International Business Final Exam
technical standards
DVD equipment manufactured in the US will not play DVDs recorded on equipment manufactured in Great Britain. This limits the market for selling DVDs from Great Britain in the US and shows how _____ can influence consumer behavior.
standardized
Despite minor variations in its menu from country to country, McDonald's is usually described as a company that follows a (standardized or localized?) strategy in international markets.
communication
Direct selling, sales promotion, direct marketing, and advertising are all examples of a company's ______ channels.
horizontal differentiation
Dividing an organization formally into subunits is called ________.
minimum efficient scale
During the management meeting, Maria pointed out that the company was running at a level of output necessary for it to achieve all the economies of scale required to operate efficiently. What was Maria describing?
data
EDI refers to the interchange of ____ between companies.
concentrated
Establishing a facility in a centralized location and serving the global market from this location is an example of a _______ production configuration.
functional
Fatima started her small business two years ago and has been so successful that she is now developing into a large business and is creating purchasing, marketing, and manufacturing positions within the company. Fatima's business demonstrates the ________ organizational structure.
international
Firms that follow a(n) ______ strategy maintain centralized control over the firm's core competencies, but decentralize most other operating decisions.
geographically
Firms with international divisions tend to be organized _______.
reduce setup times increase utilization of machines improve quality control
Flexible manufacturing involves a range of manufacturing technologies designed to accomplish what three things?
lean
Flexible manufacturing technology is also referred to as ______ production.
Source effects
Following a month-long social media attack on German imports, German electronic manufacturers decided to implement an advertising campaign to negate the attack and reassure US consumers that German-made electronics were of the highest quality and relied on US parts to complete the product. Which international communication barrier was the company trying to overcome?
profit margin
For most companies, each intermediary in a channel adds its own markup to products, which creates a link among channel length, the final selling price, and the company's
customs brokers
Freestyle Performance Group is new to the exporting business and has no understanding of the customs requirements foreign countries might place on the athletic equipment they want to export. Which type of service provider can help the company with this problem?
knowledge
Fundha's company wants to foster cooperation between the five units of the organization and has established an informal _____ network that allows the managers within the international firm to share ideas and foster the team approach.
purchasing
Genevieve works for a company that manufactures office furniture. It is her responsibility to source component parts such as casters, laminate, and plastic to make the office furniture. Genevieve works in ______.
letter of credit
Gina's company is in competition with four other suppliers who are trying to get similar products into France. One way Gina's company could boost its appeal with the importer would be to forgo a _____.
marketing mix
Grayson's department is responsible for assessing the distribution and pricing strategies for the company's main product lines. This department is responsible for two of the elements that comprise the ______.
marketing, human resources, research and development
Identify three components of a business that make up its operations.
quality
If Trevor wants his company to create more value, he should look for ways to make a product that is higher in ______________
pull
If a company chooses to use mass media advertising rather than personal selling as a communication strategy, it is engaging in a __________ (push or pull?) strategy.
retailer wholesaler consumer
If a company manufactures in the United States and only wants to sell products in the US, then which three resources can the firm sell to directly? (check all that apply)
economies of scale
If a firm realizes reductions in per unit cost achieved through large production runs, it is experiencing _______.
ambiguity
If subunit A relies on subunit B located in a different country to complete its work, but subunit B fails to do its job and as a result both subunits fail, it demonstrates the idea of performance _____.
few
In a concentrated retail system, most of the market is supplied by ________ (few or many?) retailers.
countertrade
In exchange for getting an order for commercial aircraft from Air India, Boeing might be required to buy aircraft doors from an Indian company. This is an instance of using ____ as a marketing tool.
Production Marketing R&D
In order to reduce the possibility of new product failure, a company should dedicate itself to creating tight cross-functional coordination and integration among which three core functions involved in the development of new products?
Limited amount of media Short distribution channels
In which two situations would a company want to emphasize a push strategy?
