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Direct Foreign Investment Flashcards, test questions and answers

Q: 10. When a foreign currency is perceived by a firm to be undervalued, the firm may consider direct foreign investment in that country, as the initial outlay should be relatively low. a. True b. False

T More test answers on https://studyhippo.com/int_13/

Q: direct foreign investment (DFI)

the purchase by foreigners of real estate and businesses in another countries More test answers on https://studyhippo.com/economics-unit-5/

Q: 14. Direct foreign investment is perceived by foreign governments to: a. be a cause of national problems. b. be a remedy for national problems. c. either A or B is possible. d. have no impact on national problems.

C More test answers on https://studyhippo.com/int_13/

Q: 11. Consider a country that presently has a high level of unemployment because of weak economic conditions. Its income levels are very low. This country may be an attractive target as a result of ____ motives by U.S. firms that engage in direct foreign investment. a. revenue-related b. cost-related c. A and B d. none of the above

B More test answers on https://studyhippo.com/int_13/

Q: 7. According to information in the text, a host government would be least likely to provide incentives for direct foreign investment (DFI) into its country if the firm planning DFI: a. would compete with local firms of the host country. b. would produce a good not currently available in the host country. c. would produce a good and export it to other countries. d. B and C

A More test answers on https://studyhippo.com/int_13/

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Direct Foreign Investment Marketing Marketing Research Principles Of Marketing

test 5 – Flashcard 53 terms

Cindy Krause

53 terms

Preview

test 5 – Flashcard

question

despite the data glut that marketing managers recieve, they frequently complain that they lack

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enough information of the right kind

question

which of the following statements is NOT true regarding information collected by marketers?

answer

managers have the RIGHT information oand they have enough of it

question

a marketing information system (MIS) consists of people and procedures to assess information needs, _______, and help decision makers analyze and use the information

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develop the needed information

question

a real value of a company's marketing research and information system lies in the

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quality of customer insights it provides

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the marketing information system can serve ______.

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all the above (companys marketing managers, suppliers, resellers, marketing services agencies)

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a good MIS balances the information users would _______ against what they really _________ and what is ________.

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like to have, need, feasible to offer

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marketers must weigh carefully the costs of additional information against the ______ resulting from it

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benefits

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four common sources of internal data supplied to internal databases include the accounting department, operations, the sales force, and the

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marketing department

question

marketing information from which type of database can be accessed more quickly and cheaply than other information sources

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internal

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_________ is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment

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marketing intelligence

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which of the following statements regarding marketing intelligence is true?

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marketing intelligence is publicly available information

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which of the following is not considered a source of marketing intelligence

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causal research

question

which of the following is not a potential source for marketing intelligence

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primary data

question

through which of these sources of information is a competitor least likely to reveal intelligence information

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internal marketing meetings

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which of the following is an example of a free online database that a company could access in order to develop marketing intelligence

answer

US security and Exchange commissions database

question

faced with determined competitive marketing intelligence efforts by competitors, most companies are now doing which of the following

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training employees on protecting company information

question

_______ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

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marketing research

question

what is the first step in the marketing research process

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defining the problem and research objectives

question

your colleague is confused about using the marketing research process, as he knows that something is wrong but is not sure of the specific causes to investigate. he seems to be having problems with ________, which is often the hardest step to take.

answer

defining the problem and research objectives

question

which of the steps in the marketing research process has been left out of the following list: defining the problems and research objectives, implementing the research plan, and interpreting and reporting the findings

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developing the research plan

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causal research is used to

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test hypotheses about cause and effect relationships

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of the following combinations, managers would be most likely to start with ________ researach and later follow with _____ research.

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exploratory; causal

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the objective of ______ research is to gather preliminary information that will help define the problem and suggest hypotheses

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exploratory

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in the second step of the marketing research process, research objectives should be translated into specific _____

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information needs

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secondary data consists of information ______.

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that already exists somewhere but was collected for another purpose

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information collected from online databases on the internet is an example of _____ data.

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secondary

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which form of data below can usually be obtained more and quickly and at a lower cost than the others

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secondary

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it is most accurate to say that secondary data are _____.

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not always very usable

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your assistant wants to use secondary data exclusively for the current marketing research project. You advise him that the use of secondary data has some potential problems. which of the following is not one of them?

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it is generally more expensive to obtain than primary data

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for secondary data to be useful to marketers, it must be relevant, current, unbiased, and _____.

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accurate

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which method could a marketing researcher use to obtain information that people are unwilling or unable to provide

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observational research

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ethnographic research _______.

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is gathered where people live and work

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which of the following is true of ethnographic research

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it provides fresher and better insight into customer behavior than traditional approaches do

question

survey research, though used to obtain many kinds of information in a variety of situations, is the approach best suited for gathering _______ information.

answer

descriptive

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Fredia Pellerano has just discovered the major advantage of survey research. She reports to her supervisor that the advantage is its ______.

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flexibility

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survey research is least likely to be conducted through which of the following

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observation

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experimental research is best suited for gathering ______ info.

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causal

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ABC company has decided to use mail questionnaires to collect data. management recognizes this method has all the following advantages EXCEPT which one?

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has an average response rate

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which of the following is NOT a disadvantage of telephone interviews?

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interviewers may explain or probe more deeply on some questions

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which of the following contact methods is generally the least flexible

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mail questionnaires

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which contact method for marketing research is flexible, allows for explanation of difficult questions, and lends itself to showing products and advertisements

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personal interviewing

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focus group interviewing has become one of the major marketing research tools for getting insight into consumer thoughts and feelings. However, if the sample size is small, a researcher would be most concerned about which of the following

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generalizing from the results

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which of the following is a disadvantage of online focus groups

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the internet format can restrict respondent's expressiveness.

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which of the following is not an advantage of Web based research

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control over who respondents are

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which of the following has the highest rating for speed of data collection and compilation?

answer

online surveys

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marketing researchers usually draw conclusions about large groups of consumers by studying a small ______ of total consumer population.

answer

sample

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you generally need to ask three questions when developing a sampling plan. which of the questions below is one of these three

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how should participants be chosen

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what is a major drawback of probability sampling

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it can be time consuming

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what are the two main types of research instruments used to collect primary data

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questionnaires and mechanical devices

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the most common research instrument used is the _____.

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questionnaire

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which of the following is the best advice about creating questionnaires

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use simple and direct language

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after a research instrument is selected, the next step isn the marketing research process is ____.

answer

implementing the research plan

question

the AMF research group guard against problems during the implementatin phase of marketing research

answer

STUDY

Direct Foreign Investment Extensive Decision Making Facilities And Equipment Free Trade Agreement Free Trade Agreements International Marketing Marketing Principles Of Marketing World Geography

MKT 3013 – Principles of Marketing – Exam 2 – Flashcards 50 terms

Jose Escobar

50 terms

Preview

MKT 3013 – Principles of Marketing – Exam 2 – Flashcards

question

The north american free trade agreement (NAFTA) did all the following except:

answer

substancially reduced economic growth in Mexico

question

Which method of entering the global market place would be least risky?

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exporting

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the first step in creating the global marketing mix is to:

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develop a thorough understanding of the global TARGET market.

question

the processes consumers use when making purchase decisions are called:

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consumer behavior

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sam was driving when someone ran a stop sign and totaled his car. what stage of the consumer-decision making process does this represent?

answer

1 - needs recognition <---------- this one 2 - information search 3 - evaluate alternatives 4 - purchase 5 - post purchase behavior

question

rod saw a television commercial for a honda S2000 and wants to test-drive one. the commercial is an example of a(n) ____________ stimulus.

answer

external

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the steps of the consumer decision making process in order:

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1 - need recognition 2 - information search 3 - evaluate alternatives 4 - purchase 5 - post purchase behavior

question

john is throwing a party tonight and needs to order a couple pizzas. these three restaurants represent john's _____________ .

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evoked set

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Rose is narrowing the number of available choices by using a ________ .

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cutoff

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Inner tension that consumer experiences after recognizing an inconsistency between behavior and values or opinions is referred to as ________ _________ .

answer

cognitive dissonance

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the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior:

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involvement

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a marketing manager would expect his or her product to be a high-involvement product for most consumers if it:

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requires substantial financial investment

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the fact that mothers in japan feed their babies freeze-dried sardines and rice, while most do not, indicates that _________ influences consumer decision-making.

answer

culture

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an enduring belief that a specific mode of conduct is personally or socially preferable to an alternative mode of conduct:

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value

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UGG has a portion of its website featuring photographs of celebrities wearing UGGS. This is an example of __________ ________ .

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opinion leaders

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business marketing does not include goods and services that:

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are used for personal consumption

question

a measure of websites' effectiveness and is calculated by multiplying the (frequency of visits) by (the number of pages viewed during each visit)

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stickiness (frequency of visits) x (# of visits) = stickiness

question

the elimination of intermediaries such as wholesalers or distributors from a marketing channel is referred to as:

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disintermediation

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type of strategic alliance commonly found in japan

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keiretsu

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businesses that buy finished goods and sell them for a profit:

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resellers

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the US government is:

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the world's largest single consumer

question

imagine that you are the research director of a major industrial marketing firm. which of the following codes might you use?

answer

7432

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managers can use the NAICS data to:

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identify potential new customers

question

the distribution structure in business marketing is typically ______ .

answer

direct

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GM buys engines for use in its vehicles from borg wagner, which in turn buys many of the vehicles it needs from GM. This is an example of __________ .

answer

reciprocity

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the ________ ________ is the sell of all persons in an organization who become involved in the purchasing process.

answer

buyer center

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which of the following is the best example of a modified re-buy situation?

answer

the purchase of three large screen computer monitors to replace smaller monitors.

question

a market is people or organizations that have:

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needs, wants, ability, and willingness to BUY.

question

the purpose of market segmentation is to:

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enable the market to tailor marketing mix to meet the needs of one or more specific groups.

question

to be useful, a segmentation scheme must produce segments that meet which four basic criteria?

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substantially identifiability measurability accessibility & responsiveness

question

the coca-cola company has over 450 brands in over 145 countries. it uses ____________ segmentation in this marketing strategy.

answer

geographic

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marketers use _________ to segment markets because this information is widely available, and factors such as age or gender are often related to consumer purchasing and consumption behavior.

answer

demographics

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which type of demographic segmentation are "deals" using?

answer

income

question

a series of stages determined by a combination of age, marital status, and the presence or absence of children is known as the:

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family life cycle

question

Miller Lite's long running "great taste, less filling" advertising campaign was ranked in "advertising age" magazine as the 8th best advertising campaign in history. Miller lite was using __________ ___________ in this ad campaign.

answer

benefit segmentation

question

what does the 80/20 principle propose?

answer

roughly 20% of a firm's customers purchase 80% of the sales volume of product.

question

firms can be categorized by the type of purchasing strategy they use. _____________ contact familiar suppliers and place an order with the first supplier that can meet (satisfy) product and delivery requirements.

answer

satisficers

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market segmentation...

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...should be redone periodically.

question

a __________ _________ is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix.

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target market

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which target marketing strategy views the market as one big market with no individual segments and thus uses a single marketing mix?

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undifferentiated

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individuals and organizations utilizing a global vision to effectively market goods and services ACROSS THE WORLD are engaged in:

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global marketing

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basketball is played nearly everywhere in the world and is an easily understood sport. this is an example of:

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practicing global marketing

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many people fear world trade because it:

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causes some people to lose their jobs as production shifts abroad.

question

apple inc. has partnerships with wireless carriers in japan, spain, and a handful of european countries. apple is a:

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multinational corporation

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the patton awning company produces tents, tarps, awnings, and other canvas products. the firm is in the first stage of creating global business because it:

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operates in one country and sells to another.

question

the victorinox swiss army knife is found all over the world. it is manufactured and marketed similarly to all consumers. victroinox uses a:

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global marketing standardization approach

question

muslim countries are receptive to most disney products, but they asked to not include piglet when they sell their characters as toys because pork is believed to be unclean by muslims. this is an example of:

answer

cultural factor

question

which of the following is an important cultural factor that should be considered by global marketers?

answer

language

question

consumers purchasing an automobile in hong kong must pay 100% tax on it. this tax is imposed by the government on all automobiles ENTERING the country and is called a(n):

answer

tariff

question

several arab nations refuse to allow coca-cola products to be sold within their borders because of the company's distribution ships in israel. this is an example of a:

answer

boycott

STUDY

Advertising And Marketing Direct Foreign Investment International Business International Marketing Marketing Research Pots And Pans Using The Internet

Int Mktg Chpt 8 – Flashcards 60 terms

Emily Kemp

60 terms

Preview

Int Mktg Chpt 8 – Flashcards

question

_____ is traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful to marketing decision making. A. Marketing reach B. Market skimming C. Marketing research D. Market data analysis E. Market development

answer

C. Marketing research

question

Unisys Corporation's planning steps for international marketing research calls for collecting and assessing various types of information. Which of the following types of information is the organization most likely to be interested in if it gathers information related to profitability for the division's products, inflation, business cycle trends, and the like? A. Economic and demographic. B. Cultural, sociological, and political climate. C. Overview of market conditions. D. Summary of the technological environment. E. Competitive situation.

answer

A. Economic and demographic.

question

Unisys Corporation's planning steps for international marketing research calls for collecting and assessing various types of information. Which of the following types of information is the organization most likely to be interested in if it gathers information related to ecology, safety, and leisure time and their potential impacts on the division's business? A. Economic and demographic. B. Cultural, sociological, and political climate. C. Overview of market conditions. D. Summary of the technological environment. E. Competitive situation.

answer

B. Cultural, sociological, and political climate.

question

Unisys Corporation's planning steps for international marketing research calls for collecting and assessing various types of information. Which of the following types of information is the organization most likely to be interested in if it conducts a general noneconomic review of conditions affecting the division's business? A. Economic and demographic. B. Cultural, sociological, and political climate. C. Overview of market conditions. D. Summary of the technological environment. E. Competitive situation.

answer

B. Cultural, sociological, and political climate.

question

Which of the following best describes the basic difference between domestic and foreign market research? A. The cost of foreign market research. B. The willingness of the respondents to give information. C. The broader scope of research for foreign research. D. The complexity of the governing rules. E. The ability to get accurate pricing data from foreign markets.

answer

C. The broader scope of research for foreign research.

question

Bert Wong has decided to pursue a marketing research effort to acquire information before his company makes a strategic relocation move to the West Coast. Which of the following marketing research process steps would be the first step that Bert's company (and marketing researchers) should take as it embarks on the research effort? A. Define the research problem and establish research objectives. B. Analyze, interpret, and summarize the results. C. Determine the sources of information to fulfill the research objectives. D. Consider the costs and benefits of the research effort. E. Gather relevant data from secondary or primary sources, or both.

answer

A. Define the research problem and establish research objectives.

question

Which of the following is the first step of a market research process? A. Determine the sources of information to fulfill the research objectives. B. Analyze, interpret, and summarize the results. C. Define the research problem and establish research objectives. D. Consider the costs and benefits of the research effort. E. Gather the relevant data from secondary or primary sources, or both.

answer

C. Define the research problem and establish research objectives.

question

Harry and his team have undertaken a marketing research study to help their company expand in the Eastern European region. Which of the following marketing research process steps is Harry likely to end his research efforts with? A. Define the research problem and establish research objectives. B. Analyze, interpret, and summarize the results. C. Effectively communicate the results to decision makers. D. Consider the costs and benefits of the research effort. E. Gather the relevant data from secondary or primary sources, or both.

answer

C. Effectively communicate the results to decision makers.

question

Which of the following is the last step of a market research process? A. Define the research problem and establish research objectives. B. Effectively communicate the results to decision makers. C. Analyze, interpret, and summarize the results. D. Consider the costs and benefits of the research effort. E. Gather the relevant data from secondary or primary sources, or both.

answer

B. Effectively communicate the results to decision makers.

question

Once the researcher has defined the research problem and established research objectives, the researcher must next: A. effectively communicate the problem and objectives to decision makers. B. analyze, interpret, and summarize the results. C. determine the sources of information to fulfill the research objectives. D. assess the suitability of available statistical methods for analyzing the data. E. evaluate the cost and benefits of the research effort.

answer

C. determine the sources of information to fulfill the research objectives.

question

Ben Grissom has decided to use information collected by the U.S. government in his upcoming research project on cultural trends. This is an example of using a _____ data source. A. referential B. secondary C. tertiary D. parallel E. derived

answer

B. secondary

question

Which of the following types of data are commercial sources, trade associations, management groups, and state and local governments a good source of? A. Referential data B. Secondary data C. Tertiary data D. Parallel data E. Derived data

answer

B. Secondary data

question

Which of the following reasons best describes why much of the data provided by foreign governments is suspected with respect to reliability? A. The data in foreign countries are usually written in a foreign language and there are translation difficulties that are often insurmountable. B. The size of the sample and the technique used for sampling may be faulty. C. Official statistics are sometimes too optimistic, reflecting national pride rather than practical reality. D. The data in foreign countries is usually not safeguarded. E. The data tend to be incomplete, and outdated.

answer

C. Official statistics are sometimes too optimistic, reflecting national pride rather than practical reality.

question

Which of the following countries comes a close second to the United States with respect to the quantity and quality of the marketing-related data available? A. Brazil B. Australia C. China D. Japan E. Kenya

answer

D. Japan

question

Harry leads the international marketing department of a smartphone manufacturer, Myfone. Myfone has recently decided to expand its presence in Brazil. As part of the marketing research effort, Harry has decided to use data on competitors provided by independent market research agencies located in Brazil. Which of the following problems is Harry likely to face? A. Defining the research problem. B. Communicating the results C. Availability of data. D. Storage of data. E. Relevance of data.

answer

C. Availability of data.

question

Which of the following is a problem associated with the use of secondary data? A. Defining the research problem. B. Communicate the results. C. Reliability of data. D. Storage of data. E. Relevance of data.

answer

C. Reliability of data.

question

Which of the following questions should be asked by a marketing researcher when trying to establish the reliability of secondary data sources in the international arena? A. How much does the data cost? B. What language is used in the host country? C. Does the host country's government encourage marketing research? D. Who collected the data? E. Was the data available on the Internet?

answer

D. Who collected the data?

question

Which of the following questions should a marketing researcher ask when trying to establish the reliability of secondary data sources in the international arena? A. How much does the data cost? B. What language is used in the host country? C. Does the host country's government encourage marketing research? D. How were the data collected? E. Was the data available on the Internet?

answer

D. How were the data collected?

question

Which of the following questions should be asked by a marketing researcher when trying to establish the reliability of secondary data sources in the international arena? A. How much does the data cost? B. What language is used in the host country? C. Does the host country's government encourage marketing research? D. For what purposes were the data collected? E. Was the data available on the Internet?

answer

D. For what purposes were the data collected?

question

_____ data refers to the data that has been collected specifically for the particular research project at hand. A. Derived B. Primary C. Referential D. Bipolar E. Cohort

answer

B. Primary

question

Which of the following is one of the two basic types that marketing research methods can be grouped into? A. Analytical research B. Qualitative research C. Descriptive research D. Deductive research E. Basic research

answer

B. Qualitative research

question

In _____ research, usually a large number of respondents are asked to reply, either verbally or in writing, to structured questions using a specific response format or to select a response from a set of choices. A. quantitative B. analytical C. descriptive D. deductive E. explanatory

answer

A. quantitative

question

Before launching its latest line of environment-friendly and child-friendly wooden toys, a toy manufacturer gave samples of those toys to a large and culturally diverse set of families. It then conducted a survey where the parents were asked to rate the toys on a step-wise scale of "not satisfied" to "extremely pleased." This is an example of _____ research. A. quantitative B. analytical C. descriptive D. deductive E. explanatory

answer

A. quantitative

question

Before launching its latest line of health drinks, a beverage manufacturer provided free samples of the health drinks to a large and culturally diverse set of families. It then conducted a survey where the participants were asked about their first impression about the drinks. This is an example of _____ research. A. qualitative B. analytical C. descriptive D. deductive E. explanatory

answer

A. qualitative

question

Which of the following statements is true about qualitative research? A. It provides the marketer with responses that can be presented with precise estimations. B. It includes recording consumers' first impression about products. C. It usually involves asking respondents to select a choice from a set of responses. D. Data from such research can be easily summarized in percentages, averages, or other statistics. E. It is generally associated with survey research that involves yes or no questions.

answer

B. It includes recording consumers' first impression about products.

question

Which of the following statements is true about qualitative research? A. It provides the marketer with responses that can be presented with precise estimations. B. It studies the dynamic interplay of peoples' feelings and ideas. C. It usually involves asking respondents to select a choice from a set of responses. D. Data from such research can be summarized in percentages, averages, or other statistics. E. It is generally associated with survey research that involves "yes" or "no" questions.

answer

B. It studies the dynamic interplay of peoples' feelings and ideas.

question

Which of the following statements is true about quantitative research? A. It includes direct observation of consumers in choice or product usage situations. B. It studies the dynamic interplay between peoples' feelings and their resulting actions. C. It is generally associated with survey research that involves "yes" or "no" questions. D. It includes recording consumers' first impression about products. E. It is used to formulate and define a problem more clearly.

answer

C. It is generally associated with survey research that involves "yes" or "no" questions.

question

Mary Hills would like to ask respondents a series of open-ended questions that will help explain the respondents' feelings and thoughts on the subject of child labor. Mary Hills is carrying out a _____ research. A. deductive B. qualitative C. tertiary D. secondary E. analytical

answer

B. qualitative

question

In the international arena, the greatest problem in sampling stems from: A. the lack of adequate demographic data from which meaningful samples can be drawn. B. the lack of expertise in designing sampling layouts for a non-domestic market. C. the higher probability of foreign government intervention in the sampling process. D. the inability of international market researchers to speak foreign languages. E. the difficulty in determining sample size suitable for the relevant foreign market.

answer

A. the lack of adequate demographic data from which meaningful samples can be drawn.

question

In many Asian cities, there are no street maps, some streets are not identified, and some houses are not numbered. Which of the following aspects of market research is this situation most likely to affect? A. Product enhancement analysis. B. Situational analysis. C. The optimization process. D. The sampling process. E. The decentralization process.

answer

D. The sampling process.

question

Which of the following types of samples should be used when detailed and accurate information is not available for a sampling universe? A. A derivatized sample. B. A cluster sample. C. A convenience sample. D. A systematized sample. E. A probability sample.

