Management Test 3 Questions
What are strategic goals?
Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services
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)
What term describes an international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy, and that recommend and promote policies to improve the well-being of consumers and societies across the world?
Organization of Economic Cooperation and Development (OECD)
What name is given to the evaluation of the organization's internal strengths and weaknesses and the opportunities and threats associated with the business's external environment?
SWOT analysis
What is meant by decline?
The product life cycle stage marked by decreases in the product's market share
When a nation pays for imports with its own goods, it is using
a countertrade agreement
The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of
a direct investment
You are the president of Henry Motor Corp., and you see the great potential markets in Eastern Europe for personal transportation. Your plan is to purchase an old Soviet tank plant and convert it into an auto factory. The Russian government welcomes your plan, which is an example of
a direct investment
What is the World Trade Organization (WTO)?
a global association of member countries that promotes free trade
"Improving people's lives by providing gas and electric services in a sustainable way - affordable, reliable, and clean" is an example of
a mission statement
In SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called
a strength
In SWOT analysis, an environmental circumstance that is potentially beneficial for the firm is called
an opportunity
Which of the following refers to the initial stage of the product life cycle when the product is introduced?
birth
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
According to the text, a blueprint of acceptable behavior that is passed from one generation to the next is called
culture
What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price?
differentiation
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
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
What term describes what a firm does well relative to its competitors?
distinctive competence
Your saltwater taffy, which you produce right next to the Pacific Ocean in Orchard Park, Oregon, has a national reputation. You sell all you can make, and people drive hundreds of miles to your shop to buy it. You have a
distinctive competence
By requiring products to be sold for not less than what it costs to produce them, the United States is attempting to prohibit
dumping
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
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
The ratio at which one nation's currency can be exchanged for another nation's currency or gold is the
exchange rate
What name is given to the sale of goods and services to foreign markets?
exporting
What name is given to the final result that a firm wishes to achieve?
goal
__________ of a plan is where the organization goes from the "thinking" mode to the "doing" mode
implementation
The purchase of goods and services from a foreign source defines
importing
What term describes the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems?
infrastructure
Which of the following refers to the buying, selling, and trading of goods and services across national boundaries?
international business
When Wesley, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company
is exporting the lenses
What term describes a trade arrangement in which one company-the licensor-allows another company-the licensee-to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee, or royalty?
licensing
What name is given to the product life cycle stage when the product's market share either slows or has no growth?
maturity
When a product has been on the market for many years, such as the automobile, and its growth is slow at best, what stage of the product life cycle is it said to be in?
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 executive vice president of Banana Computer, Inc. You have a competitive machine, but your major competitor has the benefit of large-scale production, making its products less expensive to manufacture. In order to remain price-competitive, you send your parts and subassemblies to Mexico for the final stage of assembly, thereby taking advantage of
outsourcing
Which of the following refers to a set of activities intended to achieve goals, whether for an entire organization, department, or an individual?
plan
What name is given to the maximum number of units of a particular product that may be imported into a country?
quota
Most businesspeople engaged in international trade underestimate the importance of
social and cultural differences
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
The agreement between Japan's Sony Corporation and the Swedish telecommunication company Ericsson to make mobile phone is an example of
strategic alliance
Which of the following refers to a general statement of actions an organization intends to take or is taking that is based on the fit of the organization with its external environment?
strategy
The purpose of a strategy is to
take advantage of what the organization does well, or hopes to do well
Which of the following characteristics relates to a business-level strategy?
the area of responsibility usually assigned to the divisional-level managers
Strategic planning differs from general planning in that it focuses on
the external environment and long-term goals
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
Which of the following refers to the acquisition of goods in one country and the selling of them to buyers in another country?
trading company
Which of the following characteristics relates to a joint venture?
when a company that wants to do business in another country finds a local partner (occasionally, the host nation itself) to share the costs and operations of the business