question

Today's companies compete in a ____.

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borderless world

question

Companies that think ____ have a competitive edge.

answer

globally

question

In which stage, market potential is limited to home country, with all production and marketing facilities located at home?

answer

Domestic

question

In the ____ stage a company usually adopts a multidomestic approach.

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International

question

Global Dandelion, with marketing and production facilities located in many countries, is participating at what stage in the international arena?

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Multinational stage

question

Quality-cast Telecom with an international division would be participating in what stage of the international arena?

answer

International stage

question

The process of globalization typically passes through all of the following stages EXCEPT

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interdomestic stage.

question

Stateless stage is also referred to as the ____ stage.

answer

global

question

Color Copiers operates in a true global fashion, making sales and acquiring resources in whatever country offers the best opportunities and lowest cost, what stage of international development is it in?

answer

Stateless stage

question

Which of the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country?

answer

Outsourcing

question

The Maquiladora industry along the Texas-Mexico border on the Mexico side uses cheap labor for assembling products. This lowers the price for U.S. consumers and is an example of

answer

outsourcing

question

Most firms begin with which strategy to enter foreign markets?

answer

Exporting

question

Which of the following is an entry strategy in which the organization maintains its production facilities within its home country and transfers its products for sale in foreign markets?

answer

Exporting

question

What is exporting?

answer

All of these

question

A form of exporting to less-developed countries is called

answer

countertrade

question

Heineken begins by exporting its product into new markets, and then ____ to a local brewer to establish its position in the market.

answer

licenses

question

Which of the following is a form of franchising?

answer

Licensing

question

Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system. What type of strategy are you going to use?

answer

A franchise

question

Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk obtained in operating international businesses?

answer

Franchising/licensing

question

A foreign subsidiary over which an organization has complete control is called a

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wholly owned foreign affiliate.

question

The Write Pens, Inc. wants to reduce transferring costs by producing closer to the consumer in a foreign country. This will also help in reducing transportation and storage costs. Which strategy would be the best to use given the circumstances?

answer

Direct investing

question

Go RVing, a U.S. company, built a subsidiary from scratch in England. This is an example of

answer

greenfield venture.

question

The Nissan plant in Mississippi is an example of a ____.

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greenfield venture

question

As a first step into international business, which two countries are most companies going to today?

answer

China and India

question

_____ is the most widespread approach to international involvement in China and India

answer

Outsourcing

question

The management of business operations conducted in more than one country is called

answer

international management.

question

______ aspects of management do not change when doing business internationally.

answer

All of these

question

Language, values, religion, and education all describe which dimension in the international environment?

answer

Sociocultural

question

In international operations, the economic environment represents all of the following factors EXCEPT

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laws and regulations.

question

Resource development, infrastructure, and exchange rates all describe which dimension in the international environment?

answer

Economic

question

In international operations, the economic environment includes

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infrastructure

question

Which of the following is a sociocultural factor in the international environment?

answer

Language

question

______ is normally used to classify countries as developed or developing.

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Per capita income

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____ generally are located in Asia, Africa and South America.

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LDCs

question

A country's physical facilities that support economic activities make up its ____.

answer

infrastructure

question

If you built a computer company in Africa and then found that your product was having difficulty being distributed to customers because of the road system, your problem would be related to

answer

an inadequate infrastructure.

question

Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem with India's

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resource market.

question

Exchange rates are included in which of the following international environments?

answer

The economic environment

question

The legal-political environment, in international operations, includes which of the following?

answer

Political risks

question

Political risk is defined as an organization's risk of ____ due to politically based events or actions by host governments.

answer

all of these

question

A company's risk of loss of assets, earning power, or managerial control due to politically based events or action by host government is referred to as

answer

political risk.

question

Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This is an example of which sector of the international environment?

answer

Legal-political

question

Which of the following is NOT a legal-political factor in the international environment?

answer

Language

question

A foreign terrorist kidnaps your firm's marketing VP while the VP is in the host country. This is a harsh example of

answer

political risk.

question

A nation's ____ includes the shared knowledge, beliefs and values, as well as the common modes of behavior and ways of thinking, among members of a society

answer

culture

question

Cultural factors in foreign countries are ____ the political and economic factors.

answer

more perplexing than

question

____ refers to the degree to which people accept inequality in power among institutions, organizations, and people.

answer

Power distance

question

Countries whose social values reflect low power distance

answer

expect equality in power.

question

A loosely knit social framework in which individuals are expected to take care of themselves is called

answer

individualism

question

Collectivist values are represented in the social framework of which of these?

answer

Ecuador

question

Austria's cultural preference is for achievement, heroism, assertiveness, and material success. This would be considered

answer

masculinity

question

____ refers to a value characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity

answer

Uncertainty avoidance

question

Which of these reflects a cultural preference for cooperation, group decision making, and quality of life?

answer

Femininity

question

One of Hofstede's social values that was developed later is

answer

long-term orientation.

question

Recent research by the GLOBE project has extended ____ research and offered new insights for managers

answer

Hofstede's

question

All of the following are cultural dimensions as defined by the GLOBE Project, except:

answer

masculinity

question

countries where women are often in positions of high status, the Globe Project would describe that culture as high in ____.

