Business Exam 4
Time draft
A ______ extends credit to the importer by requiring payment at some specific time after the importer receives the goods
Joint venture
A ________ is a separate company created and owned by two or more independent entities to achieve a common business objective.
Quicker detection of defective materials and componenets
A company using just-in-time (JIT) manufacturing involves ______.
True
A confirmed letter of credit is guaranteed by both the exporter's bank in the country of export and the importer's bank in the country of import.
Bill exchange
A document ordering the importer to pay the exporter a specified sum of money at a specified time is called a ________.
False
A major disadvantage of American Depository Receipts (ADRs) is that investors who buy them must pay currency-conversion fees.
True
A major drawback of geocentric staffing is that it is expensive
enviornmental briefings
A manager could most likely gain information on local area's housing, health care, transportation, schools, and climate by participating in ________.
False
A polycentric staffing strategy can facilitate the transfer of special know-how to branch operations.
Political risk
A type of risk faced by businesses that decisions made by the government, events, or conditions will significantly affect the profitability of a business is known as ______.
.....
A typical industry analysis does not include the
countertrade
A way for firms to trade by using either a small amount of hard currency, or even none at all, is called _______.
Export management company
A(n) ____ exports products on behalf of an indirect exporter.
polycentric
A(n) _____ manager champions the ways of foreign markets as comparable, if not more enlightened, than the practices of his or her parent company and home nation.
two parties are unfamiliar with each other
Advance payment is commonly used for export/import financing when ________.
True
Advance payment is the most favorable method of payment collection for exporters
False
Advance payment made by an importer to an exporter normally takes the form of a sight draft
False
Agency relationships are popular among exporters because they are easy to terminate should difficulties arise
False
Agency relationships are popular among exporters because they are easy tot terminate should difficulties arise.
certificates that trade in the U.S. and represent shares of stock in a non-U.S. company
American Depository Receipts (ADRs) are ______.
Reverse cultural shock
An expatriate manager who returns after a few years from an overseas assignment to find that there is no position for him in his home country office experiences a(n)
eliminates the high cost of relocating expatriate managers and their families
An important advantage of polycentric staffing is that it
Fails to specify the type of product that must be purchased
An offset agreement differs from a counterpurchase agreement in that an offset agreement ______.
enviornmental scanning
An ongoing process of gathering, analyzing, and dispensing information for tactical or strategic purposes is called ________.
focus group
An unstructured but in-depth interview of a small group of individuals by a moderator to learn the group's attitudes about a company or its products is called a ________.
True
Assessing potential in emerging markets by ranking locations using market-potential indicators only for companies involved in exporting
Location economies
Based in Kentucky, Hafstrom Motors has always used spare parts made in America for its automobiles. However, sales and profits have slumped over the past three years. A senior manager at the company comes up with new strategies for improving the firm's production activities. The senior manager recommends that Hafstrom obtain auto parts from a country where production activities would generate more value than it would generate elsewhere. He wants to take advantage of ________.
Selecting a training expatriate managers
CADE international, an MNC, adheres to an ethnocentric staffing approach when filling senior-level positions for its foreign locations. As a result, CADE most likely devotes significant resources to _____.
true
Commonly liscensed intangible property includes patents, copyrights, special formulas and designs, trademarks, and brand names.
True
Companies can achieve economies of scale in production by expanding into international markets.
True
Companies require particular resources to carry out local business activities must be sure they are available.
True
Companies selling products find centralized production most effective
False
Companies strive toward quality improvements for attaining economies of scale
True
Companies use ethnocentric staffing to re-create local operations in the image of home-country operations
True
Companies usually modify or adapt elements of their marketing plan to be used in different markets in which they sell their products
differentiation
Companies with decentralized production facilities are often pursuing _______ strategies
False
Countertrade is not an option for smaller companies because of the cash outlays involved
True
Countertrade provides a way for frims to trade either by using a small amount of hard currency or even none at all.
assessment of the national business environment
Countries differ significantly in their cultures, politics, laws, and economies. International managers must work to understand these differences and to incorporate their understanding into market- and site-selection decisions. Which of the following steps of the market screening process involves an evaluation of the government bureaucracy?