Long
In which type of distribution channel is it more likely for the consumer to end up paying a higher price for the final product?
more
It is (less or more?) important to integrate R&D and marketing when dealing with international business.
one
It is best if members of a product development team are placed in (one or many?) location(s).
transnational
It is more important in firms employing a(n) _____ strategy to have a common culture.
global learning
Jackson reminded his management team that while their home headquarters had knowledge about the facilities in Thailand, they should also communicate with the subsidiary in Thailand to gain their knowledge. This demonstrates the concept of ____.
location
Jan's company decides to locate its manufacturing to another country because that country's economic, political, and cultural conditions are conducive to the success of the company. Jan's company is making its decision based on _____ economies.
primary
Jason is a member of the company's product development team. He is involved with a(n) _____ activity.
global inventory management
Jason is responsible for determining how much inventory to have on hand and where that inventory should be located in the supply chain for his company. Jason works in _____.
freight forwarder
Jason's company is involved with the international transportation of goods. The company is able to keep costs down for its customers because it combines smaller shipments from a variety of companies into one large shipment. Jason's company is an example of a ____.
short
Jim's shoe company manufactures shoes and sells them directly to the consumer. In this situation, the channel length can be described as _____.
exclusive
Jonah's company is trying to gain access to shelf space in supermarkets for its new line of crackers. However, it is very difficult to get the stores to carry the product because so many stores prefer to carry crackers from established manufacturers. Jonah's company's efforts are being hampered by a(n) ______ distribution channel.
fixed
Juanita works for a company that manufacturers microchip technology. The company would like to open another facility in Europe but the cost to build the facility with the necessary technology is too high. This demonstrates how _____ costs can affect where a company produces.
Mass media advertising
Karen's boss told the marketing department that a pull strategy should be implemented to sell the new line of footwear. Which communication strategy should the department use?
inventory
Katrine reported to the management team that currently 42% of their total assets were in raw materials and 58% were in finished goods. The finished goods were divided equally between their plants in the United States, Honduras, and Indonesia. Katrine's report is a summary of the company's global ______ management.
Exporting
Kent told the management team that there were many opportunities for market expansion of their product in western Europe. He felt they should find a means to sell there and begin shipping product immediately. What entry mode is Kent interested in?
Level II
Kim's company only participates in international purchasing activities when needed. Unfortunately, this means that those international purchases are typically last-minute. Which of the strategic levels of global purchasing does this represent? Multiple choice question.
it is designed in the US, components are made in a variety of countries, the unit is manufactured in China
Lenovo's ThinkPad laptop computer illustrates the concept of the global web because _____.
proactive
Lila warned the management team that if they didn't try to enter the foreign market now, it would be hard to expect growth experience because all of their competition would saturate the market. Lila would like her company to be ______________ (reactive or proactive?).
personal
Lisa's manager stops by her desk a few times each week to get her opinion on customer requests. What type of control system does this represent?
export management company
Lisette runs a small perfume business and is interested in exporting but she does not have a large enough staff to expedite the marketing needed to do this. She could find an export specialist by working with a(n) _____.
personal selling
Manuel's company decided to implement a push strategy for its new line of health care products. That means the company will use _____ to promote the products.
mass customization
Mary's company incorporated flexible manufacturing technology to develop a low cost, customized line of t-shirts. Her company is using the process of ______.
source
Matthew has an opportunity to manage one of the factories for his company. He will direct the purchase of raw materials that his company uses to make office furniture. Matthew will be the manager of a(n) _____ factory.
Leveraging subsidiary skills
McDonald's local franchises in France have begun to offer more elegant seating areas and an upscale menu. This was done in response to slow growth rates in the area. Impressed with the increased sales at these stores, McDonald's executives are considering making these changes elsewhere. In this instance, what aspect of creating value is demonstrated?
customer service
Meghan's job involves responding to emails from clients who have product questions and complaints. Which primary activity function is Meghan involved in?
each key function in the company
Members of a product development team should be comprised of individuals from
strategy
Mia's goal for the company this year is to sell its product line internationally. She feels this will increase profits within the next three years by as much as 30%. Heather is developing a ____ for the company. Multiple choice question.
barter
Michael doesn't have the money to buy a new car and he wishes he could trade in his old car, his bike, and his computer to buy a new car. If Michael was running a company this way, what type of countertrade would he be thinking about?
lead
Michaela is part of a team responsible for all of the cutting-edge production her company uses to produce computer hardware. She works for a(n) _____ factory.