answer

gender differentiation

question

A country that places emphasis on fairness and values kindness would be described by the Globe Project as high in ____.

answer

humane orientation

question

According to Manager's Shoptalk in Chapter 4, what does the gesture of scratching one's head usually mean in Russia?

answer

"I'm confused or skeptical."

question

According to Manager's Shoptalk in Chapter 4, one of the most universal gestures is:

answer

A smile (happiness or politeness)

question

Which of the following is defined as a culture in which communication is used to enhance personal relationships?

answer

High-context culture

question

Which of the following countries possesses a high degree of assertiveness?

answer

Spain

question

Which of the following countries possesses a low degree of gender differentiation?

answer

Denmark

question

Which of the following countries possesses a high performance orientation?

answer

Taiwan

question

Countries that use several languages

answer

have linguistic pluralism

question

In a(n) ____, people use communication primarily to exchange facts and information.

answer

low-context culture

question

A ____ interaction requires more time because a relationship has to be developed, and trust and friendship must be established.

answer

high-context

question

A cultural attitude marked by the tendency to regard one's own culture as superior to others is called

answer

ethnocentrism

question

When organization managers have a(n) ____ attitude, they value employees as an end in themselves.

answer

humanistic

question

When organization managers have a(n) ____ attitude, they treat employees as resources to be used.

answer

instrumental

question

How many nations signed on for negotiation when GATT was created in 1947?

answer

23

question

The European Union has expanded to a ____-nation alliance

answer

27

question

Which of the following has a goal to guide the nations of the world toward free trade and open markets?

answer

WTO

question

The ____ is a single European currency that replaced 12 national currencies and unify a huge marketplace.

answer

Euro

question

Which organization originated and supports the idea of small businesses operating on a global level?

answer

NAFTA

question

Carrie's Car Care receives more than 25% of its total sales revenues from operations outside of the United States. Carrie's would be considered a

answer

multinational corporation.

question

Which of the following characteristics distinguish a multinational corporation?

answer

All of these

question

Which of the following companies place an emphasis on their home countries?

answer

Ethnocentric

question

____ places an emphasis on a worldwide perspective.

answer

Geocentric companies

question

All of the following are components of cultural intelligence, EXCEPT:

answer

Analytical

question

Which of the following refers to the frustration and anxiety that result from constantly being subjected to strange and unfamiliar cues about what to do and how to do it?

answer

Culture shock

question

Which of these is a low-context culture?

answer

German

question

All of the following are considered emerging economies EXCEPT:

answer

Canada

question

The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries is called:

answer

Globalization

question

Creative Coverings is a small interior design company owned and managed by Lisa Smith. Since the company was established seven years ago, Lisa has only worked with clients near her hometown in Maryland. Creative Coverings fits into which stage of globalization?

answer

Domestic

question

Exporting, licensing, and direct investing are called __________ strategies because they represent alternative ways to sell products and services in foreign markets.

answer

market entry

question

CRL, a European plastics manufacturer, is considering forming an alliance with a U.S. military goods manufacturer to develop a new type of polymer that can be used for international industrial and military applications. Such a partnership represents what type of direct investment?

answer

Joint Venture

question

For the past several years, foreign companies have invested more in business in ________ than in any other place in the world.

answer

China

question

With its large English-speaking population, _______ has numerous companies offering services such as call-center operations, data-processing, computer programming, and technical support.

answer

India

question

When the 2008 financial crisis began in the United States, it resulted in the collapse of the housing market and the failure of several large financial institutions. This crisis spread rapidly to the rest of the world. This example demonstrates which trend in the global economic environment?

answer

World markets are economically interconnected

question

A.R.C. is a large non-profit humanitarian aid organization that has been forced to pull out of several African markets in recent years due to civil wars and large-scale violence. This demonstrates which frequently cited problem for international companies?

answer

Political instability

question

Jana has a high tolerance for the unstructured, the unclear, and the unpredictable. She can best be described as having:

answer

Low uncertainty avoidance

question

Kim, a Japanese expatriate working in Denmark, tends to use communication primarily to build personal social relationships. She feels that relationships and trust are more important than business. Kim is surprised that her business associates in Denmark do not share the same views. Based on this information, Kim most likely grew up in what type of culture?

answer

High-context

question

Sam is known by his colleagues as a great communicator, with an uncanny ability to shift speech patterns, expressions, and body language to be in tune with people from different cultures. Based on this example, Sam is strong in which component of cultural intelligence?

answer

Physical

question

In 2010, which of the following countries formed a free trade area with the ten countries that make up the Association of Southeast Asian Nations (ASEAN)?

answer

China

question

________ is a concept that proposes that corporations can alleviate poverty and other social ills by selling to the world's poorest people.

answer

Bottom of the pyramid

question

________ is a concept that proposes that corporations can alleviate poverty and other social ills by selling to the world's poorest people.

answer

Bottom of the pyramid

question

________ is a concept that proposes that corporations can alleviate poverty and other social ills by selling to the world's poorest people.

answer

Bottom of the pyramid

Flashcards About MGT Chapter 4

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