True
Cross licensing occurs when companies use licensing agreements to swap intangible property with one antoher
False
Culture shock affects an expatriate's job satisfaction level but does not tend to affect his or her effectiveness and productivity at work
True
Debt appeals to companies because it lowers the amount of taxes the companies must pay
True
Decentralizing the decisions that directly impact workers' lives contribute to better labor-management relations
True
Differentiation strategies demand that producers provide extra value by offering customers something unique, such as superior quality, added features, or special brand images
Selection of the market or site
During which stage of the market or site screening process do managers normally want to visit locations?
False
Ethnocentric staffing places managerial responsibility in the hands of people intimately familiar with the local business enviornment.
Documentary collection
Export/import financing in which a bank acts as an intermediary without accepting financial risk is called ________.
open account
Export/import financing in which an exporter ships merchandise and later bills that importer for its value is called ______.
True
Focus group interviews tend to work best when moderators are natives of the countries where the interviews are held
True
Franchising is primarily used in service industries
Language training
Gem Jewels recently established a number of subsidiaries in various foreign countries aiming to build high levels of international business involvement in the coming years. Cultural training has to be given by the company to home-country managers assigned to work in the new subsidiaries. If Gem Jewels wants its employees to get "into the minds" of the local people, it should provide ________.
Sensitive training
Gem Jewels recently established a number of subsidiaries in various foreign countries aiming to build high levels of international business involvement in the coming years. Cultural training has to be given by the company to home-country managers assigned to work in the new subsidiaries. If Gem Jewels wants its employees to get "under the skin" of the local people, it should provide ________.
Environmental briefings
Gem Jewels recently established a number of subsidiaries in various foreign countries aiming to build high levels of international business involvement in the coming years. Cultural training has to be given by the company to home-country managers assigned to work in the new subsidiaries. The most basic level of training that can be given to the managers is ________.
Cultural assimilation
Gem Jewels recently established a number of subsidiaries in various foreign countries aiming to build high levels of international business involvement in the coming years. Cultural training has to be given by the company to home-country managers assigned to work in the new subsidiaries. To teach its employees the values, attitudes, manners, and customs of the host-country culture, Gem Jewels should offer ________.
True
Government bar international companies from entering economic sectors like energy exploration for security reasons
True
Having the freedom to choose whether to accept or reject an expatriate assignment increases the likelihood a manager will be successful at the assignment
True
Hot money is the cash that can be quickly withdrawn from a market in times of crisis
parent country nationals
Hyundai ends to follow an ethnocentric staffing model. From which group will it most likely hire for upper-level management positions?
increase 0.5 percent for every 1.0 percent increase in income
If the income-elasticity coefficient for coffee is 0.5, the demand for coffee will ________.
income-elastic product
In the context of sensitivity of demand for a product relative to change in income, a coefficient greater than 1.0 conveys a(n) ______.
True
Industry data cannot indicate how individuals feel about a company or its products.
False
Interviews and focus groups are two main sources of secondary data that help managers make informed decisions.
Competitor analysis
Issues regarding potential threat from substitute products in a market are addressed in _______
False
It is important for low-cost competitors to locate near their markets in order to keep track of buyer preferences.
Capacity planning
Kathleen, a manager at Parker Airline, has the responsibility deciding how many passengers Parker Airline can serve at a given time, Kathleen is most likely involved with ________.
True
Letters of credit are popular among traders because it reduces the risk of non-shipment
banks
Letters of credit are popular among traders because the risk of non shipment are assumed by _______.
Back-to-back loan
Loan in which a parent company deposits money with a host-country bank, which then lends the money to a subsidiary located in the host country is called a ____
Hardship pay
Managers who are asked to go into a particularly unstable country or one with a very low standard of living often receive a bonus called _______.
True
Most large companies use exporting to increase sales and open up new markets when the domestic market has become saturated
His case will represent an instance of expatriate failure.
