Chapter 8 Study Guide – TTU MGT. 3370 – Flashcards
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tariff barriers and nontariff barriers
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The two general kinds of trade barriers are:
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General Agreement on Tariffs and Trade
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The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the:
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exporting; cooperative contracts; strategic alliances; wholly owned affiliates
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Which of the following represents the correct sequence for the phase model of globalization?
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purchasing power
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Two factors help determine the growth potential of foreign markets. They are foreign competition and:
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five consistent dimensions of cultural differences across countries
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Hofstede's research has shown there are:
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lives and works outside of his or her own country
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An expatriate is someone who:
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how well an expatriate's spouse and family adjust to the foreign culture
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The evidence clearly shows that __________ is the most important factor in determining the success or failure of an international assignment.
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the buying and selling of goods and services to people from different countries
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Global business is defined as____.
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Direct foreign investment
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____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.
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tariff
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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) ____.
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Subsidies
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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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General Agreement on Tariffs and Trade
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The acronym GATT stands for the ____.
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To what extent should the company standardize or adapt business procedures?
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One of the major questions that a company must typically answer about its future, once it has decided to go global is ____.
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phase model of globalization
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Historically, most companies have used the ____ to successfully enter foreign markets.
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exporting
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Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of its lipstick annually in Japan. It has no physical presence within the country beyond the fact its products are sold there. Fran Wilson Creative Cosmetics uses ____ to reach the Japanese market.
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Exporting
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____ occurs when a company sells domestically produced products to customers in foreign countries.
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cooperative contract
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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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Franchising and licensing
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____ are both examples of cooperative contracts.
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low degree of uncertainty avoidance
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In terms of Hofstede's cultural differences, the people who are described as happy-go-lucky and are people who are comfortable with an unstructured life and deal well with sudden changes. In terms of Hofstede's cultural differences, these people have a ____.
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political uncertainty
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Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continent's nations. As Starbucks expands into South America, it must deal with ____.
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none of these
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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 ____.
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how well an expatriate's spouse and family adjust to the foreign culture
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The evidence clearly shows that ____ is the most important factor in determining the success or failure of an international assignment.
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uncertainty avoidance
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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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having a short-term orientation
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According to Hofstede, when people in a culture are oriented to the present and seek immediate gratification, that culture is described as ____.
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cooperation
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The ____ strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts.
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National culture
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____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of people from a particular country.
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political uncertainty and policy uncertainty
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What are the two types of political risk that affect companies conducting global business?
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an effective but cost-efficient place to build an office or manufacturing site
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A country or region that has an attractive business climate for companies that want to go global has ____.
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purchasing power
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Which of the following factors helps a company determine the growth potential of a foreign market?
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all of these
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Which of the following factors should be considered when choosing an office/manufacturing location in the Brazilian market for a U.S. company that operates cinemas and wants to open a chain of movie theatres there?