EDI
Most companies now rely on ______ for the exchange of electronic data between two or more companies.
product
Most firms that pursue a global standardization strategy would rely on a worldwide _____ division structure.
worldwide
Natalie's company has its headquarters in Chicago and three areas of the world -- the Far East, Latin America, and Europe. Her company is an example of the _____ area structure.
knowledge
Nathan was worried that his company was missing a lot of opportunity to sell their products in China because of the separation created by language, culture, and distance. In other words, his company had a lack of _____.
strong
New product development seems to be strongest in countries where competition is _____.
source effects
Nigel works at a British advertising agency and has advised his client that it's not worth the company's money to advertise its products in China because he knows there is a strong bias against foreign firms for this particular product. This demonstrates how _____ can impact international marketing.
hidden
One drawback to basing production in a foreign location is the potential for poor product quality. This is an example of a _____ cost.
export credit
One way to avoid payment default on a foreign export sent without a letter of credit is to purchase _____ insurance.
domestic
Out of the five strategic levels of global purchasing, those companies that participate as Level 1 engage only in _____ activities.
push
Paul's company sells complex products to hospitals and medical facilities. It would be best for his company to use a _____ strategy as a communications tool.
high
Pharmaceutical products are typically expensive but they do not weigh very much. These products typically have a ____________(low or high?) value-to-weight ratio.
strategic
Predatory pricing, multipoint pricing, and experience curve pricing are all aspects of ______ pricing.
discrimination
Price _____ exists when customers in different countries are charged different prices for the same product.
Production Marketing & sales Customer service R&D
Primary activities of the value chain can be categorized into four functions; identify these four functions.
technology
Riley's company realized it could not make the component parts at its plant in Thailand because that plant did not have the necessary manufacturing tooling to do the job. This demonstrates how ______ plays a role in where a company produces.
production
Sanjay was making a list of all the activities his company would need to do in order to create the new line of golf clubs. All of these activities demonstrate the ____ of the golf clubs.
Cultural Bureaucratic Output Personal
Select the four control systems that are used in multinational firms.
countertrade
Since the developing country was not able to pay in hard currency, Daveed's company agreed to accept motor parts for use in their motorcycle product line as payment. Unfortunately, the motor parts they received were all broken. This is an example of a disadvantage of _____.
the advent of communication technology improved transportation methods
Some believe that local customization is declining in importance. What two reasons are cited as the reason for this decline?
fragmented
Sooyoung reported to the management team that since there were so many retailers supplying the product, none of them held a major share of the market. She is describing an example of a(n) ______ retail system. Multiple choice question.
shorter
Technological innovations occur at a rapid pace and as a result product life cycles have become _____.
financing; export credit insurance
The Export-Import Bank provides ______ while the Foreign Credit Insurance Association provides ______.
US Department of Commerce
The International Trade Administration is an organization within the _____.
statistical model
The Six Sigma approach assesses productivity levels and waste levels by developing a(n) _____.
prospects
The US Department of Commerce would supply a business with a best _____ list if the company was interested in learning more about potential foreign markets.
liaison
The _____ role is a formal mechanism in which a person in each subunit is given responsibility for coordinating with another subunit on a regular basis.
transnational
The _____ strategy may use a mix of centralization and decentralization depending on the pressures for local responsiveness and the need to coordinate a dispersed value chain and transfer core competencies. There is a high need for coordination when using this strategy.
a receipt a document of title a contract
The bill of lading acts as _____. (Check the three that apply.)
does
The distribution of power within a company _____ help create organizational inertia.
an online platform
The economic model known as the sharing economy is based on the idea that sharing access to products and services is done through _____.
shock therapy
The first principle of successful organizational change is to unfreeze the organization through _____.
cultural
The frozen food division of Nestle markets fish cakes and fish fingers in Great Britain but focuses on marketing boeuf bourguignon and coq au vin in France. This reflects how Nestle is taking _____ differences into account when selling products.
matrix
The global _____ structure allows for horizontal differentiation in product division and geographic areas.