Mr. Yoshimura's daughters are extremely unhappy and have been complaining every night about their lifestyle in the United States. They insist on returning to Japan. If Mr. Yoshimura gives in to his family members' pleas and decides to return home, which of the following will most likely be true about his experience?
a local manager with strong government contacts
One challenge facing Hudson Foods as it expands into Europe is getting through all the bureaucratic and legal regulations surrounding the food industry. Erica plans to hire a manager to ensure that this challenge is overcome. Who among the following will Erica most likely recruit for this position? A) a local manager with strong government contacts
True
One reason to buy a product instead of making it in-house is the greater flexibility to respond to market conditions.
True
Outsourcing refers to the practice of buying from another company a good or service that is part of a company's value-added activities
True
Products for which there a fewer substitutes can more easily absorb higher shipping and production costs.
False
Products made in emerging countries tend to be evaluated more positively than those form relatively more developed countries
False
Reverse culture shock is the trouble expatriates face while adjusting to a new environment in which they find themselves.
eliminating the exposure of assets to political risk
Scenario: Audio Component Outsourcing Echo Corporation manufactures high-quality audio components, such as speakers, amplifiers, and receivers, for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in outsourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that outsourcing would enable the firm to be more competitive without sacrificing quality. Which of the following is most likely a potential benefit for Echo if it outsources some of its manufacturing activities?
Echo could save money by reducing the costs incurred in manufacturing the component parts.
Scenario: Audio Component Outsourcing Echo Corporation manufactures high-quality audio components, such as speakers, amplifiers, and receivers, for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in outsourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that outsourcing would enable the firm to be more competitive without sacrificing quality. Which of the following most likely supports the argument of Echo managers to outsource some of the firm's manufacturing activities?
Do purchasing components present the lowest cost option for Echo?
Scenario: Audio Component Outsourcing Echo Corporation manufactures high-quality audio components, such as speakers, amplifiers, and receivers, for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in outsourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that outsourcing would enable the firm to be more competitive without sacrificing quality. Which of the following should most likely be considered in making the decision to outsource some of Echo's manufacturing activities?
Identify basic appeal for markets
Scenario: Chong's analysis of international markets John Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets. 17) When screening a potential market, which of the following would you advise John to do first?
assessment of the national business enviornement
Scenario: Chong's analysis of international markets John Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets. 18) Which stage of the market-screening process is John involved in, while examining government regulations and bureaucracy in a market?
Selection of the market
Scenario: Chong's analysis of international markets John Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets. Which of the following stages of the market-screening process would require John to visit a potential market personally?
Measure market or site potential
Scenario: Chong's analysis of international markets John Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets. Which step of the market-screening process involves determining the income elasticity of the Zulu doll?
Outsourcing
Scenario: Hafstrom Motors Based in Kentucky, Hafstrom Motors has always used spare parts made in America for its automobiles. However, sales and profits have slumped over the past three years. A senior manager at the company comes up with new strategies for improving the firm's production activities. The senior manager argues that Hafstrom could reduce its costs significantly by purchasing parts from companies located overseas rather than producing its own parts. Which of the following is the senior manager advocating?
Vertical integration
Scenario: Hafstrom Motors Based in Kentucky, Hafstrom Motors has always used spare parts made in America for its automobiles. However, sales and profits have slumped over the past three years. A senior manager at the company comes up with new strategies for improving the firm's production activities. The top management of the company contends that Hafstrom would benefit most from manufacturing its own parts, rather than sourcing it from elsewhere, even if they are made at another location overseas. Which of the following is being recommended in this approach?
Market receptivity
Scenario: Indy Bats LLC Indy Bats LLC is looking for new markets for its products. Matt Johnson has been appointed head of a special team that has been given the responsibility of identifying new markets for the company's products. The company is especially interested in exploring emerging economies. 95) To estimate an emerging market's openness, Matt could analyze its ________.
Poupulation in the middle class
Scenario: Indy Bats LLC Indy Bats LLC is looking for new markets for its products. Matt Johnson has been appointed head of a special team that has been given the responsibility of identifying new markets for the company's products. The company is especially interested in exploring emerging economies. 77) If Matt wants to estimate an emerging market's spending capacity, he should focus on the ________.
