Ch. 11 Multiple Choice

What percent of the world's population lives outside of the United States?

95

Communication between domestic headquarters and overseas operations is often made difficult by

All of the above

In China, pirated goods such as _______ can be purchased for a fraction of their actual prices on many streets

All of the above

Which of the following is a potential advantage of conducting international operations?

Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets

Which of the following is not true concerning the Japanese concept of Wa?

Discussions potentially disruptive to Wa are generally conducted in very formal settings.

_______ countries are market leaders in labor-intensive industries and _______ offers abundant natural resources and rapidly developing markets.

East Asian; Brazil

Which of the following U.S. industries is not yet greatly challenged by foreign competitors?

Furniture manufacturing

_______ is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations.

Globalization

Which of the following is not a typical characteristic of most Japanese managers?

Impulsive

How does life in Mexico compare to life in the United States?

It is slower

_______ 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.

Joint ventures

Which of the following is not true regarding European workers and workplaces?

Many Europeans respond enthusiastically to pay-for-performance, commission salaries, and objective measurement reward systems.

Which of the following statements is not true?

Markets are shifting slowly and in many cases diverging in tastes, trends, and prices.

Organizations that conduct business operations across national borders are called

Multinational corporations

Two consecutive quarters of a decline in real gross domestic product is commonly used as a definition of

a recession

Chinese pirating of products is an external threat

affecting many firms.

When China joined the World Trade Organization in 2001, that country _______ copyright restrictions _______ restrictions on the import and distribution of foreign-made goods.

agreed to respect; and to liberalize

Marketing managers in Japan see making a sale _______ the selling process.

as the beginning of

Chinese counterfeiters can be criminally prosecuted for commercial piracy when caught in possession of _______ counterfeit item(s).

at least 500

All of the following are things that many cultures around the world value more than the competitiveness that is so important in the U.S. except:

collectivity

The strategic-management process for multinational firms is _______ for purely domestic firms, and the process is _______ for international firms.

conceptually the same as; more complex

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.

drastically increase with

Foreign revenue as a percentage of total company revenues _______ in hundreds of U.S. firms, including Exxon/Mobil, Gillette, and Citicorp.

exceeds 50 percent

Joint ventures and partnerships between domestic and foreign firms are

extremely commonplace.

Multinational corporations face unique and diverse risks, which include all of the following except:

favorable foreign court interpretations of contracts and agreements.

All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders except:

foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets

In South Korea, activities involve concern for _______, or harmony based on respect of hierarchical relationships, including obedience to authority

inhwa

The domestic food industry _______ , so Kraft Foods is focusing on foreign acquisitions.

is growing 3% per year

Protectionism involves countries doing all of the following except:

liberalizing restrictions on the import of foreign goods

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.

nemaswashio

The U.S. government's OPIC

offers insurance to offset some risks of doing business internationally.

In an industry that is, or is rapidly becoming global, the riskiest possible posture is to

remain a domestic competitor.

In general, U.S. managers feel the day has been productive if it is spent

rushing to meetings and conferences

Americans place an exceptionally high priority on _______ whereas many foreigners place more worth on _______.

time; relationships

China's counterfeit trade practices contribute to an annual bilateral trade deficit of about _______ with the United States.

$250 billion

The _______ opportunities and threats that face a multinational corporation are almost limitless

All of the above

The global challenge faced by U.S. business involves

All of the above

Whereas _______ businesses embody individualism, achievement, competition, and informality, _______ businesses stress collectivism, continuity, cooperation, and formality.

American; Mexican

Which group generally softens up executives with praise before they criticize?

Americans

The lowest cost source for precision machinery is

Europe

Which U.S. industry is already greatly challenged by foreign competitors?

None of the above

In Europe it is generally true that the farther _______ on the continent, the more participatory the management style.

North

Which of the following nations has the highest corporate tax rate?

The US

Mass communication and high technology have _______ in diverse cultures worldwide.

created similar patterns of consumption

All of the following are potential advantages to initiating, continuing, and/or expanding international operations except:

foreign operations could be seized by nationalistic factions.

Desire for _______ is a part of the social fabric in worker-manager relations in Mexico.

harmony

Most economists argue that protectionism _______ the world economy because it _______ trade among countries.

harms; inhibits

Strengths of competitors in foreign lands are often _______, and weaknesses are often _______.

underestimated; overestimated

A firm's power and prestige in domestic markets may be significantly enhanced if the firm competes globally,

which can translate into improved negotiating power among important groups.