MAN4720 CHAPTER 11
91) Marketing managers in Japan see making a sale ________ the selling process. A) as the beginning of B) as the end of C) as the midpoint of D) as unrelated to E) none of the above
Answer: A
106) Whereas ________ business embodies individualism, achievement, competition, and informality, ________ business stresses collectivism, continuity, cooperation, and formality. A) Japanese; Mexican B) Mexican; Japanese C) Mexican; American D) American; Mexican E) Japanese; American
Answer: D
107) How does life in Mexico compare to life in the United States? A) It is faster. B) It is more hectic. C) It is more punctuality-driven. D) Meeting times for appointments are not rigid. E) It is more competitive.
Answer: D
46) 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.
Answer: TRUE
47) Perhaps the greatest advantage of international operations to a firm is the ability to gain new customers for its products and services, thus increasing revenues.
Answer: TRUE
49) Potential advantages to initiating, continuing, or expanding international operations is that foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
Answer: TRUE
50) A motivation for initiating international operations is that competitors in foreign markets may not exist, or competition may be less intense than in domestic markets.
Answer: TRUE
105) Desire for ________ is a part of the social fabric in worker-manager relations in Mexico. A) harmony B) friction C) conflict D) independence E) punctuality
Answer: A
11) 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
Answer: A
28) 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) The need to deal with two or more monetary systems.
Answer: A
92) Americans place an exceptionally high priority on ________ whereas many foreigners place more worth on ________. A) time; relationships B) relationships; time C) silence; time D) silence; relationships E) formality; informality
Answer: A
14) The average tax rate across Europe is ________ percent. A) 32 B) 18 C) 24 D) 16 E) 40
Answer: B
87) In South Korea, activities involve concern for ________, or harmony based on respect of hierarchical relationships, including obedience to authority. A) guanxi B) inhwa C) feng shui D) nemaswashio E) Wa
Answer: B
109) In China, one should eat heartily to demonstrate enjoyment of the food.
Answer: TRUE
94) U.S. managers in Japan have to be careful about ________, whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting. A) feng shui B) nemaswashio C) Wa D) guanxi E) inhwa
Answer: B
12) As of 2018 which of the following countries had the highest corporate tax rate? A) Bermuda B) Cayman Islands C) United Arab Emirates D) USA E) Turkey
Answer: C
115) Currencies in Africa are A) being phased out in favor of the Euro. B) destabilizing. C) devaluing. D) stabilizing. E) being consolidate.
Answer: D
69) Protectionism involves all of the following EXCEPT A) tariffs against firms outside the country. B) imposing taxes on firms outside the country. C) imposing regulations on firms outside the country. D) liberalizing restrictions on the import of foreign goods. E) Protectionism involves all of the above.
Answer: D
89) 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.
Answer: D
95) Which of the following is NOT a typical characteristic of most Japanese managers? A) Reserved B) Quiet C) Distant D) Impulsive E) Introspective
Answer: D
5) Exports constitute ________ percent of Singapore's gross domestic product (GDP). A) 78 B) 102 C) 87 D) 221 E) 172
Answer: E
59) What percent of the world's population lives outside the United States? A) 55 B) 65 C) 75 D) 85 E) 95
Answer: E
66) Which of the following U.S. industries is NOT yet greatly challenged by foreign competitors? A) Aircraft manufacturing B) Auto manufacturing C) Heavy equipment manufacturing D) Tire manufacturing E) Furniture manufacturing
Answer: E
67) Which U.S. industry is already greatly challenged by foreign competitors? A) Printing B) Retailing C) Retail banking D) Consumer packaged goods E) Automobile
Answer: E
100) In the United States, an amicable relationship is typically required before conducting business.
Answer: FALSE
26) It is an exaggeration to say that in an industry that is global, the riskiest possible posture is to remain a domestic competitor.
Answer: FALSE
40) Trade barriers are one of the unique and diverse risks that face multinational corporations.
Answer: TRUE
70) For many years, the Omega Company manufactured all of its products in Brazil. In early 2018, the company made the decision to bring back its manufacturing by establishing several large plants in the state of Florida. What the Omega Corporation did is called A) reshoring. B) strategizing. C) consolidation. D) outsourcing. E) offshoring.