Economic freedom
Scenario: Indy Bats LLC Indy Bats LLC is looking for new markets for its products. Matt Johnson has been appointed head of a special team that has been given the responsibility of identifying new markets for the company's products. The company is especially interested in exploring emerging economies. If Matt wants to estimate the extent to which free-market principles predominate in an emerging market, Matt should consider the variable called ________.
Secondary Market research
Scenario: Markowitz Tools Susan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her research to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation. If Susan wants to obtain information in the least expensive way, she should use _____.
Verbal Questioning
Scenario: Markowitz Tools Susan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her research to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation. Which of the following methods would be most appropritate for conducting primary market research in Country A?
Consumer panels
Scenario: Markowitz Tools Susan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her research to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation. Which of the following would be most appropriate for conducting primary market research on attitudes, behaviors, and purchasing habits in Country B?
Data from the internet
Scenario: Markowitz Tools Susan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her research to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation. Which of the following would be the least expensive method in terms of both time and money, for conducting a market research in Country C?
Data from the internet
Scenario: Markowitz Tools Susan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her research to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation. Which of the following would be the least expensive method in terms of both time and money, for conducting a market research.
Culture shock
Scenario: Mr. Yoshimura goes to Tennessee Mr. Yoshimura, vice president of quality control at Oshimura Yarn, has recently been assigned to a three-year project at the company's Tennessee plant. Mr. Yoshimura has brought his wife and his three daughters with him from Yokohama to Tennessee. 86) Mr. Yoshimura and his family were initially very excited to see Tennessee but soon started missing their home, relatives and friends in Japan. They are facing ________.
Geocentric staffing
Scenario: Swingset International Jerome Johnston, the human resource manager at the U.S.-based Swingset International, is developing an international staffing policy for the company. Jerome personally believes Swingset should send managers from the United States to manage each subsidiary. But the CEO of the company, Valerie Vermont, believes subsidiary operations ought to be managed by individuals from the host country. Which staffing policy should Swingset consider if it wants its foreign operations to be managed by the best-qualified individuals regardless of nationality?
the potential for losing control of the host-country operations
Scenario: Swingset International Jerome Johnston, the human resource manager at the U.S.-based Swingset International, is developing an international staffing policy for the company. Jerome personally believes Swingset should send managers from the United States to manage each subsidiary. But the CEO of the company, Valerie Vermont, believes subsidiary operations ought to be managed by individuals from the host country. A major drawback of the staffing policy recommended by Valerie is ________.
eliminates the high cost of relocating expatriate managers and families
Scenario: Swingset International Jerome Johnston, the human resource manager at the U.S.-based Swingset International, is developing an international staffing policy for the company. Jerome personally believes Swingset should send managers from the United States to manage each subsidiary. But the CEO of the company, Valerie Vermont, believes subsidiary operations ought to be managed by individuals from the host country. An important advantage of the staffing policy recommended by Valerie is that it ________.
Ethnocentric staffing
Scenario: Swingset International Jerome Johnston, the human resource manager at the U.S.-based Swingset International, is developing an international staffing policy for the company. Jerome personally believes Swingset should send managers from the United States to manage each subsidiary. But the CEO of the company, Valerie Vermont, believes subsidiary operations ought to be managed by individuals from the host country. The approach recommended by Jerome is called ________.
Expense to reallocate managers
Scenario: Swingset International Jerome Johnston, the human resource manager at the U.S.-based Swingset International, is developing an international staffing policy for the company. Jerome personally believes Swingset should send managers from the United States to manage each subsidiary. But the CEO of the company, Valerie Vermont, believes subsidiary operations ought to be managed by individuals from the host country. 77) Which of the following is a drawback of Jerome's staffing approach?
polycentric staffing
Scenario: Swingset International Jerome Johnston, the human resource manager at the U.S.-based Swingset International, is developing an international staffing policy for the company. Jerome personally believes Swingset should send managers from the United States to manage each subsidiary. But the CEO of the company, Valerie Vermont, believes subsidiary operations ought to be managed by individuals from the host country. 78) The approach recommended by Valerie is called ________.
