a.
Lobbying
b.
Influence peddling
c.
Whistle-blowing
d.
Source criticizing
e.
Reconnaissance
48. Which of the following is an advantage of licensing as an approach to internationalization?
a.
Lack of competition
b.
Extended profitability
c.
Lesser uncertainty
d.
Flexibility
e.
Shared ownership
Moderate
p.52
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
49. A(n) _____ strategy requires little small cash outlay, is heavily regulated by government, and does not require
modification to products for local conditions and is the easiest approach to internationalization.
a.
importing
b.
licensing
c.
joint venture
d.
direct investment
e.
offshoring
a
c
Easy
p. 50
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Knowledge
Digital Story: Engage
50. Atlantia is a company that manufactures dishwashers in Germany. Its products are sold in the United States. Which of
the following statements is most accurate?
a.
Atlantia is exporting its products to the United States.
b.
Atlantia has a license agreement with the United States.
c.
Atlantia is importing its products from the United States.
d.
Atlantia wholly owns subsidiaries of the firm in the United States.
e.
Atlantia is outsourcing to the United States.
a
country and can involve both merchandise and services.
Challenging
p.52
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Application
Digital Story: Perform
51. A potential disadvantage of licensing agreements is:
a.
b.
c.
d.
e.
c
Moderate
p.52
MGMT.GRIF.16. 2-3 – LO: 2-3
Moderate
p.52
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
52. Which of the following is true of quotas in trade?
a.
It is used most commonly to restrict trade.
b.
It is used to encourage strategic alliance.
c.
It is used to increase domestic competition.
d.
It is the tax breaks given by the host government.
e.
It is a form of tax collected on imported goods.
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
53. An advantage of importing and exporting is:
a.
shared ownership.
b.
the lack of government restrictions.
c.
low transportation costs.
d.
the lack of tariffs and taxes.
e.
small cash outlay.
require adaptation to the local market.
p. 52
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
54. Making a product in the firm’s domestic marketplace and selling it in another country is known as _____.
a.
direct investment
b.
exporting
c.
joint venture
d.
competing
e.
franchising
55. Once a licensing agreement is agreed to, the licensee pays a(n) _____ in return.
a.
interest
b.
royalty
c.
remuneration
d.
tariff
e.
reward
Easy
p. 52
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Knowledge
Digital Story: Engage
56. Which of the following is an advantage of direct investment?
a.
New infrastructure
b.
Simplicity
c.
Enhanced control
d.
Greater political support
e.
Greater certainty
c
country, and can involve both merchandise and services.
Easy
p. 52
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Knowledge
Digital Story: Engage
57. Which of the following approaches to internationalization of business has the disadvantage of shared ownership?
a.
Importing
b.
Licensing
c.
Exporting
d.
Joint ventures
e.
Direct investment
Moderate
p.53
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
58. As an internationalization strategy, the typical use of maquiladoras by U.S. firms is a form of _____.
a.
strategic alliance
b.
licensing agreement
c.
direct investment
d.
joint venture
e.
franchising
c
Easy
p.53
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
Moderate
p.53
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
59. Basco Electric Inc., an American company, has two factories in Mexico near the U.S. border. Basco gets special
concessions from the Mexican government as it provides employment to the local population. The factories are an
example of:
a.
licensing agreements.
b.
franchisees.
c.
leases.
d.
imports
e.
maquiladoras.
e
with workers willing to work for low wages.
Challenging
p.53
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Application
Digital Story: Perform
60. Sam’s Big Bites, an American chain of burger stands, operates on all military bases in the United States. The
agreement between Sam’s Big Bites and the Department of Defense is a(n) _____.
a.
maquiladora.
b.
licensing agreement
c.
exporting agreement
d.
importing agreement
e.
strategic alliance
e
Challenging
p.53
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Application
Digital Story: Perform
61. In a(n) _____, two or more firms share equal ownership of a new enterprise.
a.
direct investment
The International Environment of Management
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b.
technology transfer
c.
joint venture
d.
interest group
e.
economic community
62. _____ are light assembly plants built in Northern Mexico close to the U.S. border.
a.
Industrial estates
b.
Company towns
c.
Hawthorne mills
d.
Maquiladoras
e.
Armories
Maquiladoras are light assembly plants built in Northern Mexico close to the U.S. border.