answer

C. A convenience sample.

question

The most universal survey research problem in foreign countries is the _____ barrier. A. technological. B. legal. C. cultural. D. literacy. E. language.

answer

E. language.

question

A toy manufacturer conducted a survey to estimate the market demand for its specialized wood-based toys in a foreign country. For the survey, it interviewed all the households of the four largest cities of that country without making any distinction between those with children and those without. The market demand forecast based on this survey failed to match the actual demand for the toys. Which of the following is the most likely reason for this failure? A. Difficulty in defining the research objective. B. Unwillingness of the respondents to reply to survey questions. C. Difficulty in translating the responses. D. Inappropriate sample selection. E. Lack of appropriate methods for analyzing the data.

answer

D. Inappropriate sample selection.

question

Back translations may not always ensure an accurate translation because of commonly used idioms in both languages. Which of the following types of translation is used to overcome this problem? A. Serial translation. B. Decentering. C. Linear translation. D. Complimentary translation. E. Parallel translation.

answer

E. Parallel translation.

question

Marketers use three different techniques to ferret out translation errors in marketing research questionnaires ahead of time. Which of the following is one of those techniques? A. Simultaneous translation B. Serial translation C. Back translation D. Linear translation E. Re-centering

answer

C. Back translation

question

Marketers use three different techniques to ferret out translation errors in marketing research questionnaires ahead of time. Which of the following is one of those techniques? A. Simultaneous translation B. Parallel translation C. Serial translation D. Linear translation E. Re-centering

answer

B. Parallel translation

question

In _____ translation, more than two translators are used for the back translation; the results are compared, differences discussed, and the most appropriate translation selected. A. parallel B. complimentary C. linear D. random E. back

answer

A. parallel

question

Decentering is a hybrid of _____ translation. A. parallel B. simultaneous C. linear D. random E. back

answer

E. back

question

In _____ translation, the questionnaire is translated from one language to another, and then a second party translates it again into the original, and the two original language versions are compared. A. serial B. parallel C. back D. simultaneous E. complimentary

answer

C. back

question

Mark Bressler is having great difficulties with his company's advertising in Japan. As a representative of Jerry Motors, he believes that it is entirely proper to use American campaigns in the Japanese market. He was surprised to learn that a slogan "Body by Arnold" (the company that makes external structures for Jerry Motors) loosely translated in Japanese to mean "Corpse by Arnold." Which of the following problems did Mr. Bressler experience with his company's advertising in this scenario? A. Improper syntax B. Improper colloquialisms or slang C. Improper grammar D. Improper local language E. Improper translation

answer

B. Improper colloquialisms or slang

question

In the _____ method, successive translation and retranslation of a questionnaire takes place, each time by a different translator, and the version that is finally used and its translation have equally comprehensive and equivalent terminologies in both languages. A. serial translation B. triangulation C. back translation D. netnography E. decentering

answer

E. decentering

question

Alex is engaged in research involving countries that have different languages, economies, social structures, behavior, and attitude patterns. Alex is most likely engaged in _____ research. A. geographical B. anthropological C. psychological D. sociological E. multicultural

answer

E. multicultural

question

Systematic monitoring of chat rooms, blogs, and personal websites to assess consumers' opinions about products and services is known as _____. A. tomography B. serigraphy C. vitreography D. netnography E. lithography

answer

D. netnography

question

By systematically monitoring chat rooms, blogs, and personal websites to assess consumers' opinions about the new line of health drinks that his company has launched, Harry is engaging in the practice of _____. A. tomography B. serigraphy C. vitreography D. netnography E. lithography

answer

D. netnography

question

Which of the following represents a severe limitation when the Internet is used for primary research? A. The cultural background of the respondents cannot be identified accurately. B. The educational qualifications of the respondents cannot be identified accurately. C. The respondents can assume false identity. D. A sample universe composed solely of Internet respondents represents a potential bias. E. Using the Internet for primary research is the most expensive way of conducting primary research.

answer

D. A sample universe composed solely of Internet respondents represents a potential bias.

question

According to the text, today the real power of the Internet for international marketing research is the: A. reduction in the time required for completing primary research. B. reduction in the cost of conducting primary research. C. increase in response for surveys conducted using the Internet. D. ability to overcome legal barriers to conducting primary research. E. ability to easily access volumes of secondary data.

answer

E. ability to easily access volumes of secondary data.

question

Given the greater uncertainties and data limitations associated with foreign markets, two methods of forecasting demand are particularly suitable for international marketers. Which of the following is one of those methods? A. Probabilistic forecasting B. Expert opinion C. Simulation D. Extrapolation E. Scenario building

answer

B. Expert opinion

question

Which of the following is a method of demand forecasting that is particularly suitable for international marketers? A. Probabilistic forecasting B. Analogy C. Simulation D. Extrapolation E. Scenario building

answer

B. Analogy

question

The key to using expert opinion to help in forecasting demand is _____, that is, comparing estimates produced by different sources. A. indemnification B. simulation C. morphing D. modeling E. triangulation

answer

E. triangulation

question

The _____ method for estimating demand assumes that demand for a product develops in much the same way in all countries as comparable economic development occurs in each country. A. reference class forecasting B. analogy C. morphing D. scenario building E. triangulation

answer

B. analogy

question

A toy manufacturer has excellent sales figures for its toys in country P but inadequate figures in the neighboring country R. In country P, per capita consumption is known to increase at a predictable ratio as per capita gross domestic product (GDP) increases. If per capita GDP is known for country R, per capita demand for the toys can be estimated using the relationships established in country R. Which of the following methods of forecasting does this example illustrate? A. Probabilistic forecasting B. Reference class forecasting C. Expert opinion D. Analogy E. Linear regression

answer

D. Analogy

question

To deal with problems in analyzing and interpreting research information in the international marketplace, the marketing researcher must possess three talents. Which of the following is one of those talents? A. The ability to work within assigned budget. B. Creative talent for adapting research methods. C. Proven talent to use and apply advanced statistics. D. Superior logical ability. E. The ability to extrapolate home-country data.

answer

B. Creative talent for adapting research methods.

question

Which of the following is a disadvantage of decentralized research management? A. The accuracy of the information gathered cannot be verified. B. Various international laws restrict decentralized research. C. It increases the cost of conducting the research. D. Large-market studies may dominate decisions about global standardization. E. Decentralized research has higher probability of translational errors.

answer

D. Large-market studies may dominate decisions about global standardization.

question

One disadvantage of decentralized research management is possible ineffective communications with _____. A. field personnels B. home-office executives C. customers D. local agencies E. foreign agencies

answer

B. home-office executives

question

In Japanese corporate culture, which of the following constitutes a typical significant impediment to averting and responding to a crisis? A. Employees like to work on their own rather than in a group. B. Opinions of all the employees are to be taken into consideration before taking a decision. C. Decisions are generally taken by lower level employees who directly deal with the problem. D. It is hard for those lower in the hierarchy to question their superiors. E. The process of decision making is extremely complex and time consuming.

answer

D. It is hard for those lower in the hierarchy to question their superiors.

question

Which of the following statements is true regarding the Japanese corporate culture? A. Employees like to work on their own rather than in a group. B. Opinions of all the employees are to be taken into consideration before taking a decision. C. Decisions are generally taken by lower level employees who directly deal with the problem. D. The process of decision making is extremely complex and time consuming. E. The focus on consensus and group makes it hard to challenge what has been decided.

answer

E. The focus on consensus and group makes it hard to challenge what has been decided.

question

Which of the following countries has hierarchical, relationship-based corporate culture? A. Germany B. France C. South Korea D. Switzerland E. Australia

answer

C. South Korea

question

The public, face-saving truth is known as _____ in Japan. A. kanban B. tatemae C. keiretsu D. zaibatsu E. honne

answer

B. tatemae

question

In Japan, _____ refers to the factual truth, irrespective of the damage it might do to the all-important social relationships within and between Japanese companies. A. kanban B. honne C. keiretsu D. zaibatsu E. tatemae

answer

B. honne

question

The text describes four kinds of company—agency—customer relationships that might be used to bridge the cultural barrier that is present in most international marketing research. Which of the following is deemed to be best suited for managing the cultural barrier across the chain of communication? A. company—agency—customers B. company—agency—local agency—customers C. company—foreign agency—customers D. company—foreign agency—Internet—customers E. company—Internet—customers

answer

B. company—agency—local agency—customers

STUDY

Direct Foreign Investment Foreign Direct Investment International Marketing Long Term Success Principles Of Marketing Wholly Owned Subsidiaries

IB: CH 13 – Flashcard 94 terms

Matilda Campbell

94 terms

Preview

IB: CH 13 – Flashcard

question

Some evidence suggests that pioneers gain and maintain a competitive advantage in new markets.

answer

True

question

Research shows that surviving pioneers hold a smaller average market share when their industries reach maturity than firms that were either fast followers or late entrants in the product category.

answer

False

question

A pioneer will most likely succeed when there are low entry barriers and the firm has sufficient size, resources, and competencies to take advantage of its pioneering position.

answer

False

question

A follower will most likely succeed when there are few legal, technological, cultural, or financial barriers to inhibit entry, as long as it has sufficient resources or competencies to overwhelm the pioneer's early advantage.

answer

True

question

The means of supplying overseas markets—exporting to and production in those markets—depend on nonequity modes of entry.

answer

False

question

Entering foreign markets may be described by two levels of involvement, nonequity-and equity- based.

answer

True

question

One benefit of exporting is that it can enable a company to serve markets where the company has no or limited production facilities.

answer

True

question

Exporting is an expensive option for testing foreign markets and foreign competition.

answer

False

question

Exporting is a way for firms to improve the efficiency of manufacturing equipment.

answer

True

question

Exports can help to offset cyclical sales in a firm's domestic market.

answer

True

question

Exporting can extend a product's life cycle by exporting to currently unserved markets where the product will be at the introduction stage of the life cycle.

answer

True

question

Direct exporting is simpler than indirect exporting because it requires neither special expertise nor large cash outlays.

answer

False

question

Export merchants are exporters that sell for the manufacturer but do not take ownership of the product.

answer

False

question

A fundamental drawback of indirect exporting is that companies must pay a commission to all of the companies that handle their exports.

answer

False

question

Direct exporting is an excellent means of getting a feel for international business without committing a great amount of human or financial resources.

answer

True

question

A sales company is part of indirect exporting.

answer

False

question

Sales companies will import in their own name from the parent and will invoice in the currency of the parent company.

answer

False

question

A sales company is established to market goods or services, not to produce them.

answer

True

question

The Internet has made direct exporting much easier.

answer

True

question

Wholesale importers are independent merchants that buy for their own account.

answer

True

question

Trading companies are privately owned firms that develop international trade and serve as intermediaries between foreign buyers and domestic sellers, and vice versa.

answer

False

question

Turnkey projects export technology, management expertise, and capital equipment.

answer

True

question

Producing a factory ready to operate is similar to producing a turnkey project.

answer

True

question

Licensing refers to a contractual agreement in which the licensor grants access to its patents, trade secrets, or technology for a fee paid by the licensee.

answer

True

question

The licensee generally pays a fixed sum when signing a license agreement and then royalties of 5 to 7 percent of sales over the life of the contract.

answer

False

question

Some firms do not grant licenses to other firms because of the fear of having a strong competitor upon the expiration of the license.

answer

True

question

The potential of licensing for generating income has been more limited in recent years because courts have not upheld patent infringement claims as much as they used to.

answer

False

question

Piracy is an option for helping a firm to enter new markets.

answer

True

question

Licensing is a form of franchising.

answer

False

question

A management contract is used only by manufacturing companies to earn income by providing expertise forafee.

answer

False

question

One way in which contract manufacturing is used is to subcontract assembly work or the production of parts to subsidiaries overseas.

answer

False

question

One way in which contract manufacturing is used is for a company to contract with a local manufacturer to produce products for the company, according to the company's specifications.

answer

True

question

If a firm decides to become involved in overseas manufacturing, it has two options: (1) wholly owned subsidiary and (2) joint venture.

answer

FAlse

question

Historically, firms engaged in FDI have generally preferred wholly owned subsidiaries.

answer

True

question

Most of the foreign direct investment in the United States has been spent establishing new companies.

answer

False

question

In the year 2008, twice as much FDI invested in the United States was spent in acquiring established businesses than in setting up new ones.

answer

False

question

Lack of control is one of the strongest arguments against a joint venture.

answer

true

question

In a joint venture, a management contract is often used as a control mechanism by firms, even if they hold only a minority position in the venture.

answer

true

question

It is not possible for foreign investors to control a joint venture if the host country's law prevents foreign investors from having more than 49 percent ownership.

answer

false

question

When the government of a host country requires companies to have some local participation, foreign firms must engage in strategic alliances with local owners.

answer

false

question

Management contracts can enable the global partner to control many aspects of a joint venture even when holding only a minority position.

answer

true

question

In a 12-country study conducted by Ernst & Young, 65 percent of U.S. companies were found to be engaged in a strategic alliance.

answer

false

question

Strategic alliances take many forms, including licensing, mergers, joint ventures, and joint research and development partnerships.

answer

true

question

One type of strategic alliance between competitors is an R&D partnership.

answer

true

question

Pooling alliances are driven by the logic of contributing dissimilar resources, while trading alliances are driven by similarity and integration.

answer

false

question

Trading and pooling alliances are typically different in their goals, optimal structures, and managerial challenges

answer

true

question

Generally mergers and acquisitions are considered alliances.

answer

false

question

The existence of two or more partners, which typically have differences in strategies, operating practices, and organizational cultures, is a factor that tends to promote successful management and performance of strategic alliances.

answer

false

question

Alliances can allow a partner to acquire a firm's technological or other competencies, thereby raising important competitive concerns.

answer

true

question

A pioneering firm stands the best chance for long-term success in market-share leadership and profitability when:

answer

all of the above.

question

A pioneering firm stands the best chance for long-term success in market-share leadership and profitability when:

answer

the firm has sufficient size, resources, and competencies.

question

In many cases, a firm entering international markets becomes a follower because:

answer

quicker competition beats it.

question

A follower firm stands the best chance for success in market-share leadership when:

answer

there is high potential for imitation.

question

Most firms begin their involvement in overseas business by:

answer

exporting.

question

Which of the following are reasons that many firms engage in exporting?

answer

Exports can offset cyclical sales in the firm's domestic market.

question

Which of the following are reasons that many firms engage in exporting?

answer

TwoofA,B,andC.

question

Which of the following are reasons that many firms engage in exporting?

answer

TwoofA,B,andC.

question

Companies wishing to export must first choose between:

answer

exporting directly and exporting indirectly.

question

__________ permits a firm to set up an export program with a minimum of cash outlay and little special expertise.

answer

Indirect exporting

question

A company can engage in indirect exporting by using which of the following companies in its own country?

answer

Export commission agents

question

A company can engage in indirect exporting by using which of the following companies in its own country?

answer

TwoofA,B,andC

question

The disadvantages of indirect exporting include:

answer

all of the above.

question

The disadvantages of indirect exporting include:

answer

two of the above.

question

A business established for the purpose of marketing goods and services, not producing them, is:

answer

a sales company.

question

A turnkey project includes all of the following except:

answer

none of the above.

question

Exporters of a turnkey project may include which of the following?

answer

TwoofA,B,andC

question

A contractual arrangement in which one firm grants access to its patents, trade secrets, or technology to another for a fee is:

answer

none of the above.

question

By means of a licensing agreement:

answer

one firm grants to another the right to use all of its expertise.

question

When a licensing agreement is made:

answer

the licensee receives expertise from another company.

question

According to the text, licensing agreements usually stipulate that a royalty of __________ be paid to the licensor.

answer

2 to 5 percent of sales

question

Licensing provides income for:

answer

all of the above.

question

Which of the following was stated in the text as being a concern with licensing?

answer

It can create a competitor.

question

Franchising is a form of:

answer

licensing.

question

The principal ingredient(s) that a franchiser exports is:

answer

allofA,B,andC.

question

McDonald's, Kentucky Fried Chicken, and Subway are examples of:

answer

franchising.

question

An arrangement by which one firm provides management in all or specific areas to another firm is:

answer

a management contract.

question

According to the text, management contracts usually stipulate that a fee of __________ be paid to the firm providing the management expertise.

answer

2 to 5 percent of sales

question

According to the text, a management contract is useful for:

answer

allofA,B,andD.

question

Hilton and Delta provide assistance to other international companies. That is an example of:

answer

a management contract.

question

An arrangement in which one firm contracts with another firm to produce products to its specifications but assumes responsibility for marketing is:

answer

contract manufacturing.

question

International firms employ contract manufacturing:

answer

A and B.

question

Foreign direct investment without investment" is a term sometimes applied to:

answer

contract manufacturing.

question

Foreign direct investment (FDI) includes all of the following except:

answer

management contract.

question

In 2008, foreign firms investing in the United States spent about ____________ on establishing new firms as they did on acquiring going firms.

answer

one-thirteenth as much

question

Historically, firms making a foreign direct investment have generally preferred:

answer

wholly owned subsidiaries.

question

According to the text, a company that wishes to own a foreign subsidiary outright may:

answer

twoofA,B,andC.

question

A joint venture may be:

answer

allofA,B,andC.

question

Benefits of joint ventures may include:

answer

two of the above.

question

Partnerships between or among competitors, customers, or suppliers that may take one or more of various forms, both equity and nonequity, are known as:

answer

strategic alliances.

question

Although there are many forms of strategic alliances or competitive alliances, the alliances are often between:

answer

all of the above.

question

Strategic alliances are:

answer

partnerships between competitors, customers, or suppliers that may take various forms.

question

According to a 12-country study conducted by Ernst & Young, _____ percent of U.S. companies are engaged in some form of strategic alliance.

answer

question

________ alliances are driven by similarity and integration.

answer

Pooling

question

Which of the following is true about alliances?

answer

TwoofA,B,andC

STUDY

Direct Foreign Investment Global Marketing Strategy Internal And External Factors International Marketing Marketing

Global Marketing 8th edition Exam 1 – Flashcards 202 terms

Kaitlynn Baldwin

202 terms

Preview

Global Marketing 8th edition Exam 1 – Flashcards

question

The market development strategy involves seeking new customers by introducing existing products or services to a new market segment.

answer

TRUE

question

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. This is an example of Market Penetration.

answer

TRUE

question

Walmart's recent exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as "hard discounters."

answer

TRUE

question

Nike dropped their well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it by the slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.

answer

TRUE

question

A U.S. company that focuses on the countries included in the North American Free Trade Agreement (NAFTA) has a regiocentric orientation.

answer

TRUE

question

A European company that focuses its attention on Europe can be considered to have geocentric orientation.

answer

FALSE

question

In global markets, Starbucks is a good example of simultaneously executing all of the growth strategies except: A) Market penetration. B) Market development. C) Product development. D) Market orientation. E) Diversification.

answer

Moderate

question

Starbucks has launched several new ventures in global markets, including music CDs and movie production. This is an example of

answer

Market Diversification.

question

A fundamental difference between regular marketing and global marketing is:

answer

the scope of activities

question

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. The app displays a bar code that the barista can scan. This is an example of:

answer

Market Penetration

question

Starbucks is entering India via an alliance with the Tata Group. Phase 1 calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. This is an example of:

answer

Market Development.

question

The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as:

answer

Value = Benefits/Price.

question

The marketing mix is integral to the value equation which is represented by:

answer

Value = Benefits/Price.

question

Renault and its rivals are racing to offer middle-class consumers a new value proposition by selling cars for the equivalent of $10,000 or less. On the heels of Renault's success with Dacia Logan came the $2,500 Nano from India's Tata Motors. This illustrates that

answer

market success depends on reaching a threshold of acceptable quality for consumers.

question

) Walmart's exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as:

answer

Hard discounters

question

According to Michael Porter, a global industry is one in which ________ can be achieved by integrating and leveraging operations on a worldwide scale.

answer

competitive advantage

question

The former chairman of Nestlé recently told an interviewer: "We are food and beverages. We are not running bicycle shops. Even in food we are not in all fields. There are certain areas we do not touch. Also, we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically?

answer

Focus

question

Nike recently adopted the slogan "Here I am" for its pan-European clothing advertising targeting women. The decision to drop the famous "Just do it" tag line was based on the research indicating that:

answer

college-age women in Europe are not as competitive about sports as men are.

question

The decision to enter one or more particular markets outside the home country depends on all of the mentioned factors except: A) company's resources. B) company's age. C) company's managerial mind-set. D) nature of opportunities. E) threats.

answer

company's age.

question

From the global marketing perspective, the customization of the Beatles' records is a good example of:

answer

product adaptation.

question

Two decades ago, professor Ted Levitt wrote a classic Harvard Business Review article titled "The Globalization of Markets." Which of the following statements about the author and the article is accurate?

answer

Levitt urged companies to develop standardized products that could be marketed worldwide with little adaptation.

question

Coca-Cola achieved success in the Japanese market primarily by

answer

global localization.

question

A company that succeeds in global marketing:

answer

creates both standardized and localized products.

question

An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans as well as the extent to which adaptation is desired. The way a company addresses this task is a reflection of the company's

answer

global marketing strategy.

question

One of the dimensions of global marketing strategy which pertains to marketing management is:

answer

integration of competitive moves.

question

Statements that illustrate the success of global marketing include all of the following except: A) the Coca-Cola Company supports its Coke brand by utilizing global and local marketing mix. B) Apple is synonymous with cutting-edge innovation and high-tech design. C) Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs. D) the backbone of Caterpillar's global success is its network of dealers. E) Germany's reputation for engineering and manufacturing provides a competitive advantage.

answer

C) Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs.

question

McDonald's serves McAloo Tikki Burger in India, McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, and McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of

answer

a combination of global and local marketing mix elements.

question

All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except: A) McDonald's standardizes some product elements and adapts others. B) McDonald's standardizes some place elements and adapts others. C) McDonald's standardizes some promotion elements and adapts others. D) McDonald's standardizes some price elements and adapts others. E) McDonald's standardizes all product elements.

answer

McDonald's standardizes all product elements

question

Examples of effective global marketing by McDonald's include both standardized and localized marketing mix elements. Which of the following does not represent a localized element?

answer

It uses the advertising slogan "I'm lovin' it."

