International Test 4 Actual – Flashcards
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Which of the following statements BEST describes direct? exporting?
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Direct exporting can rely on either local sales reps or distributors
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An Internet portal provides access to a? large, global audience through its? website, while the technology company supplies its? know-how in? delivering, say, music over the Internet. This is an example of what type of an investment? entry?
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Strategic alliances
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A business may explore the advantages of? licensing, franchising, management? contracts, and turnkey projects. After businesses become comfortable in a particular? market, joint? ventures, strategic? alliances, and wholly owned subsidiaries become viable options. Which strategic factor influences this investment entry? decision?
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International experience
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Which of the following payment terms presents the minimum risk to the? exporter?
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Irrevocable letter of credit
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Some companies place reliance for their international sales on distributors or sales representatives. Which of the following is NOT a key function of? distributors?
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Distributors do not take title of the product
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Which of the following is an arrangement where an exporter ships merchandise and later bills the importer for its? value?
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Open Account
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Company? X's product has reached its maximum market share in the domestic market. On the other? hand, the company has the capacity to operate another shift to increase production if it increases sales and can realize an overall reduction in production? costs, which is the most important priority for the company. Which of the following is the number one compelling reason for the company to begin? exporting?
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Diversify sales
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Which of the following is NOT a service provided by export management companies? (EMCs)?
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Providing import, export, and countertrade services
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Which of the following BEST describe? agents?
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Receive compensation in the form of commissions on the value of sales
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Which of the following is a disadvantage of hiring an export management company? (EMC)?
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Hinders the development of the exporters own international expertise
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Identify the payment method that represents the greatest risk to the exporter?
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Open Account
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Which of the following new market entry modes is a? low-cost, low-risk? option, where companies can rely on consistent products and common themes in worldwide? markets?
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Franchising
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Which of the following occurs when companies use licensing agreements to exchange intangible property with one? another?
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Cross Licensing
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Which of the following is a contract between the exporter and shipper that specifies merchandise destination and shipping? costs?
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Bill of lading
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Which of the following is the sale of goods or services to a country by a company that promises to make a future purchase of a specific product from that? country?
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Counterpurchase
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Which type of investment entry mode is an considered undertaking and has high risk?
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Wholly Owned Subsidiary
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Which of the following types of counter-trade practice typifies long-term relationships between the countries involved?
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Buyback
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What is the main difference between offset and? counterpurchase?
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Does not specify the type of product that must be purchased, just the amount that will be spent
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Which of these types of payments represents the highest risk exposure to the? importer?
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Advance payment
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To better ensure that companies will not make embarrassing? blunders, an inexperienced exporter might also want to engage the services of a freight forwarder. Freight forwarders provide the following activities EXCEPT? ________.
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Taking ownership of merchandise
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Time draft typically has a maximum length of time allowed for payment following delivery by which the importer must pay for the goods. What is the maximum time usually allowed for? payment?
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90 days
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Which of the following occurs when a company sells its products to intermediaries that then resell to buys in a target marketing?
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Indirect exporting
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Which of the following occurs when a company sells its products directly to buyers in a target? market?
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Direct exporting
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Which of the following contractual agreements allows each party to use the? other's technology in the production of its own? goods?
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Cross-Licensing
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Which payment method is commonly used when there is an? on-going business relationship between the exporter and the? importer?
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Documentary Collection
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Which of the following occurs when the price of a good is lower in export markets than it is in the domestic? market?
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Dumping
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Companies adapt their products to suit local? buyers' product preferences. What factor influences this? decision?
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Cultural differences
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Developing and emerging markets typically have fewer available forms of mass media for use in implementing a pull strategy. Which of the following options would you choose to increase consumer awareness of a product and generate product? demand?
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Use billboards and radio
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Direct marketing is when producers sell directly to final buyers. It is also called? a(n) ________.
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Zero-level Channel
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Which of the following is a promotional strategy designed to create buyer demand that will encourage distribution channel members to stock a? company's product?
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Pull Strategy
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Which distribution channel is used when a producer wants its product to be made available through as many distribution outlets as? possible?
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Intensive Channel
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When going global with an Internet? presence, the best strategy may be to localize as much as possible. Which of the following should you avoid when perfecting an online? presence?
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Using Slang
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Which of the following identifies a? company's efforts to reach distribution channels and target customers through? communications, such as personal? selling, advertising, public? relations, and direct? marketing?
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Promotion Mix
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?Planning, implementing, and controlling the physical flow of a product from its point of origin to its point of consumption is called? ________.
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Distribution
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Which of the following is the pricing policy in which a product has a different selling price in export markets than it has in the home? market?
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Dual Pricing
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Which promotion approach is used to create consumer demand through direct marketing? techniques?
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Pull Strategy
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?________ is one in which a manufacturer grants the right to sell its product to only one or a limited number of resellers.
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An Exclusive Channel
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When parent companies and their subsidiaries commonly buy from one? another, this is known as? ________.