American Depository Receipts
Scenario: Verandas International Verandas International is expanding its operations in North America. The Dutch company supplies products needed by restaurants with outdoor tables. Verandas International is a leader in this industry, but the company believes it must increase its geographic reach to maintain that position. If Verandas International chooses to pursue equity financing, but wants to avoid the time and money required to comply with stock exchange regulations, the company could issue ____________________.
Barter
Scenario: Wang's Techno Toys Ann Wang has been successfully running Wang's Techno Toys that sells high-tech toys in the domestic market. Continually increasing and stiff competition at home has now forced Wang's Techno Toys to enter international markets through direct exports. In some countries, people exchange electronic goods for Techno Toys instead of paying money for them. This practice is known as ________.
Documentary collection
Scenario: Wang's Techno Toys Ann Wang has been successfully running Wang's Techno Toys that sells high-tech toys in the domestic market. Continually increasing and stiff competition at home has now forced Wang's Techno Toys to enter international markets through direct exports. Which of the following methods of export/import financing is Techno Toys' bank using if it acts as an intermediary without accepting financial risk?
Sales representatives
Scenario: Wang's Techno Toys Ann Wang has been successfully running Wang's Techno Toys that sells high-tech toys in the domestic market. Continually increasing and stiff competition at home has now forced Wang's Techno Toys to enter international markets through direct exports. Which of the following would most likely help Techno Toys sell its toys directly to buyers in the target market?
Capacity planning
Scenario: Wilson Industries Inc. Wilson Industries Inc. is a multinational firm that designs and produces premium leather bags for major destinations worldwide. The company's board of directors is meeting to discuss changes that might be needed in the company's operations. 75) The board plans to examine Wilson's ability to produce enough bags to satisfy their customers' demands. This evaluation is known as ________.
facilities location planning
Scenario: Wilson Industries Inc. Wilson Industries Inc. is a multinational firm that designs and produces premium leather bags for major destinations worldwide. The company's board of directors is meeting to discuss changes that might be needed in the company's operations. If Wilson Industries selects a new area for its production units, the company will be implementing ________.
facilities layout planning
Scenario: Wilson Industries Inc. Wilson Industries Inc. is a multinational firm that designs and produces premium leather bags for major destinations worldwide. The company's board of directors is meeting to discuss changes that might be needed in the company's operations. If the board discusses the spatial arrangement of production processes within Wilson's production facilities, they will be engaging in ________.
Process planning
Scenario: Wilson Industries Inc. Wilson Industries Inc. is a multinational firm that designs and produces premium leather bags for major destinations worldwide. The company's board of directors is meeting to discuss changes that might be needed in the company's operations. The board will also examine new production techniques the company could use to create its product. This examination is a part of ________.
a native of the target market who has completed a one-year internship at Hudson Foods
Scenario: You're Hired! Erica Els has just been promoted as vice president of human resources for Hudson Foods, a U.S.-based international frozen food corporation. Erica's first task is to staff the company's European subsidiary. 89) One lower-level position Erica must fill requires the employee to be familiar with the new market and its customs, traditions, and language. Also, the new hire must be comfortable with Hudson Food's organizational culture and business traditions. Who among the following will Erica most likely recruit for this position?
Wholly owned subsidary
Scenario:Sports Stuff Inc. Herb Graham is vice president of Sports Stuff Inc., a business that develops, manufactures, and markets sports products. The company is looking to expand its operations into the European market. Herb believes that if the company expands its product line to include products reflecting sports that are popular in Europe, the company will achieve success there. The CEO of Sports Stuff has decided that the company needs to retain complete control over its operations in Europe. To achieve this objective, Herb would most likely recommend that the firm establish a ______.