question

Uniqlo, a division of Japan's Fast Retail, operates about 850 stores in Japan and currently has six stores in the United States. Their plans call for a total of 200 U.S. stores by 2020. The fulfillment of their plan will depend on: A) industry conditions. B) sources of competitive advantage. C) the condition of the apparel market worldwide. D) the demand in Japan for U.S. style garments. E) all of the above

answer

All of the above

question

Measured by national income, the United States represents the world's largest single market for goods and services. Roughly what percentage of world income is found outside the United States?

answer

75%

question

Even though Germany is the largest single-country market in Europe, what percent of the world market potential for German companies is outside Germany?

answer

94%

question

According to the Fortune global 500 companies for 2012, the largest corporation based on revenue is:

answer

Royal Dutch Shell

question

Based on 2012 rankings of Fortune Global 500 companies, the world's most valuable car company is:

answer

Toyota

question

Based on the size of the market in U.S. dollars, the leading consumer products are:

answer

Cigarettes

question

Based on the size of the market in U.S. dollars, the second highest consumer products are

answer

Luxury Goods

question

A person who assumes that his or her home country is superior to the rest of the world is said to have:

answer

ethnocentric orientation

question

Nissan's earlier vehicles were difficult to start in many parts of the United States during the cold winter months. In northern Japan, it was customary for many car owners to put blankets over the hoods of their cars during winter months. Nissan's assumption was that Americans would do the same thing. This is an example of:

answer

ethnocentric orientation.

question

The cell phone divisions of Toshiba, Sharp, and other Japanese companies prospered by focusing on the domestic market. When handset sales in Japan slowed a few years ago, the Japanese companies realized that Nokia, Motorola, and Samsung already dominated key world markets. Atsutoshi Nishida, president of Toshiba, noted, "We were thinking only about Japan. We really missed our chance." This example illustrates:

answer

ethnocentric orientation

question

Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand. This is an example of:

answer

polycentric orientation

question

Transnational companies, such as Toyota and Honda, have characteristic features that include: A) being in both global markets and utilizing global supply chains. B) characterized by a mind-set of being "stateless." C) using both localized and standardized elements in marketing programs. D) decisions made on the basis of ongoing research. E) all of the above

answer

All of the above ***

question

Nestlé, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered transnational companies on the basis of: A) sales outside the home country to total sales. B) assets outside the home country to total assets. C) employees outside the home country to total employees. D) headquartered in a relatively small home-country market. E) all of the above

answer

all of the above ***

question

A type of advantage that a global company possesses by virtue of the fact that it has experience in more than one country is referred to as:

answer

Leverage

question

A number of multilateral trade agreements have accelerated the pace of global integration which include: A) NAFTA. B) GATT. C) WTO. D) EU. E) all of the above

answer

All of the above

question

Pfizer, Merck, Novartis, and other pharmaceutical companies have little choice but to engage in global marketing since

answer

no single market is large enough to recover costs incurred in research.

question

In their book, Daniel Yergin and Joseph Stanislaw wrote "It is the greatest sale in the history of the world. Governments are getting out of businesses by disposing of what amounts to trillions of dollars of assets. Everything is going—from steel plants and phone companies . . . to hotels, restaurants, and nightclubs." This is an indication of:

answer

privatization is becoming a driving force for global marketing.

question

When a country like China is experiencing rapid economic growth, policymakers are likely to:

answer

look more favorably on outsiders.

question

) H.F. Iskander, general manager of Chevron's Kuwait office, stated "Chevron is pumping oil in different locations all over the world . . . there isn't a rock we haven't drilled through. We centralize all that knowledge at our headquarters, analyze it, sort it out, and that enables us to solve any oil-drilling problem anywhere." From the global marketing point of view this is an example of a global company:

answer

) that gains leverage through experience transfers.

question

Japan's giant Matsushita Electric Company achieved scale economies by exporting VCRs, televisions, and other consumer electronics products throughout the world from world-scale factories in Japan. This is an example of the fact that: A) scale economies were a cornerstone of Japanese success in the 1970s and 1980s. B) leverage from scale economies is not limited to manufacturing. C) a global company can achieve the same economies on a global scale. D) the larger scale of the global company also creates opportunities to improve corporate staff competence and quality. E) all of the above

answer

All of the above

question

Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the domestic U.S. market. This is most likely a result of:

answer

management myopia.

question

In the United States, some people believe that globalization has depressed the wages of American workers and resulted in the loss of both blue-collar and white-collar jobs. This is an example of:

answer

Globaphobia

question

McDonald's restaurants are found in more than 118 countries. To ensure high levels of consistency and quality, the company's far-flung restaurant system incorporates many standardized elements (e.g. restaurant design, burgers/fries/soft drinks as basic menu offerings). However, McDonald's also prides itself on sourcing many of its food inputs (e.g. potatoes and dairy products) in individual host countries. McDonald's strives to be locally responsive—it creates new menu items specifically designed with local eating customs and preferences in mind. Typically, McDonald's forms joint ventures with local partners, a tactic that ensures that a local "face" is associated with the company. Finally, McDonald's has been in many country markets long enough that a new generation of consumers has grown up with McDonald's and are not aware of the company's U.S. origins. On the basis of this summary, what is the highest stage of corporate development that McDonald's arguably has achieved?

answer

transnational

question

People or organizations with needs and wants and the willingness and ability to buy or sell represent the definition of a market.

answer

TRUE

question

According to the 2013 Index of Economic Freedom compiled by the Heritage Foundation, Hong Kong is ranked as having the highest degree of economic freedom.

answer

TRUE

question

The World Bank has developed a four-category classification system for stages of marketing development which uses per capita gross national income (GNI) as a base.

answer

TRUE

question

Product and market opportunities in postindustrial society are heavily dependent upon new products and innovations.

answer

TRUE

question

During the past two decades, the world economic environment has become increasingly dynamic. To achieve success, executives and marketers must take into account all of the following realities Except: A) capital movements have replaced trade as the driving force of the world economy. B) production has become "uncoupled" from employment. C) the world economy dominates the scene. D) the struggle between capitalism and socialism continues. E) the growth of e-commerce diminishes the importance of national barriers.

answer

the struggle between capitalism and socialism continues. ***

question

The Gross Domestic Product (GDP), a measure of a nation's economic activity, is calculated by all of the following factors except: A) consumer spending. B) investment spending. C) government purchases D) industry purchases. E) net exports.

answer

industry purchases ***

question

The demise of communism as an economic and political system can be explained by all of the following facts except: A) communism is not an effective economic system. B) relatively superior performance of the world's market economies. C) communism works when the currency exchange rate is weak. D) difficult to manage national economies with a single central plan. E) increased public participation in matters of state.

answer

communism works when the currency exchange rate is weak. ***

question

Traditionally economists identified main types of economic systems, which include all of the following except: A) market capitalism. B) market socialism. C) centrally planned socialism. D) centrally planned capitalism. E) centrally planned nationalism

answer

Centrally planned nationalism ***

question

Market capitalism is an economic system in which:

answer

individuals and firms allocate resources and production resources that are privately owned.

question

One of the distinguishing features of a Centrally Planned Capitalism economic system is:

answer

command resource allocation is utilized extensively in a private resource ownership environment.

question

For decades, the economies of China, the former Soviet Union, and India functioned according to the tenets of:

answer

centrally planned socialism.

question

The Swedish government has significant holdings in key business sectors and has a hybrid economic system that incorporates:

answer

centrally planned socialism and capitalism

question

The Washington, D.C.-based Heritage Foundation survey consists of over 175 countries ranked by degree of economic freedom. The key economic variables considered for this ranking includes all of the following except: A) taxation policy. B) government consumption of economic output. C) percent foreign ownership. D) banking policy. E) wage and price control.

answer

Percent foreign ownership ***

question

Singapore banned the import, manufacture, and sales of chewing gum in the country since wads of gum were making a mess on sidewalks, buses, and subway trains. Violators are subject to severe penalties, and before buying a pack consumers must register their names and addresses. This, according to author William Greider, demonstrates that Singapore's government: A) is harshly autocratic. B) administers a paranoid control over Singaporeans. C) administers a paranoid control over press and politics. D) runs an effective welfare state. E) all of the above

answer

All of the above ***

question

Venezuelan President Hugo Chavez believed in all of the following aspects except: A) nationalization of international companies. B) imposition of currency controls. C) free-market economic policies. D) capitalism is a structural crisis. E) energy pact known as Petrocribe.

answer

All of the above ***

question

Low-income countries have a GNI per capita of $1,025 or less. The general characteristics shared by countries at this income level include all of the following except: A) high literacy rates. B) high birth rates. C) heavy reliance on foreign aid. D) political unrest. E) high agricultural population.

answer

High literacy rates ***

question

Myanmar is considered as one of the emerging markets open for business. All of the following facts pertain to Myanmar except: A) Myanmar is a low-income country in Southeast Asia. B) Myanmar has a population of 65 million people. C) Myanmar is one of the countries considered as "Stans." D) Myanmar's citizens elected a president. E) Only one quarter of Myanmar's population has access to electricity.

answer

Myanmar is one of the countries considered as "Stans." ***

question

The majority of the world's population is included in the following economic category

answer

lower-middle-income countries

question

With a 2011 GNI per capital of $1,410, India has transitioned out from the former category and now is classified as a(n):

answer

lower-middle-income country.

question

Upper-middle-income countries, also known as industrializing or developing countries are those with GNI per capita ranging from

answer

$4,036 to $12,475. ***

question

Among the upper-middle-income countries, also known as industrializing or developing countries, the following aspects are observed except: A) the CNI per capita ranges from $4,036 to $12,475. B) the percentage of the population engaged in agriculture drops sharply. C) people move to the industrial sector. D) the degree of urbanization increases. E) None of the above

answer

NONE OF THE ABOVE ***

question

The general characteristics shared by low-income countries do not include: A) high birth rates. B) low literacy rates. C) concentration in Africa south of the Sahara. D) heavy reliance on foreign aid. E) lack of genuine market opportunities.

answer

lack of genuine market opportunities. ***

question

All of the following facts pertain to Brazil except: A) Brazil is the largest country in Latin America. B) Brazil boasts the richest reserves of natural resources in the hemisphere. C) Brazil's top trading partner is China. D) Brazil's GNI has grown at an average annual rate of 4 percent over the past 8 years. E) Brazil lacks logistics software, horse-drawn carts are still a common sight on many roads.

answer

Brazil lacks logistics software, horse-drawn carts are still a common sight on many roads. ***

question

All of the following facts pertain to China except: A) China is in the upper-middle-income category. B) China is the largest single destination for foreign investment in the developing world. C) China is a member of the World Trade Organization. D) China has sprawling bureaucracy. E) China lacks infrastructure.

answer

China has sprawling bureaucracy ***

question

Prahalad and Hammond have identified several assumptions and misconceptions about the "bottom of the pyramid" (BOP) that need to be corrected. All of the following mistaken assumptions are correct except: A) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. B) The goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit. C) The poor have no money. D) People in BOP markets cannot use advanced technology. E) Global companies that target BOP markets will be criticized for exploiting the poor.

answer

The goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit. ***

question

Global marketers should take note of the fact that almost half of the world's population is located in:

answer

lower-middle-income countries.

question

The United Nations designates 50 countries in the bottom ranks of the low-income category named as:

answer

LDCs (least-developed countries).

question

Upper-middle-income countries are also known as:

answer

Industrializing countries

question

Upper-middle-income countries that achieve the highest rates of economic growth are sometimes referred to collectively as:

answer

NIEs

question

Which of the following nations fall in the lower-middle-income category? A) Burundi B) Bangladesh C) Egypt D) Venezuela E) none of the above

answer

Egypt

question

Nike produces only a small portion of its output in China, but when the firm refers to China as a "two-billion-foot market," it is referring to the fact that:

answer

China is a potential future market.

question

) According to the authors of the Harvard Business Review article, "Serving the World's Poor, Profitably", which of the following is a mistaken assumption that global companies might have about the BOP (bottom of the pyramid)? A) The poor have no money. B) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. C) People in BOP markets will be criticized for exploiting the poor. D) People in BOP markets cannot use advanced technology. E) All of the above are mistaken assumptions discussed by the authors.

answer

All of the above ***

question

Pursuing alternative sources of energy, such as wind and solar power, is important due to the fact that:

answer

heavy reliance on fossil fuels contributes to global warming

question

Which two companies are sourcing product components from small-scale enterprises, which in turn are helping preserve old-growth forests as well as economic opportunities in Brazil?

answer

Daimler AG and Hermes

question

Product and market opportunities in a postindustrial society are more heavily dependent upon new products and innovations than in industrial societies. An example of this would be

answer

New e-commerce markets for interactive forms of electronic communication.

question

Which country was upgraded from "emerging" to "developed" status by the Financial Times Stock Exchange (FTSE) in 2009?

answer

South Korea

question

The Organization for Economic Cooperation and Development (OECD) is comprised of: A) the 34 high-income countries. B) countries that believe in market-allocation economic systems. C) pluralistic democracies. D) countries that demonstrate progress toward economic reform. E) All of the above statements are applicable.

answer

All of the above ***

question

The term "Expanded Triad" includes all of the following countries or regions except: A) Japan. B) United States. C) Canada. D) Mexico. E) Russia.

answer

Russia ***

question

Recently, the Organization for Economic Cooperation and Development (OECD) has become more focused on global issues, social policy, and labor market regulations as seen by: A) addressing the vexing problem of bribery. B) requiring members to cooperate when pursuing bribery allegations. C) helping members candidly assess their own economic policies. D) member nations working together in committees to review social policies. E) all of the above

answer

All of the above ***

question

Which of the following is true about the Triad? A) Triad countries account for approximately one-third of world income and one- third of world population. B) Triad countries account for approximately 75% of world income as measured by GNP. C) Triad countries are those in which consumer products, industrial products, and the services sector each contribute one-third to GDP. D) Triad countries account for approximately 25% of world income as measured by GNP. E) Triad countries account for approximately 50% of world income as measured by the World Bank.

answer

Triad countries account for approximately 75% of world income as measured by GNP.

question

Which of the following statements is not accurate? A) India's teledensity—a measure of ownership of private telephones—is only 20% of population. B) In China, saturation levels of private motor vehicles and personal computers (PCs) are quite low. C) In 2001, EU had 49 cars per 100 people. D) In Russia, 200 people out of 1,000 own cars. E) In India, 150 people out of 1,000 own cars.

answer

In India, 150 people out of 1,000 own cars. ***

question

) The "balance of payments" is a record of all economic transactions between the residents of a country and the rest of the world. It is divided into the current and capital accounts. Current accounts include all of the following except: A) balance on goods. B) portfolio investments. C) balance on services. D) goods imports. E) goods exports.

answer

portfolio investments ***

question

Measuring elevator populations in countries measured as units installed per thousand people gives an estimate of the market for elevators. That China has about one half an elevator per thousand people is indicative of:

answer

low product saturation level

question

The United States' growing trade deficit reflects a number of factors which exclude: A) increased imports from China. B) a seemingly insatiable consumer demand for imported goods. C) the enormous cost of military operations in the Middle East. D) the services trade surplus. E) record goods sales to developing countries.

answer

the service trade surplus ***

question

The fastest-growing sector of world trade includes: A) travel and entertainment. B) accounting and legal services. C) royalties and license fees. D) engineering services. E) all of the above

answer

All of the above ***

question

) Devaluation can result from government action or an economic crisis. In August 1998, the Russian economy imploded. As a result, all of the following listed events happened except: A) the ruble plunged in value. B) the government defaulted on its foreign debt obligation. C) many Russians faced wage cuts and layoffs. D) Russia's economy did not recover from the impact. E) savings were wiped out as banks collapsed.

answer

Russia's economy did not recover from the impact ***

question

To the extent that a country sells more goods and services abroad than it buys, there will be

answer

a greater demand for its currency.

question

The top global merchandise exporter is

answer

China

question

The Big Mac Index shows that the price of the Big Mac in China converted from the local currency, yuan, to be $2.18, whereas its price in the United States is $3.73. This shows that:

answer

the Chinese yuan is undervalued against the US

question

One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued relative to the dollar by 70%. When currency markets opened on the following Monday, anyone using the Big Mac Index would conclude that the yen was only 20% overvalued relative to the dollar. What is the most likely explanation for this?

answer

McDonald's Japan reduced the yen price of a Big Mac. ___

question

If an American tourist in Tokyo pays more in dollars for the same amount of yen that she bought last week, then

answer

the dollar has depreciated relative to the yen

question

Porsche relies on currency hedging rather than price increases in order to: A) boost pretax profits on sales of its automobiles. B) balance the relative value of the dollar compared to the euro. C) protect all earnings from foreign-exchange movements. D) generate about 45% of its sales in the United States. E) A, B, and C

answer

A B and C ***

question

When countries or regions experience currency and/or economic stress, all of the following events can take place except: A) increased exposure to certain risks. B) new profit opportunities. C) lower local currency financing costs. D) bad debts occur. E) cancellation of aircraft equipment sales.

answer

lower local currency financing costs ***

question

A preferential trade agreement is a mechanism that confirms special treatment on select trading partners, thereby at times discriminating against other trading partners.

answer

True

question

Before an agreement can be reached between the United States and European Union, major differences will have to be worked out. These differences include aspects related to all of the following except: A) agriculture. B) genetically modified crops. C) tariff reduction. D) cross-border investment. E) job creation.

answer

Job creation ***

question

The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization with the abbreviation

answer

GATT

question

Which form of regional cooperation agreement, when fully implemented, entails creation of a unified central bank, the use of a single currency, and common policies on agriculture, social services and welfare?

answer

Economic Union

question

Trade ministers representing the WTO member nations meet ________ to work on improving world trade.

answer

Annually

question

The form of economic cooperation that calls for 1) eliminating internal barriers to trade and 2) establishing common external barriers is known as a(n):

answer

customs union

question

________ builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors.

answer

customs union

question

Arrange the following in order from lowest to highest level of economic integration. A) customs union→economic union→free trade area→common market B) economic union→customs union→common market→free trade area C) common market→free trade area→economic union→customs union D) free trade area→customs union→common market→economic union E) common market→economic union→customs union→free trade area

answer

free trade area→customs union→common market→economic union

question

) free trade area→customs union→common market→economic union

answer

political unity

question

As a result of CFTA, the U.S. automakers participate in the Canadian auto market, thereby benefiting due to:

answer

greater economies of scale.

question

Custom unions or a common market does not create a free trade area as compared to NAFTA due to:

answer

no common external tariffs

question

The form of economic cooperation that calls for countries to eliminate all internal barriers to trade among themselves even while maintaining independent trade policies vis-à-vis third countries is known as a(n):

answer

Free trade era

question

) NAFTA creates a free trade area in North America. However, Mexican avocado growers:

answer

can only ship avocados to the United States in winter months.

question

NAFTA creates a free trade area, as opposed to a customs union or a common market, due to the fact that:

answer

the governments of all three nations decided to eliminate tariffs.

question

The allure of the Latin American market has been its:

answer

considerable size.

question

) The most important preferential trading arrangements in Latin America do not include: A) SICA. B) the Andean Community. C) CARICOM. D) Mercosur. E) BRIC.

answer

BRIC ***

question

The five original members of the Central American Integration System did not include: A) El Salvador. B) Honduras. C) Guatemala. D) Nicaragua. E) Venezuela.

answer

Venezuela ***

question

Which member of the Central American Integration System has both the largest economy and the largest population?

answer

Guatemala

question

Implementation of the Central American Free Trade Agreement with the United States created a free trade area known as DR-CAFTA that includes all SICA members except: A) Honduras. B) Guatemala. C) Nicaragua. D) Panama. E) Costa Rica.

answer

Panama ***

question

The Secretariat for Central American Integration is headquartered in:

answer

Guatemala City

question

Considering the progress, attempts to achieve integration in Central America has been described as:

answer

uncoordinated

question

The country that withdrew from the original members of the Andean Community is:

answer

Chile

question

About 70% of Ecuador's flower harvest is exported to

answer

the United States

question

The "Common Market of the South" in Latin America is used to describe

answer

Mercosur

question

Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor as per the following statement:

answer

Argentina devalued its currency for exports and capital transactions

question

The English-speaking CARICOM members in the eastern Caribbean are concerned with defending their privileged trading position with

answer

The United States

question

The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except: A) Singapore. B) Thailand. C) India. D) Philippines. E) Brunei.

answer

India ***

question

Which one of the ASEAN members has the World's second-largest container port? A) Singapore B) Thailand C) India D) Philippines E) Brunei

answer

Singapore

question

There are barriers in Japan for global marketers in terms of attitudes as well as laws. Barriers include all of the following except: A) any organization wishing to compete in Japan must be committed to providing top-quality products and services. B) repeat visits and extended socialization with distributors. C) goods marketed should have a semblance of western products and services. D) marketers must master the keiretsu system of tightly knit corporate alliances. E) trust has to be built before conducting successful business.

answer

goods marketed should have a semblance of western products and services. ***

question

For the past 40 years Bhutan, a kingdom of 700,000 people in the Himalaya mountains, has relied on the following measure:

answer

GNH

question

Which of the following ASEAN countries ranks number one in terms of two-way trade with the United States?

answer

Singapore

question

The Maastricht Treaty called for: A) the creation of an Asia Free Trade Area (AFTA). B) the creation of an economic and monetary union in Europe. C) Chile's acceptance into Mercosur. D) the purchase of CDs and tapes from distributors in Europe. E) the creation of the seven-nation European Free Trade Association (EFTA).

answer

the creation of an economic and monetary union in Europe.

question

The introduction of the euro by EU resulted in multifaceted advantages which include:

answer

elimination of costs associated with currency conversion.

question

The non-EU member which uses the euro as its currency is

answer

Vatican City

question

The new country joining the EU at the beginning of 2014 is:

answer

Estonia

question

Markets of Central and Eastern Europe present interesting opportunities and challenges. Companies such as 3M International, McDonald's, Philips Electronics, and Henkel are moving into the region for all of the following reasons except: A) the region is an important new source of growth. B) that the first company to penetrate a country market often emerges as leader. C) wage rates are much lower than those in Spain, Portugal, and Greece. D) the region offers attractive locations for low-cost manufacturing. E) core products and Western brand names need changes to meet consumer demands.

