FVC1 V2 Global Business Unit 4 Test

A company desires to scale its international business by taking over established organizations in the intended markets. Which strategy will allow this process to occur quickly?

Acquisition. Acquisitions are appealing to companies due to the ability to have quick access to added international subsidiaries to their organization for new market entry.

Which departmentalization is based on the primary roles performed within an organizational unit, such as marketing, finance, production, and sales?

Functional. This is based on the primary roles performed within an organizational unit.

A chief executive officer (CEO) wants to grow the company by investing in foreign countries. The CEO is considering multiple entry strategies to accomplish this objective but has concerns about growth in foreign markets, especially the costs, risks, and entry time. The CEO decides to eliminate any entry strategy that fails to control these factors. Which strategy should the CEO eliminate?

Greenfield venture. Disadvantages of a Greenfield venture include high costs, high risk, and slow entry time.

A company looks to capture foreign markets in mature economies where the total goods and services provided in a one-year period is high. Which type of information is the company including in its strategy prior to entering the foreign markets?

Gross domestic product. High growth markets are reflected in the gross domestic product and are an indicator of strong opportunity.

A major global technology company headquartered in France assigns a promising plant manager from its India operations to head a manufacturing plant in the United States. What is an advantage for the company of this workforce management approach?

Increases cooperation and coordination across the company. By staffing the leadership role with a staff member from another division or subsidiary increases cooperation and coordination across the company.

What is the strategic importance of ethnocentrism in international business?

Places one's own culture as the most important cultural factor. Ethnocentrism is the belief that one's own culture is the most important cultural factor and should be used as the focal point around which all other cultures revolve.

A few employees in a company are newly assigned to work in China to plan effective social media campaigns. What should the employees know about media in China?

Sites are controlled by Chinese companies. Baidu, Alibaba, and Tencent are the main Chinese media companies that replaced banned social media sites such as Facebook and Twitter in China. These media companies control most of the digital content in China.

An international company has employees with complementary skill sets work together toward a mutual goal. What is the organizational structure of this company?

Teams. Teams organizational structure has employees with complementary skill sets working together toward a mutual goal.

How is global business marketing affected by cultural dimensions?

Through consumer preferences. Marketing is impacted by culture as a result of different tastes and preferences present in diverse cultures, which requires adaptations to the marketing mix.

A business has decided to engage in foreign direct investment (FDI). Which reason should influence the business to take this step?

To take advantage of lower costs in the host country. Global businesses engage in foreign direct investment (FDI) to take advantage of lower costs in the host country.