Joint Venture
Scenario:Sports Stuff Inc. Herb Graham is vice president of Sports Stuff Inc., a business that develops, manufactures, and markets sports products. The company is looking to expand its operations into the European market. Herb believes that if the company expands its product line to include products reflecting sports that are popular in Europe, the company will achieve success there. The board of directors of Sports Stuff is concerned with the firm's lack of experience in foreign markets. To minimize this problem, Herb recommends that the firm create a ________ with a local partner. joint venture turnkey project wholly owned subsidiary franchise
False
Secondary data tends to be very expensive because it has already been analyzed and summarized by another party
False
Sensitivity training constitutes the most basic level of cultural training for managers on international assignments.
it provides access to important business officials and executives
Small and medium-sized companies often find trade missions very appealing because ________.
True
Stable currency values make it easier for firms to predict future earnings accurately in terms of the home-country currency.
True
Supply issues (location and availability of vendors) are also important in location planning
False
The ISO 9000 is a production technique in which inputs to the production process arrive exactly when they are needed
knowledge of the target market's cultural, political, legal , and economic conditions
The biggest advantage of an export management company is usually its ______.
True
The compensation of non-managerial workers is strongly influenced by increased cross-border business investment.
A staffing policy
The customary means by which a company fills up vacancies in its offices is called ________.
True
The first phase of HR planning involves taking an inventory of a company's current human resources
Government regulation, government bureaucracy, and political stability
The key element of political risk of greatest concern for global companies is ________.
Aquiring components
The make-or-buy decision primarily relates to ________.
True
The most important disadvantage of a strategic alliance is it can create a future local or even global competitor
Qualified workers from the local market
The new subsidiary's production facilities will employ approximately 100 full-time nonmanagerial workers. Who among the following will Erica most likely recruit to fill these positions?
False
The open account method of export/import financing is used when the two parties are unfamiliar with each other.
False
The potential to conduct written surveys is independent of the literacy rates among the local population
False
The primary advantage of franchising is that franchisees have a great degree of organizational flexibility
False
The process of recruitment involves screening and hiring the best-qualified applicants with the greatest performance potential.
Selection
The process of screening and hiring the best-qualified applicants with the greatest performance potential is called _______.
False
The psychological process of readapting to one's home culture is seldom difficult for expatriates who have successfully adapted to new cultures.
Survey research
The single greatest advantage of _______ is the ability to collect vast amounts of data in a single sweep.
False
The single greatest disadvantage of survey research is that is provides access to only a small amount of data in a single sweep.
Just-in-time systems
The suppliers used by Thanos Industries deliver components directly to Thanos manufacturing center as the inputs are needed for production to minimize Thanos inventory costs. Thanos most likely uses ______.
False
To speed up the process of getting government approval for local operations, companies must hire home country nationals.
False
Today, due to improved technology, it is fairly easy to persuade an outside supplier to make significant modifications to a component
False
Trade missions are advantageous to small businesses as they are the most inexpensive method of getting introduced to important business contacts
False
Typically, indirect exporting relies on local sales representatives or distributors
False
Under a turnkey project, one company supplies another with managerial expertise for a specific period of time.
False
Venture capital is a source of debt for successful multinational companies
ISO 9000
What are the guidelines that provide the basis for quality certification called?
bill of lading
What document serves as a title to the goods in question under the document collection payment method?
Reinvest in its operations
When a market is experiencing rapid growth, a company will ______.
Market receptivity
When creating a market-potential indicator for an emerging market, ________ is estimated by determining a nation's volume of international trade as a percentage of GDP.
percentage of a market's population in the middle class
When creating a market-potential indicator for an emerging market, market consumption capacity is often estimated from the ________.
Total population
When developing a market-potential indicator for an emerging market, the size of the market is typically estimated from the nation's ________.
A firm's business-level strategy
Which of the following determines the process that a company will use to create its product
....
Which of the following determines the process that company will use to create its product?
Field experience
Which of the following international assignments preparation methods involves a trainee feeling the stresses inherent in living in the culture?
Additional transportation costs
Which of the following is a barrier to buying products from international suppliers?
local market knowledge
Which of the following is a characteristic of exporting?
High profit potential
Which of the following is a characteristic of foreign direct investment?
The create future competitors
Which of the following is a disadvantage of strategic alliances?
Successful local units may function independently and pay little attention to Headquarters
Which of the following is a drawback of the polycentric approach?