answer

core products and Western brand names need changes to meet consumer demands. ***

question

Management strategic options pertaining to products that are facilitated by a single European market include: A) standardized packaging and labeling. B) consolidated production. C) shift from brand to benefit segmentation. D) seeking marketing economies. E) all of the above

answer

All of the above ***

question

Because they are in transition, the markets of Central and Eastern Europe present interesting opportunities and challenges which include: A) new source of growth. B) first mover advantage. C) exporting as an entry mode. D) lower wage rate. E) all of the above

answer

All of the above ***

question

The enlargement of the EU has impacted marketing strategies in the Eurozone countries by:

answer

shifting products from one market to another in the event of shortages

question

The markets of Central and Eastern Europe present interesting opportunities and offer attractive locations for low-cost manufacturing due to

answer

wage rates being lower than in Spain, Portugal and Greece

question

With the global economic crisis as a backdrop, the first-ever Happiness Congress was held in:

answer

Spain

question

Political and social instability in the Middle Eastern region can primarily be attributed to

answer

a wide gap between rich and poor nations due to oil revenues.

question

The Gulf Cooperation Council (GCC) includes all of the following countries except: A) Kuwait. B) Saudi Arabia. C) Iraq. D) Bahrain. E) Oman.

answer

Iraq ***

question

A key word(s) in conducting business in the Middle East is:

answer

Connection

question

In spite of having about 45% of the world's known oil reserves, Saudi Arabia and other Middle Eastern countries post current-account deficits, largely because

answer

they must import most of the goods and services

question

The Middle East and North Africa are sometimes viewed as a regional entity referred to as

answer

MENA

question

In recent years, the economy of selected countries in ECOWAS has improved except in: A) Ivory Coast. B) Ghana. C) Benin. D) Sierra Leone. E) Nigeria.

answer

Sierra Leone

question

In order to form a free trade area, South Africa has signed a Trade, Development, and Cooperation Agreement (TDCA) with:

answer

question

African companies will find it easier to gain access to financing from the U.S. Export-Import Bank due to:

answer

) AGOA.

question

Other than tariffs, there are certain problems that restrict free trade between the European Union and the United States which includes all of the following except: A) use of genetically modified agricultural products. B) product labeling. C) Hollywood movie domination. D) Internet usage. E) cultural diversity.

answer

Internet Usage ***

question

The reason why Greece, Ireland, Portugal, and Spain sometimes are referred to as the eurozone's "peripheral countries" is:

answer

that they all rank lower than their EU neighbors in terms of infrastructure.

question

Culture includes conscious and unconscious values, ideas, attitudes, and symbols that shape human behavior and that are confined to one generation

answer

F*CKING FALSE.

question

The cultural environment of a country is best defined by which characteristics?

answer

attitudes, beliefs, and values

question

Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries. Which of the following describes your friend?

answer

"vegetarianism" represents a value, "dislike McDonald's" represents an attitude

question

The use of this color dates back millennia as seen by artisans in ancient Egypt, China, and Mayan civilizations all worked with the color, which is now associated with royalty and divinity.

answer

BLUE

question

An intern from the United Kingdom was working in an American software company during summers. One day her boss gave her a memo asking her to post it, with the intention of having it put on the bulletin board. To her boss's surprise the letter was mailed by the intern since the word "post" means "mail" in British English. In communication terms this error can be attributed due to:

answer

semantics

question

Linguists have divided the study of languages into four main areas. The system of word formation is referred to as:

answer

morphology

question

Anheuser-Busch and Miller Brewing both experienced market failures in the United Kingdom when they used the phrase "light beer" which was misinterpreted as:

answer

having less alcohol

question

When the Coca-Cola Company was developing its new Dasani bottled water brand, linguists helped guide the naming process. For example, the recurring "a" was chosen because it has a soothing sound. In linguistics, issues pertaining to letters and sounds are a matter of

answer

phonology

question

In China, Dell had to find a meaningful interpretation of "direct sales." A literal translation results in zhi xiao which is the Chinese term for "illegal pyramid marketing schemes." To counteract the negative connotation, Dell's sales representatives began using the phrase zhi xiao ding gou, which translates as:

answer

direct orders

question

Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself." Whirlpool found that consumers in Italy, France, and Germany had trouble pronouncing the name. These are examples which show the importance of ________ in global marketing.

answer

phonology and morphology

question

Giving business cards with the left hand in Malaysia, showing soles of shoes to a host in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal communication due to the fact that:

answer

people pick up nonverbal cues and understand intuitively without being told.

question

A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that:

answer

customs, hierarchies, and class structure of Korean culture have to be respected.

question

A characteristic of a low-context culture which is prevalent in the United States, Switzerland, and Germany is that:

answer

the messages are explicit and specific.

question

In high-context cultures, time is:

answer

polychronic.

question

Insisting on competitive bidding can cause complications in:

answer

low-context cultures

question

Lawyers are more important in

answer

low context cultures

question

According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia?

answer

long-term orientation

question

Two countries that score high in uncertainty avoidance are:

answer

Greece and Portugal

question

Long-term values include all of the following except: A) dynamism. B) persistence. C) sense of shame. D) thrift. E) ordering relationships.

answer

dynamism ***

question

Which is not considered as a long-term value? A) persistence B) sense of shame C) thrift D) ordering relationships E) search for truth

answer

search for truth ***

question

The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI) the

answer

Lower the level of trust

question

Danes generally are not afraid of taking chances; they are comfortable doing things that are not carefully thought out or planned. Denmark's "flexicurity" policy combines free labor markets with adjustable welfare benefits. This is an example of the application of Hofstede's typology under the values which highlight:

answer

Uncertainty avoidance

question

) European consumers have faced a number of food-related issues, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As a result, many are skeptical about GMOs (genetically-modified organisms) and the benefits of eating food products that incorporate genetically-engineered ingredients. As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in:

answer

Uncertainty avoidance

question

) Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first. The problem was that Japanese women wash clothes in cold water—either tap water or leftover bath water—so they don't care about all-temperature washing (which is a big selling point in the United States). Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener). P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of the following might have helped P&G avoid the initial problems with Cheer?

answer

self-reference criterion

question

The Walt Disney Company's decision to build a theme park in France provides an excellent vehicle to understanding SRC (Self-Reference Criterion). All of the statements listed below portray this meaning except: A) Disney executives believed there is virtually unlimited demand for American cultural exports. B) French are sensitive about American cultural imperialism. C) Consuming wine with the midday meal is a long-established custom which was not realized by Disney executives. D) Disney executives were blinded by their prior success and ethnocentrism. E) The SRC can be a powerful negative force in global business.

answer

Disney executives were blinded by their prior success and ethnocentrism. ***

question

Which of the following best sums up the experience of Walt Disney Company executives when creating Disney's theme park in Paris?

answer

They fell victim to the self-reference criterion.

question

The lesson that SRC (Self-Reference Criterion) teaches can be summarized as:

answer

unbiased perception is a vital and critical skill in global marketing.

question

When Walt Disney Company's executives were planning to build a theme park in France, they firmly believed that the success of McDonald's and Coke as well as their success in Tokyo Disneyland ensures the runaway success of their plans. Disney policies prohibit sale or consumption of alcohol inside the theme parks which they also implemented in France. This proved to be a failure since consuming wine with the midday meal is a long-established custom in France. This is most likely a classical example of:

answer

a geocentric management orientation.

question

One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept of an "adoption process." The first step in this adoption process is:

answer

Awareness

question

Which of the following shows the correct order of the product adoption process? A) evaluation→trial→awareness→interest→adoption B) trial→interest→evaluation→awareness→adoption C) interest→awareness→adoption→trial→evaluation D) awareness→interest→evaluation→trial→adoption E) adoption→evaluation→trial→interest→awareness

answer

awareness→interest→evaluation→trial→adoption

question

Which of the following can negatively influence the rate of diffusion of an innovation?

answer

High complexity

question

That floppy disks are being dumped in favor of USB mass storage devices can be attributed to which characteristics of innovation?

answer

relative advantage

question

To speed adoption of a new product, the marketing team should:

answer

ensure that features and benefits can be communicated or demonstrated.

question

In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC allowed users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. This latter feature reflects which of the following characteristics of innovations?

answer

Compatibility

question

Together, innovators and early adopters make up about ________ of the potential market for a new product

answer

16%

question

If a marketing manager plans to enter the newly industrializing countries (NICs) or other Asia markets with a product that has proved to be successful in the home market, the product's diffusion processes are likely to be:

answer

Much faster than in the home market

question

) A few years ago, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC did more than allow users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. However, die-hard audio buffs were the only ones to buy DCC and Philips ultimately discontinued the product. Which of the following statements based on adopter categories describes this?

answer

innovators bought, but early adopters didn't ___

question

Adopter categories are classifications of individuals within a market on the basis of their innovativeness. Recently Apple introduced the iPhone for which people waited in long lines before the doors opened. According to experts these 2.5% of people who bought the iPhone are categorized as:

answer

Innovators

question

Which of the following is true about the innovation diffusion process in Asia? A) Japan has a high-context culture with a relatively homogeneous population. B) Because risk avoidance is a cultural value, there are fewer innovators in Asia than in the United States. C) Once innovators in Asia have tried a product, early adopters and the early majority quickly follow suit. D) After a new product has achieved success in one Asian market, it is likely to be adopted in other Asian markets at an even faster rate. E) All of the above are true.

answer

All of the above ***

question

Comparing and contrasting the diffusion of innovations in Western countries and in Asia, one can say that

answer

in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in Western countries.

question

Which of the following is arranged starting with the highest level of environmental sensitivity and ending with the lowest level? A) food→computers→integrated circuits B) integrated circuits→food→computers C) integrated circuits→computers→food D) computers→food→integrated circuits E) none of the above

answer

food-computers-integrated circuits

question

) The ________ the level of environmental sensitivity for a given product, the ________ the need for managers to address country-specific economic, regulatory, technological, social and cultural environmental conditions

answer

Greater, Greater

question

Which of the following is true about "coffee culture" in England?

answer

) American entrepreneurs found success in England with the Seattle Coffee Company which Starbucks later acquired.

question

Despite the fact that the American team advanced to the semi-finals in South Africa, the game is much more popular in other parts of the world. There is an effort to make soccer popular in the United States, and many fashion brands are interesting in marketing their products which pertain to soccer and other sports. Considering this aspect which of the following statements is incorrect? A) In the United States, 2010 World Cup merchandise such as T-shirts was available at Walmart. B) FIFA is the only global marketer seeking revenue growth by boosting soccer's popularity in America. C) Yves Saint Laurent designer was selling merchandise with soccer related embossed emblems. D) The fall 2010 collection of designer clothes included "FIFA Heritage Tees" with logos on shirts. E) FIFA has chosen Total Apparel Group (TAG) to boost soccer's visibility and popularity among Americans.

answer

FIFA has chosen Total Apparel Group (TAG) to boost soccer's visibility and popularity among Americans. ***

question

Coca-Cola billboards were recently put up near the Piazza San Marco in Venice, which has numerous historical landmarks. The major reason for allowing the billboards at a prominent historical site is:

answer

severe lack of founds for historic renovation

question

A massive effort dubbed as "Moses Project" is underway in Venice in order to:

answer

prevent flooding

STUDY

Direct Foreign Investment International Economics International Marketing Long Term And Short Term Single European Act

Chapter 1 – Multinational Financial Management (An Overview) – Flashcards 30 terms

Misty Porter

30 terms

Preview

Chapter 1 – Multinational Financial Management (An Overview) – Flashcards

question

- Maximize SHAREHOLDER wealth (quantified by stock price and dividends) - Financial managers throughout the MNC have a single goal of maximizing the value of the the entire MNC (global firm)

answer

Goal of the MNC

question

- Try to maximize STAKEHOLDER wealth - Stakeholder: shareholders AND employees, customers, suppliers, and society - Hard to quantify

answer

Foreign MNC's

question

When a corporation's shareholders differ from its managers, a conflict of goals can exist (does not exist in sole proprietorship or partnerships) - Compensation is based on earnings

answer

Agency Problem

question

- Difficulty in monitoring distant managers - Different cultures of foreign managers - The sheer size of the larger MNCs - The tendency to downplay short-term effects (could hurt you in the long run)

answer

Agency Costs for MNCs

question

1) Agency Problem 2) Subsidiary managers may be tempted to make decisions that maximize the values of their respective subsidiaries

answer

Conflicts with the MNC Goal

question

- Reduces agency costs - Allows managers of the parent to control foreign subsidiaries and thus reduces the power of subsidiary managers - Advantage: less costly - Disadvantage: the parent's managers may make poor decisions for the subsidiary if they are less informed than the subsidiary's managers about its setting and financial characteristics

answer

Centralized Management System

question

- Gives more control to those managers who are closer to the subsidiary's operations and environment - Advantage: More expertise in that area/culture --> can help customers faster -Disadvantage: Higher agency costs because subsidiary managers may make decisions that fail to maximize the value of the entire MNC - Advances in technology has reduced the need for decentralized management (internet, Skype, email, etc. make it possible to communicate faster)

answer

Decentralized Management System

question

Various forms of Corporate Control can reduce agency costs: - stock options - hostile takeover threat - investor monitoring ("activist investors")

answer

Impact of Corporate Control

question

1. Environmental constraints - cultural, economic, political 2. Regulatory constraints 3. Ethical Constraints - corruption - Investors assigned a higher value to firms that exhibit high corporate governance and are likely to obey ethical constraints (Nordic countries are least corrupt)

answer

Constraints of MNC's goal

question

1. Theory of Comparative Advantage 2. Imperfect Markets Theory 3. Product Cycle Theory

answer

Theories of International Business

question

Specialization by countries can increase production efficiency (specialize in one product) - allows firms to penetrate foreign markets - ex: Brazil --> coffee

answer

Theory of Comparative Advantage

question

The markets for the various resources used in production are "imperfect" - like an oligopoly - high profit margins - few competitors - factors of production are somewhat immobile (perfect market = pure competition)

answer

Imperfect Markets Theory

question

As a firm matures, it may recognize additional opportunities outside its home country - use price-skimming strategy (start with high price in intro, then reduce as you get more competition) - ex: VCR *See graph in notes*

answer

Product Cycle Theory

question

1. Firm creates product to accommodate local demand 2. Firm exports product to accommodate foreign demand 3. Firm establishes foreign subsidiary to establish precedence in foreign country and possibly to reduce costs 4a. Firm differentiates product from competitors and/or expands product line in foreign country OR 4b. Firm's foreign business declines as its competitive advantages are eliminated

answer

International Product Life Cycle

question

1) International Trade 2) Licensing 3) Franchising 4) Joint Venture 5) Acquisitions of existing operations 6) Establishing new foreign subsidiaries

answer

International Business Methods

question

involves exporting and/or importing - least risky

answer

International Trade

question

Allows a firm to provide its technology in exchange for fees or some other benefits - It might make more sense to produce the product locally instead of incurring large transportation costs, so sell the license to produce the product instead - Risk: product failure because of alteration of practice - how well do you know your partner?

answer

Licensing

question

Obligates a firm to provide a specialized sales or service strategy, support assistance, and possibly an initial investment, in exchange for periodic fees - Should all be alike - Ex: McDonald's - Risk of ruined reputation if partner does not follow instructions

answer

Franchising

question

Firms may also penetrate foreign markets by engaging in joint ownership and operation with firms that reside in those markets - Partner is a foreign country - Advantages: 1. Local knowledge 2. Share the risk

answer

Joint Venture

question

Allows firms to quickly gain control over foreign operations as well as a share of the foreign market - ex: Coca-Cola in India acquired Parles

answer

Acquisitions of existing operations

question

any method of conducting business that requires a direct investment in foreign operations

answer

Foreign Direct Investment (FDI)

question

The marginal returns on MNC projects are above those of purely domestic firms since MNCs have expanded opportunity sets of possible projects from which to select - looks beyond domestic economies

answer

Investment Opportunities

question

MNCs can obtain capital funding at a lower cost due to their larger opportunity set of funding sources around the world - can seek out lowest interest rates instead of being stuck with domestic rates

answer

Financing Opportunities

question

Free movement of labor, capital, and goods - act like a single market (28 countries acting like 1) - kind of like US

answer

Single European Act of 1987

question

Brazil, Argentina, Uruguay Paraguay, Venezuela

answer

MERCOSUR

question

International business usually increases an MNCs exposure to: 1. Exchange rate movements 2. Foreign economic risk - different economic environments 3. Political risk - different rules of law

answer

Exposure to International Risk

question

- Want to reduce tariffs on a world wide basis (global basis) - MFN - treat everyone as the "Most Favored Nation" - Doha round: Could not reach agreement; need to bring down subsidies

answer

Multi-Lateral Trade Agreements

question

Reduce tariffs only within a certain group of countries

answer

Regional Trade Agreements (Bi-lateral)

question

- Helps become self-sufficient in food production - Europe now has a surplus --> dump into international markets --> drives prices down --> now African countries cannot produce... need to import

answer

Common Agricultural Policy (CAP)

question

An MNC can control its degree of exposure to exchange rate risks, economic conditions, and political conditions with its financial management

answer

Financial Management

STUDY

Direct Foreign Investment International Marketing Marketing Pots And Pans Principles Of Marketing

EXAM2.1 – Flashcard 61 terms

Rebecca Mallory

61 terms

Preview

EXAM2.1 – Flashcard

question

31. With respect to global marketing management, the argument for market segmentation in the 1980s was framed as _____. A. globalization versus localization B. standardization versus adaptation C. adaptation versus one-to-one marketing D. globalization versus one-to-one marketing E. standardization versus localization

answer

globalization versus localization

question

32. In the 1970s, international marketers framed the approach toward market segmentation as _____. A. global integration versus one-to-one marketing B. standardization versus adaptation C. adaptation versus one-to-one marketing D. global integration versus local responsiveness E. standardization versus local responsiveness

answer

standardization versus adaptation

question

33. KFC sells Youtiao, a kind of Chinese doughnut, at its outlets in China. The Youtiao is considered an important part of a Chinese breakfast menu. In marketing terms, KFC is practicing a _____ strategy. A. positioning B. localization C. segmentation D. indigenous E. brand

answer

localization

question

34. Which of the following companies has been known for its ability to adapt to local needs and wants in the international marketplace since its inception in 1866? A. Kodak B. C.W. Post C. R.J. Reynolds Tobacco D. Ralston Purina E. nestle

answer

nestle

question

35. Which of the following is true about international corporate planning? A. It addresses marketing and advertising questions. B. It deals with a company's products, capital, and research. C. It deals with the tactical issues of marketing. D. It is essentially long-term in nature. E. It refers to the plans that are made at the local level.

answer

It is essentially long-term in nature.

question

36. Which of the following is true about international corporate planning? A. It deals with a company's products, capital, and research. B. It addresses marketing and advertising questions. C. It refers to the plans that are made at the local level. D. It incorporates generalized goals for the enterprise as a whole. E. It deals with the tactical issues of marketing.

answer

It incorporates generalized goals for the enterprise as a whole.

question

37. Which of the following is true about strategic planning? A. It addresses marketing and advertising questions. B. It is conducted at the highest levels of management. C. It deals with the tactical issues of marketing. D. It incorporates generalized goals for the enterprise as a whole. E. It refers to the plans that are made at the local level.

answer

It is conducted at the highest levels of management.

question

38. Which of the following is true about tactical planning? A. It refers to the plans that are made at the local level. B. It deals with a company's products, capital, and research. C. It is conducted at the highest level of management. D. It incorporates generalized goals for the enterprise as a whole. E. It is essentially long-term in nature.

answer

It refers to the plans that are made at the local level.

question

39. _____ planning integrates generalized goals for the enterprise as a whole. A. Operational B. Tactical C. Corporate D. Strategic E. Personnel

answer

Corporate

question

40. _____ planning is conducted at the highest levels of management and deals with products, capital, research, and the long- and short-term goals of the company. A. Operational B. Tactical C. Corporate D. Strategic E. Personnel

answer

Strategic

question

41. If a company were to focus on market planning that involved specific actions and allocation of resources, the company would be using _____ planning. A. tactical B. strategic C. corporate D. operational E. synergistic

answer

tactical

question

42. Which of the following is most likely to be the first phase in the international planning process? A. Adapting the marketing mix to target markets. B. Developing the marketing plan. C. Matching company and country needs. D. Implementation and control. E. Defining company objectives and resources.

answer

Matching company and country needs.

question

43. Which of these aspects of international marketing is analyzed in Phase 1 of the international planning process? A. Company character B. Product adaptation C. Advertising D. Situation analysis E. Budgets

answer

Company character

question

44. Which of these aspects of international marketing is analyzed in Phase 1 of the international planning process? A. Home-country constraints B. Budgets C. Situation analysis D. Advertising E. Product adaptation

answer

Home-country constraints

question

45. Which of these aspects of international marketing is analyzed in Phase 1 of the international planning process? A. Budgets B. Advertising C. Product adaptation D. Situation analysis E. Host-country constraints

answer

Host-country constraints

question

46. At which stage of the international planning process would a marketing manager conduct situation analysis and make decisions involving objectives and goals, budgets, and action programs? A. Adapting the marketing mix to target markets. B. Developing the marketing plan. C. Matching company and country needs. D. Implementation and control. E. Defining company objectives and resources.

answer

Developing the marketing plan.

question

47. Analysis of which of the following factors is carried out in Phase 2 of the international planning process? A. Host-country constraints B. Product adaptation C. Company character D. Situation analysis E. Budgets

answer

Product adaptation

question

48. Analysis of which of the following factors is carried out in Phase 2 of the international planning process? A. Company character B. Pricing C. Situation analysis D. Budgets E. Standards

answer

Pricing

question

49. Analysis of which of the following factors is carried out in Phase 2 of the international planning process? A. Company character B. Budgets C. Situation analysis D. Advertising E. Standards

answer

Advertising

question

50. Analysis of which of the following factors is carried out in Phase 2 of the international planning process? A. Company character B. Distribution C. Situation analysis D. Budgets E. Standards

answer

Distribution

question

51. The primary goal of Phase 2 of the international planning process is to: A. perform a preliminary analysis of a country. B. perform a screening of the environment. C. decide on a marketing mix according to the market segments. D. perform a situation analysis for the country that has been selected for entry. E. implement specific plans.

answer

decide on a marketing mix according to the market segments.

