Multinational MGMT – Flashcards
Unlock all answers in this set
Unlock answersquestion
Businesses of all sizes are increasingly looking for global opportunities because a. Trade barriers are falling. b. Money is flowing more freely across countries. c. The world is becoming one interconnected economy. d. All of the above.
answer
d. All of the above.*
question
Globalization is a. The trend of businesses expanding beyond their domestic boundaries. b. Increasing average temperature over the globe. c. The increased use of global satellite communication systems. d. A strategy of developing unique products for each nation in the world.
answer
a. The trend of businesses expanding beyond their domestic boundaries.
question
3. Which of the following would not be considered a basic source of globalization? a. Similar customer needs b. Falling of trade barriers c. Advances in communication technology d. Differentiation among countries
answer
d. Differentiation among countries
question
Multinational management is a. A strategy of developing similar strategies for different countries. b. The trend of business expanding beyond local boundaries. c. The formulation and design of management systems to successfully take advantage of international opportunities and respond to international threats. d. None of the above
answer
c. The formulation and design of management systems to successfully take advantage of international opportunities and respond to international threats.
question
According to the text, the multinational company a. Is required to be a public corporation. b. Is any company that engages in any business function across borders. c. Must sell overseas to be a true multinational. d. Must be large.
answer
b. Is any company that engages in any business function across borders.
question
6. Which of the following is not a classification of economic systems noted in the text? a. Domestic economies b. Transition economies c. LDCs d. Emerging markets
answer
a. Domestic economies
question
7. Transition economies are a. Mature economies with substantial per capita GDP and international trade. b. Led by Hong Kong, Singapore, South Korea, and Taiwan. c. Countries changing from government-controlled or communistic economies to a more free market capitalism. d. None of the above
answer
c. Countries changing from government-controlled or communistic economies to a more free market capitalism.
question
8. Emerging markets include a. OECD countries. b. Brazil, China, Russia, India. c. Korea, Japan and USA. d. Hungary, Poland, Slovakia.
answer
b. Brazil, China, Russia, India.
question
9. Developing economies are a. Mature economies with substantial per capita GDP and international trade. b. Hong Kong, Singapore, and Taiwan. c. Countries in the process of changing their economies from government-controlled to a more free market capitalism. d. None of the above
answer
b. Hong Kong, Singapore, and Taiwan.
question
10. Emerging markets are defined as those that are: a. Growing rapidly. b. Transitioning from a communist-controlled economy to capitalism. c. Seen to have impact only sporadically. d. Enjoying a mature economy.
answer
a. Growing rapidly.
question
11. Major regional trade agreements include all of the following EXCEPT a. EU. b. NAFTA. c. APEC. d. PROTEC
answer
d. PROTEC
question
12. The economic agreement that links the US, Canada, and Mexico in an economic bloc that allows freer exchange of goods and services is known as the a. EU. b. OPEC. c. APEC. d. None of the above
answer
d. None of the above
question
13. The World Trade Organization: a. Is a major trading company. b. Succeeded the GATT agreements. c. Collects duties for member countries. d. Is a consulting group for companies who wish to engage in international trade.
answer
b. Succeeded the GATT agreements.
question
14. Examples of developed economies would include: a. The U.S. and Japan. b. Hungary and Poland. c. Argentina and Brazil. d. Hong Kong and Singapore.
answer
a. The U.S. and Japan.
question
15. According to your text, FDI means a. Foreign development initiatives. b. Various investment policies of the U.S. government. c. A foreign company has an ownership position in a company in another country. d. A type of international negotiation strategy.
answer
c. A foreign company has an ownership position in a company in another country.
question
16. The two forms of risk discussed in the text include a. Exchange rate risk and corruption risk. b. Business risk and social risk. c. Sales risk and employment risk. d. Economic and political risk.
answer
d. Economic and political risk.
question
17. Economic risks discussed in the text include a. Anything a government might do or not do that might adversely affect a company. b. The likelihood of losing money if one invests in stocks. c. Exchange and interest rates. d. Expropriating of foreign firms by the local government without any compensation.
answer
c. Exchange and interest rates.
question
18. Anything that a government might do to affect a multinational adversely is known as a. Exchange rate risk. b. Business risk. c. Sales risk. d. Political risk.
answer
d. Political risk.
question
19. A global product or service is a. Adapted for each country's unique needs. b. A similar product or service for all customers throughout the world. c. A product or service that requires bilingual customers. d. Products developed for use outside the country.
answer
b. A similar product or service for all customers throughout the world.
question
20. Which of the following statements about the Internet and Information Technology is true? a. The Internet is benefiting companies worldwide. b. Electronic communications does not allow companies to communicate with locations around the world. c. Information technology is not encouraging a borderless financial market. d. Information technology does not allow the sharing of information around the world.
answer
a. The Internet is benefiting companies worldwide.