High cost of relocating managers
Which of the following is a major drawback of ethnocentric staffing?
Market size
Which of the following is a strategic factor that influences a company's international entry mode selection?
The parent company receives all profits generated by the subsidary
Which of the following is an advantage of wholly owned subsidiaries?
jewlrey
Which of the following is an income-elastic product?
A greenfield investment
Which of the following is established by a company that has the option of either (1) acquiring or modifying existing factories or (2) building entirely new facilities?
High rates of inflation
Which of the following is most likely to be caused by poor fiscal and monetary policies of a nation's central bank?
Perform a situational analysis
Which of the following is not one of the three steps in increasing market share, revenue, and profits?
Companies offer ADRs in the U.S. to appeal to mutual funds
Which of the following is true of American Depository Receipts (ADRs)
They can stunt the growth of the exporter's market share by charging very high prices.
Which of the following is true of distributors?
It helps develop global managers who can adjust to any business environment.
Which of the following is true of geocentric staffing?
Advance payment
Which of the following normally takes the form of a wire transfer of money from the bank account of the importer directly to that of the exporter prior to shipment of merchandise?
Direct export
Which of the following occurs when a company sells its products to buyers in a target market without going through intermediary companies?
cultural orientaion
Which of the following offers insight into a host country's political, legal, economic, and social institutions as a way of enhancing environmental briefings?
Vertical integration
Which of the following processes will a computer assembling firm engage in if it decides to manufacture its own monitors and printers?
Buying a product enables a company to gain a great deal of power in their relationship with suppliers
Which of the following reasons encourages companies to buy a product rather than make it?
Making a product gives managers greater control over the production process
Which of the following reasons encourages companies to make a product rather than buy it?
Franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of property.
Which of the following statements best differentiates between franchising and licensing?
It embodies all important facets of a nation's business environment.
Which of the following statements is true about country image and its effects on global companies?
Countertrade is practiced by countries when there is a lack of hard currency
Which of the following statements is true of countertrade?
A major advantage of licensing is that it is the least risky method of international expanison
Which of the following statements is true of licensing?
A major advantage of licensing is that it is the least risky method of international expansion.
Which of the following statements is true of liscensing?
....
Which of the following statements is true of outsourcing?
The standards require each company to define and document its own quality processes.
Which of the following statements is true regarding the ISO 9000 standards?
It can facilitate the transfer of special know-how
Which of the following statements regarding ethnocentric staffing is true?
assessment of the national business environment
Which of the following steps of the market screening process involves examining the cost of transporting goods?
measurement of market or site potential
Which of the following steps of the market screening process involves the analysis of the quality of workforce,materials, and infrastructure?
Sensitivity trianing
Which of the following trains managers to be considerate and understanding of other people's feelings and emotions?
False
While assessing the market potential of emerging markets, market consumption capacity is generally obtained through estimates of energy consumption
Advance payment
Who of the following financing methods entails the greatest risk for importers?
True
Worker productivity tends to be lower in most developing nations than in developed nations
Distributors
______ Take ownership of the merchandise when it enters their country and accept all the risks associated with generating local sales
Total Quality Management
______ is an integrated effort to systematically and continuously improve the quality of an organization's products and/or services.
Venture capital
______ is the financing obtained from investors who believe the borrower will experience rapid growth and who receive equity in return to their investment
Centralized production
______ refers to the concentration of production facilities in one location
Exporting
_______ is the most common form of international business activity
Indirect exporting
_______ occur(s) when a firm sells its products to a domestic customer, which in turn exports the product, in either its original form or a modified form.
offshore
________ manufacturing is any manufacturing that takes place in a country different from the home country
Expatriate Failure
______is the early return of an expatriate manager to the home country because of an inability to perform in the overseas assignment
Global Depository Receipts
_____are traded in Luxembourg and London and represent a specific number of shares in an outside company
Trade show
an exhibition at which businesses in a particular industry showcase their latest products, study activities of rivals, and examine recent trends and opportunities is called a(n) _______.
False
low tariffs and high quota limits encourage market entry by means of investment