Global Business Today 9th Edition

Global Business Today Ninth Edition Chapter 1 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 1

Global Business Today Ninth Edition Chapter 1 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 13

Global Business Today Ninth Edition Chapter 10 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 185

Global Business Today Ninth Edition Chapter 11 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or

Global Business Today Ninth Edition Chapter 11 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in

Global Business Today Ninth Edition Chapter 12 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 12 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 13 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 14 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 15 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 16 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 16 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 17 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 2 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 3 This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 44 This is proprietary

Global Business Today Ninth Edition Chapter 4 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 60

Global Business Today Ninth Edition Chapter 5 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 5 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 6 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 7 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 8 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Global Business Today Ninth Edition Chapter 9 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or

Global Business Today Ninth Edition Chapter 9 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or

The strategic trade policy arguments of the new trade theorists suggest an economic justification for government intervention in international trade and this justification challenges the rationale for unrestricted free trade. Answer: TRUE The strategic trade policy arguments of the new trade theorists suggest an economic justification for government intervention in international

Which of the following is a common pitfall that novice exporters come across? A.Poor understanding of the opportunities in the domestic market B.Low unit costs C.Increased economies of scale D.Problems securing financing E.Familiar distribution systems Answer: D.Many neophyte exporters run into significant problems when first trying to do business abroad, and this sours them on future

Which of the following is defined as a central political apparatus that coordinates the economic, social, and foreign policy of the member-states? A.Free trade area B.Political union C.Economic union D.Common market E.Command economy Answer: B.The move toward economic union raises the issue of how to make a coordinating bureaucracy accountable to the citizens of member nations.

Which of the following observations about the International Development Association (IDA) scheme of the World Bank is true? A.Money is raised through bond sales in the international capital market. B.Borrowers have up to 50 years to repay at an interest rate of less than 1 percent a year. C.IDA loans go only to

For international firms, an ethnocentric staffing approach is compatible with a localization strategy. Answer: FALSEBroadly speaking, an ethnocentric approach is compatible with an international strategy, a polycentric approach is compatible with a localization strategy, and a geocentric approach is compatible with both global standardization and transnational strategies. FALSEBroadly speaking, an ethnocentric approach

Strategies that increase profitability can also expand a firm's business and thus enable it to attain a higher rate of profit growth. Answer: TRUEStrategies that increase profitability can also expand a firm's business and thus enable it to attain a higher rate of profit growth. TRUEStrategies that increase profitability can also expand

Viewed from an Asian or European perspective, Vernon's argument that most new products are developed and introduced in the United States seems ethnocentric and increasingly dated. Answer: TRUE Viewed from an Asian or European perspective, Vernon's argument that most new productsare developed and introduced in the United States seems ethnocentric and

Ricardo's theory of comparative advantage is a major intellectual weapon for advocates of free trade because it provides a strong rationale for encouraging free trade. Answer: TRUE Ricardo's theory of comparative advantage provides a strong rationale for encouraging freetrade and is powerful enough to remain a major intellectual weapon for those

Which of the following has been declining in the developing nations of the world such as China, India, Russia, Indonesia, Thailand, South Korea, Mexico, and Brazil? A.Economic opportunities for international trade B.Industrialization C.Contribution toward the share of world output D.The stock of foreign direct investment E.Barriers to the free flow of goods, services, and capital

Which of the following staffing policies seeks the best people for key jobs throughout the organization, regardless of nationality? A.Global B.Ethnocentric C.Geocentric D.Polycentric E.Transnational Answer: C.A geocentric staffing policy seeks the best people for key jobs throughout the organization,regardless of nationality. In sum, other things being equal, a geocentric staffing policy seems the most attractive. C.A geocentric

Countertrade is most attractive to: A.small exporters. B.large multinational enterprises. C.only U.S. firms. D.any firm in democratic nations. E.new companies. Answer: B.Countertrade is most attractive to large, diverse multinational enterprises that can use their worldwide network of contacts to dispose of goods acquired in countertrading. The masters of countertrade are Japan's giant trading firms, the sogo

