Principals of management chapter 5

Kamiya has a small business and buys all of her supplies locally. While she does some online business, all of the sales are within the country. Which type of business does Kamiya have?

domestic

TransFair USA promotes fair trade programs so farmers in developing countries can earn enough wages to afford adequate nutrition and basic health care. TransFair is trying to change the ____ environment of international management.

economic

The cultural challenges of international management include ____.

language

Having a broad-based understanding of both environmental issues and competitive issues is an essential function of which aspect of the global environment?

leading

Payal has just accepted a three year assignment to run the overseas division of her organization. Before she transfer, Payal and her family are required to take several classes on culture, housing, language, and lifestyle? Which element of management is Payal's organization preparing her for?

leading

A manager concerned with time zone differences is worried about ____.

controlling

Under which management function do differences between domestic and international production quality standards fall?

controlling

According to the text, which of the following is a factor of the political-legal environment for international managers?

he use of import quotas and tariffs

During a recession, governments tend to increase ____ to help protect domestic producers by directly adding to the cost of foreign goods.

import tariffs

Two U.S. companies purchase 25% of the world's cocoa supply from farmers in West Africa. The U.S. companies use ____.

importing

Boeing sells aircraft to commercial airlines around the world. It has suppliers around the world too. The defense side of Boeing sells primarily to the federal government. It is a(n) ____ business.

multinational

Nour's organization buys raw materials from all over the world, and in turn, sells finished goods world-wide. What type of organization does Nour run?

multinational

International managers ____.

need to organize to implement their plans

Nila's construction firm was awarded a contract to build a new hospital in a Middle Eastern Country. However, the construction project was already three months behind schedule because they could not secure the required permits. When Nila met with her local counterparts, they seemed very unconcerned about this delay. Which of the following accounts for this different perspective about the delay?

time orientation

When receiving a new project from his manager, Manoj likes to know all the details and expectations up front. If some information is unavailable, Manoj finds this very stressful. Which of Hofstede's orientations would Manoj have a low level of?

time orientation

People in Pakistan and West Africa are more likely to want immediate gratification. This is an example of Hofstede's ____ orientation.

time/short-term

Which of the following is a goal of the World Trade Organization?

to establish impartial procedures for resolving trade disputes

In what way is a global business different than a multinational business?

A global business is not committed to a single home country.

With whom is the United States involved in a mature market system?

Canada and Mexico

Which economy has become the second largest economy in the world, behind the United States?

China

Which was the first, and often considered the most important, economic community in the world?

European Union

Which trade agreement practices the use of most favored national principle, where members of the agreement receive preferential treatment?

General Agreement on Tariffs and Trade (GATT)

Which trade agreement was a major stimulus to international trade after it was first ratified in 1948 by 23 countries?

General Agreement on Tariffs and Trade (GATT)

Which of the following is a potential disadvantage associated with an import/export operation?

Imports/exports are subject to taxes, tariffs, and higher transportation expenses.

Which of the following describes one of the reasons for the establishment of the European Union?

It eliminates trade barriers between member countries.

Nita's organization has been doing business in foreign countries for many years, and has built plants in the local communities overseas. Recently, her company has been nationalized. What does that mean for Nita?

It was taken over by the government.

Which of the following statements can be used to explain the growth of international business?

Many countries in Europe and Asia were devastated after World War II and had to be rebuilt.

Which of the following is true of Multinational Corporations (MNCs)?

They transfer capital and information from one market to another.

What is the form of international business involvement in which two or more firms have an equity position in an operation?

a joint venture

Apoorva works for a multinational organization, and is charge of the local division. What type of work will be expected of her?

address local and regional issues

As a manufacturing firm builds a plant in Bolivia, it also has to build an airstrip so that it can get the building supplies and the component parts it needs for operation to the Bolivian facility. The building of the airstrip was necessary because Bolivia has ____.

an underdeveloped infrastructure

The United States Department of Defense requires some weapon systems to be made by U.S. companies for national defense reasons. This is an example of ____.

buy national legislation

Which of the following gives preference to domestic producers through content or price restrictions?

buy national legislation

How is a medium-sized organization likely to work with international markets?

buying and selling products

A tariff ____.

can be collected by countries through which goods pass

Which of the following is a problem associated with the implementation of a direct investment strategy?

complexity of decision making

In Japan, apples are very expensive and traditionally are presented as gifts. Each apples is grown with wrapping to prevent insects and to ensure perfect color. When Washington Apples wanted to export to Japan, it faced ____ barriers.

cultural

When Starbucks operates in other countries, it customizes snacks to local tastes. This is a(n) ____ challenge for international managers.