question
21. The free market reforms in emerging countries are creating a potential group of a. new competitors. b. old competitors. c. subsidized firms. d. government companies.
answer
a. new competitors.
question
22. Which of the following statements is true about privatization? a. Developing nations have the highest rate of privatization. b. The leading privatizers in the world do not face competition. c. Privatization is the sale of private business to government investors. d. Privatization is absent in transition economies.
answer
a. Developing nations have the highest rate of privatization.
question
23. Global customers: a. Search for government-controlled enterprises. b. Provide reduced government trade protection. c. Search the world for their supplies without regard to national boundaries. d. Encourage large firms to sell to them.
answer
c. Search the world for their supplies without regard to national boundaries.
question
24. Global trade has this important effect on developing new competitors. a. It facilitates the transfer of technology, allowing former assemblers to become creators. b. It facilitates the transfer of knowledge, allowing former builders to become assemblers. c. It reduces competition. d. It reduces rivalry.
answer
a. It facilitates the transfer of technology, allowing former assemblers to become creators.
question
25. Global standards for products a. Are virtually impossible in technical industries. b. Refer to having one product standard for all countries. c. Puts companies at a strategic disadvantage. d. All of the above
answer
b. Refer to having one product standard for all countries.
question
26. According to the experts cited in your text, the next generation of global managers will need all of the following, EXCEPT: a. Emotional intelligence b. The ability to work with people from different cultural backgrounds c. Poor negotiation skills d. A local mindset
answer
c. Poor negotiation skills
question
27. A global mindset requires managers to think globally but a. act locally. b. have emotional intelligence. c. understand national cultures. d. need accomplished negotiation skills.
answer
a. act locally.
question
28. The strategic approach to multinational management a. Involves the development of one strategy for all countries. b. Focuses on the skills and aptitudes that the next generation of global managers will need. c. Is concerned with developing strategies that deal with operating in more than one country and culture.* d. None of the above
answer
c. Is concerned with developing strategies that deal with operating in more than one country and culture.
question
29. Which of the following statements about globalization is false? a. Globalization is a simple evolutionary process. b. Not all economies of the world are benefiting equally from globalization. c. Terrorism, wars and SARS has limited and even reversed the effects of globalization. d. All of the above statements are false.
answer
a. Globalization is a simple evolutionary process.
question
30. Aggressive multinational companies from emerging markets are a. expanding beyond their own borders. b. staying within their own national borders. c. help transition from a communist to a capitalist system. d. unable to compete with western companies.
answer
a. expanding beyond their own borders.
question
31. The set of technical standards developed by the International Organization for Standardization are known as a. ISO 92. b. ISO 14000. c. ISO 9001: 2000. d. None of the above
answer
c. ISO 9001: 2000.
question
32. One of the major reasons why global companies seek to develop standard products is because a. A standard product allows the company to save money because the same product can be sold anywhere. b. A company can be more responsive to local cultural conditions. c. It allows the company to invest more in research and development. d. All of the above
answer
a. A standard product allows the company to save money because the same product can be sold anywhere.
question
33. Emerging markets are a. Located mostly in Africa and South America. b. Similar to developed economies. c. Those countries between developed and developing countries that present tremendous opportunities. d. have free trade areas.
answer
c. Those countries between developed and developing countries that present tremendous opportunities.
question
34. Which of the following statements regarding the European Union is true? a. The European Union no longer exists. b. The European Union includes Venezuela. c. The European Union has a common currency. d. All of the above are true.
answer
c. The European Union has a common currency.
question
35. Future trends indicate that _____ matters more than size of the company. a. location b. price c. Flexibility d. a high standard
answer
c. Flexibility
question
36. According to the text, all of the following includes factors that will shape the future business environment EXCEPT a. Blurring of industry barriers. b. Finding your niche. c. Ability to find cheap labor. d. Emphasis on innovation and the learning organization.
answer
c. Ability to find cheap labor.
question
37. The best definition of multinational management includes which of these factors: a. The formulation of strategies and management systems. b. Designed to take advantage of international opportunities. c. And to respond to international threats. d. All of the above.
answer
d. All of the above.
question
38. Multinational companies are defined by all of these factors EXCEPT: a. Engaging in business beyond its domestic borders. b. They may be of any size. c. They may be corporations. d. They must be public corporations.
answer
d. They must be public corporations.
question
39. The largest company in the world is: a. Wal-Mart Stores. b. BP. c. Royal Dutch Shell. d. Chevron.
answer
c. Royal Dutch Shell.
question
40. The European Union consists of: a. 25 member nations, with the 26th scheduled to become a member in 2013. b. 26 member nations, with the 27th scheduled to become a member in 2013. c. 27 member nations, with the 28th scheduled to become a member in 2013. d. 25 member nations, with no others scheduled to become a member in 2013.
answer
c. 27 member nations, with the 28th scheduled to become a member in 2013.