Which of the following allows a firm to educate potential consumers about the features of a product? A.Direct selling B.Mass media advertising C.Pull strategy D.Standardized advertising E.Lag strategy Answer: A.Firms that sell industrial products or other complex products favor a push strategy. Direct selling allows the firm to educate potential consumers about the features of the

Argonia Republic is in trade surplus with Kamboly. Under the gold standard, which of the following statements is true until a balance-of-trade equilibrium is achieved? A.There will be a net flow of gold from Argonia Republic to Kamboly. B.The money supply in Kamboly will be reduced due to the flow of gold

"Facilitating payments" are payments to secure contracts that would not otherwise be secured. Answer: FALSEFacilitating payments are not payments to secure contracts that would not otherwise be secured, nor are they payments to obtain exclusive preferential treatment. FALSEFacilitating payments are not payments to secure contracts that would not otherwise be secured, nor

Which of the following has resulted in a dramatic shortening of product life cycles? A.Acceleration of the pace of technological change B.Lack of domestic competition C.Affluence of customers D.An increase in the number of educated consumers E.Removal of trade barriers Answer: A.In today's world, competition is as much about technological innovation as anything else. The pace

Most economists prefer Ricardo's theory to the Heckscher-Ohlin theory because it makes fewer simplifying assumptions. Answer: FALSEThe Heckscher-Ohlin theory has been one of the most influential theoretical ideas in international economics. Most economists prefer the Heckscher-Ohlin theory to Ricardo's theory because it makes fewer simplifying assumptions. FALSEThe Heckscher-Ohlin theory has been one

Although most international trade and investment are still conducted by large firms, many medium-size and small businesses are becoming increasingly involved in international trade and investment. Answer: TRUE Although most international trade and investment are still conducted by large firms, many medium-size and small businesses are becoming increasingly involved in international

Expatriate managers who lack others-orientation tend to treat foreign nationals as if they were home-country nationals. Answer: FALSEPerceptual ability is the ability to understand why people of other countries behave the way they do; that is, the ability to empathize. Expatriate managers who lack this ability tend to treat foreign nationals

In stating that all human beings are born free and equal in dignity and rights and that they are endowed with reason and conscience and should act toward one another in a spirit of brotherhood, Article 1 of the Universal Declaration of Human Rights echoes: A.the Friedman doctrine. B.naive immoralism. C.cultural relativism. D.Kantian ethics. E.teleological

A firm that adopts a polycentric staffing policy is less likely to: A.isolate foreign subsidiaries from corporate headquarters. B.implement an expensive staffing policy. C.be controlled by corporate headquarters. D.suffer from cultural myopia. E.provide growth opportunities. Answer: D.One advantage of adopting a polycentric approach is that the firm is less likely to suffer from cultural myopia. Host-country

Which of the following are unit cost reductions associated with a large scale of output? A.Comparative advantages B.Factor endowments C.Economies of scale D.Diminishing returns E.Absolute advantages Answer: C.Economies of scale are unit cost reductions or cost advantages associated with a large scaleof output. C.Economies of scale are unit cost reductions or cost advantages associated with a large

An early entrant find may find itself at a disadvantage if it: A.is trying to realize location and experience curve economies. B.incurs low development costs. C.faces a subsequent change in business regulations in the host-country. D.has a core competence based on control over technological know-how. E.considers a greenfield strategy. Answer: C.Early entrants can find themselves at

The move toward a global economy has strengthened the adoption of conservative economic policies by developing nations. Answer: FALSEThe move toward a global economy has been further strengthened by the widespread adoption of liberal economic policies by countries that had firmly opposed them for two generations or more. FALSEThe move toward a

By lowering production costs, subsidies help domestic producers to: A.gain export markets. B.meet import quotas. C.meet voluntary export restraints. D.meet the local content requirement. E.compete in the domestic market against local producers. Answer: A.By lowering production costs, subsidies help domestic producers in two ways: (1) competing against foreign imports and (2) gaining export markets. A.By lowering production

Which of Hofstede's dimensions focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities? A.individualism versus collectivism B.power distance C.uncertainty avoidance D.masculinity versus femininity E.Confucian dynamism Answer: B.Hofstede's power distance dimension focused on how a society deals with the fact that people are unequal in physical and intellectual