question

52. Big Donuts has already examined a series of environmental factors, reviewed its company's character, and established screening criteria. What should Big Donuts do next as it proceeds with the international planning process? A. Match the company to countries. B. Adapt the marketing mix to target markets. C. Modify the company's position to communication objectives. D. Develop a marketing plan. E. Implement and control information obtained in the initial examination.

answer

Adapt the marketing mix to target markets.

question

53. The answers to which of the following questions is generated in Phase 2 of the international marketing process? A. Are there identifiable market segments that allow for common marketing mix tactics across countries? B. Have objectives and goals been established? C. Have all budgets been determined within the constraints of resources? D. Are pre-existing channels of distribution in the new market mature enough to support the proposed expansion? E. Have responsibilities been established for implementation and control?

answer

Are there identifiable market segments that allow for common marketing mix tactics across countries?

question

54. Which of the following actions does the marketing plan in the Phase 3 of the international planning process begin with? A. Creating a management performance guide. B. Selecting an action program. C. Conducting a situation analysis. D. Evaluating home-country constraints. E. Exploring the distribution options.

answer

Conducting a situation analysis.

question

55. The Harry Johnson Tractor Company has just completed a marketing plan for entering South Africa. Included in this plan are budgets, and sales and profit expectations. Which of the following phases of the international planning process has the Harry Johnson Tractor Company just completed? A. Phase 1 B. Phase 2 C. Phase 3 D. Phase 4 E. Phase 5

answer

Phase 3

question

56. The Harry Johnson Tractor Company wishes to expand its presence in the Eastern European countries. Toward that end, it has selected the countries where it will market its products. It has also selected a mode of entry. It is now in the process of implementing specific plans. Which of the following phases of the international planning process is the Harry Johnson Tractor Company currently in? A. Phase 1 B. Phase 2 C. Phase 3 D. Phase 4 E. Phase 5

answer

Phase 4

question

57. Pizza Hearth is in the process of deciding on the mode of entry into the Eastern European countries. Which phase of the international planning process is Pizza Hearth currently in? A. Preliminary analysis. B. Defining market segment. C. Developing the marketing plan. D. Implementation and control. E. Standardization of the marketing mix.

answer

Developing the marketing plan.

question

58. Which of the following is most likely to occur next in the international planning process, once a "go" decision in Phase 3 has been taken? A. The objectives and goals phase. B. The budget phase. C. The action program(s) phase. D. The implementation and control phase. E. The communication phase.

answer

The implementation and control phase.

question

59. Which of the following subjects is explored after developing information in the international planning process? A. Company character. B. Home-country constraints. C. Geography. D. Host-country constraints. E. The mode of entry.

answer

The mode of entry.

question

60. Which of the following is the last step in the international planning process? A. Defining target markets and adapting the marketing mix accordingly. B. Matching company or country needs. C. Adapting the marketing mix according to market segments. D. Implementation and control. E. Developing the marketing plan.

answer

Developing the marketing plan.

question

61. Which of the following modes of entry is a company most likely to use if it would "just like to get its feet wet" in the international marketing arena? A. Exporting B. Joint venture C. Licensing D. Franchising E. Direct selling

answer

Exporting

question

62. Which of the following modes of foreign market entry requires the most amount of equity and therefore, creates the greatest risk? A. Exporting B. Joint venture C. Contractual agreement D. Strategic alliance E. Direct foreign investment

answer

Direct foreign investment

question

63. Which of the following modes of foreign market entry offers the most control and the highest potential return for a company? A. Exporting B. Joint venture C. Contractual agreement D. Strategic alliance E. Direct foreign investment

answer

Direct foreign investment

question

64. Pots and Pans Unlimited, a large U.S. kitchenware distributor, sells its inventory twice a year to the American branch of CookWell, a large Vietnamese kitchen retailer. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following best describes the form of exporting that Pots and Pans Unlimited is engaged in? A. Contractual exporting B. Indirect exporting C. Multiple layer exporting D. Parallel exporting E. Synergistic exporting

answer

Indirect exporting

question

65. Pots and Pans Unlimited, a large U.S. kitchenware distributor, takes a selection of its inventory twice a year to Vietnam and sells it to CookWell, a large Vietnam-based kitchen retailer. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following best describes the form of exporting that Pots and Pans Unlimited is engaged in? A. Parallel exporting B. Multiple layer exporting C. Direct exporting D. Synergistic exporting E. Contractual exporting

answer

Direct exporting

question

66. _____ requires no equity investment and thus has a low risk, low rate of return, and little control. A. Licensing B. Indirect exporting C. Direct exporting D. Internet marketing E. Franchising

answer

Indirect exporting

question

67. Which of the following is the simplest and the cheapest method to enter a foreign market? A. Direct sales B. Joint ventures C. Internet marketing D. Licensing E. Franchising

answer

Internet marketing

question

68. For which of the following products is it advisable for a company to have a direct sales force in the country where it intends to sell its products? A. Corporate jets B. Computer accessories C. Personal care products D. Cosmetics E. Office stationery

answer

Corporate jets

question

69. _____ are long-term, nonequity associations between a company and another in a foreign market. A. Consortia B. Exporting arrangements C. Strategic understandings D. Contractual agreements E. Joint ventures

answer

Contractual agreements

question

70. _____ serve as a means of transfer of knowledge rather than equity. A. Consortia B. Contractual agreements C. Strategic understandings D. Exporting arrangements E. Joint ventures

answer

Contractual agreements

question

71. The advantages of ____, a market-entry strategy, are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse. A. a consortia B. exporting arrangements C. strategic understandings D. licensing E. joint ventures

answer

licensing

question

72. Which of the following forms of business relationships lets a company grant patent rights, trademark rights, and the rights to use technological processes to another company in a foreign country? A. Licensing B. Exporting arrangements C. Joint ventures D. Consortia E. Strategic understandings

answer

Licensing

question

73. Which of the following is true of franchising? A. It provides an effective blending of skill decentralization and operational centralization. B. The franchisee provides market knowledge, capital, and personal involvement in management. C. Foreign laws and regulations are usually hostile toward franchising. D. It is an important form of horizontal market integration. E. The franchiser has little control on marketing of the products at the point of final sale.

answer

The franchisee provides market knowledge, capital, and personal involvement in management.

question

74. Kwok Winn wants to open a new business in his own country, Singapore. He has decided on a form of licensing that will provide him with a standard package of products, systems, and management services in order to sell fast food to local residents. Which of the following best describes the form of business that Mr. Winn has chosen? A. Direct sales B. Exporting C. Joint venture D. Strategic alliance E. Franchising

answer

Franchising

question

75. Which of the following is true of franchising? A. It is an important form of horizontal market integration. B. The franchiser has little control on marketing of the products at the point of final sale. C. Foreign laws and regulations are friendly toward franchising. D. It provides an effective blending of skill decentralization and operational centralization. E. The franchiser provides market knowledge, capital, and personal involvement in management.

answer

Foreign laws and regulations are friendly toward franchising.

question

76. A _____ is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective without forming a separate legal entity. A. direct sales group B. consortia C. franchising organization D. strategic international alliance E. joint venture

answer

strategic international alliance

question

77. The first relationship activity in building a strategic alliance where senior executives leverage their personal networks is labeled as _____. A. imaging B. initiating C. committing D. dating E. interfacing

answer

dating

question

78. Which of the following primary relationship activities in building strategic alliances involves seeing the reality in possibilities of an alliance, creating a shared vision from being together, and involving trusted senior managers? A. Imaging B. Committing C. Interfacing D. Dating E. Initiating

answer

Imaging

question

79. Which of the following primary relationship activities in building strategic alliances involves bringing key executives into action and creating trust through face-to-face time? A. Dating B. Initiating C. Committing D. Imaging E. Interfacing

answer

Initiating

question

80. Which of the following primary relationship activities in building strategic alliances involves facilitating the creation of personal relationships at many levels, traveling to partner facilities and engaging in technical conversations, and blending social and business time? A. Imaging B. Initiating C. Interfacing D. Dating E. Committing

answer

Interfacing

question

81. Which of the following relationship skills is necessary during the imaging activity stage of building a strategic alliance? A. Good relationship self-awareness B. Creating intimacy C. Trust building D. Partnering E. Commitment

answer

Creating intimacy

question

82. Which of the following relationship skills is necessary during the initiating activity stage of building a strategic alliance? A. Commitment B. Partnering C. Trust building D. Creating intimacy E. Good relationship self-awareness

answer

Trust building

question

83. Which of the following relationship skills is necessary during the interfacing activity stage of building a strategic alliance? A. Trust building B. Creating intimacy C. Good relationship self-awareness D. Commitment E. Partnering

answer

Partnering

question

84. Which of the following refers to two or more participating companies joining forces to create a separate legal entity to facilitate doing business in the international arena? A. Strategic international alliance B. Franchise C. License arrangement D. Joint venture E. Direct investment agreement

answer

Joint venture

question

85. A _____ refers to a partnership of two or more participating companies that have joined forces to create a separate legal entity to facilitate doing business in a country where none of the participants are currently active. A. consortium B. franchise pact C. license arrangement D. joint venture E. direct investment agreement

answer

consortium

question

86. A consortium is different from a joint venture in that a consortium: A. usually operates in a country in which the participants are already active. B. typically involves a large number of participants. C. restricts the right to hold an equity position by its major partners. D. does not involve the creation of a separate legal entity. E. is formed mainly for executing short-term projects.

answer

typically involves a large number of participants.

question

87. A joint venture is different from a consortium in that a joint venture: A. usually operates in a country in which the participants are already present. B. typically involves a large number of participants. C. restricts the right to hold an equity position by its major partners. D. does not involve the creation of a separate legal entity. E. is formed mainly for executing short-term projects.

answer

is formed mainly for executing short-term projects.

question

88. Companies that adopt the _____ structure are generally experiencing rapid growth and have broad, diverse product lines. A. global product division B. pyramid C. hierarchical D. geographical division E. matrix organization

answer

global product division

question

89. MedUmbrella provides a broad and diverse range of services for the healthcare industry. It also manufactures a wide variety of hospital equipments. It wants to experience rapid growth and wishes to organize better for global competition. Which of the following organizational structures will suit MedUmbrella best? A. A global product division structure. B. A geographical division structure. C. A matrix structure. D. A pyramid structure. E. A hierarchical structure.

answer

A global product division structure.

question

90. Which of the following organizational structures is the most extensive of those usually adopted by companies? A. Pyramid structure. B. Geographical division structure. C. Hierarchical structure. D. Global product division structure. E. Matrix structure.

answer

Matrix structure.

question

91. The _____ structure is the most extensive of the usually adopted organizational structures, and is becoming increasingly popular with companies as they reorganize for global competition. A. global product division B. geographical division C. hierarchical D. pyramid E. matrix

answer

global product division

STUDY

Business Management Defining The Problem Direct Foreign Investment Management

Principles of Management Practice Exam – Flashcards 184 terms

Daniel Thompson

184 terms

Preview

Principles of Management Practice Exam – Flashcards

question

while good management is basic to starting and growing a business, once some measures of success has been achieved, good management becomes less important

answer

false

question

companies that plan have larger profits and faster growth than companies that dont

answer

true

question

typical titles used for top managers are general manger, plant manager, regional manager, and divisional manager

answer

false

question

top managers are responsible for creating a climate for change in an organization

answer

true

question

first-line managers are the only managers who do not supervise other managers

answer

true

question

companies look for a total of four sets of skills in individuals to identify potential managers. these desired skills are technical skills, human skills, conceptual skllls, and motivation to change

answer

true

question

what is defined as getting work done through others?

answer

management

question

the failure of assistance to arrive in a timely fashion was due to a lack of what?

answer

efficiency

question

what is determining organizational goals and the means for achieving them?

answer

planning

question

what is monitoring progress toward goal achievement and taking corrective action when needed?

answer

controlling

question

what management function was used when the warnings were mailed to subscribers?

answer

controlling

question

what management function was used for the recall?

answer

controlling

question

what management function was usedto boost morale?

answer

leading

question

what manager would be used for the company would be expected to develop the long-term plans needed to make the company profitable?

answer

top manager

question

what type of skills tends to be equally important at all levels of management?

answer

human skills

question

management ideas and practice have been used from the earliest times of recorded history

answer

true

question

according to the principles of scientific management, work and responsibility for the work, should be divided equally between workers and management

answer

true

question

weber's concept of bureaucratic management supported qualification-based hiring and merit-based promotion

answer

true

question

according to bureaucratic management principles, those higher in the chain of command do not have the right to give commands, take action, and make decisions concerning activities occurring anywhere below them in the chain

answer

false

question

the point of integrative conflict resolution is to have both parties indicate their preferences and then work together to find an alternative that meets the needs of both

answer

true

question

according to the systems approach to management, an open system can function without interacting with its environment

answer

false

question

PRIOR to the introduction of what, five workers each given an identical task could use five different methods to perform the task with some methods being significantly more efficient than others

answer

contingency management

question

what is the goal of scientific management?

answer

find the one best way to perform each task

question

what is the gantt chart?

answer

a chart that shows when and where tasks need to be completed so that a job can be completed in a timely fashion

question

according to Weber, a bureaucracy is what?

answer

is the exercise of control on the basis of knowledge, expertise, or experience

question

who is best known for developing the five functions of managers and the fourteen principles of managment?

answer

henri fayol

question

the (blank) approach focuses on the psychological and social aspects of work?

answer

human relations

question

according to Mary Parket Follet, (blank), is an approach for dealing with conflict in which one party satisfies its desires and objectives at the expense of the other party's desires and objective

answer

domination

question

according to Mary Parket Follet, if managers use (blank) to settle or reduce conflict, each of the parties give up some of what they want

answer

compromise

question

in general, people will be indifferent to managerial directives or orders if they what?

answer

are understood, are consistent w/the purpose of the organization, can actually be carried out by those people, are compatible w/the people's peronsal interests

question

the two kinds of external organziational environments are the general environment and the specific environment

answer

true

question

external environments are the focus and events outside a company that have the potential to influence or affect it

answer

true

question

resource scarcity is the degree to which an organization's external environment has an abundance or lack of critical organizational resources

answer

true

question

the general environment consists of the economy and the technological, socio-cultural, and political/legal trends that indirectly affect all organizations

answer

true

question

changes in any sector of the general environment eventually affect most organizations

answer

true

question

business confidence indices are a viable alternative to economic statistics for management decision making

answer

true

question

in terms of external organizational environments, the (blank) environment affects all organizations, while the (blank) environment is unique to each company

answer

general; specific

question

which of the following companies is most likely operating in a dynamic environment?

answer

a video game manufacturer

question

over the past 20 years, which of the following is an industry that has experienced both the stable and dynamic environments predicted by punctuated equilibrium theory?

answer

the airline industry

question

according to the (blank) theory, companies go through long simple periods of environmental stability, followed by short complex periods of dynamic fundamental environmental change, finishing with a return to environmental stability.

answer

punctuated equilibrium theory

question

suppose that a Mexican car manufacturer wants to export cars to Guatemala. The fact that the distribution of income within Guatemala is highly unequal and that about 75% of the population is below the poverty line would be a(n) (blank) component in the manufacturer's general environment.

answer

economic

question

environemental (what) is affected by environmental complexity, change, and resources.

answer

uncertainty

question

which of the following is the LEAST aggressive approach likely to be used by an advocacy group?

answer

public communications

question

managers often prefer to use business confidence indices to do what?

answer

as predictors of future economic activity when making business decisions

question

the first step managers use to make sense of their changing environments is what?

answer

environmental scanning

question

under the U.S sentencing commission guidelines, a culpability score is a way of assigning blame to a company

answer

true

question

under the U.S. sentencing commission guidelines, companies without compliance programs can pay fines many times larger than companies with established compliance programs

answer

true

question

the concept of magnitude of consequences is the total harm or benefit derived from an ethical decision

answer

true

question

Kohlberg's three phases of moral development (in appropriate order0 are law and order, instrumental exchange, and universal principle.

answer

false

question

the first step in establishing an ethical climate in a company is for managers to act ethically themselves

answer

true

question

stakeholders are people or groups with an interest in a company's actions

answer

true

question

the (blank) determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn't know about the unethical behavior.

answer

U.S. Sentencing Commission Guidelines

question

According to the U.S Sentencing Commission Guidelines, what is on method used to determine the level of the offense?

answer

examining the loss incurred by the victims

question

to create a compliance program that is acceptable under the U.S Sentencing Commission Guidelines, a company should what?

answer

establish standards and procedures to meet the company's business needs, put upper-level managers in charge of the compliance program, encourage employees to report violations, train employees on standards and procedures

question

the Department of Defense doesn't classify pilferage as a major problem, as its annual inventory losses run $1-2 billion a year. The intentional theft and sale of defense secrets would have greater ethical intensity than this pilferage due to what?

answer

magnitude of consequences

question

What are the 3 stages of moral development by Kohlberg?

answer

preconventional level, conventional level, and postconventional level

question

to encourage more ethical decision making in an organization, managers should:

answer

carefully select and hire new employees, establish a specific code of ethics, create an ethical climate, train employees in how to make ethical decisions

question

which of the following is an objective of ethics training?

answer

develop employee awareness about ethics, push ethics training throughout the entire organization, teach employees a practical model of ethical decision making, achieve credibility with employees

question

why is it often difficult for an employee to assume the role of whistleblower?

answer

because employees fear that they will be punished

question

what is social responsibilty?

answer

a business' obligation to pursue policies, make decision, and take actions that benefit society

question

S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely

answer

false

question

encouraging worker participation in goal setting, making goals public, and getting top managment's support are all recommended ways to increase goal commitment in a company.

answer

true

question

both proximal and distal goals are used to provide additional motivation and rewards for employees

answer

true

question

developing a purpose statement is the sole responsibility of middle management

answer

false

question

tactial plans specify how a company will use its resources, budgets, and people to accomplish specific goals within its mission

answer

true

question

management by objectives is a two-step process in which managers and their employees discuss possible goals and then meet regularly to review progress toward the accomplishment of those goals

answer

false

question

after $8 billion in profit, Shell decided to strive to double profits within the next five years. Which classical management function would be instrumental in achieving this goal?

answer

planning

question

what is planning ultimately based on?

answer

choosing a goal and developing a method or strategy to achieve that goal

question

which of the following is NOT one of the characteristics of SMART goals?

answer

synergistic

question

which of the following is a commonly used method for increasing goal commitment?

answer

encouraging worker participation in goal setting

question

a manufacturer of suntan lotion set a(n) (blank) goal to increase revenues by 8% over the next five years and a(n) (blank) goal to increase sales next June in the Miami Beach area by 3%.

answer

distal; proximal

question

what plans are plans that specify how a company will use resources, budgets, and people to accomplish specific goals within its mission?

answer

tactical

question

who is primarily responsible for developing operational plans?

answer

lower-level managers

question

what is the process of choosing a solution from available alternatives?

answer

decision making

question

what does groupthink occur in?

answer

highly cohesive groups where there is a great deal of pressure to agree with each other

question

there are four conditions that must be met if a firm's resources are to be used to achieve a sustainable competitive advantage. The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable

answer

true

question

companies face very little uncertainty in their strategic business environments

answer

false

question

character of the rivarly is a measure of the intensity of competitive behavior between companies in an industry

answer

true

question

the threat of substitute products or services is a measure fo the ease with which customers can find substitutes for an industry's goods or services

answer

true

question

bargaining power of buyers tends to be higher when a company sells a popular product to multiple buyers than when a company is dependent on just a few high-volume buyers.

answer

false

question

a sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and ?

answer

those companies have, for the moment, stopped trying to duplicate the advantage

question

which of the following must be met if a firm's resources are to be used to achieve a sustainable competitve advantage?

answer

imperfectly imitable resources

question

when making travel plans, many tourists have selected Thomas Cook, a British tour operation, because they perceive that no other tour company can duplicate the customer service and satisfaction that Thomas Cook has provided over its years of operation. Thomas Cook has apparently created a sustainable competitive advantage by using (blank) resources

answer

nonsubstitutable

question

Deutsche Bank is the largest bank in the world. Would this give it a sustainable competitive advantage?

answer

no, because size is not a criteria for sustainable competitive advantage

question

A(n) (blank) resource is a resource that is not controlled or possessed by many competing firms:

answer

rare

question

A(n) (blank) is a resource that is impossible or extremely costly or difficult for other firms to duplicate

answer

imperfectly imitable

question

according to Michael Porter, five industry forces determine an industry's overall attractiveness and potential for long-term profitability. Which of the following is one of those forces porter identified?

answer

bargaining power of suppliers

question

which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?

answer

existing complementary products

question

Clorox corporation controls 60% of the bleach market. Imagine you are an entrepreneur who was considering developing and marketing a new brand of bleach. Which of Michael Porter's industry forces should you be most concerned about?

answer

bargaining power of buyers

question

companies that want to sustain a competitive advantage must understand and protect themselves from the strategic threats of innovation

answer

true

question

dominant designs emerge because they solve a practical problem, are a result of the negotiations of independent standards bodies, or because of critical mass

answer

true

question

a creative work environment requires organizational encouragement and supervisory encouragement as well as work group encouragment

answer

true

question

resistance to change usually results from organizational factors: such as the absence of promotion guidelines, bonuses, and praise

answer

false

question

declaring victory too soon is one of the mistakes managers often make in the refreezing stage of change

answer

true

question

deciding where to "go global" is just as important as deciding how your company will go global

answer

true

question

organizational (blank) is the successful implementation of creative ideas in organizations

answer

innovation

question

nearly all technology cycles follow the typical (blank) pattern of innovation

answer

S-curve

question

patterns of innovation over time that can create sustainable competitve advantage are called what?

answer

innovation streams

question

what are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged?

answer

creative work environments

question

what is the segmenting of markets based on the region of the country or the world, market size, market density, or climate?

answer

geographic segmentation

question

which of the following is one of the sources of resistance to change?

answer

self-interest

question

the three steps in the basic process of managing organizational change outlined by Kurt Lewin are ?

