Management Chap 8 – Flashcards
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Global business:
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is the buying and selling of goods and services to people from different countries.
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Which of the following is true of global business?
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It is the buying and selling of goods and services by people from different countries.
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_____ is a method in which a company builds a new business or buys an existing business in a foreign country.
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Direct foreign investment
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The two general kinds of trade barriers are _____.
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tariff barriers and nontariff barriers
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A(n) _____ is a direct tax on imported goods.
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tariff
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_____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies in special industries.
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Subsidies
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The General Agreement on Tariffs and Trade (GATT):
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eliminated tariffs in ten specific industries.
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Which of the following should be a key issue for a company once it decides to go global?
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Strike the right balance between global consistency and local adaptation.
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Most companies have used the _____ to successfully enter foreign markets.
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phase model of globalization
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Which of the following represents the correct sequence of the phase model of globalization?
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Exporting; cooperative contracts; strategic alliances; wholly owned affiliates
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_____ occurs when a company sells domestically produced products to customers in foreign countries.
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Exporting
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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.
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cooperative contract
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_____ are two kinds of cooperative contracts.
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Franchising and licensing
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A _____ is a strategic alliance in which two existing companies collaborate to form a third, independent company.
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joint venture
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Managing global joint ventures can be difficult because they:
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represent a merging of four cultures.
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Clive Motor Company solely owns and operates manufacturing plants in Brazil, Chile, Germany and India. Which of the following methods for conducting global business has Clive Motor Company used in this example?
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Wholly owned affiliate
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Which of the following is a common factor of global new ventures?
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The development and communication of a company's global vision from inception by the founders.
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The most important factor in an attractive business climate is the _____.
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easy access to growing markets
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_____ is associated with the risk of major changes in governmental regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events.
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Political uncertainty
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_____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country.
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National culture
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Hofstede's research has shown that there are _____.
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five consistent dimensions of cultural differences across countries
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According to Hofstede's research on cultural dimensions, _____ cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life.
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feminine
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An expatriate is someone who _____.
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lives and works outside his or her own country
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_____ is the most important factor in determining the success or failure of an international assignment.
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The willingness of an expatriate's spouse and family to adjust to a foreign culture
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The term _____ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
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Uncertainty avoidence
