Capstone Chap.11 Global and International Issues

12) One of the dangers of remaining a local competitor is that more aggressive companies will use their global growth to capture economies of scale and learning.

A

13) The social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats that face a multinational corporation are almost limitless.

A

17) The need to amortize massive R&D investments over many markets is a major reason why the aircraft manufacturing industry became global.

A

19) An increasing number of U.S. companies are reincorporating in foreign countries to reduce their tax burden, doing this typically by acquiring a foreign firm.

A

9) A firm's power and prestige in domestic markets may be significantly enhanced if it 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

4) 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

7) 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.

11) Mass communication and high technology have led to highly individualized and distinct patterns of consumption in diverse cultures worldwide.

B

14) While multinational corporations face almost limitless social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats, the number and complexity of these factors do not dramatically increase with the number of products produced and the number of geographic areas served.

B

16) The drive to improve the efficiency of global business operations is leading to lesser functional specialization.

B

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

B conceptually the same as; more simple

2) 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) dramatically increase with C) drop slightly with D) are constant despite E) are unaffected by

B dramatically increase with C) drop slightly with

18) High corporate tax rates A) encourage investment in new factories. B) provide strong incentives to avoid and evade taxes. C) attract foreign investors. D) make a nation a desirable location for investment. E) have been a growing trend since the 1980s.

B provide strong incentives to avoid and evade taxes.

8) ________ 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

15) Most economists argue that protectionism ________ the world economy because it ________ trade among countries. A) helps; inhibits B) helps; encourages C) harms; inhibits D) harms; encourages E) doesn't impact; doesn't affect

C) harms; inhibits

20) 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) A 90-minute lunch break plus 20-minute morning and afternoon breaks are common in European firms. 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.

10) Strengths of competitors in foreign lands are often ________, and weaknesses are often ________. A) overestimated; overestimated B) overestimated; underestimated C) underestimated; underestimated D) underestimated; overestimated E) none of the above

D) underestimated; overestimated

3) 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

1) The ________ competitive 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