Answer: A
82) The U.S. furniture manufacturing industry is not yet greatly challenged by foreign competitors.
Answer: TRUE
10) ________ is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations. A) Multinational corporation B) Protectionism C) Globalization D) Assimilation E) World recession
Answer: C
2) Which of the following is a European country in which union membership is growing? A) Australia B) Austria C) France D) Italy E) Sweden
Answer: D
68) The lowest cost source for precision machinery is A) Japan. B) Sri Lanka. C) Malaysia. D) Europe. E) Mexico.
Answer: D
71) Foreign banks currently operate and compete in most parts of the United States.
Answer: FALSE
23) Since the 1980s, the average corporate tax rate globally has been steadily falling.
Answer: TRUE
96) In China, business relations revolve around guanxi, or personal relations.
Answer: TRUE
8) Communication between domestic headquarters and overseas operations is often made difficult by A) type of products. B) cultural differences. C) type of services. D) location of headquarters. E) age of firm
. Answer: B
65) Approximately what percent of the world's population lives in the United States? A) 5 B) 10 C) 15 D) 85 E) 95
Answer: A
113) Commercial and industrial development in the western part of which country has turned interior cities into production centers that compete for labor with coastal factories? A) Armenia B) China C) India D) Indonesia E) Vietnam
Answer: B
29) ________ 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
Answer: B
4) Organizations that conduct business operations across national borders are called A) protectionists. B) national firms. C) multinational corporations. D) domestic companies. E) born global.
Answer: C
32) 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) ignored; downplayed
Answer: D
88) In Europe it is generally true that the farther ________ on the continent, the more participatory the management style. A) south B) east C) west D) north E) southeast
Answer: D
110) Mexican workers expect and desire a work environment in which self-expression and initiative are encouraged.
Answer: FALSE
24) The United States has the highest corporate tax rate among the G-7 nations.
Answer: FALSE
54) Weaknesses of competitors in foreign lands are often underestimated, and strengths are often overestimated.
Answer: FALSE
35) The strategic-management process is more complex for international firms due to more variables and relationships.
Answer: TRUE
72) American firms that seem insulated from foreign competition today may be vulnerable tomorrow.
Answer: TRUE
84) The need to amortize massive R&D investments over many markets is a major reason why the aircraft manufacturing industry became global.
Answer: TRUE
81) Nearly 70 percent of the world's population lives outside of the United States.
Answer: FALSE
1) The average level of union membership across the whole European Union, weighted by the numbers employed in the different member states, is ________ percent compared to about ________ percent in the United States. A) 11; 23 B) 15; 44 C) 23; 11 D) 51; 26 E) 70; 30
Answer: C
31) All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT A) firms confront different social, cultural, and political forces when doing business internationally, which can make communication in the firm difficult. B) keeping informed about the number and nature of competitors is more difficult when doing business internationally. C) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. D) dealing with two or more monetary systems can complicate international business operations. E) foreign operations could be seized by nationalistic forces.
Answer: C
60) In which of the following industries is the United States NOT yet greatly challenged by foreign competitors? A) Auto industry B) Electronics C) Manufacturing D) Retailing E) Pharmaceuticals
Answer: D
76) The drive to improve the efficiency of global business operations is leading to lesser functional specialization.
Answer: FALSE
97) The understanding of Asian cultures is a strength U.S. firms have in competing with Pacific Rim firms.
Answer: FALSE
30) Which of the following is a valid reason for a firm's power and prestige in domestic markets to be significantly enhanced if it competes globally? A) This can translate into improved negotiating power among important groups. B) This rarely results in a practical advantage. C) This can hurt its bargaining power with suppliers and distributors. D) This does nothing to improve its position with creditors. E) This can alienate the firm from its domestic creditors, suppliers, and distributors.
Answer: A
7) Multinational corporations face unique and diverse risks, which include all of the following EXCEPT A) favorable foreign court interpretations of contracts and agreements. B) currency losses through exchange rate fluctuations. C) social/political disturbances. D) import/export restrictions. E) tariffs.