Foreign Credit Insurance Association Export-Import Bank
The government provides two sources of assistance to US exporters to finance their export programs. The two sources are ______.
minimal
The ideal offshore factory would include _____ investments in technology from corporate headquarters.
decentralized
The importance of local responsiveness in pursuing a localization strategy leads firms to adopt a _______ decision making model.
business analytics
The knowledge, skills, and technology that allow for the exploration and deeper investigation of a company's international business strategies and activities to gain insight and drive future strategy development and implementation is known as _____.
trust
The letter of credit and a bill of lading are both financial devices that were created in a response to a lack of ____ that can develop when companies export products.
localization
The level of integration and coordination of subunits is lowest for firms following a(n) _____ strategy and highest for firms following a transnational strategy.
cost savings
The main reason a company would include an offshore factory in the production of component parts would be to realize _____.
processes
The manner in which decisions are made and work is performed within a company is referred to as _____.
production
The manufacturing of garden equipment is an example of which primary activity?
value
The marketing department survey showed that many customers preferred a smaller container for the company's line of iced coffee products. The R&D department immediately began work on a new container. These departments worked together to increase the _____ of the product.
distribution
The method a company chooses for delivering a product to the consumer is called the _____ strategy.
tradition
The most important aspect of cultural differences that companies need to recognize when marketing to another country is the impact of _____.
EU
The most obvious example of the push for local responsiveness based on a region is the _____.
elasticity
The price _____ of demand is a measure of the responsiveness of demand for a product to change in price.
minimum efficient scale
The scale of output that a production facility must operate at to realize all major plant-level scale economies is called the _____.
coordination
The shared decision-making opportunities and operational collaboration of key global supply chain activities is called global supply chain _____.
Six Sigma
The statistically-based process used today to reduce production costs that is the successor to TQM is called ______.
international
The strategy in which businesses centralize functions such as R&D and marketing functions, but decentralize operating decisions to subsidiaries is the _______ strategy.
JIT
The strategy to decrease inventory costs by having materials arrive at a production facility when they are needed rather than keeping an inventory is called ______ inventory.
mass customization
The term used to describe a company's ability to produce a customized product at low cost is ______.
Many brand names are global Significant economic advantages One large advertising effort will produce better results
The text presents three arguments in support of global advertising. What are those three arguments?
transnational; localization
The text suggests that it is more important to have a common culture in firms employing a ______ strategy than a _____ strategy.
production
The three core functions involved in the development of new products are R&D, marketing and ______.
Japan
The total quality management approach to increasing product reliability was first adopted by companies in _____.
problems enforcing contractual obligations distance between the two parties
The two factors that lead to a lack of trust in an export transaction are ______. Choose all that apply.
transportation
The value-to-weight ratio influences a company's ______ costs.
primary
Tomas is not able to find any data on the number of households using an electric stove so he devises a survey to obtain the information. His survey results are an example of _____ data.
Outpost
Treena works for an electronics parts company and was recently transferred to China to work gathering intelligence on her company's main competitor. Her new office in China is just five miles away from the competitor. Which type of factory will Treena be working in?
incentive
Trevor's company provides an end-of-year bonus to those managers who have worked at the company for at least five years. This bonus is an example of a(n) _____.
location
Trina's company has moved all sewing and piece-work capabilities to a plant in Thailand in order to reduce costs. Her company is taking advantage of a(n) _____ economy.
false
True or false: A company would typically experience a decrease in profit growth if it should decide to disperse value creation activities to different locations as a way to perform those activities more efficiently.
false
True or false: A lack of homogeneity in the global marketplace is evident in the worldwide acceptance of McDonald's hamburgers.
True
True or false: A letter of credit may place limitations on an importer's ability to secure a loan.
True
True or false: Consumers buying a car in a less-developed nation are more likely to be concerned with product reliability over extra features.
False
True or false: In a localization strategy, decision-making is centralized at headquarters because firms are not pressured for local responsiveness.
True
True or false: In order to reduce the risks associated with exporting, it is a good idea for a company to initially focus on one market.
true
True or false: In order to reduce the risks associated with exporting, it is a good idea for a company to initially focus on one market.
False
True or false: Levitt's concept of a fully-standardized international marketplace is represented in most consumer brands today.
false
True or false: Location economies refer to the distribution point of a company's products.
true
True or false: Low fixed costs can make it economical to set up production facilities in many different locations all at the same time.
false
True or false: One disadvantage of flexible machine cells technology is excessive waste that occurs when flexible machines cells are incorporated into a production facility.
false
True or false: Technological innovation is always viewed as a creative rather than a destructive force.
