Principles of Mgmt Chpt 8

In the context of nontariff barriers, which of the following is a similarity between quotas and voluntary export restraints?

Both limit the amount of a product that can be imported annually.

Which of the following can help reduce uncertainty about how to act and decrease misunderstandings between expatriates and their families and locals?

Cross-cultural training

Purchasing power is an agreement in which a foreign business owner pays a company a fee for the right to conduct business in that country.

False

When conducting global business, companies should attempt to identify the two types of political risk; workforce quality and economic uncertainty.

False

Which of the following is a disadvantage of franchising?

Franchisors face a loss of control when they sell businesses to franchisees who are thousands of miles away.

Which of the following is a worldwide trade agreement that reduced and eliminated tariffs, limited government subsidies, and established protections for intellectual property?

General Agreement on Tariffs and Trade

Which of the following are new companies that are founded with an active global strategy and have sales, employees, and financing in different countries?

Global new ventures

Which of the following is the most important factor in determining the success or failure of an international assignment?

How well an expatriate's spouse and family adjust to the foreign culture

Which of the following is the degree to which societies believe that a person should be self-sufficient?

Individualism

Which of the following is an advantage of licensing?

It allows companies to earn additional profits without investing more money.

Which of the following best defines a tariff?

It is a direct tax on imported goods.

Which of the following statements is true of global consistency?

It simplifies decisions for managers at the headquarters of a multinational company.

Which of the following trends has allowed companies to skip the phase model of globalization when going global?

Low-cost communication technologies make it easier to communicate with global customers.

Which of the following is a regional trade agreement between most European countries?

Maastricht Treaty of Europe

Which of the following are defined as nontax methods of increasing the cost or reducing the volume of imported goods?

Nontariff barriers

The United States-Mexico-Canada Agreement replaces which of the following trade agreements?

North American Free Trade Agreement

Which of the following is the extent to which people in a country accept that authority is distributed unequally in society and organizations?

Power distance

In the context of global markets, which of the following factors helps companies determine the growth potential of foreign markets?

Purchasing power

In the context of nontariff barriers, which of the following include government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition?

Subsidies

Which of the following can be considered expatriates?

The Chinese employees of a company based in Shanghai, China, who are transferred to the United States for a special assignment

In the context of national culture, which of the following is a difference between countries with short-term orientation and countries with long-term orientation?

Unlike countries with short-term orientation, countries with long-term orientation are savings-driven.

Which of the following are foreign offices, facilities, and manufacturing plants that are 100% owned by the parent company?

Wholly owned affiliates

The fact that founding companies bear only part of the costs and risks of that business is one of the advantages of _____.

a joint venture

In the context of cross-cultural training, the practice of adapting to cultural differences is called _____.

cultural simulation

In the context of political risks, unlike cooperation, an avoidance strategy _____.

is used when the political risks associated with a country are too great

The two kinds of cooperative contracts in global business are _____.

licensing and franchising

If companies focus too much on local adaptation, they run the risk of _____.

losing the cost effectiveness and productivity that result from using standardized rules and procedures throughout the world

Political uncertainty is the risk associated with _____.

social unrest

An agreement in which companies combine key resources, costs, risks, technology, and people is known as a _____.

strategic alliance

Unlike joint ventures, wholly owned affiliates are _____.

fully owned by their parent company