CH 7

Ford Motor Company owns and operates a $1.9 billion manufacturing plant in Brazil. What method for organizing for global business has Ford used in this example?

wholly owned affiliate

Several Arab countries boycott Coca-Cola products because the soft-drink company maintains product distributors in Israel. This boycott is an example of ____.

a trade barrier

The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is ____.

costs

According to Hofstede's research on cultural dimensions, ____ cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life.

feminine

Hofstede's research has shown that there are ____.

five consistent dimensions of cultural differences across countries

Which of the following types of global organization is most likely to suffer problems associated with being culture bound?

franchising

A multinational company that acts with ____ has offices, manufacturing plants, and distribution facilities in different countries all which run based on the same rules, guidelines, policies, and procedures.

global consistency

All global new ventures share two common factors. One is the bringing of a good or service to several different foreign markets at the same time. The other is ____.

none of these

The Japanese government decreed that Japanese snow was different from all others and required that all snow equipment marketed in the country be made in Japan for safety reasons. The elimination of non-Japanese companies from the market is an example of how ____ can influence global business.

policy uncertainty

The Japanese government continues to use the high tariffs to make sure local farmers can earn a living. The tariff on rice is an example of ____.

protectionism

Russia imposed limits on how much poultry, beef, and pork could be imported into the nation from the European Union (EU) in retaliation to limits the EU placed on how much grain Russia could export. What type of nontariff barrier did Russia use to control the amount of poultry, beef, and port it imported from the EU?

quotas

As Malta got ready for its admittance into the European Union (EU), the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished ____ for Malta-manufactured merchandise.

tariffs

All global new ventures share two common factors. One is that the company founders successfully develop and communicate the company's global vision from the start. The other is ____.

the bringing of a good or service to several different foreign markets at the same time

Global business is defined as____.

the buying and selling of goods and services to people from different countries

____ occurs when a company sells domestically produced products to customers in foreign countries.

Exporting

As Malta got ready for its admittance into the European Union (EU), all taxes on the importation of goods manufactured in Malta were eliminated. Malta was preparing to become part of a(n) ____.

Regional trading zones

____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries.

Subsidies

Which of the following countries has the largest direct foreign investment in the United States?

United Kingdom

The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of ____.

a government import standard

When McDonald's entered into an agreement with a French entrepreneur who wanted to own and operate a McDonald's fast-food restaurant in Paris, McDonald's saw the new restaurant as an opportunity. Unfortunately, the restaurant in Paris was not maintained at the cleanliness standards prescribed by McDonald's (but acceptable to the cleanliness standards of the French). McDonald's brought legal action to have the restaurant closed. This example illustrates ____.

a problem with franchising in different cultures

____ is used to assess how well managers and their families are likely to adjust to foreign cultures.

adaptability screening

Which of the following forms of organizing a global business help companies to avoid tariff and nontariff barriers to entry of a given foreign market?

all of these

A country or region that has an attractive business climate for companies that want to go global has ____.

an effective but cost-efficient place to build an office or manufacturing site

____ are both examples of cooperative contracts.

franchising and licensing

The evidence clearly shows that ____ 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

A ____ is a strategic alliance in which two existing companies collaborate to form a third, independent company.

joint venture

In Canada, two automobile companies have entered into a ____ to create CAMI Automotive. One firm's management runs the plant, which makes the other's cars. The agreement gives one access to the other's dealers to sell its brand of vehicles.

joint venture