False
True or false: The main responsibilities of a server factory are linked to the national supply chain and do not affect the global supply chain.
false
True or false: The main responsibilities of a server factory are linked to the national supply chain and do not affect the global supply chain.
True
True or false: When assessing whether a country is an ideal location for setting up production facilities, it would be important to assess the political climate of that country.
False
True or false: When considering the building blocks for global supply chains, all relationships between vendors, suppliers, and partners are equally valuable.
bulk chemicals, petroleum and steel personal computers and hand-held calculators
Universal needs exist with which two of these products? Choose all that apply.
customization
What ability is most closely associated with a global distribution center?
Unfreeze the organization through shock therapy Refreeze the organization in its new state Move the organization to a new state through a change in the architecture
What are the three basic principles for successful organizational change?
Production factors Country factors Technological factors
What are the three broad groups of factors that a company should consider when making decisions on where to produce its products?
The establishment of integrating mechanisms to coordinate the activity in the subunits The formal division of the organization into subunits Location of decision-making responsibilities within the organization
What are the three components of a firm's organizational structure?
Vertical differentiation Horizontal differentiation Integrating mechanisms
What are the three dimensions of organizational structure?
Predatory pricing Multipoint pricing Experience curve pricing
What are the three elements of strategic pricing?
primary and support
What are the two types of activities found within a company's operations?
Sell products to the international market Realize greater cost economies Source activities where they are performed most efficiently
What are three ways a company can increase its profitability and rate of profit growth by expanding internationally?
Integration Coordination
What are two key components of global supply chain coordination?
High employee turnover Poor product quality
What are two potential "hidden" costs of outsourcing production to a foreign location?
countertrade
What did the Soviet Union rely on to purchase imports in the 1960s since its currencies were generally nonconvertible?
Company Readiness to Export
What does the acronym CORE represent?
Export management companies
What firms are export specialists that handle all aspects of marketing for their clients?
reward strategies communication strategy hiring practices socialization processes
What four mechanisms are used to maintain culture?
franchise
What is NOT a form of countertrade?
poor quality materials are not acceptable
What is a basic tenet of the TQM approach?
Standardized advertising spreads the costs of ad development over many countries thereby lowering the costs of value creation.
What is an accurate depiction of standardized advertising?
trading goods for other goods when they can't be traded for money
What is an accurate description of countertrade?
Norms
What is defined as the social rules and guidelines that prescribe appropriate behavior in a particular situation?
the source factory plays a more strategic role
What is the main difference between a source factory and an offshore factory?
combine smaller shipments into a single large shipment to lower shipping costs
What is the primary task of a freight forwarder?
it specifies an amount to be paid and when it should be paid
What is the purpose of a bill of exchange?
global web
What is the term for assigning different stages of the value chain throughout the world where perceived value is maximized?
Competition
What is the ultimate reason international strategies eventually fail?
information
What name is given to the electronic systems that manage inventory, price products, track sales, and handle customer inquiries?
Export-Import Bank
What organization is an independent agency of the US government that was set up to provide financing to facilitate exports, imports, and the exchange of commodities?
Localization
What strategy increases the value of a product in the local market through customization for different national tastes and preferences?
Worldwide product division
What structure allows for each division to have full responsibility for its own value creation activities but the headquarters maintains responsibility for overall strategy and financial control?
Consumers are affluent Underlying demand is strong More money spent on R&D
What three characteristics are found in countries where new product development is strong?
Level of fixed costs Minimum efficient scale Flexibility of technology
What three characteristics of manufacturing technology does the text say a company should consider when making a location decision?
product divisional
When Meredith began her company it made sense to divide it into three areas: production, marketing, and transportation. Now that her business has grown, she thinks it will be best to reorganize the business so that each division is responsible for a distinct business area. What type of structure does Meredith want to use in her reorganization?
dumping
When Tomas learned that the inventory levels were still at 90%, he instructed the sales team to sell the product 35% lower than the cost to produce the product in order to bring the inventory down to acceptable levels. This demonstrates the idea of _____.
it did not have any competition
When Xerox first introduced the photocopier, it was able to implement an international strategy because _______.
pull
When a company sells consumer goods, such as shampoo and lotion, it would be common for the company to use a _____ strategy.
push
When a company uses a _________(push or pull?) strategy, it emphasizes personal selling rather than mass media advertising.
source effects.