Answer: A
9) The U.S. government's OPIC A) offers insurance to offset some risks of doing business internationally. B) provides insurance to eliminate all of the risks of doing business internationally. C) is a leading source of humanitarian aid worldwide. D) requires that paperwork be filed by U.S. companies desiring to do business internationally. E) discourages foreign companies from doing business in the United States.
Answer: A
90) In general, U.S. managers feel the day has been productive if it is spent A) rushing to meetings, appointments, and conferences. B) resting. C) listening. D) meditating. E) thinking.
Answer: A
108) Which of the following is NOT true concerning the Japanese concept of Wa? A) Nearly all corporate activities in Japan encourage Wa among managers and employees. B) Discussions potentially disruptive to Wa are generally conducted in very formal settings. C) The potential attractiveness of alternative business decisions are evaluated in terms of their long-term effect on the group's Wa. D) Entertaining is an important business activity in Japan because it strengthens Wa. E) The Wa concept involves group loyalty and consensus.
Answer: B
13) 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.
Answer: B
15) Which of the following nations has the highest corporate tax rate? A) Ireland B) United Arab Emirates C) Great Britain (United Kingdom) D) France E) Germany
Answer: B
16) 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
Answer: B
3) In an industry that is, or is rapidly becoming global, the riskiest possible posture is to A) become a global competitor. B) remain a domestic competitor. C) remain a global competitor. D) expand beyond the role of domestic competitor. E) embrace strategic alliances.
Answer: B
6) 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
Answer: B
58) 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
Answer: C
93) All of the following are attributes that many cultures around the world value more than the competitiveness attribute that is so important in the United States EXCEPT A) modesty. B) team spirit. C) individualism. D) collectivity. E) patience.
Answer: C
114) Which country in 2017 replaced the United States as the country that downloaded more apps from Google's Play Store than any other on the planet? A) China B) Japan C) Germany D) India E) Saudi Arabia
Answer: D
27) All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT A) firms can gain new customers for their products. B) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. C) foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor. D) foreign operations could be seized by nationalistic factions. E) foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.
Answer: D
57) Which of the following statements is NOT true? A) America's economy is becoming much less American. B) A world economy and monetary system are emerging. C) Corporations in every corner of the globe are taking advantage of the opportunity to obtain customers globally. D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices. E) Innovative transport systems are accelerating the transfer of technology.
Answer: D
61) ________ involves companies hiring other companies to take over various parts of their functional operations, such as human resources, information systems, payroll, accounting, customer service, and even marketing. A) Reshoring B) Vertical integration C) Onshoring D) Outsourcing E) Strategic alliances
Answer: D
62) Foreign revenue as a percentage of total company revenues ________ in hundreds of U.S. firms, including ExxonMobil, Gillette, Dow Chemical, and Citicorp. A) is almost 10 percent B) approaches 20 percent C) is 25 percent D) exceed 50 percent E) is at least 70 percent
Answer: D
63) The domestic food industry ________, so Kraft Foods is focusing on foreign acquisitions. A) is falling 5 percent per year B) is falling 1 percent per year C) is stagnant D) is growing 3 percent per year E) is growing 7 percent per year
Answer: D
64) ________ refers to U.S. companies moving a portion of their manufacturing back to the United States. A) Outsourcing B) Offshoring C) Vertical integration D) Reshoring E) Strategic alliance
Answer: D
101) Europeans are especially motivated by pay-for-performance, commission salaries, and objective measurement and reward systems.
Answer: FALSE
104) Americans tend to hold back on the use of first names until well acquainted with foreigners with whom they have business dealings and the Japanese find this practice to be cold.
Answer: FALSE
111) In Mexico, business associates usually entertain each other at their homes.
Answer: FALSE
19) Asian-based multinational firms have historically kept cash earned offshore in U.S. subsidiaries and banks to take advantage of low U.S. corporate taxes.
Answer: FALSE
20) A global strategy means considering individual countries distinctly when designing, producing, and marketing products.
Answer: FALSE
25) Mass communication and high technology have led to highly individualized and distinct patterns of consumption in diverse cultures worldwide.
Answer: FALSE
34) The strategic-management process is conceptually different for multinational firms than for purely domestic firms.
Answer: FALSE
37) 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.
