Chapter 8- Global Management

The phase model of globalization means that companies made the transition from a domestic company to a global company in three sequential phases. The three phases are exporting, followed by wholly owned subsidiaries, and finishing with strategic alliances.

False

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

False

A joint venture is an example of a strategic alliance.

True

Deciding where to "go global" is just as important as deciding how your company will go global.

True

Global business is defined as the buying and selling of goods and services by people from different countries.

True

Global joint ventures can be difficult to manage because they represent a merging of four cultures.

True

Multinational corporations are corporations that own businesses in two or more countries.

True

The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign culture is the most important factor in determining the success or failure of an international assignment.

True

The three strategies used to minimize or to adapt to the political risk inherent to global business are avoidance, control, and cooperation.

True

The two kinds of cooperative contracts are licensing and franchising.

True