IBA Exam 2 (chapters 6,7,8,11,16)

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Hire a global advertising agency

an international technology company is deciding how to utilize its advertising budget for the year. Which of the following is the best​ option?

culture and language

buyer receptiveness differs as a function of​ ________.

Foreign Corrupt Practices Act (FCPA)

firms are prohibited from offering bribes to foreign firms to obtain business

true

True or False: Regional integration greatly increases the scale of the marketplace for firms inside the economic bloc.

Geographic area structure

Under which one of the following organizational structures are management and control highly decentralized to the level of individual​ regions?

Tariffs, taxes, and markups

What causes international prices to​ rise?

European Union​ (EU)

Which of the following is a regional trade​ organization?

Maintaining a strict adherence to ethical behavior

Which of the following is a strategy managers can employ to manage country​ risk?

cater to local customer needs

Which of the following would exert pressure on a firm to become locally​ responsive?

Organizational processes

Which term defines managerial​ procedures, actions, and mechanisms that allow an organization to operate as​ planned?

Countertrade

Which term defines the business transactions where payments are made in kind instead of in​ cash?

Outsourcing

Which term refers to acquiring certain​ value-chain activities, including the production of finished products from independent​ suppliers?

investment incentives

Which type of government intervention encourages foreign companies to enter a​ host-country market?

Global strategy

Which type of strategy involves centralized coordination and control of different international​ operations?

politically and environmentally active

Why is the middle class used to determine market​ potential?

transfer pricing

Pricing of products exchanged among different parts of the same corporate​ business, located in different​ countries, is called​ ________.

standardization

Products that have universal specifications are the best candidates for​ __________ of its marketing program.

Decentralized structure

Which one of the following approaches affords significant independence and​ decision-making authority to the​ firm's subsidiaries around the​ world?

common market

Which one of the following involves reducing or removing barriers to​ trade, establishing shared external​ barriers, and permitting the unrestricted movement of​ goods, services, and factors of production within participating​ countries?

Reducing trade barriers

Which one of the following is a major factor in the growth of global commerce and in rising incomes​ worldwide?

Political and legal systems are interdependent.

Which one of the following is true of political and legal environments in international​ business?

Embargo

Which one of the following officially bans imports from and exports to a specific country in an attempt to impose a political​ punishment?

Foreign direct investment

Which one of the following provides the most control over foreign​ operations?

GATT

Which one of the following was the first major effort to systematically reduce trade barriers​ worldwide?

easier to reach an agreement

Why would a nation choose to be a member of an economic​ bloc?

Flexibility

________ enables an MNE to accommodate various​ country-specific challenges and opportunities.

Global​ new-product planning teams

________ formulate best practices that the firm implements in all its units worldwide.

Advanced economies

________ have high​ per-capita revenues, very competitive​ businesses, and strong infrastructures. They include​ Australia, Canada, and New Zealand.

Transition economies

________ include groups of evolving markets that have progressed from centrally planned economies into liberalized markets.

Regional economic integration

________ involves countries establishing agreements with one another for the purpose of minimizing obstacles concerning trade and business ventures.

Strategy

________ is a planned set of actions that managers employ to make best use of the​ firm's resources and core competencies to gain competitive advantage.

Arbitration

________ is a process in which an unbiased third party listens to both sides of a case and makes a decision in favor of one party or the​ other, based on an impartial analysis of facts.

Global account management

________ means serving a key international customer in a consistent and standardized​ manner, regardless of where in the world it operates.

litigation

________ occurs when one party files a lawsuit against another.

Protectionism

________ pertains to national economic policies that restrict free trade and protect domestic industries from foreign competition.

Country risk

________ refers to the possibility of loss or adverse effects on company operations and profitability as a result of changes in a​ country's political​ and/or legal environment.

Global sourcing

________ refers to the procurement of products or services from independent suppliers or​ company-owned subsidiaries located abroad for consumption in the home country or a third country.

