Management ch 5 & 6

What is meant by focus?

A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

What is a multinational corporation (MNC)?

A corporation, such as IBM, ExxonMobil, and Nestle, that operates on a worldwide scale, without significant ties to any one nation or region

Which of the following characteristics relates to global business (globalization)?

A strategy in which organizations treat the entire world or major reason of it as the domain for conducting business

Which of the following characteristics relates to contingency plans?

Alternate courses of action to be undertaken if certain organizational or environmental conditions change

What term describes the agreement between ten Southeast Asian countries with the goal to promote economic growth and overall progress in the area via trade and security?

Association of Southeast Asian Nations

What term describes what a firm does well relative to its competitors?

Distinctive competence

Which of the following characteristics relates to the North American Free Trade Agreement (NAFTA)?

Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactured products among the three countries

What name is given to the ratio at which one nation's currency can be exchanged for another nation's currency or for gold?

Exchange rate

What name is given to the final result that a firm wishes to achieve?

Goal

The basic mission of which of the following is to oversee the international monetary system and help ensure stable currencies and exchange rates throughout the world?

International Monetary Fund (IMF)

Which of the following refers to the buying, selling, and trading of goods and services across national boundaries?

International business

What name is given to the product life cycle stage when the product's market share either slows or has no growth?

Maturity

Which of the following characteristics relates to dumping?

Occurs when a country or business firm sells products at less than what it costs to produce them

You are the international marketing manager for Brides & Grooms, Inc., a designer and manufacturer of wedding apparel. This year's fashions are featuring white for the entire wedding party. You scheduled this year's Asian kick-off for next Monday in Tokyo, when you discover that white is the Japanese color of mourning. What did you overlook?

Social and cultural differences

Which of the following refers to a partnership formed to create competitive advantage on a worldwide basis?

Strategic alliance

What is meant by importing?

The purchase of goods and services from a foreign source

What is meant by corporate strategy?

The scope and resource deployment components of strategy for the enterprise as a whole

What is an embargo?

The suspension of trade in a particular product by the government

When Reebok has some of its athletic shoes produced by a Korean company, but the Reebok name still appears on the shoes, this illustrates

contract manufacturing

China's agreement with the Congo to barter infrastructure in exchange for metals is an exchange for metals is an example of a

countertrade agreement

The first step in strategic planning is

determining the mission and strategic goals

When a firm offers a unique good or service to a customer at a premium price, it is following the business-level strategy of

differentiation

You are an apple farmer and spokesperson for the American Apple Association. You are faced with dumping from apple growers in Transoceania, where apples grow wild and the people pay to pick apples as a form of recreation. To counter this threat, you are going to lobby Congress and the president to

impose a protective import tariff

According to Hofstede's cultural dimensions theory, _____ tend to be self-reliant and place a high level of importance on freedom and ambition, while _____ place more value on the team than the individual.

individualists; collectivists

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company

is exporting lenses.

Because many countries do not permit foreigners to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a

joint venture

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as

licensing

If companies do research to learn about cultural differences before engaging in trade in a particular country, then problems arising from these cultural differences can be

minimized

The translation of product names can be a crucial factor in the success or failure of a foreign marketing effort because of

sociocultural differences

You are the international marketing manager for Checker Burger, Inc., producer of a popular soy burger. There is an excellent market for your burgers in the republic of East Slabovia, a producer of high-quality brandy. The only problem is that East Slaboviar currency is not accepted on the international currency exchange. What can you do to help your trade?

Barter burgers for brandy.

Which of the following characteristics relates to the World Bank?

Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries

Which of the following refers to an economic and political union of 28 member nations that are located primarily in Europe?

European Union

Which of the following refers to the market value of a nation's total output of goods

Gross domestic product (GDP)

What term is used to describe a formal written declaration of the organization's mission that often includes the firm's philosophy, its primary products and markets, the intended geographic scope, and the nature of the relationships between the firm, its stakeholders, and society?

Mission statement

The ____ loans money to countries throughout the world for reconstruction and development, and also makes loans to poorer countries for infrastructure and social services purposes

World Bank

What term describes the purchase of overseas production and marketing facilities, in which a company may control the facilities outright, or it may be the majority stockholder in the company that controls the facilities?

direct investment

MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make it a "cleaner" utility company. In high-tech renewable energy, this company has a

distinctive competence

You are the producer of the Western Denim brand blue jeans. The pants are in high demand in Pangia; however, shipping costs, tariffs, and trade restrictions are insurmountable. As a last resort, you have entered into an agreement to let a local Pangian manufacturer use your name, materials, and trademark to produce the jeans in exchange for a royalty. This is a

licensing agreement