b. Evaluation c. Diversification d. Differentiation

a. Implementation

Which of the following refers to a tax levied by a nation on goods bought outside its borders and imported into the country? a. Import tariff b. Exchange rate c. Licensing d. Quota

a. Import tariff

What term describes the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems? a. Infrastructure b. Joint venture c. Outsourcing d. Strategic alliance

a. Infrastructure

The first step in strategic planning is a. determining the mission and strategic goals. b. doing a comprehensive environmental analysis. c. carrying out a careful SWOT analysis. d. identifying the firm's distinctive competencies.

a. determining the mission and strategic goals.

Your saltwater taffy, which you produce right next to the Pacific Ocean in Orchard Park, Oregon, has a national reputation. You sell all you can make, and people drive hundreds of miles to your shop to buy it. You have a a. distinctive competence. b. virtual monopoly. c. rare synergy. d. strategic goal

a. distinctive competence.

You are an apple farmer and spokesperson for the American Apple Association. You are faced with severe dumping from apple growers in Transoceania, where apples grow wild and the people pay to pick apples as a form of recreation. To counter this threat, you are going to lobby Congress and the president to a. impose a protective import tariff. b. boycott foreign fruit and produce. c. enact an embargo on exported fruit. d. take legal action on apple importers.

a. impose a protective import tariff.

The translation of product names can be a crucial factor in the success or failure of a foreign marketing effort because of a. sociocultural differences. b. the legal environment. c. body language. d. the political environment.

a. sociocultural differences.

The purpose of a strategy is to a. take advantage of what the organization does well, or hopes to do well. b. get the organization moving on a path to achieve its tactical goals. c. boost market share. d. control organizational resources in a rational and efficient manner.

a. take advantage of what the organization does well, or hopes to do well.

Which of the following characteristics relates to the North American Free Trade Agreement (NAFTA)? a. Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries b. Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactured products among the three countries c. A global association of member countries that promotes free trade d. Allows selected American firms desiring international trade to form monopolies in order to compete with foreign cartels

b. Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactured products among the three countries

What term is used to describe a formal written declaration of the organization's mission that often includes the firm's philosophy, its primary products and markets, the intended geographic scope, and the nature of the relationships between the firm, its stakeholders, and society? a. Focus statement b. Mission statement c. Tactical plan d. Strategy statement

b. Mission statement

Which of the following characteristics relates to dumping? a. Occurs when a company hires a foreign company to produce a specified volume of the firm's product to specification; the final product carries the domestic firm's name b. Occurs when a country or business firm sells products at less than what it costs to produce them c. The ratio at which one nation's currency can be exchanged for another nation's currency or for gold d. Involves transferring manufacturing or other functions (such as data processing) to countries where labor and supplies are less expensive

b. Occurs when a country or business firm sells products at less than what it costs to produce them

What name is given to the maximum number of units of a particular product that may be imported into a country? a. Dumping b. Quota c. Cartel d. Exchange controls

b. Quota

What is a multinational corporation (MNC)? a. A partnership formed to create competitive advantage on a worldwide basis b. A company that wants to do business in another country and finds a local partner (occasionally, the host nation itself) to share the costs and operation of the business c. A corporation, such as IBM, ExxonMobil, and Nestlé, that operates on a worldwide scale, without significant ties to any one nation or region d. A company that acquires goods in one country and sells them to buyers in another country

c. A corporation, such as IBM, ExxonMobil, and Nestlé, that operates on a worldwide scale, without significant ties to any one nation or region

Which of the following characteristics relates to contingency plans? a. Plans that are designed to achieve tactical goals b. Plans that are intended to achieve operational goals c. Alternate courses of action to be undertaken if certain organizational or environmental conditions change d. Plans that are intended to achieve strategic goals

c. Alternate courses of action to be undertaken if certain organizational or environmental conditions change

What term describes the agreement between ten Southeast Asian countries with the goal to promote economic growth and overall progress in the area via trade and security? a. Southeast Asian Free Trade Agreement b. Organization of Economic Cooperation and Development c. Association of Southeast Asian Nations d. Southern Common Market

c. Association of Southeast Asian Nations

What is meant by contract manufacturing? a. Occurs when a country or business firm sells products at less than what it costs to produce them b. Involves transferring manufacturing or other functions (such as data processing) to countries where labor and supplies are less expensive c. Occurs when a company hires a foreign company to produce a specified volume of the firm's product to specification d. The buying, selling, and trading of goods and services across national boundaries

c. Occurs when a company hires a foreign company to produce a specified volume of the firm's product to specification

According to Hofstede's cultural dimensions theory, _____ tend to be self-reliant and place a high level of importance on freedom and ambition, while _____ place more value on the team than the individual. a. women; men b. men; women c. individualists; collectivists d. collectivists; individualists

c. individualists; collectivists

What name is given to the product life cycle stage when the product's market share either slows or has no growth? a. Dog b. Decline c. Focus d. Maturity

d. Maturity

You are the president of Henry Motor Corp., and you see the great potential markets in Eastern Europe for personal transportation. Your plan is to purchase an old Soviet tank plant and convert it into an auto factory. The Russian government welcomes your plan, which is an example of a. a joint venture. b. a strategic alliance. c. contract manufacturing. d. a direct investment.

d. a direct investment.

The United States' prohibition of the importing of Cuban cigars is an example of a. a quota. b. a countertrade. c. a tariff. d. an embargo.

d. an embargo.

You are the executive vice president of Banana Computer, Inc. You have a competitive machine, but your major competitor has the benefit of large-scale production, making its products less expensive to manufacture. In order to remain price-competitive, you send your parts and subassemblies to Mexico for the final stage of assembly, thereby taking advantage of a. direct investment. b. a strategic alliance. c. contract manufacturing. d. outsourcing.

d. outsourcing.

The agreement between Japan's Sony Corporation and the Swedish telecommunication company Ericsson to make mobile phones is an example of a a. direct investment. b. cartel. c. joint venture. d. strategic alliance.

d. strategic alliance.