Purchasing power parity​

_____________________ adjusts prices to​ reflect the goods consumers can​ buy, as well as account for their currency and standard of living

culturally diverse team

a ___________________________ would create a global view inside the firm while remaining in touch with local realities

global brand

a brand whose​ positioning, advertising​ strategy, look, and personality are standardized worldwide

global marketing strategy

a plan of action the firm develops for foreign markets that guides managerial decision making​ on: how to position itself and its offerings and which customer segments to target.

emerging markets

Political instability that is associated with weak legal frameworks

economic freedoms

which characteristic is this: "Market forces and the ability to easily implement commercial activities"

extraterritoriality?

which of the following does this characterize: "Applying​ home-country laws to persons outside national borders"

socialism

which one of the following is based on a collectivist mentality and requires that all capital be put back into the state and used as a source of production and not profit?

developing economies

​Low-income countries like Bangladesh and Nicaragua are categorized as​ ________ because they have limited industrialization and stagnant economies.

Global integration

​________ is defined as the coordination of a​ firm's worldwide​ value-chain activities to obtain​ synergy, efficiency, and​ cross-fertilization.

privatization

​________ is the transfer of industries from state ownership to​ non-public entities.

Gray market activity

​________ refer(s) to the legal importation of genuine products into a country by intermediaries other than authorized distributors​ (also known​ as parallel imports).

Stocking local produce

An international supermarket chain is opening stores in foreign markets. Which adaptation could be made to accommodate national​ preferences?

brand equity

the strength of a global brand is measured by​ _____________

transnational

A coordinated approach to internationalization in which the firm strives to be relatively responsive to local needs while retaining sufficient central control of operations is a​ ________ strategy.

Economies of scale

A firm most likely opts for global integration in order to take advantage of which of the following​ factors?

nontariff trade barrier

A government policy or procedure that restricts trade through means such as quotas is known as​ a(n) ________.

It occurs after an MNE makes large investments in a​ country's property and facilities

A huge MNE was the victim of creeping expropriation from a foreign government. Why is creeping expropriation ethically​ wrong?

family conglomerate

A large and highly diversified company that is privately owned is known as​ a(n) ________.

develop a global brand

A large cosmetics company is looking to break into international markets. What strategy should the company pursue to achieve this​ goal?

positioning

A marketing strategy in which a firm creates a distinct impression in the​ customer's mind is called​ ________.

functional structure

A(n) ________ is an arrangement in which management of the​ firm's international operations is organized by​ activity, such as production and marketing.

foreign trade zone

A(n)________ is a designated location within a country that receives imported goods for assembly and then​ re-exports finished products.

Changes in the political climate might influence government interference in business​ practices

An American company that does business overseas has to be concerned about local events. Why should a company be concerned about political events and the legal environment in the country in which it does​ business?

Frequent business travelers

An upscale hotel chain is developing a global marketing strategy to expand into foreign markets. Which market segment should be​ targeted?

encouraging economic growth

Companies help address poverty around the world in many ways. If a foreign firm in an emerging market modernizes local roads and bridges and creates jobs for workers in the​ community, the firm is​ ________.

licensing or franchising

Contractual relations usually take the form of​ ______, in which an organization allows an international partner to use its intellectual property in return for royalties.

competitive advantage

Global branding increases a​ firm's ________ in international markets.

all of the above

Governments impose defensive barriers to​ ________: a. promote national security b. safeguard industries c. protect workers d. all of the above

relationships with the local government.

How does a foreign firm benefit from partnering with a family​ conglomerate?

understand local​ conditions

In emerging​ markets, why do successful firms develop close community​ relationships?

culture

In international​ advertising, the receptiveness of the buyer to advertising changes is a function of​ ________.

centralized approach

In​ a(n) ________, the headquarters of a company has significant authority and control over the​ company's global activities.

SIGs influence elected officials who can change policy.

It has recently been found that special interest groups​ (SIGs) have unprecedented access to politicians through social events. Why should companies be concerned with the​ SIGs' access to government​ officials?

mixed system

Many Middle Eastern countries practice both civil law and Islamic law. In this​ case, under which legal system are these countries ultimately​ categorized?

NAFTA

Members of​ ________ benefited the most from the maquiladora program.

intermediary

Moving products through a distribution channel to a retailer Your answer is correct. B.

establishing a stronger political position as a united bloc

Regional integration enables member countries to gain bargaining power in world affairs by​ ________.

internationalization

Regional integration leads to increased​ ________ by firms inside their economic bloc.

all

TDC​ Industries, a U.S.​ firm, has established operations in​ Germany, so TDC Industries has free trade access to​ ________of the EU market.

false

TRUE OR FALSE: A firm can reduce its marketing and advertising costs substantially by focusing on numerous national brands instead of a single global brand.

