MGMT 3200 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
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?
wholly owned affiliates, global joint ventures, franchising, licensing
The General Agreement on Tariffs and Trade (GATT) ____.
-decreases both tariffs and nontariff barriers -puts stricter limits on government subsidies -eliminates tariffs in ten specific industries -protects intellectual property, such as trademarks, patents, and copyright
Which of the following countries has the largest direct foreign investment in the United States?
...
____ are both examples of cooperative contracts.
Franchising and licensing
The signing of the ____ created a regional trading zone in Europe.
Maastricht Treaty
One of the major questions that a company must typically answer about its future, once it has decided to go global is ____.
To what extent should the company standardize or adapt business procedures?
The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the ____.
World Trade Organization
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
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 ____.
conceived by its founders, who articulate its global mission, as a global company from the start
A firm using a ____ strategy to prevent or reduce political risks will lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt their business in that country.
control
What are the strategies that can be used to minimize or adapt to the political risk inherent to global business?
control, avoidance, and cooperative strategies
A(n) ____ is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.
cooperative contract
Starbucks is a chain that is rapidly expanding its global operation. As it expanded into South America, its research showed that Chileans on average drink only 150 cups of coffee annually, and people in Argentina only drink about half that amount. An average citizen of the United States drinks 345 cups annually. These differences in annual coffee consumption most likely reflect ____.
cultural differences
A country or region that has an attractive business climate for companies that want to go global has found an ____.
easy access to growing markets
Hofstede's research has shown that there are ____.
five consistent dimensions of cultural differences across countries
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
The Japanese government has proclaimed that its snow is different from that found in any other region of the world and as a result ensures that all snow skis marketed for sale in Japan must be manufactured in Japan. This is an example of a(n) ____.
government import standard
According to Hofstede, when people in a culture are oriented to the present and seek immediate gratification, that culture is described as ____.
having a short-term orientation
Nestlé is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of a ____.
multinational corporation
The Japanese government has proclaimed that its snow is different from that found in any other region of the world. As a result, all snow skis marketed in Japan must be manufactured in Japan. This is an example of a(n) ____.
nontariff barrier
Which of the following is a trend that has allowed companies to skip the phase model when going global?
quick, reliable air travel
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
The purpose of pre-departure language and cross-cultural training is to ____.
reduce the uncertainty for those becoming expatriates
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 zone
In 2000, the United States imposed a tax on all steel imports in an effort to protect about 5,000 jobs. This tax is an example of a(n) ____.
tariff
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