answer

unfreezing, change intervention, and refreezing

question

according to Hofstede's research on cultural dimension, (blank) cultures emphasize the importance of relationships, modesty, caring for the weak, and family

answer

feminine

question

the term (blank) is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured ,ambiguous, and unpredictable situations

answer

uncertainty avoidance

question

organizational structure is the description of the vertical and horizontal configuration of departments, authority, and jobs within a company

answer

true

question

functional departmentalization organizes work and workers into separate units responsible for particular kinds of customers

answer

false

question

in matrix departmentalization, as in other forms of departmentalization, most employees report to a single boss

answer

false

question

specialized jobs are generally inefficient

answer

false

question

job enlargement and job enrichment mean essentially the same thing

answer

false

question

as a class project, Senora is working with other classmates to create a company that would market NASCAR memorabilia. Senora's teacher has instructed her to use the traditional approach to create the organization's structure. What should Senora do?

answer

create an organizational structure w/vertical and horizontal configurations

question

while (blank) emphasizes jobs and their authority relationships, (blank) emphasizes the activities through which work gets done in the organization.

answer

organizational structure; organizational process

question

which of the following statements about functional departmentalization is true?

answer

functional departmentalization allows work to be done by highly qualified specialists

question

hallmark has four departments. These departments are (1) flowers and gifts, (2) cards and e-cards, (3) hallmark collectibles, and (4) photo albums and scrapbooks. Hallmark uses (blank) departmentalization

answer

product

question

a manufacturer of acrylic and latex gloves sells to medical laboratories, to factories where employees handle chemicals, to companies that manufacture micro-tech equipment, and to cleaning services. Because it is organized to better satisfy the needs of each of its four target markets, the manufacturer uses (blank) departmentalization

answer

matrix

question

the primary advantage of (blank) departmentalization is the fact that it allows companies to manage large, complex tasks efficiently by minimizing duplications

answer

matrix

question

in terms of chain of command, (blank) authority is the right to command subordinates, while (blank) authority is the right to advise but not command others who are not subordinates

answer

line; staff

question

as a result of their structures, matrix organizations automatically violate the principle of what?

answer

unity of command

question

decentralization?

answer

leads to faster decision making and more satisfied customers and employees

question

teams are typically required when tasks are complex, require multiple perspectives, or require repeated interaction with others to complete.

answer

true

question

autonomy is the degree to which workers have the discretion, freedom, and independence to decide how and when to accomplish their jobs.

answer

true

question

as teams develop and grow, they pass through three stages of development. these three stages are 1) perceived teams, 2) felt team, and 3) manifest team

answer

false

question

once teams have made it to the performing stage, they no longer need fear a decline in performance

answer

false

question

a group in Great Britain has been established to improve the employment, retention, and promotion prospects of black and other ethnic minorities as well as women in the Fire and Rescue Service, which at present has a largely white, male demographic. At its inception, this group was in the (blank) stage of team development

answer

forming

question

group cohesion tends to be relatively strong at the (blank) stage of team development

answer

norming

question

a team has finally matured into a fully-functioning team at the (blank) stage of development

answer

performing

question

a group in Great Britain has been established to improve employment, retention, and promotion prospects of ethnic minorities as well as women in the Fire and Rescue Service, which at present has a largely white, male demographic. By the (blank) stage of team development, the group members will have resolved petty differences, developed friendships, and begun to establish some group cohesiveness

answer

norming

question

human resource management is the process of finding, developing, and keeping the right people for the company

answer

true

question

job analysis is a purposeful and systematic process of collecting information on the important work-related aspects of a job

answer

true

question

background checks can be used to verify the truthfulness and accuracy of information that applicants provide about themselves

answer

true

question

training provides opportunities for employees to develop the job-specific skills, experience, and knowledge they need to do their jobs or improve their performance

answer

true

question

employee turnover is always bad for an organization

answer

false

question

the fact that a 98-pound job candidate is not hired as a dock worker to move 60-pound boxes of produce is legal as a result of what?

answer

bona fide occupational qualifications (BFOQs)

question

what is intentional discrimination that occurs when people are purposefully not given the same hiring, promotion or membership opportunities because of their race, sex, age, ethnic group, national origin, or religious beliefs?

answer

disparate treatment

question

when a CEO opened the nationwide sales force meeting with a crude sexually explicit joke, this is an example of what?

answer

sexual harassment

question

which of the following types of information would typically be collected as part of a job analysis?

answer

work activites, tools and equipment used, knowledge, skills, and abilities needed to do the job, job context

question

which of the following is an internal recruiting method?

answer

job postings

question

the first selection device most job applicants encounter when they seek a job are what?

answer

application forms and resumes

question

a study in the construction industry found when equipment is stolen from building sites, workers are the culprits 82% of the time. Which type of selection information would help employers receive the greatest benefit from if their goal was to stop employee theft?

answer

background checks

question

"References Etc" will pose as a prospective employer, call a prior employer on an employer's behalf, and find out what the former employer is saying. If the prior employer provides unsubstantiated negative information, then the job applicant what?

answer

can sue for defamation

question

A (blank) is a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and co-workers as well as the employees themselves

answer

360-degree feedback

question

once lower-order needs are satisfied, it is difficult to predict which higher-order needs will motivate behavior

answer

true

question

an intrinsic reward is a reward associated with performing a task or activity for its own sake

answer

true

question

for punishment to work, the punishment must be strong enough to stop the undesired behavior, and must be administered objectively, impersonally, consistently and contingently, and quickly

answer

true

question

one of the simplest, most effective ways to motivate workers is to give them specific, challenging goals that they accept

answer

true

question

for goal-setting theory to motivate employees, mangers must provide frequent, specific, performance-related feedback

answer

true

question

process theories of work motivation explain what motivates employees

answer

false

question

McClellend's Learned Needs Theory identifies three needs. they are the needs for what?

answer

power, achievement, and affiliation

question

According to Alderfer's ERG theory, the lowest-order need is what?

answer

existence

question

managers can motivate employees to increase their efforts by what?

answer

relying on the innate value of extrinsic rewards

question

A (blank) is a target, objective, or result

answer

goal

question

equity theory

answer

states that people will be motivated when they perceive that they are being treated fairly

question

expectancy theory

answer

people will be motivated to the extent which they believe that their efforts will lead to good performance

question

reinforcement theory

answer

behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently and behavior will have negative consequences or not followed by positive consequences, will occur less frequently

question

goal setting theory

answer

people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement

question

leadership is the process of influencing others to achieve group or organizational goals

answer

true

question

one of the differences between managers and leaders is that managers focus on visions, missions, goals, and objectives, and leaders focus solely on productivity and efficiency

answer

false

question

the primary difference between leaders and managers is that leaders are concerned with doing the right thing, while mangers are concerned with doing things right

answer

true

question

initiating structure leader behavior has also been referred to as "job-centered leadership" and "concern for production" while the leadership behavior of consideration has also been referred to as "concern for people" and "employee-centered leadership."

answer

true

question

since there are no consistent trait differences between leaders and non-leaders, or between effective and ineffective leaders, trait theory is wrong

answer

false

question

the major situuational leadership theories all assume that the effectiveness of any leadership style depends on the situation.

answer

true

question

the "great person" theory is another name for the (blank) theory of leadership

answer

trait

question

successful business leaders are not like other people. Successful business leaders are what?

answer

are accurately described by all of these

question

Walter Reed Army Institute of Research has made a study of how important it is for military leaders to be friendly with and to show concern for their troops. Its research shows that a leadership behavior high in (blank) positively influences soldiers and their ability to adapt to a stressful environment.

answer

consideration

question

coaching football at the collegiate level requires that coaches design every facet of practices, set goals for their players, determine schedules, and even direct all of the plays during the games. College football coaching uses (blank) type of managing

answer

initiating structure

question

Bill Belichick is the coach of the New England Patriots football team. As a successful coach, he has to schedule structured practices, emphasize careful planning, and assign tasks. He also has to show the players that he genuinely cares about them as people. According to the Blake and Mouton grid, Belichick's leadership style would be characterized as what?

answer

team management

question

which of the following is an example of a situational theory of leadership?

answer

Fielder's contingency theory

question

which of the following approaches to implementing Fiedler's contingency theory in the workplace has proven effective?

answer

accurately measuring and matching leaders to situations

question

According to which of the following leadership model occurs when leaders make it clear how followers can achieve organizational goals, take care of problems that prevent followers from achieving goals, and then find more and varied rewards to motivate followers who achieve those goals, these leaders are demonstrating what?

answer

the path-goal theory

question

which of the following is NOT one of the 4 leadership styles identified in Hershey & Blanchard's Situational Leadership Model?

answer

achievement-oriented

question

in the perceptual process, apprehension is the process of remembering interpreted information

answer

false

question

managers with better listening skills are rated as better managers by their employees and are much more likely to be promoted

answer

true

question

in communicating feedback to employees, managers need to recognize that feedback can be constructive or destructive

answer

true

question

frequent, informal meetings between top managers and lower-level employees are one of the best ways for top managers to hear what others feel and think

answer

true

question

in general, blogs serve no value in the corporate world

answer

false

question

the steps in the basic perception process include all of the following EXCEPT what?

answer

analysis

question

what is the tendency to overestimate our value by attributing successes to ourselves(internal causes) and attributing failures to others or the environment(external causes)

answer

a self-serving bias

question

in the model of the communication process, (blank), makes senders aware of possible miscommunications and enables them to continue communicating until the receiver understands the intended message

answer

feedback

question

the three formal communication channels in organizations are categorized as what?

answer

downward, horizontal, and upward

question

the (blank) is the sytem of official channels that carry organizationally approved messages and information

answer

formal communication channel

question

in the (blank) type of grapevine communication network, one highly connected individual shares information with many other managers and workers

answer

gossip chain

question

(blank) is a kind of one-on-one communication used by managers to improve an employee's on-the-job performance or behavior

answer

coaching

question

in which of the following cases would written communication be preferable to oral communication?

answer

when messages are straightforward

question

the first thing that mangers need to recognize when communicating feedback one-on-one to employees is that feedback can be what?

answer

constructive or destructive

question

one of the best ways for top managers to hear what others feel and think is through what?

answer

frequent informal meetings

STUDY

Business Management Direct Foreign Investment Maintaining The Status Quo Management

Principles of Management ch.1-5 – Flashcards 146 terms

August Dunbar

146 terms

Preview

Principles of Management ch.1-5 – Flashcards

question

Management

answer

The process of working with and through others to achieve organizational objectives in a changing environment

question

Explain the managerial significance of efficiency and effectiveness

answer

Efficiency- when resources required to achieve an objective are weighed against what was actually accomplished. Effectiveness- promptly achieving a stated objective

question

Identify and Summarize five major sources of change for today's managers

answer

1. Globalization 2. Evolution of Product Quality- fix-it-in, inspect-it-in, build-it-in, design-it-in 3. Environmentalism and sustainability 4. An ethical reawakening 5. internet and social media

question

Distinguish between managerial functions and skills

answer

functions-characterizes the management process as a sequence of rational and logical steps skills-to communicate goals and coordinate teams

question

identify the eight basic managerial functions

answer

planning, decision making, organizing, staffing, communicating, motivating, leading, controlling

question

Demonstrate your knowledge of Wilson's three managerial skill categories

answer

1. Technical- applying education, experience, and training to effectively organize a task, job, or project 2.teambuilding- listening carefully and communicating clearly to develop and coordinate an effective group 3. drive- setting and maintaining goals and standards to achieve effective outcomes

question

Explain the practical significance of his research findings

answer

managers must be effective jugglers

question

Explain how managers learn to manage

answer

50% "school of hard knocks" 30% relationships 20% formal training and education

question

Describe entrepreneurs

answer

the process by which individuals-either on their own or inside an organization- pursue opportunities without regard to the resources they currently control

question

Identify two key assumptions supporting the universal process approach

answer

1. a core management process remains the same across all organizations 2. can be reduced to a set of separate functions and related principles

question

describe Henri Fayol's contribution

answer

created practical guidelines for the successful management of all types of organizations- Fayol's 14 universal principles of management

question

Discuss Fredrick W Taylor's approach to improving the practice of industrial management

answer

scientific management- standardization, time and task study, systematic selection and training, and pay incentives

question

Describe the general aim of the human relations movement

answer

effort among theorists and practitioners to make managers more sensitive to employee needs

question

Explain why the human relations movement arose

answer

special circumstances that happened in the early 20th century 1. the threat of unionization 2. the Hawthorne studies 3. the philosophy of industrial humanism

question

Explain the significance of applying open-system thinking to management

answer

success depends on the surrounding environment, how subsystems interact with outside social, cultural, political, and economic systems

question

Explain the practical significance of adopting a contingency perspective

answer

emphasizes situational appropriateness

question

Describe what "management by best seller" involves

answer

practicing a management style based on a popular management book

question

summarize the demographics of the new American workforce

answer

-getting larger -increasingly female -more racially and ethnically diverse -becoming older -age diversity

question

explain why America's education and workplace readiness situation is a crisis

answer

-lower reading levels -less high school diploma's awarded in the four year cycle -U.S. ranked 12th for the percentage of adults with an associate or higher degree -decline in computer science degrees

question

Define managing diversity

answer

the process of creating an organizational culture that enables all employees to realize their full potential

question

explain why managing diversity is important today

answer

growly diverse work force

question

discuss how the changing political-legal environment is affecting the practice of management

answer

-dealing with issues with clearly political overtones -politicization of management -increased personal legal accountability

question

Discuss why business cycles and the global economy are vital economic considerations for modern managers

answer

to understand and be able to predict when to hire people or when to not, to know whether an up or down from the business cycle is next

question

Define the three-step innovation process

answer

1. concept 2. product technology 3. production technology

question

define intrapreneur

answer

an employee who take personal "hands-on" repsonibility for pushing an type of innovative idea

question

describe the 6 step internationalization process

answer

1. Licensing- to produce/market/sell in one country 2. Exporting-made in one country, sold in another 3. Local warehousing and selling- made in one country, shipped to storage in one or more countries 4. local assembly and packaging-shipped for final assembly to facility in one or more foreign countries 5. joint ventures-two or more companies from two or more companies in foreign companies 6. direct foreign investments-a company from one country produces and markets in foreign countries

question

distinguish between global company and transnational company

answer

global company- centrally managed from a specific country transnational- network of productive units with decentralized authority and no national identity

question

identify four cross-cultural competencies of global managers

answer

1. building relationships 2. valuing people of different cultures 3. listening and observation 4. coping with ambiguity

question

contrast ethnocentric, polycentric, and geocentric attitudes towards foreign operations

answer

ethnocentric- home-country oriented polycentric- loose confederation of comparatively independent subsidiaries rather than to a highly integrated structure geocentric- world-oriented

question

explain from a cross-cultural perspective the difference between high-context and low-context

answer

high context- rely on nonverbal and subtle situational messages low context- essential messages and meanings through words

question

identify four of the GLOBE cultural dimensions

answer

1. power distance 2. uncertainty avoidance 3. institutional collectivism 4. in-group collectivism

question

Summarize the leadership lessons from the GLOBE Project

answer

-charismatic/value-based -team-oriented -participative -humane-oriented -self-protective

question

Identify the four leading reasons why U.S. expatriates fail to complete their assignments

answer

1. not performing job effectively 2. received other, more rewarding offers from other companies 3. expatriate or family not adjusting to culture 4. expatriate or family missing contact with friends or family at home

question

Discuss the nature and importance of cross-cultural training in international management

answer

prepare managers for managing in a foreign country

question

summarize the situation of North American women on foreign assignments

answer

-above-average success -harder for women to get foreign assignments -viewed as North Americans then women

question

define corporate social responsibility

answer

the notion that corporations have an obligation to constituent groups in society other than stockholders and beyond that prescribed by law or union contract

question

specify the four levels in Carroll's global CSR pyramid

answer

-philanthropic responsibility -ethical responsibility -legal responsibility -economic responsibility

question

Contrast the classical economic and socioeconomic models of business

answer

-competitive, providing society with what they need -society's borader expectations for business

question

summarize the arguments for and against CSR

answer

Against -business has enough power -managers are accountable to the people -business lacks the ability to pursue social goals For -business involved in social issues -resources to tackle today's complex societal problems -better society=better environment for business -Corporate social action prevents government intervention

question

identify and describe the four social responsibility strategies

answer

Reactive social responsibility- denying responsibility while maintaining status quo Defensive social responsibility- uses legal maneuvers and/or a public relations campaign to avoid more responsibility accommodative social responsibility- organization pressure to take more responsibility proactive social responsibility- taking initiative with a progressive program that serves as a role model for the industry

question

Explain the concept of enlightened self-interest

answer

the realization that business ultimately helps itself by helping to solve societal problems

question

summarize four practical lessons from business ethics research

answer

1. ethical hot spots 2. pressure from above 3. discomfort with ambiguity 4. the rationalization of unethical conduct

question

distinguish between instrumental and terminal values

answer

-belief that a certain way of acting is appropriate for all situations -a certain end-state of existence is worth striving for and attaining

question

identify and describe four general ethical principles

answer

1. self-interests 2. personal virtues 3. religious injunctions 4. government requirements

question

Distinguish among state, effect, and response uncertainty

answer

state-the environment is considered unpredictable effect- manager's attempt to predict the effects of environmental changes on his or her own organization response- inability to predict the consequences of a particular decision or organizational response

question

Identify and define the three types of planning

answer

strategic- the process of determining how to pursue the organization's longterm goals with resources expected to be available intermediate- the process of determining the contributions that subunits can make with allocated resources operational- the process of determining how specific tasks can best be accomplished on time with available resources

question

discuss the role of objectives in planning

answer

-specific targets -measuring how well an organizational subunit or individual preformed -commitment -represent a challenge

question

describe the four-step management by objectives process

answer

1. setting objectives 2. developing action plans 3. periodic review 4. performance appraisal

question

explain how management by objectives can foster individual commitment and motivation

answer

-encourages self-management and personal commitment through employee participation in setting objectives

question

discuss project planning within the context of the project life cycle

answer

Four stage life cycle -conceptualization -planning -execution -termination

question

list six roles played by project managers

answer

1. implementer 2. entrepreneur 3. politician 4. friend 5. marketer 6. coach

question

Discuss the value of PERT networks

answer

graphical sequencing and scheduling tool for large, complex, and non routine projects

question

Explain how break even points can be calculated

answer

total fixed costs/price-variable costs

question

define strategic management

answer

the ongoing process of ensuring a competitively superior fit between an organization and its changing environment

question

explain the concept of synergy

answer

occurs when two or more variables interact to produce an effect greater than the sum of the effects of all of the variables acting independently

question

identify four kinds of synergy

answer

-market -cost -technological -management

question

describe Porter's model of generic competitive strategies

answer

1. cost leadership 2. differentiation 3. cost focus 4. focused differentiation

question

identify and explain the major contribution the business ecosystems model makes to strategic thinking

answer

an economic community of organizations and all their stakeholders -organizations need to be as good at cooperating as they are at competing if they are to succeed

question

identify seven basic internet business models

answer

1. commission based 2. advertising-based 3. markup-based 4. production-based 5. referral-based 6. subscription-based 7. fee-for-service-based

question

identify and describe the four steps in the strategic management process

answer

1. formulation of grand strategy- how to accomplish goal 2. formulation of strategic plans- concrete and measurable strategic plans, policies, and budget allocations 3. implementation of strategic plans- filtering down of tasks 4. strategic control- formal control system

question

explain the nature and purpose of a SWOT analysis

answer

S- strengths W- weakness O-opportunities T-Threats organizations SW cross-referenced with OT to find their niche in the marketplace

question

describe the three types of forecasts

answer

1. event outcome- predict the outcome of highly probable future events 2. event timing- predict when given events occur 3. time series- estimate future values in a sequence of periodically recorded stats

question

specify five sources of decision complexity for modern managers

answer

1. multiple criteria 2. intangibles 3. risk and uncertainty 4. long-term implications 5. interdisciplinary input

question

explain what a condition of risk is and how managers cope

answer

-exist when a decision must be made on the basis of incomplete but reliable factual info -calculate the probability that a given event will occur and then select a decision alternative with favorable odds

question

define and discuss the three decision traps: framing, escalation of commitment, and over-confidence

answer

framing- the tendency to evaluate positively presented info favorably and negatively presented info unfavorably escalation of commitment- the tendency of individuals or organizations to get locked into losing courses of action because quitting is personally and socially difficult over-confidence-

question

discuss why programmed and nonprogrammed decisions require different decision making procedures

answer

programmed- are repetitive and routine nonprogrammed- made in complex, important, and nonroutine situations

question

distinguish between the two types of knowledge in knowledge management

answer

tacit-personal, intuitive, and undocumented info about how to skillfully perform tasks, solve problems, and make decisions explicit- readily sharable info b/c it is in verbal, textual, visual, or numerical form

question

explain the need for a contingency approach to group-aided decision making

answer

1. groups tend to do quantitatively and qualitatively better than average individuals 2. exceptional individuals tend to outperform the group

question

identify and describe five mental locks that can inhibit creatively

answer

1. looking for the right answer 2. always trying t be logical 3. strictly following the rules 4. insisting on being practical 5. avoiding ambiguity

question

list and explain the four basic steps in the creative problem-solving process

answer

1. identify the problem 2. generating alternative solutions 3. selecting a solution 4. implementing and evaluating the solution

question

identify and describe four characteristics common to all organizations

answer

1. coordination of effort 2. common goal or purpose 3. division of labor 4. hierarchy of authority

question

distinguish between line and staff positions

answer

line positions- those in the formal chain of commands staff positions- outside the formal chain of command

question

describe a business organization in terms of the open-system model

answer

organizational interacting subsystems -technical -boundary-spanning -managerial

question

explain the term learning organization

answer

one that can create, acquire, and transfer knowledge, and can then adapt its behavior

question

describe the time dimension of organizational effectiveness

answer

meeting organizational objectives and prevailing societal expectations in the near future, adapting and developing in the intermediate future, and surviving into the distant future

question

explain the concept of contingency organization design

answer

the process of determining the degree of the environmental uncertainty and adapting the organization and its subunits to the situation

question

distinguish between mechanistic and organic organizations

answer

mechanistic- rigid in design and have strong bureaucratic qualities organic- quite flexible in structure and adaptive to change

question

identify and describe the five basic departmentalization formats

answer

1, functional 2. product-service 3. geographic location 4. customer classification 5. work flow process

question

describe how a highly centralized organization differs from a highly decentralized one

answer

centralized- decision making authority is top management decentralized- decision making authority granted to lower level employees by management

question

define delegation

answer

the process of assigning various degrees of decision-making authority to lower-level employees

question

list five common barriers of delegation

answer

1. low self-confidence 2. lack of trust and confidence in employees 3. fear of being called lazy 4. vague job definition 5. fear of competition from those below