true

TRUE OR FALSE: Firms that want to become globally competitive must seek simultaneously three strategic​ objectives-efficiency, flexibility, and learning.

true

TRUE OR FALSE: In the early stages of market​ research, managers examine three important statistics to estimate market​ potential: per-capita​ income, size of the middle​ class, and market potential indicators.

true

TRUE OR FALSE: Increasingly, mainstream banks view microfinance as a source of future growth

true

TRUE OR FALSE: Inexpensive labor and government support have spurred the growth of emerging markets.

true

TRUE OR FALSE: MNEs must set prices appropriate for local conditions. Many firms devise innovative products and packaging to keep prices low.

false

TRUE OR FALSE: Obtaining economic development incentives from​ host-or home-country governments increases the cost of trade and investment barriers.

true

TRUE OR FALSE: Tariffs and most nontariff trade barriers impact importers by making products more expensive.

true

TRUE OR FALSE: foreign units of a company using a multidomestic​ strategy are autonomous and operate independently.

true

TRUE OR FALSE: Political instability is associated with corruption and weak legal frameworks that discourage inward investment and the development of a reliable business environment.

Sanctions punish unwanted activities by foreign countries.

The United States has implemented trade sanctions on Iran and Syria. What is the purpose of​ sanctions?

international organizations

The World​ Bank, the World Trade​ Organization, and the United Nations Conference on Trade and Development are examples of​ ________.

low cost labor

The new global challengers have become formidable competitors primarily because​ ________.

home replication strategy

The​ ________ refers to an approach in which a firm views international business as separate​ from, and secondary​ to, its domestic business.

visionary leadership

Top managers who provide inspirational direction and motivation to employees in an attempt to take a company to a better future are exhibiting​ ________.

both make decisions on a​ country-to-country basis.

What does a multidomestic industry have in common with local​ responsiveness?

tariffs can hurt poor countries

What ethical concerns do government intervention and trade barriers raise for developing​ economies?

Tradition, previous​ cases, and legal precedents

What is the basis of common​ law?

Assessing potential threats

What is the benefit of environmental​ scanning?

Expropriation

What kind of government seizure compensates​ foreign-owned businesses?

import tariff

What type of tariff is assessed as a percentage of the value of the imported​ product?

Political instability

Which challenge of emerging markets is associated with corruption and weak legal frameworks that discourage business​ investments?

stability based on laws

Which of the following BEST describes a political​ system?

Cultural and financial factors

Which of the following are environmental conditions that influence a​ firm's product​ development?

The Gulf Cooperation Council​ (GCC)

Which of the following coordinates​ economic, social, and cultural affairs among​ Bahrain, Kuwait,​ Oman, Qatar, Saudi​ Arabia, and the United Arab​ Emirates?

Rule of law

Which of the following describes a legal system with clear rules that are publicly​ disclosed, enforced​ fairly, and respected by​ individuals, organizations, and the​ government?

The origins of Islamic law date back to Roman law and the Napoleonic Code.

Which of the following does NOT describe Islamic​ law, also known as shariah​ law?

Organizational structure

Which of the following identifies the reporting relationships in an​ organization?

Violating​ host-country laws and regulations

Which of the following is a key risk associated with global​ branding

Purchasing power parity

Which of the following is used by managers to analyze data to estimate market potential in a certain​ location?

General Agreement on Tariffs and Trade

Which of the following primarily focuses on ensuring the reduction of tariffs among certain countries and settling trade​ disagreements?

Efficiency

Which of the following refers to reducing the cost of a​ firm's global​ activities?

Exporting

Which of the following represents a​ low-control strategy?

increasing the requirements for​ licenses

Which of the following situations will discourage business activities of foreign firms in an emerging​ market?

Trade among the EU members takes place unobstructed

Which of the following statements BEST describes the European Union​ (EU)?

direct investment from abroad

Which of the following trends supports improving economic conditions in​ Africa?

Media availability and quality

Which of the following​ determine(s) the nature of international marketing​ communications?

The government will support foreign business by enacting laws that decrease import quotas.

economic freedom

adaptation

the​ firm's efforts to modify one or more elements of its international marketing program to accommodate specific customer requirements in a particular market

true

true or false: NAFTA allowed​ member-country firms to submit bids for government contracts in the three signing countries​ (Canada, Mexico, and the United​ States).

socialism

what does this statement describe: "collective welfare outweighs individual welfare"


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