Management 3370 Exam 2 (Chap. 8) – Flashcards
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Global Business
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The buying and selling of goods and services to people from different countries.
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Which of the following is true about 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 non-tariff 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 or 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 10 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 adaption.
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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 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 sole owns and operates manufacturing plants in Brazil, Chile, Germany, and India. Which of the following is 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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____ 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 uncertainity
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____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people form 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, modest, caring for the weak, and quality of life.
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femine
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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, and unpredictable situations.
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uncertainty avoidance
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The term ____ can be best defined as the collection of activities that transform inputs into outputs that customers value.
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organizational process