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Transfer Prices
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Amway Asia Pacific? Ltd., the Asian arm of? U.S.-based Amway, experienced a great deal of frustration and financial loss. What was this a result? of?
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Lack of market understanding
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A? company's international sales force is the key to successfully implementing a push strategy abroad. Which of the following steps would you use in order to empower your sales force to meet their performance? targets?
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Know the sales scene
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Which? company, cited in the? textbook, was able to use the pull strategy to introduce Rejoice haircare products into? Asia?
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Proctor & Gamble
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When governments now regulate internal company pricing practices by assigning products? approximate, this is called? ________.
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Arm's Length Pricing
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The Chocolate War that has erupted in the EU and was cited in your textbook is an example of which of the? following?
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Companies must often adapt their products to satisfy laws and regulations
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Which distribution channel would large? companies, whose products are sold through grocery stores and department? stores, typically? take?
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Intensive Channel
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Companies traditionally managed to extend a? product's life by introducing products in industrialized countries and only later marketing them in developing and emerging markets.? However, companies are undertaking? new-product development at an increasingly rapid pace. Which of the following is this a result? of?
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Consumers in developing and emerging markets also demand the latest products
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Companies need to review the image of their brand from time to time and update it if it seems? old-fashioned. Which? company, cited in the? book, was able to breathe new life into their? brand?
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Lipton
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Manufacturer? sales' representatives are constantly calling on Walmart to encourage it to stock their product and give it visibility. This is an example of what promotional? approach?
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Push Strategy
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Mobile phone manufacturers offer discounts on phones to encourage buyers to choose their phone. Identify their promotional approach.
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Pull Strategy
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You are hired to manage the international sales team for a U.S. company. The immediate feedback you received from the sales team overseas is that salespeople believe they are pushing products that bear no relationship to the local market and their performance will suffer. Which of the following steps would you? choose?
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Involve the sales reps in the R process so they they have a better sense of the product
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The value customers obtain from a product is heavily influenced by the image of the country in which it is? designed, manufactured, or assembled. This image can be positive for some products but negative for others. Which of the following showcases the best and worst? image?
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Russian Caviar and Russian Automobiles
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Imagine that a Mexican company forms a new subsidiary in the United? States, but that this subsidiary cannot obtain a U.S. bank loan. The Mexican parent company can deposit Mexican pesos in the branch of a U.S. bank in Mexico. The U.S.? bank's home office then lends dollars to the subsidiary in the United States. When the U.S. subsidiary repays the loan in? full, the parent company withdraws its deposit? (plus any interest? earned) from the U.S.? bank's Mexican branch. This is an example of what kind of? financing?
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Back-to-back Loan
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Productivity is a very important? (although not the? only) factor in determining the value that a location adds to a certain economic activity. Two resources heavily influence the productivity of a? location: ________ and? ________.
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Labor and Capital
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Rather than producing mass quantities of computers to be stored in? inventory, Compaq competes by manufacturing computers as it receives orders from individual customers. To implement this business? strategy, Compaq executives decided to replace? mass-assembly lines with? three-person work cells. In production trials at a plant in? Scotland, output increased 23 percent as compared with the previous best assembly line. Which of the following is this an example? of?
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Facilities Layout Planning
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Availability and cost of labor in the local market are crucial to process planning. If labor in the host country is relatively? cheap, an international company will likely opt for? ________.
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Less technology and more labor-intensive methods
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Which of the following is the process by which a company extends its control over additional stages of? production, either inputs or? outputs?
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Vertical Integration
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Changing conditions in the competitive global marketplace often force managers to choose between? ________ and? ________.
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Re-investment and Divestment
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?________ allows a company to maintain? flexibility, especially when the national business environments of suppliers are volatile. Buying from several suppliers or establishing production facilities in more than one country allows a company to outsource products from one location if instability erupts in another.
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Outsourcing
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When an automobile manufacturer decides to manufacture its own window? glass, it is engaging in? ________.
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Upstream Activities
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Which of the following is the mix of? equity, debt, and internally generated funds that a company uses to finance its? activities?
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Capital Structure
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Computer companies buy components from? manufacturers, assemble them in their own? facilities, and then sell completed systems to consumers and businesses. Which of the following is this an example? of?
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Outsourcing
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Which of the following is a disadvantage of buying versus? making?
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Greater Control
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Airplane manufacturer Boeing designed aircraft in the state of Washington and Japan and then assembled it in Seattle with tail cones made in? Canada, special tail sections made in China and? Italy, and engines made in Great Britain. Which of the following is this an example? of?
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Location Economies
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Which of the following is NOT a supportive reason to make versus to? buy?
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Lower Risk
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Which of the following is an international certification that companies get when they meet the highest quality standards in their? industries?
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ISO 9000
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Which of the following principles requires that managers clearly understand how consumers perceive the performance of the? company's services?
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Create Management by fact
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You are the financial manager of a Japanese international company investing in the U.S. The value of the U.S. dollar has fallen against the Japanese yen. Which of the following financial options would you? recommend?