question

explain how the traditional pyramid organization is being reshaped

answer

-hourglass -cluster -virtual

question

describe three characteristics of organizational cultures

answer

1. collective- agreement and action for an organization's culture to assume a life of its own 2. emotionally charged- people develop emotional attachment to their organizations culture 3. historically based- shared experiences over periods of time

question

explain what human resource management involves

answer

involves the acquisition, evaluation, retention, and development of human resources necessary for organizational success

question

define human capital

answer

all present and future workforce participants and emphasizes the need to develop their fullest potential for the benefit of everyone

question

identify four of Pfeffer's people-centered

answer

1. protection of job security 2. rigorous hiring process 3. comprehensive training 4. compensation linked to performance

question

identify and briefly explain the seven steps in the PROCEED model of employee selection

answer

1. prepare 2. review 3. organize 4. conduct 5. evaluate 6. exchange 7. decide

question

explain how managers can be more effective interviewers

answer

-structural interviews -behavioral interviews

question

discuss how performance appraisals can be made legally defensible

answer

1. job analysis was used to develop the performance appraisal system 2. appraisal was behavior-oriented, not trait-oriented 3. performance evaluators followed specific written instructions when conducting appraisals 4. evaluators reviewed the results of the appraisals with the ratees

question

contrast the ingredients of good training programs for both skill and factual learning

answer

ingredients vary whether skill or factual learning is involved -include: goal setting, modeling, practice, and feedback

question

explain training program evaluation

answer

1. reaction 2. learning 3. behavior 4. results

question

identify each major link in the communication process

answer

sender -> encode -> medium -> decode ->receiver ->feedback

question

explain the concept of media richness and the Lengel-Daft contingency model of media selection

answer

-describes the capacity of a given medium to convey info and promote learning -media vary in richness high to low

question

identify the five communication strategies

answer

1. spray & pray 2. tell & sell 3. underscore & explore 4. identify & reply 5. withhold & uphold

question

discuss why it is important for managers to know about grapevine and nonverbal communication

answer

to put a stop to any rumors or false information

question

explain four ways managers can encourage upward communication

answer

1. formal grievance procedure 2. employee attitude and opinion surveys 3. suggestion systems 4. open-door policy

question

explain how to deal with info overload

answer

clear objectives and priorities

question

summarize the pros and cons of telecommuting

answer

restricts normal social contact and face-to-face communication

question

specify three practical tips for improving each of the following communication skills: listening, writing, and running a meeting

answer

listening: silence is okay, ask stimulating open-ended questions, paraphrase writing: keep words simple, write concisely, be specific meeting: meet for specific purpose, create an agenda, communicate expectations for the meeting

question

explain the motivational lessons taught by Maslow's theory, Herzberg's theory, and expectancy theory

answer

Maslow's: physiological needs->safety->love->esteem->self-actualization, most individuals are not consciously aware of these needs and we proceed up the pyramid one level at a time Herzberg's: two factor theory- either dissatisfiers or satisfiers expectancy: how much effort to put forth

question

describe how goal setting motivates performance

answer

-directing attention -encouraging effort -encouraging persistence -fostering goal-attainment strategies and action plans

question

discuss how managers can improve the motivation of personnel who perform routine tasks

answer

realistic job previews, job rotation, limited expsoure

question

explain how job enrichment can be used to enhance the motivating potential of jobs

answer

increases the challenge of one's work by reversing the trend toward greater specialization

question

distinguish extrinsic rewards from intrinsic rewards

answer

extrinsic- payoffs granted to the individual by other people intrinsic- self-granted and internally experienced payoffs

question

list four rules of administering extrinsic rewards effectively

answer

1. rewards must satisfy individual needs 2. employees must believe effort will lead to reward 3. rewards must be equitable 4. rewards must be linked to performance

question

explain how employee engagement and retention programs, open-book management, and self-managed teams promote employee participation

answer

more employee run and employees take more responsibility

question

define group

answer

two or more freely interacting individuals who share a common identity and purpose

question

explain the significance of cohesiveness, roles, norms, and ostracism in regard to the behavior of group members

answer

survival in the group, clarify role expectations, avoid embarrassing situations ostracism- rejection from the group

question

identify and describe the six stages of group development

answer

1. orientation 2. conflict and challenge 3. cohesion 4. delusion 5. disillusion 6.acceptance

question

define organizational politics

answer

the pursuit of self-interest at work in the face of real or imagined opposition

question

explain how groupthink can lead to blind conformity

answer

thinking as a cohesive group and not seeing any problems or mistakes or opposing sides

question

define and discuss the management of virtual teams

answer

-a physically dispersed task group linked electronically -clear objectives -managers finding a new way to manage from the school of hard knocks

question

discuss the criteria and determinants of team effectiveness

answer

-personal satisfaction -mutual trust -job security -clear objectives -team involvement -stable goals

question

explain why trust is a key ingredient of teamwork

answer

to work better as a team and to be able to share the work

question

discuss what management can do to build trust

answer

communication, support, respect, fairness, predictability, competence

question

identify and describe eight generic influence tactics used in modern organizations

answer

1. consultation 2. rational persuasion 3. inspirational appeals 4. ingratiating tactics 5. coalition 6. pressure tactics 7. upward appeals 8. exchange tactics

question

identify the five bases of power

answer

1. reward 2. coercive 3. legitimate 4. referent 5. expert

question

explain what it takes to make empowerment work

answer

-adequate training -relevant information -fairly rewarding for results -involvement in key decisions

question

explain the concept of emotional intelligence in terms of Goleman's four leadership traits

answer

-street smarts 1. self-awareness 2. self-management 3. social awareness 4. relationship management

question

summarize what the Ohio State model has taught managers about leadership

answer

-low structure, high consideration -low structure, low consideration -high structure, high consideration -high structure, low consideration

question

describe the path-goal theory of leadership

answer

leaders can enhance motivation by 1. clarifying the individual's perception of work goals 2. linking meaningful rewards to goal attainment 3. explaining how goals and desired rewards can be achieved

question

describe a transformational leader

answer

visionaries who challenge people to achieve exceptionally high levels of morality, motivation, and performance

question

explain Greenleaf's philosophy of the servant leader

answer

ethical person who puts others in the forefront

question

identify the two key functions that mentors perform

answer

1. career enhancement function 2. psychological and social support function

question

explain the management of antecedents and consequences in behavior modification

answer

-simple way of encouraging good performances -removing barriers and providing helpful aids

question

identify and describe four types of organizational change, according to the Nadler-Tushman model

answer

1. tuning 2. adaptation 3. re-orientation 4. re-creation

question

explain how people tend to respond differently to changes they like and those they dislike

answer

like: 1. unrealistic optimism 2. reality shock 3. constructive direction dislike: 1. getting off on the wrong track 2. laughing it off 3. growing self doubt 4. buying in 5. constructive direction

question

list six reasons why employees resist change

answer

1. surprise 2. inertia 3. misunderstanding/ignorance/lack of skills 4. emotional side effects 5. lack of trust 6. fear of failure

question

discuss what management can do about resistance to change

answer

-education and communication -participation and involvement -facilitation and support -negotiation and agreement -manipulation and co-optation -explicit and implicit coercion

question

describe how the unfreezing-change-refreezing metaphor applies to organization development

answer

1. helps neutralize initial resistance 2. ease into transition 3. follow up to any problems

question

describe tempered radicals

answer

those who want to succeed at work while retaining their personal values and identities, even if they clash with corporate culture

question

identify the 5Ps in the checklist for grassroots change agents

answer

1. preparation 2. purpose 3. participation 4. progress 5. persistence

question

contrast competitive and cooperative conflict styles

answer

competitive: opposing goals, mistrust and disbelief, avoid and win-lose, go separate ways cooperative: cooperative goals, trust and rely, discuss and win-win, move forward together

question

identify and describe five conflict resolution techniques

answer

1. problem solving 2. superordinate goals 3. compromise 4. forcing 5. smoothing

question

identify and describe the elements of effective negotiation

answer

-win-win attitude -knowing your batna -identifying bargaining zone -

question

explain the advantage of added value negotiating

answer

everyone is happy

question

identify three types of control

answer

1. feedforward 2. concurrent 3. feedback

question

discuss organizational control from a strategic perspective

answer

downward translation of objectives, upward translation of performance measures

question

identify four key elements of a crisis management program

answer

anticipate->plan->staff->practice

question

identify five types of product quality

answer

1. transcendent 2. product-based 3. user-based 4. manufacturing-based 5. value-based

question

explain how providing a service differs from manufacturing a product

answer

providing a service is costumer based manufacturing is based on how close the product is to the design

question

identify the five service quality dimensions

answer

1. customer participate directly in production process 2. services are consumed immediately and cannot be stored 3. services are provided when and where customer desires 4. services tend to be labor intensive 5. services are intangible

question

define total quality management

answer

creating an organizational culture committed to the continuous improvement of skills, teamwork, process, products, and service quality and customer satisfaction

question

specify the four basic principles of total quality management

answer

1. do it right the first time 2. be customer oriented 3. make continuous improvement a way of life 4. build teamwork and empowerment

question

describe three total quality management process improvement tools

answer

flow chart cause and effect analysis control chart

question

specify four of Deming's famous fourteen points

answer

1. quality improvement drives the entire economy 2. customer always comes first 3. don't blame the person, fix the system 4. plan do check act

STUDY

Anthropology Conducting Direct Foreign Investment Research Social Science

Fieldwork on Prostitution in the Era of AIDS – Flashcards 8 terms

Deacon Kirby

8 terms

Preview

Fieldwork on Prostitution in the Era of AIDS – Flashcards

question

Ethnographic research differs from other social science approaches because research observe society from the point of view of their participants.

answer

How is ethnographic research different from other social science approaches to research?

question

By using ethnographic research, it can revel nuances that other researcher may miss.

answer

What can ethnographic research reveal that other forms of research cannot?

question

Using questionnaires and observational experiments, Strek was able to ask the women questions about contradictions in their stories.

answer

How did the use of questionnaires and observational research reveal about people that ethnographic research might miss?

question

Sterk visited several locations and moved slowly with interactions. She had several weeks, in the beginning, of walking around areas known for prostitution until a women finally approached.

answer

What were techniques Sterk used to enter the field?

question

Sterk developed intimate relationships with her participants by being supportive and providing practical assistance to build a strong rapport to conduct her research. By seldom divulge of opinions, she tried to remained neutral during her field work and her private consensual interviews with the women.

answer

What were techniques Sterk used to conduct research?

question

Leaving the field by taking temporary breaks from a particular scene by switching settings when she felt unsafe or uncomfortable.

answer

What were techniques Sterk used to leave the field?

question

Sterk had a slow beginning with meeting participants who were self appointed key respondents that had a negative reputation on the streets that made others question her credibility. During conducting her fieldwork she upset a prostitute by telling her she had pity for her circumstances which led to her trying to regain this women's forgiveness. Sterk said she had problems leaving the field, she found herself retuning back to the neighborhoods.

answer

Problems Sterk faced when entering, conducting, and leaving her research?

question

When she was asked to partake in illegal activities like hold drug money. Informing prostitutes about protection and handing out condoms.

answer

What were some ethical issues Sterk faced?

STUDY

Direct Foreign Investment Fair Labor Standards Act Host Country Nationals Human Resource Management International Marketing Management National Labor Relations Act Social Issues

HRM Chapter 3 Vocab – Flashcards 18 terms

Jacob Patel

18 terms

Preview

HRM Chapter 3 Vocab – Flashcards

question

Which internal staffing model involves staffing high-level foreign jobs with parent-country nationals? a. Globalcentric b. Polycentric c. Geocentric d. Egocentric e. None of these

answer

e. None of these (Ethnocentric)

question

What aspect of international business do NAFTA and the EU represent? a. Tariff systems b. Economic communities c. Trade controls d. Export regulations e. Quota guidelines

answer

b. Economic communities

question

What is the term used when a company lets a foreign firm make and/or distribute its product in a local market? a. Exporting b. Licensing c. Direct investment d. Joint venture e. Strategic alliance

answer

b. Licensing

question

Under which two approaches to international business will the human resource function be LEAST affected? a. Licensing and joint ventures b. Direct investment and strategic alliances c. Exporting and licensing d. Joint ventures and strategic alliances e. Exporting and direct investment

answer

c. Exporting and licensing

question

Under which international strategy will several companies agree to cooperate for mutual benefit? a. Exporting b. Importing c. Direct investment d. Multinational organization e. Strategic alliance

answer

e. Strategic alliance

question

Local issues that must be dealt with by firms conducting business in foreign markets include all of the following EXCEPT a. Recruiting b. Compensation c. Selection d. Human resource technology e. Training

answer

d. Human resource technology

question

Locating a facility in a relatively underdeveloped area will impact all of the following human resource activities EXCEPT a. Training needs b. Recruitment activities c. Selection requirements d. Development issues e. Production design

answer

e. Production design

question

Repatriation occurs when a(n) a. Company sends a manager to a second foreign assignment b. Expatriate manager comes home from a foreign assignment c. Manager likes a foreign assignment so much that he or she remains in that foreign country d. Manager is sent on a foreign assignment e. Manager on a foreign assignment in compensated in the local currency

answer

b. Expatriate manager comes home from a foreign assignment

question

Which of the following is an accurate statement about labor unions outside the United States? a. In foreign countries, few workers belong to labor unions. b. Labor unions outside the United States are regulated by U.S. laws. c. Foreign labor unions are more likely to be involved in political and social issues. d. Outside the United States, labor contracts are formal legal contracts and employers can be sued in court by the unions for breaking them. e. Foreign employers rarely negotiate with unions in their home country.

answer

c. Foreign labor unions are more likely to be involved in political and social issues.

question

HCNs are LEAST likely to work in _______ positions. a. Clerical b. Line worker c. Maintenance d. Management e. Office worker

answer

d. Management

question

Ethnocentric Staffing Model

answer

Primarily uses parent-country nationals to staff higher-level foreign positions.

question

Polycentric Staffing Model

answer

Calls for the dominant use of host-country nationals throughout the organization.

question

Geocentric Staffing Model

answer

Puts parent-country, host-country, and third-country nationals all in the same category, with the firm attempting to always hire the best person available for a position.

question

Licensing

answer

Involves one company granting its permission to another company in a foreign country to manufacture or market its products in its local market.

question

Direct Foreign Investment

answer

Occurs when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country.

question

Joint Venture (Strategic Alliance)

answer

Two or more firms cooperate in the ownership or management of an operation on an equity basis.

question

Expatriates

answer

Employees who are sent by a firm to work in another country; they may be either parent-country or third-country nationals.

question

Hardship Premium (Foreign Service Premium)

answer

An additional financial incentive offered to individuals to entice them to accept a "less than attractive" international assignment.

STUDY

Corporate Finance Direct Foreign Investment Finance International Marketing Lower The Risk Western Europe

INT_13 – Flashcards 63 terms

Evie Nicholson

63 terms

Preview

INT_13 – Flashcards

question

1. Based on the text, it should be obvious that markets are ____ in reality, and consequently, monopolistic advantages ____ be exploited. a. perfect; may possibly b. perfect; cannot c. imperfect; may possibly d. imperfect; cannot

answer

question

2. When a firm analyzes the feasibility of a project, it should consider the: a. variability of the project's cash flow. b. correlation of the project's cash flow relative to the prevailing cash flows of the MNC. c. A and B d. none of the above

answer

question

3. The ____ a project's variability in cash flows, and the ____ the positive correlation between the project's cash flow and the MNC's cash flow, the lower the risk of the project. a. higher; higher b. higher; lower c. lower; lower d. lower; higher

answer

question

4. More than 50% of the DFI by U.S. firms is in Mexico. a. True b. False

answer

question

5. Consider Firm A and Firm B that both produce the same product. Firm A would more likely have more stable cash flows if its percentage of foreign sales were ____ and the number of foreign countries it sold products to was ____. a. higher; large b. higher; small c. lower; small d. higher; large

answer

question

6. According to the text, a firm may be able to achieve a "more efficient" project portfolio if it: a. focuses solely on one product. b. focuses solely on one location to market what it produces. c. A and B d. none of the above

answer

question

7. According to information in the text, a host government would be least likely to provide incentives for direct foreign investment (DFI) into its country if the firm planning DFI: a. would compete with local firms of the host country. b. would produce a good not currently available in the host country. c. would produce a good and export it to other countries. d. B and C

answer

question

8. If countries are highly influential upon each other, the correlations of their economic growth levels would likely be ____. A firm would benefit ____ by diversifying sales among these countries relative to another set of countries that were not influential upon each other. a. high and positive; more b. close to zero; more c. high and positive; less d. close to zero; less

answer

question

9. A firm will likely benefit most from diversifying if: a. the correlations between country economies are high. b. the correlations between country economies are low. c. the variability of all country economy levels is high. d. B and C

answer

question

10. When a foreign currency is perceived by a firm to be undervalued, the firm may consider direct foreign investment in that country, as the initial outlay should be relatively low. a. True b. False

answer

question

11. Consider a country that presently has a high level of unemployment because of weak economic conditions. Its income levels are very low. This country may be an attractive target as a result of ____ motives by U.S. firms that engage in direct foreign investment. a. revenue-related b. cost-related c. A and B d. none of the above

answer

question

12. Which of the following is a reason to consider international business? a. economies of scale. b. exploit monopolistic advantages. c. diversification. d. all of the above

answer

question

13. From the concept of an "efficient frontier," the point on a frontier that is optimal for all firms: a. is the top point. b. is the point closest to the vertical axis. c. is the point half way between the two end points. d. cannot be determined since firms vary in their willingness to accept risk.

answer

question

14. Direct foreign investment is perceived by foreign governments to: a. be a cause of national problems. b. be a remedy for national problems. c. either A or B is possible. d. have no impact on national problems.

answer

question

15. Direct foreign investment would typically be welcomed if: a. the products to be produced are substitutes for other locally produced products. b. people from the country of the company's headquarter are transferred to the foreign country to work at the subsidiary. c. the products to be produced are going to be exported. d. all of the above

answer

question

16. Assume a U.S. firm initiates direct foreign investment in the U.K. If the British pound is expected to appreciate against the dollar, the dollar value of earnings remitted to the parent should ____. The parent may request that the subsidiary ____ in order to benefit from the expectation about the pound. a. increase; postpone remitting earnings until the pound strengthens b. decrease; postpone remitting earnings until the pound strengthens c. decrease; remit earnings immediately before the pound strengthens d. increase; remit earnings immediately before the pound strengthens

answer

question

17. Assume the British pound appreciates against the dollar while the Japanese yen depreciates against the dollar. Which of the following is true? a. Japanese exporters can increase American sales by shifting operations from their British subsidiaries to Japan. b. British exporters can increase American sales by shifting operations from their Japanese subsidiaries to Britain. c. American exporters can increase sales to Japan by shifting operations from Japanese subsidiaries to American subsidiaries. d. B and C

answer

question

18. Even if production costs are higher in a foreign country, a U.S. firm may establish a manufacturing plant in the foreign country now if: a. the host government of that country eliminates all quotas. b. the host government of that country reduces all quotas. c. the host government of that country increases all quotas. d. the host government of that country eliminates all tariffs.

answer

question

19. A country with high unemployment could best increase its employment by: a. encouraging foreign firms to establish subsidiaries that produce the same products local firms produce. b. encouraging foreign firms to establish licensing arrangements for products local firms produce. c. encouraging foreign firms to establish subsidiaries that produce products local firms do not produce. d. none of the above would reduce employment.

answer

question

20. According to your text, ____ is a country that has been perceived as one of the most attractive sources of new demand. a. Paraguay b. Morocco c. Sweden d. China

answer

question

21. ____ is not a disadvantage of direct foreign investment. a. The expense of establishing a foreign subsidiary b. The uncertainty of inflation and exchange rate movements c. Political risk d. All of the above are disadvantages of direct foreign investment

answer

question

22. Assume the correlation coefficient between the return on the existing project and the return on a proposed foreign project is 1. Also assume the returns on the existing project and the new project are equal, and that the existing project has a lower standard deviation than the proposed project. Under this scenario, undertaking the proposed project will ____ the variance of the firm's overall returns. a. decrease b. increase c. decrease or increase, depending on the exact size of the returns and standard deviations d. none of the above

answer

question

23. Which of the following is not true regarding host government attitudes towards direct foreign investment (DFI)? a. Host governments may offer incentives to MNCs in the form of subsidies in certain circumstances. b. Host governments generally perceive DFI as a remedy to eliminate a country's political problems. c. The ability of a host government to attract DFI is dependent on the country's markets and resources. d. Some types of DFI will be more attractive to some governments than to others. e. All of the above are true.

answer

question

24. Which of the following is not true regarding the efficient frontier considered by MNCs? a. There is exactly one point on the efficient frontier that is optimal for every MNC, regardless of its degree of risk aversion. b. The efficient frontier for international projects will probably lie to the left of the efficient frontier for domestic projects. c. Each point on the efficient frontier represents a portfolio of projects as opposed to an individual project. d. All of the above are true. e. A and C are false.

answer

question

25. Which of the following is not a cost-related motive of direct foreign investment? a. International diversification. b. Low labor costs. c. Land can be purchased at a low price. d. Manufacturing plants can be built for a low price.

answer

question

26. MNCs commonly consider direct foreign investment because it can improve their profitability and enhance shareholder wealth. a. True b. False

answer

question

27. ____ is not a revenue-related motive for direct foreign investment. a. Attracting new sources of demand b. Fully benefiting from economies of scale c. Exploiting monopolistic advantages d. Entering profitable markets

answer

question

28. ____ is not a cost-related motive for direct foreign investment. a. Exploiting monopolistic advantages b. Fully benefiting from economies of scale c. Using foreign factors of production d. Using foreign raw materials

answer

question

29. When a firm perceives that a foreign currency is ____, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively ____. a. overvalued; high b. overvalued; low c. undervalued; high d. undervalued; low

answer

question

30. Countries that became part of the European Union in recent years had high labor and production costs and therefore were not targeted for new DFI by MNCs that wanted to reduce manufacturing costs. a. True b. False

answer

question

31. Generally speaking, direct foreign investment by U.S. firms in Eastern Europe has increased recently. a. True b. False

answer

question

32. The best means to accomplish the revenue-related motive of attracting new sources of demand is to: a. acquire a competitor that has controlled its local market. b. establish a subsidiary or acquire a competitor in a new market. c. establish a subsidiary in a market where tougher trade restrictions will adversely affect the firm's export volume. d. establish subsidiaries in markets whose business cycles differ from those where existing subsidiaries are based.

answer

question

33. To enter markets where superior profits are possible, an MNC should: a. acquire a competitor that has controlled its local market. b. establish a subsidiary or acquire a competitor in a new market. c. establish a subsidiary in a market where tougher trade restrictions will adversely affect the firm's export volume. d. establish subsidiaries in markets whose business cycles differ from those where existing subsidiaries are based.

answer

question

34. To exploit monopolistic advantages, an MNC should: a. acquire a competitor that has controlled its local market. b. establish a subsidiary or acquire a competitor in a new market. c. establish a subsidiary in a market where tougher trade restrictions will adversely affect the firm's export volume. d. establish subsidiaries in markets where competitors are unable to produce the identical product.