When a consumer reads an advertisement and evaluates the content of the ad on the basis of the image of the company that placed the ad, he or she is being influenced by
concentrated
When a few retailers supply the majority of the market, it is called a ______ retail system.
global standardization
When a firm adopts a low-cost strategy on a global scale that comes from economies of scale, learning effects, and location economies it is using a ______ strategy.
concentrated production configuration
When a firm establishes a facility in a centralized location and serves the global markets from this location, this strategy is called a ______.
global learning
When a firm gains valuable knowledge not only from domestic operations, but also from foreign subsidiaries, it demonstrates the idea of _____.
dumping
When a firm sells a product for a price that is less than the cost of producing the product, it is called _____
4
When competing globally firms have ____ major strategic stances that they can adopt.
price discrimination
When consumers in Belgium are charged lower prices for no particular reason for Nike shoes than consumers in Italy, it is an example of _____.
more
When customer preferences differ significantly between countries, there is ___________ (less or more?) pressure for local responsiveness.
Instead of trying to spread itself too thin by going after 22 foreign markets, Natalie's company focused on three potential foreign markets.
Which company is taking steps to minimize risk as it enters the export market?
canada
Which country would be most likely to form a regional convergence with the United States?
Department of Commerce
Which department of the US federal government provides the most all-inclusive source of information regarding export opportunities?
CORE
Which diagnostic tool on globalEDGE helps firms assess their exporting proficiency and identifies the firm's strengths and weaknesses within the context of exporting?
bill of lading
Which document shows that a carrier has received the merchandise?
Communication strategy Pricing strategy Product attributes Distribution strategy
Which four elements make up a firm's marketing mix?
Service Corps of Retired Executives
Which organization oversees volunteers who have international trade experience and who use this experience to provide one-on-one counseling to active and new export businesses?
purchasing
Which part of the supply chain is involved with buying raw materials, component parts, and other products used in the manufacturing of a company's final product?
Production
Which primary activity takes place when telephone components are put together on an assembly line?
support
Which type of activities must be in place in order for primary activities to occur in the value chain?
Exclusive
Which type of distribution channels are most likely in place when it is difficult for new firms to gain access to retail space?
Sight draft
Which type of draft should a company use if it wants immediate payment from the drawee upon receipt?
contributor
Which type of factory has more choice in which suppliers to use for raw materials?
server factory
Which type of production facility is capable of overcoming tariff barriers and reducing taxes for the company?
drawee
While a maker initiates a draft, the party to whom the draft is presented is called the _____.
Learning effects
_____ refer to cost savings that are the result of learning by performing a task.
An offset
_______ occurs when a firm agrees to purchase goods from any firm in a country where a sale has been made with a percentage of the proceeds from an original sale.
Consumer behavior
________ may be influenced by the level of economic development of a country, resulting in different features of a product being sold to less developed nations than to developed nations, such as basic model cars sold in less developed nations.
flexible machine cells
A common flexible manufacturing technology that groups various types of machines, a common materials handler, and a computer is called _____.
communication strategy
A company relies on a ______ to advise prospective customers about the attributes of a product.
less
A company that pursues a localization strategy is ___________ (less or more?) likely to need integrating mechanisms to coordinate subunits.
circular
A counterpurchase agreement is BEST described as _________ (linear or circular?).
processing
A global distribution center acts as the order-_____ part of the order-fulfillment process.
availability of skilled research talent.
A key attraction of research centers like Silicon Valley and Kobe is
importer
A letter of credit is requested by the ___________ (importer or exporter?) from a bank.
lead
A motorcycle company is establishing a new factory to create processes, products, and technologies that the firm will use throughout its global operations. This factory would best be described as being a(n) ______ factory.
fragmented
A proliferation of retailers in a given market would be found in a ______ retail system.
