82. Satellites, shipping ports, railroads, and airports are part of a nation’s
83. As a manufacturing firm builds a plant in Bolivia, it also has to build an airstrip so that it can get the
building supplies and the component parts it needs for operation to the Bolivian facility. The building of the
airstrip was necessary because Bolivia has
84. Which of the following is NOT a part of a nation’s infrastructure?
85. TransFair USA promotes fair trade programs so farmers in developing countries can earn high enough
wages to afford adequate nutrition and basic health care. TransFair is trying to change the ____ environment of
international management.
86. An example of the economic system in China is
87. Which of the following is NOT a factor of the political-legal environment for international managers?
88. According to the text, which of the following is a factor of the political-legal environment for international
managers?
89. When Starbuck operates in other countries it customizes the snacks to local tastes. This is a(n) ____
challenge for international managers.
90. In Japan apples are very expensive and are traditionally presented as gifts. The apples are grown with
wrapping on each apple to prevent insects and ensure perfect color. When Washington Apples wanted to export
to Japan it faced ____ barriers.
91. A U.S. recording company that wanted to take advantage of the fact that European teens love everything
American would find it difficult to get its music played on French radio stations. French radio stations are
required to play at least 40 percent French-made music. This requirement indicates one way that the ____
environment challenges international management.
92. A developing country in South America offers your firm a construction subsidy if you build your new plant
there. This is an example of
93. During a recession, governments tend to increase ____ to help protect domestic producers by directly
adding to the cost of foreign goods.
94. A(n) ____ is the most common form of trade restriction.
95. A tariff
96. Which of the following statements about tariffs is TRUE?
97. The U.S. government limits how many automobiles can be imported into the United States annually. This is
a(n)
98. The United States Department of Defense requires some weapon systems to be made by U.S. companies for
national defense reasons. This is an example of
99. ____ gives preference to domestic producers through content or price restrictions.
100. Labor unions in the United States would like to see Congress pass domestic content laws that would
require, for example, that all automobiles sold in the United States contain at least a specified percentage of
parts that were manufactured in the United States. Such laws would fall under the heading of
101. The cultural challenges of international management include
102. Which of the following is an example of how cultural differences directly impact international business
practices?
103. A French ministry has banned the word e-mail from official communication. Instead, the French words for
quick and mail have been combined to form a new word. This is an official attempt to protect the French
104. An example of the cultural system in China is
105. Geert Hofstede identified all of the following fundamental differences that can be used to characterize
people in different cultures EXCEPT
106. People in the U.S., Canada, and the Netherlands tend to believe that the person comes first. This refers to
Hofstede’s ____ orientation.
107. People in Pakistan and West Africa are more likely to want immediate gratification. This is an example of
Hofstede’s ____ orientation.
108. ____ is the cultural belief that the person comes first.
109. People in the United States, Israel, and Ireland are likely to question their supervisors. This is referred to as
a(n)____ orientation.
110. People from which of the following countries are in the category of uncertainty acceptance?
111. In which country do people tend to exhibit relatively aggressive goal behavior?
112. Which of the following statements about medium-sized international business organizations is TRUE?
113. Top executives at BBT Corporation set the strategic direction for the firm at corporate headquarters. BBT’s
local managers are then informed of these strategies and given complete freedom to implement them. Which of
the following management functions best describes the freedom provided local managers?
114. When a local manager is given autonomy and responsibility in dealing with job design, he or she has
freedom in global
115. A manager concerned with time zone differences is worried about
116. Which management function do differences between domestic and international production quality
standards fall under?
117. A business that acquires all of its resources and sells all of its products or services within a single country
is a(n) ____________________.
118. A business that has a worldwide marketplace from which it buys raw materials, borrows money, and
manufactures its products and to which it subsequently sells its products is a(n) ____________________
business.
119. An advantage of ____________________ operations is that it is easier to enter markets with a small outlay
of capital.
120. The quickest way to enter most new markets is through ____________________.
121. Enhanced control and existing infrastructure are advantages of the ____________________ approach to
internationalization.
122. A(n) ____________________ is a special type of strategic alliance in which the partners share in the
ownership of an operation on an equity basis.
123. Economies based on ____________________ of business that tend to let the law of supply and demand
allocate resources are called market economies.
124. There are ____________________ member countries in the European Union.
125. The ____________________ replaced GATT and absorbed its mission.
126. A country’s minerals, oil and forests are a part of the ____________________ environment.
127. Riots in Egypt, Libya, and Syria changed the political legal environment for business because of a decrease
in ____________________.
128. Quotas are the most common form of ____________________.
129. A set of countries that agree to significantly reduce or even eliminate ____________________ among
member nations is referred to as an international economic community.
130. Religion is part of the ____________________ environment that affects firms operating in the
international environment.
131. Americans who want government run health care for everyone have a social orientation toward
____________________.
132. Flat organizations tend to have power ____________________.
133. People in cultures with ____________________ are stimulated by change and thrive on new
opportunities.
134. The manner in which people are motivated to work toward different kinds of objectives refers to
____________________ orientation.
135. The United States and Germany tend to have an intermediate ____________________ orientation.
136. Most small businesses rely on simple ____________________ or ____________________ operations (or
both) for their international sales.
137. The management functions that constitute the framework for this book¾____________________,
____________________, ____________________, and ____________________¾are just as relevant to
international managers as to domestic managers.
138. Supervising a group of five managers, each of whom is from a different state in the United States, is likely
to be much ____________________ than supervising a group of five managers, each of whom is from a
different culture.
139. MNC stands for ____________________.
140. Match the following. You may use a response once, more than once, or not at all.
1. Characterized by private ownership of property and
Multinational
2. Transcends national boundaries and has a worldwide
Domestic
3. Characterized by clusters of countries that engage in
International
4. Based primarily in one country but gets a significant
5. Acquires most of its resources and sells most of its
141. Match the following. You may use a response once, more than once, or not at all.
Short-term time
142. What trends are developing in international business?
143. Describe the advantages and disadvantages of licensing and direct investment.
144. How will you learn to operate in a global economy?
145. The challenge with high-potential/high-growth economies is that they can be high risk. Describe the risks
MNCs face entering these economies.
146. Why is the European Union significant to the United States and the global economy?
147. The firm for which you work was recently acquired by a large multinational corporation. You were lucky
that your job was spared, but your job responsibilities have changed greatly. Your new title is director of
international marketing. What things must you now be concerned with that you did not think about when you
were simply a regional marketing manager?
148. Describe two of the market systems.
149. What are the goals of the WTO? Do you agree with them?
150. Briefly describe the opportunities and problems associated with operating a business in the Middle Eastern
oil-exporting countries.
151. Define the term infrastructure. Compare and contrast high-potential/high-growth countries, oil-exporting
countries, and mature market economies in terms of their infrastructures.
152. The international economic environment has three elements. What are they?
153. During a recession what incentives do governments provide for international trade?
154. Briefly describe the various controls countries can impose on international trade.
155. Describe aspects of the U.S. cultural environment that foreign managers would find challenging.
156. Briefly describe Hofstede’s five fundamental differences that can be used to characterize people in different
cultures.
157. Describe how planning, organizing, leading, and controlling change for managers in international
organizations.
158. Is bigger always better when it comes to globalization and organizational size?
159. What challenges does a manager face in a global economy that she would not face in a domestic one?