Chapter 8 Study Guide – TTU MGT. 3370

question

The two general kinds of trade barriers are:
answer

tariff barriers and nontariff barriers
question

The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the:
answer

General Agreement on Tariffs and Trade
question

Which of the following represents the correct sequence for the phase model of globalization?
answer

exporting; cooperative contracts; strategic alliances; wholly owned affiliates
question

Two factors help determine the growth potential of foreign markets. They are foreign competition and:
answer

purchasing power
question

Hofstede’s research has shown there are:
answer

five consistent dimensions of cultural differences across countries
question

An expatriate is someone who:
answer

lives and works outside of his or her own country
question

The evidence clearly shows that __________ is the most important factor in determining the success or failure of an international assignment.
answer

how well an expatriate’s spouse and family adjust to the foreign culture
question

Global business is defined as____.
answer

the buying and selling of goods and services to people from different countries
question

____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.
answer

Direct foreign investment
question

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) ____.
answer

tariff
question

____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries.
answer

Subsidies
question

The acronym GATT stands for the ____.
answer

General Agreement on Tariffs and Trade
question

One of the major questions that a company must typically answer about its future, once it has decided to go global is ____.
answer

To what extent should the company standardize or adapt business procedures?
question

Historically, most companies have used the ____ to successfully enter foreign markets.
answer

phase model of globalization
question

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.
answer

exporting
question

____ occurs when a company sells domestically produced products to customers in foreign countries.
answer

Exporting
question

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.
answer

cooperative contract
question

____ are both examples of cooperative contracts.
answer

Franchising and licensing
question

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 ____.
answer

low degree of uncertainty avoidance
question

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 ____.
answer

political uncertainty
question

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 ____.
answer

none of these
question

The evidence clearly shows that ____ is the most important factor in determining the success or failure of an international assignment.
answer

how well an expatriate’s spouse and family adjust to the foreign culture
question

The term ____ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
answer

uncertainty avoidance
question

According to Hofstede, when people in a culture are oriented to the present and seek immediate gratification, that culture is described as ____.
answer

having a short-term orientation
question

The ____ strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts.
answer

cooperation
question

____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of people from a particular country.
answer

National culture
question

What are the two types of political risk that affect companies conducting global business?
answer

political uncertainty and policy uncertainty
question

A country or region that has an attractive business climate for companies that want to go global has ____.
answer

an effective but cost-efficient place to build an office or manufacturing site
question

Which of the following factors helps a company determine the growth potential of a foreign market?
answer

purchasing power
question

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?
answer

all of these

Get instant access to
all materials

Become a Member