Scenario: Not-So-Free Freeland
Freeland is a semi-closed economy whose government believes in protecting national
identity and building a self-sustained economy. The government’s priority is to protect
local jobs and provide opportunities to Freeland’s emerging industries to flourish
without the threat of external competition. Freeland’s protection of its national identity
is an example of a(n) ________.
A) political motive
B) economic motive
C) cultural motive
D) social motive
The process of assessing a company’s ability to produce enough output to satisfy market
demand is called ________.
A) capacity planning
B) lean production
C) process management
D) product structure modeling
Herb has been exploring another type of entry mode that requires ongoing assistance on
the part of one firm, often in the form of start-up capital, management training, or
location advice. Herb is most likely considering ________.
A) a strategic alliance
B) franchising
C) licensing
D) a joint venture
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
Subcultures exist only within a nation’s borders.
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
Against Betty’s judgment, her boss decides to market Frankfurter’s beef sausages in the
town of Xunagshi, believing that it would rake in a huge profit. Which of the following,
if true, would prove that her boss’s decision is a bad one?
A) There are very few vegetarians in Xunagshi.
B) Due to their exposure to the Western culture, the youth of Xunagshi is more open to
fast food than the town elders.
C) The traditional dishes of Xunagshi are more expensive than the beef sausages.
D) Xunagshi has a large Hindu population, all of whom are forbidden from eating beef.
Which of the following statements regarding ethnocentric staffing is true?
A) It can facilitate the transfer of special know-how.
B) It is a relatively inexpensive policy to implement.
C) It allows a company to “blend in” with the local market.
D) It is a poor choice for companies operating in highly nationalistic markets.
A legal tradition based on religious teachings is called ________ law.
A) democratic
B) common
C) civil
D) theocratic
If Matt wants to estimate an emerging market’s spending capacity, he should focus on
the ________.
A) population in the middle class
B) need for consumer products
C) demand for consumer and industrial products
D) volume of imports
Which of the following countries has been facing difficulties in negotiations regarding
its application for European Union membership?
A) Bulgaria
B) Czech Republic
C) Romania
D) Turkey
Which of the following measures the extent to which a government equitably provides
its people with a long and healthy life, an education, and a decent standard of living?
A) category development index
B) gross national product index
C) human development index
D) purchasing power index