When selling consumer goods When distribution channels are long
A pull strategy would be emphasized in which two situations?
contributor
A(n) _____ factory is responsible for product and process engineering and development.
outpost
A(n) _____ factory is thought of as an intelligence-gathering unit.
product
According to the text, a ______ can be viewed as a cluster of attributes.
trust commitment
According to the text, the two keys to interorganizational relationships are _____.
Organizational architecture, strategy and its environment
According to the text, what elements must a firm coordinate to achieve maximum performance?
experience curve
After analyzing the profit projections for next year, Lisa reminded the group that production costs would continue to decline on those products that had been in production for five years. What concept was Lisa referring to?
technical
After his company introduced a new line of hair dryers, Jeremy realized that the dryers could not be sold in Europe because the electrical adapters would not fit into the existing design. Jeremy's company failed to take into account ______ standards that limited globalization.
research and development
After many months of analysis and study, the insurance company introduced a new disability product that would allow consumers of all income brackets an affordable insurance choice. Which primary activity did this company rely on to create this product? Multiple choice question.
price elasticity of demand.
After the company lowered the cost of the shoes, sales increased by 30%. This demonstrates the concept of
an incentive
After working for the company for three years, Roberto now qualifies to receive an annual bonus if he achieves the performance goals he has been given. This bonus is an example of _____.
production
All the activities involved in manufacturing an article for sale or a service to be provided are known as ______.
communication
Although American Express may sell the same basic charge card service worldwide, differences in national regulations require it to vary aspects of its ______ strategy from country to country.
packaging
An export _____ company can advise companies on the best design and materials for their product packages. These companies can also help minimize packaging to maximize the number of items to be shipped.
draft
An order written by an exporter which tells the importer to pay $4,975 by June 20th is an example of a(n) _____.
big
At Clark HealthCare Systems, the amount of data the company must store has become so large that it must be stored on the cloud and cannot be processed using traditional software. This type of data is known as _____ data.
letter of credit
At the request of the importer, the national bank paid the exporting company upon presentation of the documents that had been issued. What document did the importer request?
value
Bryan's company wanted to gain a greater market share on its bicycle products so it built in greater functionality to the bikes and created an after-service customer call center. Which aspect of value creation is Bryan's company concerned with?
counterpurchase
Caitlin's U.S. firm sold paint additives to Japan and in return her company was paid by Japan but is also required to purchase plastic products produced in Japan with some of the proceeds from the sale of the paint additive. This example demonstrates _____.
Some type of reward for her behavior at work.
Caroline's boss told her she would be receiving an incentive at the end of the year. What should Caroline expect to receive?
make-or-buy
Carrie's company is trying to decide if it should produce blankets themselves or purchase them from China because it would provide a cost savings. Carrie's company is involved in a ____ decision.
length
Channel _____ refers to the number of intermediaries between the manufacturer and the consumer.
pull
Charles works for a company that makes toothpaste. He realizes that the best way to advertise the product line to the international market is through mass media advertising because it will reach more consumers and it would be impossible to reach every consumer with a personal sales call. He recognizes that his company should use a _____ communication strategy.
Accepted business practices Differences in consumer tastes Host-government demands
Choose three factors that pressure a firm to respond locally when they enter the global marketplace.
control
Collecting data to decrease performance ambiguity is costly and time consuming, thereby raising the cost of ______.
Be locally responsive Reduce costs
Companies typically face two types of competitive pressures when entering global markets. What are these two pressures?
technology
Companies which produce wireless headsets must take into consideration that standards in Europe are based on GSM (Global System for Mobile Communications) while in the US standards are based on CDMA (Code Division Multiple Access). These standards demonstrate how _____ can be a source for local responsiveness.
pull
Consumer goods industries, such as Procter & Gamble, that are trying to sell to a large segment of the market are more inclined to use a (push or pull?) strategy.
measure performance
Control systems are established as a way to ______.
skills within a firm
Core competencies are typically expressed in ________ that other firms are unable to duplicate.
switch trading
Countertrade agreements can result in credits. These credits can be purchased by a third party which has a better use for them. What is the name given to this type of transaction?
where
Country, technology and production factors influence a company's decision on _____ to produce internationally.
industrial
Critics of Levitt note that his implications apply more to basic _____ products.
