chapter 4

The MINI brand will have fewer trade restrictions and challenges selling their products in​ Germany, France, and Italy than in the United States because of which trade agreement described in the​ chapter?

European Union​ (EU)

Which of the following is a strategy to enter a foreign market in which a firm buys or establishes tangible assets in another country?

Foreign direct investment

Which of the following is an international trade agreement that encourages countries to protect their domestic industries within agreed-on limits?

GAAT

Which of the following is an advantage of globalization?

Increased standards of living for consumers and additional profits for businesses

Which of the following would be the MOST likely organizational strategy to consider if you wanted to start a business distributing MINI Coopers in the United​ States?

Independent agent

Which of the following scenarios reflects an uncertainty orientation?

Sophie struggles to quickly assess emergency patients at the vet clinic where she interns because she has to take risks when time is critical.

Which of the following is an example of an import?

Tulips that were grown in the Netherlands but are being sold in the United States

In order for a purchasing manager at a U.S. company to import goods from his supplier in Japan, he needs to know the exchange rate, which will tell him

how much his U.S. dollars will buy relative to the Japanese yen

A firm that buys and brings in pearls from the Philippines to sell in the United States is an example of a(n) .

importer

A foreign organization that represents the interests of exporters is known as a(n)

independent agent

A company such as Honda, which has a global footprint and does not distinguish between having domestic and foreign divisions, would be a(n) .

multinational firm

The theory of is based on four conditions and explains why a country that meets all four conditions would want to get heavily involved in global trade.

national competitive advantage

In countries such as the United​ States, Germany, and New​ Zealand, employees tend to exhibit​ _____ and may be more likely to challenge authority.

power tolerance

According to Jim​ McDowell, Vice President for MINI​ USA, the car of the future will be​ "smaller, less​ 'thirsty', and will lose a lot of​ weight." This projection is MOST likely in response to

proposed government regulations

In​ Hofstede's five dimensions of national​ culture, _____ refers to a​ person's beliefs about the relative importance of the individual versus groups to which that person belongs.

social orientation

A(n) is a government payment to help a domestic business compete with foreign firms.

subsidy

A(n) is a tax on an imported product.

tariff

Which of the following is an example of an export?

A bottle of French champagne that is produced in France and sent to the United States for sale

In which of the following situations does a trade deficit occur?

A country imports more products than it exports

Which of the following BEST describes an importer?

A firm that buys pearls in a foreign market to sell in the United States

Which of the following BEST describes foreign direct investment?

A strategy to enter a foreign market in which a firm buys or establishes tangible assets in another country

Which of the following would a country use to summarize its annual economic transactions with other nations?

Balance of payments

Which of the following is the economic value of all products a country exports minus the economic value of all products it imports?

Balance of trade

Which of the following is described as an association of producers that control supply and prices?

Cartel

Which of the following would BEST explain why the sales process in every country is​ "a little bit​ different," as David​ Duncan, Manager of sales at MINI​ USA, mentioned in the​ video?

Cultural differences

Which of the following is the act of selling a product abroad for less than the cost of production?

Dumping

Until​ recently, Mini​ Cooper's manufacturing took place entirely at its plant in​ Oxford, England. The company has now opened a second manufacturing facility in Austria. What level of international involvement discussed in the chapter does this​ represent?

International firm

Which of the following is a TRUE statement about national competitive advantage?

It explains why a country would want to get heavily involved in global trade.

Employees in countries such as​ _____ are more likely to exhibit moderately aggressive goal behaviors.

Italy

Which of the following is a strategy to enter a foreign market in which a U.S. company grants a foreign company the right to use its patents, trademarks, brand name, and proprietary technology to produce and/or market its products in that market?

Licensing arrangement

Which of the following does NOT typically fall under the jurisdiction of business practice laws?

Locally made goods

Which of the following fall under the jurisdiction of local content laws?

Locally made goods

The legal agreement or treaty that helped remove tariffs and other trade barriers among Canada, America, and Mexico is known as

NAFTA

Which of the following is the practice of outsourcing to foreign countries?

Offshoring

Which of the following is the practice of safeguarding domestic business at the expense of free market competition?

Protectionism

Which of the following is a restriction on the number of products of a certain type that can be imported into the country?

Quota

What is absolute advantage?

The ability to produce something more efficiently than any other country can

Which of the following BEST describes the cultural dimension Hofstede identified as time orientation?

The extent to which members of a culture adopt a long-term versus short-term outlook on work, life, and other elements of society

Which of the following BEST describes uncertainty orientation, the third dimension of Hofstede's five-dimension model?

The feeling individuals have regarding uncertain and ambiguous situations

Which of the following is the definition of Hofstede's fourth dimension, goal orientation, of how people differ across cultures?

The manner in which people are motivated to work toward different kinds of goals

Which of the following is the BEST definition offshoring?

The practice of outsourcing to foreign countries

What is dumping?

The practice of selling a product abroad for less than the cost of production

When a company wants to enter a foreign market, what will a licensing agreement grant the foreign corporate partner?

The right to use patents, trademarks, and brand names of the company

What is the purpose of the WTO?

To promote fair trade, encourage multilateral negotiations, and help resolve disputes among members across the globe

Which of the following is the goal of the North American Free Trade Agreement (NAFTA)?

To remove tariffs and other trade barriers between Canada, the United States, and Mexico

Formed in 1995, which of the following promotes fair trade, encourages multilateral negotiations, and helps resolve disputes among members across the globe

WTO

In order for a purchasing manager at a U.S. company to import goods from his supplier in Japan, he needs to know the , which determines how much his U.S. dollars will buy relative to the Japanese yen.

exchange rate

A bottle of French champagne that is produced in France and sent to the United States for sale is known as a(n)

export

A coffee plantation in Colombia that sells its coffee beans to U.S. manufacturers is an example of a(n)

exporter

An independent agent is a(n)

foreign organization that agrees to represent an exporter's interests

Ashar is a new manager at a Japanese financial services office. He has found that employees are willing to work for many years in hopes of receiving a​ reward, unlike his coworkers in his native​ Pakistan, where jobs with more immediate rewards are preferred. This reflects​ Hofstede's _____ dimension of culture.

time orientation

In countries with​ _____, employees will generally prefer structure and a consistent routine.

uncertainty avoidance