Answer: FALSE
38) More time and effort are required to identify and evaluate external trends and events in domestic corporations than in multinational corporations.
Answer: FALSE
41) With the rise in world commerce, government regulatory bodies are no longer able to closely monitor foreign business practices.
Answer: FALSE
43) It is possible to obtain insurance from the U.S. government's OPIC to eliminate all risks associated with doing business internationally.
Answer: FALSE
45) As long as the price and quality of a firm's products and services are competitive on a local basis, it has nothing to worry about.
Answer: FALSE
48) Although growth in revenues and profits is a common expectation of shareholders, it is not a measure of organizational success.
Answer: FALSE
53) Keeping informed about the number and the nature of competitors is easier when doing business internationally.
Answer: FALSE
56) Although a firm's power and prestige in domestic markets may be significantly enhanced when the firm competes globally, this rarely translates into improved negotiating power among creditors, suppliers, or distributors.
Answer: FALSE
73) Brazil offers skilled labor and technology, while Germany offers abundant natural resources and rapidly developing markets.
Answer: FALSE
79) Foreign revenue as a percentage of total company revenues is approaching 20 percent for Colgate-Palmolive.
Answer: FALSE
80) Reshoring involves companies hiring other companies to take over various parts of their functional operations.
Answer: FALSE
86) Though China has more than 1.3 billion residents, the middle-class segment that is able to buy goods and services is rapidly shrinking.
Answer: FALSE
99) Punctuality is generally revered in all cultures of the world.
Answer: FALSE
102) The smile is one form of communication that works the same worldwide.
Answer: TRUE
103) Spoken Chinese has more in common with spoken English than with spoken Japanese or Korean.
Answer: TRUE
112) An important business activity in Japan is entertaining because it strengthens Wa.
Answer: TRUE
116) Many African and non-African companies are launching operations in Africa due to the rapidly growing middle class and an average GDP growth of 5 percent for the continent through 2017.
Answer: TRUE
17) In Nordic countries Denmark, Sweden, and Finland, about 70 percent of all employees are in unions.
Answer: TRUE
18) The average level of union membership across the whole European Union, weighted by the numbers employed in the different member states, is close to 25 percent.
Answer: TRUE
21) In today's global climate, many companies may find it difficult to survive by relying solely on domestic markets.
Answer: TRUE
22) An increasing number of U.S. companies are reincorporating in foreign countries to reduce their tax burden and doing this typically involves acquiring a foreign firm.
Answer: TRUE
33) Organizations that conduct business operations across national borders are called international firms or multinational corporations.
Answer: TRUE
36) The social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats that face a multinational corporation are almost limitless.
Answer: TRUE
39) Geographic distance and cultural differences are two of the factors that can make communication between domestic headquarters and overseas operations difficult.
Answer: TRUE
42) Before entering international markets, firms should do research to try and diminish the risk of doing business in new markets.
Answer: TRUE
44) Strategists in multinational corporations are often confronted with the need to be globally competitive and nationally responsive at the same time.
Answer: TRUE
51) The availability, depth, and reliability of economic and marketing information in different countries vary extensively.
Answer: TRUE
52) Language, culture, and value systems differ among countries, which can create barriers to communication and problems managing people.
Answer: TRUE
55) U.S. firms doing business internationally face the complications of having to deal with two or more monetary systems.
Answer: TRUE
74) Most economists argue that protectionism harms the world economy because it inhibits trade among countries and invites retaliation.
Answer: TRUE
75) Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people.
Answer: TRUE
77) Labor markets have become steadily more international with more and more countries around the world welcoming foreign investment and capital.
Answer: TRUE
78) A primary reason why most domestic firms are engaging in global operations is that growth in demand for goods and services outside the United States is considerably higher than inside.
Answer: TRUE
83) While there are a few U.S. industries that are not yet greatly challenged by foreign competitors, many products and components within these industries are now manufactured in foreign countries.
Answer: TRUE
85) Shifts in the nature and location of production systems, especially to China and India, are reducing the response time to changing market conditions.
Answer: TRUE
98) Time spent with the family and the quality of relationships are more important in some cultures than the personal achievement and accomplishments espoused by the traditional U.S. manager.
Answer: TRUE