cultural

The language, values, symbols, and beliefs that guide behavior in a country are that country's ____.

cultural environment

While performing the function of organizing in a global economy, managers should ____.

deal with human resources

Aisha's firm is expanding internationally, and is determining the benefits buying an existing firm in the new location, building one, or finding a strategic alliance. Which management function is Aisha's firm using

decision making

Which of the following occurs when a firm headquartered in one country, purchases operating facilities in a foreign country?

direct investment

Which strategy is considered the highest level of involvement in international business?

direct investment

Natural resources are a part of a country's ____.

economic environment

The advantage of direct investment is ____.

enhanced control

Opponents to the maquiladoras concept are most critical of its ____.

exploitation of human resources

When farmers in the United States sell corn to China, the farmers are considered to be ____.

exporters

Darian has a profitable software company in his home country, but want to sell his software in international markets. He knows he can make modifications in his current facility that will work in other markets. Which type approach to internationalization should Darian pursue?

exporting

What is the key element for managers in a mature market economy?

freedom of choice

A(n) ____ business transcends national boundaries and is not committed to a single home country.

global

A(n) ____ strategy requires little initial investment, is heavily regulated, and provides little opportunity to modify products for local conditions.

importing/exporting

Which of the following is the least risky type of international business in which firms usually become involved?

importing/exporting

Which of the following is the least intense level of international business strategy?

importing/exporting strategy

What is the cultural belief that the person comes first?

individualism

Yui prefers to use a pay system that rewards her employees based on their contribution to the success of the organization. Which type of social orientation does Yui support?

individualism

What is a key disadvantage to licensing agreements as an approach to internationalization?

inflexibility

Satellites, shipping ports, railroads, and airports are part of a nation's ____.

infrastructure

Woojin is looking at expanding his organization to overseas markets. Part of his consideration on where to open a new facility is based on the ability to move goods in and out of the country. Woojin needs to look carefully at ____.

infrastructure

A(n) ____ business is one that is primarily based in a single country but that acquires some meaningful share of its resources and/or revenues from other countries.

international

American Eagle is a regional airline that flies in the United States and Canada. It is an example of a(n) ____ business.

international

eBay is based in San Jose, California, but buyers and sellers on the site are located around the world. eBay is a(n) ____ business.

international

The National Football League and team owners allow shirts, hats, blankets, and many other products to be sold with team logos on them. The teams and league get a percentage of the sale. The teams have chosen to use a(n) ____ strategy to generate more income.

licensing

The light assembly plants built in Northern Mexico close to the U.S. border, and are given tax breaks by the Mexican government, are referred to as ____.

maquiladoras

U.S. managers have the least difficulty operating in ____ economies.

market

Which economies are recognizable by their tendency to allow market forces to determine business strategies and to have private ownership of property?

market

Julius owns a business where he is sets a business strategy based on factors such as supply and demand. Which type of economic system is Julius in? mixed

market economy

Which type of economy is based on the private ownership of business?

market economy

The United States, Canada, and Mexico are major trading partners with one another. They are an example of a(n) ____.

market system

Geert has managers who work all over the world. Each month, all managers are included in an online meeting. In order to accommodate the time differences for all managers, Geert varies the time of day or evening these meetings take place. Which management function is used when considering the needs of all his international employees?

organizing

Top executives at BBT Corporation set the strategic direction for the firm at corporate headquarters. BBT's local managers are then informed of these strategies and given complete freedom to implement them. Which of the following management functions best describes the freedom provided local managers?

organizing

One of the primary challenges facing those who would like to enter a high-potential/high-growth economy is ____.

potential consumers are poor

People in the United States, Israel, and Ireland are likely to question their supervisors. This is referred to as a(n) ____ orientation.

power tolerance

Which of the following is a typical characteristic of a market economy?

private ownership

What was the goal of GATT when it was developed?

promote trade by reducing barriers

In which type of economic system does the government own and operate the companies that conduct business?

public

A(n) ____ is the most common form of trade restriction.

quota

The U.S. government limits how many automobiles can be imported into the United States annually. This is a(n) ____.

quota

Which of the following is a disadvantage of joint ventures and strategic alliances?

shared control over operations

People in the U.S., Canada, and the Netherlands tend to believe that the importance of the person comes before the importance of the group. This refers to Hofstede's ____ orientation.

social

Rest stops in New Jersey have Burger King restaurants. The NJ Transit Authority and Burger King use a(n) ____ strategy.

strategic alliance

Dezmon, a small parts manufacturer, is looking for quick entry into foreign markets with access to materials available in those markets. Which approach to internationalization would best fit his needs?

strategic alliances