Easy
p. 53
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Knowledge
Digital Story: Engage
63. The _____ of an organization includes all the values, symbols, beliefs, and language that guide behavior.
a.
task environment
b.
general environment
c.
physical work environment
d.
regulatory environment
e.
cultural environment
e
language that guide behavior.
c
Easy
p. 53
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Knowledge
Digital Story: Engage
64. Which of the following statements about cultural environment is true?
a.
An employee’s cultural environment is personal, therefore, does not affect his profession.
b.
In international business, cultural factors always cause problems for managers.
c.
Cultural differences between countries can have a direct impact on business practice.
d.
Difficulties can arise when there is complete overlap between a manager’s home culture and the culture of the
country in which business is to be conducted.
e.
Subtle cultural differences between countries do not have a major impact on business activities.
c
Cultural differences between countries can have a direct impact on business practice.
Moderate
p. 53
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
65. The French government charges a 25 percent tax on all American fruits and vegetables that are sold in France. This
tax collected by French authorities is a(n) _____.
a.
direct investment
b.
license
c.
export tariff
d.
import tariff
e.
strategic alliance
increasing the cost of foreign goods.
Challenging
p.54
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Application
Easy
p. 53
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Knowledge
Digital Story: Engage
66. Accords reached by governments in which countries voluntarily limit the volume or value of goods they export to or
import from one another are known as _____.
a.
service-level agreements
b.
licensing agreements
c.
export restraint agreements
d.
strategic alliance agreements
e.
operational-level agreements
the volume or value of goods exported to or imported from a particular country.
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Application
Digital Story: Perform
67. Almonds United Inc., a company that produces almonds, is based in California, United States. Almonds United
ensures that most of its produce is sold in the local market and not more than 20 percent is sold in the Indian markets each
year. This is in accordance with the U.S. government’s voluntary limit on trade with India. Almonds United is following
the _____ exercised by the U.S. government.
a.
franchising agreement
b.
direct investment
c.
strategic alliance
d.
licensing agreement
e.
export restraint agreement
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Application
Digital Story: Perform
68. The government of Westeria has made it mandatory that all local publishers must use paper made in Westeria itself.
This restriction imposed by Westeria on its publishers is a form of:
a.
“ban maquiladoras” policy.
Digital Story: Perform
b.
import tariff.
c.
export restraint agreement.
d.
“go global” strategy.
e.
“buy national” legislation.
69. Which of the following statements about organizational culture is true?
a.
Organizational culture shapes the behavior of employees, and thus impacts organizational effectiveness.
b.
Organizational culture of an overseas franchisee is always the same as the culture of the nation in which the
organization’s headquarters are located.
c.
Organizational culture will necessarily be the same throughout an organization‘s subunits.
d.
Organizational culture refers to the cultural and artistic charities that an organization supports.
e.
Organizational culture is frequently and easily changed by most organizations.
p. 54
MGMT.GRIF.16. 2-4 – LO: 2-4
United States – BUSPROG: Diversity
United States – AK – DISC: Group Dynamics
The Organization’s Culture
Bloom’s: Comprehension
Digital Story: Connect
70. An American company is in a joint venture with an overseas Asian company. The U.S. managers are particular about
time management and appointments for conference calls and meetings. However, their overseas Asian counterparts are
not conditioned the same way and don’t necessarily adhere to schedules. This variation in time management is an aspect
of their _____ environment.
a.
legal
b.
cultural
c.
technological
d.
political
e.
economic
e
Easy
p.54
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Knowledge
Digital Story: Engage
71. A(n) _____ is a limit on the number or value of goods that can be traded.
a.
royalty
b.
tariff
c.
quota
d.
threshold
e.
allowance
c
Easy
p. 54
72. A(n) _____ is a tax collected on goods shipped across national boundaries.
a.
quota
b.
tariff
c.
allowance
d.
remuneration
e.
commission
Easy
p. 54
Challenging
p. 54
73. In international trade, the _____ amount is typically designed to ensure that domestic competitors will be able to
maintain a certain market share.
a.
benefaction
b.
royalty
c.
tariff
d.
quota
e.
minimum hourly wage
maintain a certain market share.
Moderate
p. 54
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
74. _____ are, in effect, export quotas.
a.
Export restraint agreements
b.
Export licensing agreements
c.
Service-level agreements
d.
Export tariffs
e.
Strategic alliance agreements
a
Easy
p. 54
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The International Environment of Management
Bloom’s: Knowledge
Digital Story: Engage
75. _____ gives preference to domestic producers through content or price restrictions.
a.
“Buy national” legislation
b.
“Go local” strategy
c.
Federal acquisition regulation
Digital Story: Engage