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Borrowing Locally
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Companies that depend on others for key ingredients or components give up a degree of control. In? turn, quality control is especially important when customers are highly sensitive to even slight declines in quality or company reputation. This supports the argument of? ________.
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Make VS. Buy
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Which of the following allows companies to drastically reduce the costs associated with large? inventories?
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JIT Manufacturing
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If a company is to succeed in the long? term, it must at some point generate sufficient internal revenue to sustain? day-to-day operations. Which of the following is an internal revenue? source?
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Transfer Prices
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Cost and availability of labor and? management, raw? materials, component? parts, and energy are all key components of? ________.
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Facilities Location Planning
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When the government of the? buyer's country imposes import? tariffs, which can add anywhere from 15 to 50 percent to the cost of the imported? product, this can be a major barrier to? ________.
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Outsourcing
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Which of the following is a source of equity financing for entrepreneurial? start-ups and small? business?
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Venture Capital
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?_________ is the process of assessing a? company's ability to produce enough output to satisfy market demand.
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Capacity Planning
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Which of the following is a? company-wide commitment to meet or exceed customer expectations through continuous quality improvement efforts and? processes?
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TQM
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Which of the following is an advantage of? centralization?
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Cutting cost per unit when selling undifferentiated products in large quantities
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?________ is the psychological process of readapting to? one's home culture.
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Reverse Culture Shock
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Company X has few subsidiaries in Asia and the Middle East. The company policy is to treat each national market differently. The company hires host countries staff to manage their entire overseas subsidiary. What kind of risk the company might be? running?
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Losing control of the host-country operations
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Which of the following is a disadvantage of geocentric? staffing?
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Expensive to implement
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Which of the following is NOT usually included in cultural training? programs?
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Technical Skill
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Which area of the? world's governments promising to keep unions in check makes this region attractive for company location? selection?
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ASIA
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Collecting data on every? employee, including educational? background, special job? skills, previous? jobs, language? skills, and experience living abroad is what type of? planning?
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The first phase of HR Planning
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A company plans to sell its products directly to buyers in a new market abroad. The company may create a new operation abroad and staff it with managers or may train local manager. What kind of planning do you think the company should develop to estimate its future? needs?
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HR Planning
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Which of the following is the culture training method in which the trainee responds to a specific situation and is evaluated by a team of? judges, .and typically includes? role-play exercises?
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Cultural Assimilation Training
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Japanese companies are notorious for their reluctance to place? non-Japanese managers at the helm of international offices. And when they do appoint a? foreigner, they often place a Japanese manager in the office to monitor important decisions and report back to the home office. This indicates that most Japanese firms prefer? a(n) ________ staffing approach.
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Ethnocentric
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The U.S. government permits citizens working abroad to exclude? $95,100 of what from their taxable income in the United? States?
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Foreign Earned Income
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Which of the following is a disadvantage of the ethnocentric staffing? policy?
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Having the cost of relocating manager from the home country
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With? ________ staffing, the? best-qualified individuals, regardless of? nationality, manage operations abroad.
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Geocentric
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Which of the following is an advantage of geocentric staffing? policy?
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Development of a global perspective among company managers
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Which of the following is an advantage of polycentric staffing? policy?
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Eliminating the high cost of relocating expatriate managers and families
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When do international companies tend to hire local? managers?
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When cultural understanding is a key job requirement
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?A(n) ________ manager is a citizen of one country who is living and working in another in one of the subsidiaries.
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Expatriate
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Which staffing policy calls for individuals from the home country to manage operations abroad?
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Ethnocentric Staffing
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With _______ staffing, individuals from the host country manage operations abroad.
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Polycentric
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Which of the following BEST describe a geocentric staffing policy?
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The best qualified individuals, regardless of nationality, manage operations abroad
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What is a psychological process affecting people living abroad and is characterized by? homesickness, irritability,? confusion, aggravation, and? depression?
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Culture Shock
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Which of the following is one of the reasons firms allow the ethnocentric staffing policy?
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Maintain tight control of decision making in branch offices abroad
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When apparel contractors in Bangladesh admitted that they hired? children, Levi Strauss demanded that they comply with local regulations.? Unfortunately, it turned out that many of the underage workers were their? families' sole sources of support. Which of the following options did Levi Strauss enact to solve the? problem?
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Levi's struck a deal: Contractors continued paying wages to the youngsters while they went to school and then rehired them when they reached age 14
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What type of compensation do managers often receive when their work assignment is located in an unstable country or in one with a very low standard of? living?
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Hardship Pay
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In what country does co-determination give workers a direct say in the strategies and policies of their? employers?
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Germany
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Publicity generated by allegations of workplace abuse caused many firms to establish codes of? conduct, and they stepped up efforts to ensure compliance. Which U.S. multinational company? (cited by the? textbook) sent a team of investigators to China to look into charges of? sweatshop-like conditions at a company manufacturing? facility?
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APPLE