In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning? A.Command B.Pure market C.Mixed D.Centrally planned E.Laissez-faire Answer: C.In a mixed economy, certain sectors of the economy are left to private ownership and free market

The purchasing power parity for different countries is adjusted (up or down) depending upon whether a country's cost of living is lower or higher than the cost of living in the United States. Answer: TRUETo account for differences in the cost of living, one can adjust GNI per capita by purchasing

There is generally a critical link among channel length, the final selling price, and the firm's profit margin because each intermediary in a channel adds its own markup to the products. Answer: TRUE Because each intermediary in a channel adds its own markup to the products, there is generally a critical

Which of the following indicates that a firm has a full outright stake in an acquisition? A.Anderson Corporations acquires at least 75 percent of a company. B.Sheffield Enterprises acquires at least 60 percent of a company. C.Arthur Enterprises acquires 98 percent of a company. D.Maximus Corporations acquires 100 percent of a company. E.Dream Animax acquires

The architects of the Bretton Woods agreement wanted to avoid high unemployment, so they built the fixed exchange rate system to be highly inflexible. Answer: FALSEAlthough monetary discipline was a central objective of the Bretton Woods agreement, it was recognized that a rigid policy of fixed exchange rates would be too inflexible.

Which of the following is a support activity in the operations of a firm? A.Research and development B.Customer service C.Marketing and sales D.Creation and maintenance of information systems E.Production Answer: D.The support activities of the value chain provide inputs that allow the primary activities to occur. They include information systems. D.The support activities of the value chain

Silver Tape Corporation has developed a new type of adhesive tape. Which of the following types of legal protections can grant the company exclusive rights for a defined period to the manufacture, use, or sale of the new adhesive tape? A.Warrant B.Patent C.Copyright D.Trademark E.Writ Answer: B.A patent grants the inventor of a new product or

Which of the following is an advantage of longer distribution channels? A.Decreased profit margins B.Lower markups C.Lower product prices D.Reduced selling costs in concentrated retail sectors E.Greater market access Answer: E.The benefits of using a longer distribution channel outweigh the drawbacks. One benefit ofa longer channel is that it cuts selling costs when the retail sector

When serving as collateral, the bill of lading: A.can be used to advance funds to the exporter by its local bank before or during shipment. B.specifies that the carrier is obligated to provide a transportation service in return for a certain charge. C.can be used to obtain payment or a written promise of payment

A global car manufacturer wants to start production in China. While catering to local responsiveness, what can the firm do to get scale economies? A.Increase costs whenever possible. B.Use common vehicle platforms and components across many different models. C.Shorten the production runs for each component. D.Increase the duplication of functions required for each operation. E.Manufacture

Trade barriers encourage firms to disperse their productive activitiesdesign, production, and assemblyto foreign nations. Answer: FALSEIt may make sense for a firm to design and engineer its product in one country, to manufacture components in another, to perform final assembly operations in yet another country, and then export the finished product

China Innovation Inc. is a devout follower of Confucian ethics. Hence, it hires people who live by similar principles. Which of the following is most likely to be a characteristic of this company? A.The conflict between management and labor will be high. B.The company's management will expect blind loyalty from the workers. C.It

Which of the following best exemplifies the global tragedy of the commons? A.A firm exploiting the weak employment standards in a host nation B.A firm dumping its chemical wastes directly into an ocean C.A firm exploiting the weak intellectual property rights in a developing nation D.A neighboring country opposing the introduction of a free

Which of the following firms should concentrate its production in a centralized location? A.Jupiter Inc. operates in an industry where the fixed costs are high and services of supporting industries are of prime importance. B.Star Goal Inc. manufactures consumer products like processed food, apparel, and cosmetics for which national differences in consumer

Firms vary their marketing mix from country to country depending on differences in national culture. Answer: TRUE The marketing mix is a set of choices that a firm offers to its targeted markets. Many firms vary their marketing mix from country to country, depending on differences in national culture, economic development,