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35. To fully benefit from economies of scale, an MNC should: a. establish a subsidiary in a new market that can sell products produced elsewhere. b. establish a subsidiary in a market that has relatively low costs of labor or land. c. establish a subsidiary in a market where raw materials are cheap and accessible. d. participate in a joint venture in order to learn about a production process or other operations.

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36. To use foreign factors of production, an MNC should: a. establish a subsidiary in a new market that can sell products produced elsewhere. b. establish a subsidiary in a market that has relatively low costs of labor or land. c. establish a subsidiary in a market where raw materials are cheap and accessible. d. participate in a joint venture in order to learn about a production process or other operations.

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37. They key to international diversification is selecting foreign projects whose performance levels are highly correlated over time. a. True b. False

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38. When economic conditions of two countries are ____, then a firm would ____ its risk by operating in both countries instead of concentrating just in one. a. highly correlated; reduce b. not highly correlated; not reduce c. not highly correlated; reduce d. none of the above

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39. Along the frontier of efficient project portfolios, exactly one portfolio can be singled out as "optimal" for all MNCs. a. True b. False

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40. Some governments restrict foreign ownership of local firms. Such restrictions may limit or prevent international acquisitions. a. True b. False

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41. Direct foreign investment (DFI) represents investment in real assets (such as land, buildings, or even existing plants) in foreign countries. a. True b. False

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42. Although direct foreign investment is sometimes conducted, benefits are rarely realized. a. True b. False

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43. MNCs often attempt to set up production in locations where land and labor are expensive, because expensive factors of production indicate high demand. a. True b. False

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4. Due to market imperfections, the cost of factors of production (such as labor) may differ substantially across countries. a. True b. False

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45. In assessing the risk of an individual project, the expected correlation of the new project's returns with those of the prevailing business should be considered. a. True b. False

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46. Managers of MNCs may attempt to expand their divisions internationally if their compensation may be increased as a result of expansion. This goal is consistent with the goals of shareholders. a. True b. False

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47. Countries in eastern Europe are more appealing to MNCs that seek relatively low costs of land and labor than countries in western Europe. a. True b. False

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48. Assume a U.S. firm initiates direct foreign investment in Italy. If the euro is expected to depreciate against the dollar, the dollar value of earnings remitted to the parent should ____. The parent may request that the subsidiary ____. a. increase; postpone remitting earnings until the euro weakens b. decrease; postpone remitting earnings until the euro weakens c. decrease; remit earnings immediately before the euro weakens d. increase; remit earnings immediately before the euro weakens

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49. To diversify internationally for the purpose of reducing risk, which strategy is appropriate? a. Establish subsidiaries in markets whose business cycles are the same as those where existing subsidiaries are based. b. Establish a subsidiary in a market that has relatively low cost of labor or land. c. Establish a subsidiary in a market where the local currency is weak but is expected to appreciate over time. d. Establish subsidiaries in markets whose business cycles differ from those where existing subsidiaries are based.

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50. To fully benefit from use of foreign raw materials: a. establish a subsidiary in a market where raw materials are cheap and accessible. b. sell the finished product to countries where the raw materials are more expensive. c. establish a subsidiary in a new market that can sell products produces elsewhere. d. A and B

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51. Procedural and documentation requirements imposed by the foreign government are referred to as: a. regulatory barriers. b. industry barriers. c. protective barriers. d. "Red Tape" barriers.

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52. Constraints pertaining to taxes, currency convertibility, earnings remittance, and employee rights are best described as: a. ethical differences. b. regulatory barriers. c. quota barriers. d. "Red Tape" barriers.

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53. Assume that the government of Krusho requires bribes to approve certain projects. MNCs that attempt to do business in Krusho must deal with: a. protective barriers. b. "red tape" barriers. c. ethical differences. d. regulatory barriers.

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54. The overall variability of a firm's returns depends on the expected return of each individual project, percentage of funds invested in each individual project, and correlation coefficient of returns between the investments. a. True b. False

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55. MNCs can probably achieve more desirable risk-return characteristics from their project portfolios if they sufficiently diversify among products and geographical markets. a. True b. False

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56. Once a decision to establish a foreign subsidiary has been made, it is irreversible. Therefore, no periodic monitoring of the project is necessary. a. True b. False

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57. Direct foreign investment is commonly considered by MNCs because it allows the MNC to: a. attract new sources of demand. b. enter profitable markets. c. react to exchange rate movements. d. react to trade restrictions. e. all of the above

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58. ____ is not a revenue-related motive for direct foreign investment (DFI). a. Attracting new sources of demand b. Fully benefiting from economies of scale c. Exploiting monopolistic advantages d. Reacting to trade restrictions e. Diversifying internationally

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59. ____ is not a cost-related motive for direct foreign investment (DFI). a. Using foreign factors of production b. Using foreign raw materials c. Using foreign technology d. Reacting to trade restrictions e. Fully benefiting from economies of scale

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60. When a foreign currency is perceived by a firm to be ____, the firm will probably ____ direct foreign investment in that country. a. undervalued; consider b. undervalued; not consider c. overvalued; not consider d. A and C e. B and C

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61. The best means of using direct foreign investment (DFI) to fully benefit from cheap foreign factors of production is probably to: a. acquire a competitor that has controlled its local market. b. establish a subsidiary in a new market that can sell products produced elsewhere; this allows for increased production and possibly greater production efficiency. c. establish a subsidiary in a market that has relatively low costs of labor and land; sell the finished product to countries where the cost of production is higher. d. establish a subsidiary in a market in which raw materials are cheap and accessible; sell the finished product to countries in which the raw materials are more expensive.

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62. The ____ the correlation in project returns is over time, the ____ will be the project portfolio risk as measured by the portfolio variance. a. lower; lower b. higher; lower c. lower; higher d. none of the above

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63. Which of the following is not true regarding host government attitudes towards direct foreign investment (DFI)? a. Host governments may offer incentives to MNCs in the form of subsidies in certain circumstances. b. Host governments generally perceive DFI as a remedy for their national problems. c. The ability of a host government to attract DFI is dependent on the country's markets and resources. d. Some types of DFI will be more attractive to some governments than to others. e. All of the above are true.

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STUDY

Centrally Planned Economy Direct Foreign Investment Gdp Gross Domestic Product Political Economy

International Business Chapter 3 – Flashcards 23 terms

Sabrina Peterson

23 terms

Preview

International Business Chapter 3 – Flashcards

question

Tariff

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designed to raise revenue for governments and provide a competitive advantage for domestic businesses

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True

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Cultures such as China, North Korea, and Cuba believe that an economic value system should be founded on cumulative efforts, controlled by greater entities or governments. (True or False)

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False

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Operation risk occurs when debtors in a country are unable to ensure timely payments of foreign currency debt service because of either transfer or exchange restrictions or a general lack of foreign currency. (True or False)

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Subsidies

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_______ are special privileges offered by the government in order to attract businesses to a region or to provide them with the funding to operate successfully

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Government restriction of trade

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Political issues that significantly impact global business include

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False

answer

Nations that primarily functioned under the centrally planned economic system prior to the 1980s, such as China and Russia, have embraced the market economy.

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False

answer

In 1975, as business and policy makers' alike saw the potential growth of global business, the World Trade Organization (WTO) was created by several countries in order to monitor trade around the entire world.

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False

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The Organization for Economic Cooperation and Development (OECD), the World Trade Organization, the World Bank, and the International Monetary Fund have all indicated that unstable political systems are the greatest single barrier to economic development worldwide.

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True

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Global business risk is any worldwide factor—outside the laws of supply and demand—that could impact the success or failure of any venture moving into the international arena.

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Operational

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Which type of risk do managers have some control over?

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True

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The three types of global business risk include ownership risk, operational risk, and transfer risk.

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Foreign Trade Zones

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designated areas in Customs Ports of Entry that allow commercial merchandise to receive the same customs treatment it would receive if it were outside the commerce of the United States

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False

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A market economy most often refers to an economic system that is under comprehensive control and regulation by a government, in accordance with the plan of economic development.

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True

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The U.S. Department of Commerce developed the International Trade Administration (ITA) in order to stimulate economic opportunities for U.S. businesses and their employees.

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Quotas

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typically raise the price of imports, reduce the volume of imports, and encourage demand for domestically made substitutes.

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True

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Any company considering moving into a foreign economic market must consider the powerful influence of the military and religious leadership.

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Quotas

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places power in the hands of customs officials

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Administrative delays

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______ imposes a waiting period between the determination of a product's quality and the determination of when it can actually be sold in a market

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Supplier's Credit

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loan in which the exporter is covered, but the value of the cover will be less than the value of the contract.

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WTO

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is designed to monitor trade around the entire world

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Embargoes

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is an economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals and can be motivated by political, economic, or moral reasons

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True

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The United States Department of the Treasury oversees and enforces all U.S. economic sanctions through the Office of Foreign Assets Control (OFAC).

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Increasing resources or technology

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NOT a purpose behind embargoes

STUDY

Direct Foreign Investment Foreign Exchange Rates International Economics

International Business Exam #3 – Flashcards 67 terms

Elizabeth Mcdonald

67 terms

Preview

International Business Exam #3 – Flashcards

question

Which of the following is transacted when it is desirable to move out of one currency into another for a limited period without incurring foreign exchange risk? a. Swap b. Delivery c. Commercial paper d. Straddle

answer

Swap

question

Which of the following is a major reason why governments limit convertibility of their currency? a. To encourage foreign investments. b. To have a tight grip on fiscal policy. c. To maintain an illusion of growth. d. To preserve their foreign exchange reserves.

answer

To preserve their foreign exchange reserves.

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How are spot exchange rates in the foreign exchange markets determined? a. By using historical average prices. b. By the relative demand and supply for different currencies. c. By taking the average of a basket of currencies. d. By government decree.

answer

By the relative demand and supply for different currencies.

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Which of the following is a key feature of the foreign exchange market? a. The market never sleeps. b. The market is located in London. c. The market is characterized by high transaction costs. d. The market is shut for only three hours.

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The market never sleeps.

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Which of the following refers to the purchase of securities in one market for immediate resale in another to profit from a price discrepancy? a. Exercise b. Straddle c. Arbitrage d. Swap

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Arbitrage

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Assume that the yen/dollar exchange rate quoted in London at 3 p.m. is $1 = $100Yen and that the yen/dollar exchange rate quoted in New York at the same time is $1 = 120. Which profit making situation exists here? a. Option b. Hedge c. Swap d. Arbitrage

answer

arbitrage

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Currency carry trade takes advantage of: a. temporary undervaluation of one currency vis-à-vis another. b. differences in interest rates between countries. c. mispricing of stocks trading in two exchanges. d. high volatility in currency exchange rates.

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differences in interest rates between countries.

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Which of the following occurs when the quantity of money in circulation rises faster than the stock of goods and services? a. Liquidity crunch b. Deflation c. Trade surplus d. Inflation

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inflation

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The rapid rise in the value of the dollar on the foreign exchange market in the 1990s hurt the price competitiveness of many U.S. producers in world markets. U.S. manufacturers that relied heavily on exports saw their export volume and world market share decline. This is an example of: a. income exposure. b. transaction exposure. c. economic exposure. d. translation exposure.

answer

economic exposure

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In 2002-2007, the euro rose in value against the dollar. This boosted the dollar profits of American multinationals with significant operations in Europe. Which of the following is this an example of? a. Economic exposure b. Transaction exposure c. Translation exposure d. Income exposure

answer

translation exposure

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A currency is said to be _____ when only nonresidents may convert it into a foreign currency without any limitations. a. externally convertible b. nonconvertible c. part-convertible d. freely convertible

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externally convertable

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A U.S. company that imports laptop computers from Japan knows that in 30 days it must pay yen to a Japanese supplier when a shipment arrives. The company will pay the Japanese supplier ×150,000 for each computer, and the current dollar/yen spot exchange rate is $1 = ×110. The importer knows she can sell the computers the day they arrive for $1,600 each. However, the importer will not have the funds to pay the Japanese supplier until the computers have been sold. The importer enters into a 30-day forward exchange transaction with a foreign exchange dealer at $1 = ×105. Which of the following will happen if the exchange rate after 30 days is $1 = ×90? a. The importer will earn a profit of $236 per computer. b. The importer will earn a profit of $171 per computer. c. The importer will earn a profit of $65 per computer. d. The importer will incur a loss of $67 per computer.

answer

The importer will earn a profit of $171 per computer.

question

Assume that the exchange rate between the euro and the dollar is € 1 = $1.20. A camera that retails for $300 in New York sells for € 200 in Berlin. Ignoring any transaction costs or barriers, this represents an initial arbitrage profit potential of: a. $60. b. $80. c. $20. d. $100.

answer

$60 Feedback: € 200 = $240 (€ 200 x 1.2). The difference of $60 ($300-$240) is the profit potential.

question

You exchanged $1,000 to 105,000 yen for a trip to Japan. During your stay, you spent 50,000 yen. Also, during this period the dollar weakened against the yen to 100 to a dollar. On your return, you went to the bank to exchange the remaining yen. How many dollars did you spend on the trip? a. $550 b. $523 c. $450 d. $600

answer

$450 Feedback: The remaining 55,000 yen would yield 550 dollars when the exchange rate is 100 yens for a dollar. Amount spend during the trip is $450 ($1,000 - $550).

question

A French company has 20 million euros it wants to invest for three months. Investing in a Thai money market account gives the company a higher return than domestic investments. Is this investment risk-free? Why or why not? a. Yes, because money market investments are considered to be equivalent to bank deposits. b. No, because foreign currency movements in the intervening period can affect the profitability. c. Yes, because such investments also lock foreign exchange rates for the duration of the investments. d. No, because money markets instruments are considered to be the most speculative of all investments.

answer

No, because foreign currency movements in the intervening period can affect the profitability. Feedback: The rate of return it earns on this investment depends not only on the Thai interest rate, but also on the changes in the value of the Thai Baht against the euro in the intervening period.

question

A _____ is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates. a. currency barter b. currency exercise c. currency option d. currency swap

answer

currency swap

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Assume that the dollar is selling at a premium on the 30-day dollar/euro forward market. Which of the following reflects the foreign exchange dealers' expectations about the dollar over the next 30 days? a. The dollar will depreciate against the euro. b. The dealers are undecided about the direction of movement. c. The dollar will appreciate against the euro. d. The dollar/euro exchange rate will be steady.

answer

The dollar will appreciate against the euro.

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The theory of purchasing power parity (PPP) links changes in the exchange rate between two countries' currencies to: a. changes in the countries' price levels. b. changes in the countries' population. c. changes in the countries' political structure. d. changes in the countries' productivity levels.

answer

changes in the countries' price levels.

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Which is the most important foreign exchange trading center in terms of percentage of activity? a. Zurich b. London c. New York d. Singapore

answer

London

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_____ refers to a range of barter-like agreements by which goods and services can be traded for other goods and services. a. Countertrade b. Price discrimination c. Cartelization d. Dumping

answer

countertrade

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T/F: A floating exchange rate is a system under which the exchange rate for converting one currency into another is continuously adjusted depending on the law of supply and demand.

answer

true

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T/F: Since the Bretton Woods system of floating exchange rates collapsed in 1973, the world

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false

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T/F: A dirty float is called so because the central bank of a country will intervene in the foreign exchange market to try to maintain the value of its currency if it depreciates too rapidly against an important reference currency.

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true

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T/F: The Central bank is similar to a Currency board and both act as banks of last resort

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false

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T/F: The Bretton Woods agreement legalized the use of devaluation as a tool of competitive trade policy.

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false

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T/F: A fixed exchange rate regime imposes monetary discipline on countries, thereby curtailing price inflation.

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true

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T/F: If the IMF agrees that the country's balance of payments is in "fundamental disequilibrium," the system of adjustable parities allows for the devaluation of a country's currency by more than 10 percent.

answer

true

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T/F: One criticism of the IMF is that its traditional policy prescriptions represent "one-size-fits-all" approach to macroeconomic policy that is inappropriate for many countries.

answer

true

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Which of the following refers to the institutional arrangements countries adopt to govern exchange rates? a. International Monetary Fund b. Global agreement on exchange rates c. International monetary system d. Bretton Woods Arrangement

answer

international moneytary system

question

When the foreign exchange market determines the relative value of a currency, the country is said to adhere to a _____ exchange rate regime. a. fixed b. dirty float c. floating d. pegged

answer

floating

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The voting rights within the IMF are roughly proportionate to the___________ _________made by member nations. The US has 17% of the vote followed by Japan and Germany. US, Japan and Europe together account for more than 80% of the vote in the IMF. The breakdown of the democratic process becomes clear as the Jamaican people are removed from participation in the decisions that truly affect their lives. a. Democratic votes b. Economic contributions c. Economic gains d. Great progress

answer

economic contributions

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A free trade zone is a: a. New legislation passed for international trade. b. Geographical Zones in which trade is fair. c. Geographical area in which commerce can be conducted without tariffs being applied d. Geographical area in which Free Trade regional agreement has been carried out.

answer

Geographical area in which commerce can be conducted without tariffs being applied

question

The IMF assumes that the combination of increased interest rates and ________ ______ ________ ________ will shift resources from domestic consumption to private investment. It is further assumed that keeping the price of local labor down will be an incentive for increasing employment and production. a. a steady government spending b. Increase in government spending c. Cutbacks in government spending d. None of the above e. Local machinery f. Patronization

answer

cutbacks in government spending

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T/F: The central bank is government owned and not separate from the country's finance ministry

answer

false

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T/F: One of the factors that contributed to the Mexican crisis was that the central bank began converting short term debt, denominated in pesos, into dollar- denominated bonds. This conversion resulted in an increase in foreign reserves and a decrease in debt.

answer

false

question

All of the following contributed to the Asian crisis of 1997 except:

answer

production driven by domestic demand.

question

Identify the countries worst affected by the Southeast Asian crisis of 1997?

answer

Indonesia, Thailand, and South Korea

question

The Asian meltdown began in mid-1997 in _____ when it became clear that several key financial institutions were on the verge of default.

answer

Thailand

question

Which of the following actions by the Mexican government in December 1994, exacerbated the sale of the peso and contributed to the rapid 40 percent drop in its value?

answer

Currency devaluation

question

Which of the following economies in Southeast Asia was considered relatively more stable during the crisis on 1997?

answer

Singapore

question

Which of the following was the objective of establishing the International Monetary Fund (IMF)?

answer

Maintain order in the international monetary system.

question

In 2001, the WTO launched a new round of talks aimed at further liberalizing the global trade and investment framework. It was held at:

answer

Doha.

question

One concern of globalization critics is that a global economy shifts economic power away from _____ and toward _____.

answer

national governments; supranational organizations

question

Many economists and business leaders believe that globalization offers several benefits including:

answer

rising incomes of consumers.

question

One of the consequences of globalization that is appreciated by people from developing countries is that:

answer

the changes that progress has brought to their standard of living.

question

Opponents of outsourcing in advanced economies like the U.S. and Western Europe contend that:

answer

falling trade barriers allow firms to move manufacturing activities to countries where wage rates are much lower.

question

Supporters of globalization insist that dislocation in the form of lost jobs is a trade-off that will ultimately lead to the economy being better off. What are they justifying in this case?

answer

free trade

question

The principle argument of those who opposed NAFTA centered on the fear that ratification would result in:

answer

mass exodus of jobs from the United States into Mexico.

question

Which three countries implemented the NAFTA?

answer

Canada, Mexico, and the United States

question

When is capital flight most likely to occur?

answer

when domestic currency depreciates rapidly because of hyperinflation.

question

The absence of a legal system that protects property rights and the machinery to enforce that system usually results in:

answer

a reduction in the incentive to engage in productive economic activity.

question

Five of the fastest-growing economies of the past 30 years—China, South Korea, Taiwan, Singapore, and Hong Kong—had one thing in common at the start of their economic growth:

answer

undemocratic governments.

question

Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until:

answer

property rights are better defined and protected.

question

What happens when governments control or dominate a national economy?

answer

Businesses are greatly restricted with the government doing most of the controlling and siphoning.

question

Is there a relationship between open markets and political freedom?

answer

It is true that some totalitarian governments can have open markets

question

A(n) _____ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

answer

common market

question

A regional free trade agreement will benefit the world only if:

answer

the amount of trade it creates exceeds the amount it diverts.

question

An agreement between countries in a geographic region to reduce tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other is referred to as:

answer

regional economic integration.

question

All of the following were objectives of the Single European Act EXCEPT:

answer

increasing the powers of the European Commission in matters of competitive policy.

question

Bolivia, Chile, Ecuador, Colombia, and Peru signed an agreement in 1969 to create the:

answer

Andean Pact

question

Identify the EU institution responsible for proposing EU legislation, implementing it, and monitoring compliance with EU laws by member states.

answer

European Commission

question

In 1990, the MERCOSUR pact was expanded to include:

answer

Paraguay and Uruguay.

question

The most enduring free trade area in the world is the:

answer

European Free Trade Association.

question

The two main reasons that have made regional economic integration difficult to achieve are:

answer

concerns about costs and national sovereignty.

question

What was the objective of the Single European Act?

answer

It committed member countries to work toward establishment of a single market by December 31 1992.

question

Which of the following countries are currently members of the European Free Trade Association (EFTA)?

answer

Norway, Iceland, Liechtenstein, and Switzerland

question

_____ occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area.

answer

Trade diversion

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