Chapter 7 The question of whether to follow a strategy of global

Document Type
Test Prep
Book Title
Effective Management 6th Edition
Authors
Chuck Williams
Course Pre-Assessment CH 07
Williams Effective Management 6e
TRUE/FALSE
1. An attractive business climate is defined by a single dimension--Does the business minimize the
political risk to the company?
2. Two factors that help companies determine the growth potential of foreign markets are purchasing
power and foreign competitors.
MULTIPLE CHOICE
1. Global business:
a.
is the buying and selling of goods and services to people from different countries
b.
includes any sale of goods and services
c.
only involves companies with more than 50 employees
d.
refers to sales made to people from different cultures, different regions, and different
nations
e.
is unregulated
2. The two general kinds of trade barriers are:
a.
government import standards and industry import standards
b.
qualitative and quantitative barriers
c.
voluntary and involuntary barriers
d.
nationalistic and geocentric barriers
e.
tariff barriers and nontariff barriers
3. The General Agreement on Tariffs and Trade (GATT):
a.
decreases both tariffs and nontariff barriers
b.
puts stricter limits on government subsidies
c.
eliminates tariffs in ten specific industries
d.
protects intellectual property, such as trademarks, patents, and copyright
e.
does all of these
4. One of the major questions that a company must typically answer once it has decided to go global is:
a.
How many additional employees will the company need?
b.
To what extent should the company standardize or adapt business procedures?
c.
To what extent should a company abide by global or regional trade agreements?
d.
Will the organization's mission statement need to be changed?
e.
How many new shareholders will be influenced by global activities?
5. Which of the following represents the correct sequence for the phase model of globalization?
a.
exporting; wholly-owned affiliates; cooperative contracts; strategic alliances
b.
exporting; cooperative contracts; wholly-owned affiliates; strategic alliances
c.
exporting; cooperative contracts; strategic alliances; wholly-owned affiliates
d.
exporting; strategic alliances; cooperative contracts; wholly-owned affiliates
e.
home country sales; exporting; job ventures; strategic alliances, and direct investment
6. A ____ is a strategic alliance in which two existing companies collaborate to form a third, independent
company.
a.
joint venture
b.
franchise
c.
wholly-owned affiliate
d.
global new venture
e.
cooperative contract
7. A country or region that has an attractive business climate for companies that want to go global has:
a.
a large population of unskilled workers
b.
an effective but cost-efficient place to build an office or manufacturing site
c.
a small youth population
d.
natural boundaries
e.
all of these
8. Hofstede's research has shown there are:
a.
no cultural differences among nations in which Spanish is the national language
b.
two distinct methods for dealing with cultural differences--adaptation and continuation
c.
direct relationships existing between type of infrastructures and growth potential
d.
five consistent dimensions of cultural differences across countries
e.
four factors upon which a company should base its decision to globalize
9. An expatriate is someone who:
a.
claims dual citizenship
b.
lives and works outside of his or her own country
c.
believes strongly in nationalization
d.
is unhappy with his or her present residence
e.
desires to be employed in a country outside of his or her own
10. The evidence clearly shows that ____ is the most important factor in determining the success or failure
of an international assignment.
a.
the amount of language training provided to the expatriate
b.
the amount of cross-cultural training provided to the expatriate
c.
how well an expatriate's spouse and family adjust to the foreign culture
d.
how willing the expatriate was to accept the foreign assignment
e.
the similarity of the foreign language to the expatriate's native language

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