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Chapter 06 International Management Answer Key
True / False Questions
1.
One of the consequences of an increasingly integrated global economy is that imports are
penetrating deeper into the world's largest economies.
2.
Companies both large and small now view the world, rather than a single country, as their
marketplace.
3.
NAFTA had an immediate and negative effect on the U.S. automobile industry.
4.
When pressures for local responsiveness are high and pressures for global integration are
low, the global model is appropriate.
5.
One of the advantages of exporting is that it provides scale economies.
6.
The most significant disadvantage concerning franchising is brand name recognition.
7.
Using host-country nationals at an overseas subsidiary is generally less expensive than
using expatriates.
8.
Family issues are the main reason for expatriates to return home early.
9.
Ethnocentrism is the tendency to judge others by the standards of one's own culture or
group, which are seen as superior.
10.
Ethical behavior and decision making are surprisingly harder in a purely domestic situation
than in the international arena.
Multiple Choice Questions
11.
Which country has received the most foreign direct investment in recent years?
12.
The practice followed by some companies of moving jobs to another country is called
_____.
13.
For the past several years, FuturaCloud hired a firm in India to handle its technical
customer support. Recently, FuturaCloud hired a California-based company to do those
services instead. This change is an example of _____.
14.
Gerard's company used to have one of its clothing lines manufactured by an outside
supplier. That line is now manufactured at a new factory built by Gerard's company. This
change is an example of _____.
15.
Which of the following is one of the three regions that dominate the global economy?
16.
What did the Maastricht Treaty establish?
17.
Which of the following is the largest export market of the United States?
18.
Which of the following countries is a member of the Asia-Pacific Economic Cooperation
Group?
19.
What caused Mexico to emerge as the third-largest trading partner of the United States?
20.
Which of the following is a major exporter of petroleum, or oil?
21.
Which of the following is a reason that companies adopt a common global strategy?
22.
Colas have become available around the globe, and they are used in similar ways
worldwide. The situation in which consumer tastes and preferences regarding a product
are similar in many different countries is an example of _____.
23.
Which model should a company adopt when pressures for local responsiveness are high
and pressures for global integration are low?
24.
Which of the following factors would increase the pressure for local responsiveness?
25.
Which of the following is a major disadvantage of the multinational model?
26.
Companies that adopt the global model tend to base their global competitive strategy on
_____.
27.
One of the drawbacks of exporting is
28.
Which of the following businesses is the most likely to use the franchising model?
29.
Which of the following is the preferred strategy when a company's competitive advantage
is based on technology and the company wishes to enter the global marketplace?
30.
Jamila is a native of the country where Regal Industries is building its new plant. If Jamila
goes to work at Regal's factory, she will be considered a(n) _____.
31.
Dan is sent on a short-term work assignment from the United States to Great Britain,
where traffic laws require driving on the left side of the road. While in Great Britain, Dan
notices that he feels anxious every time he has to drive on a two-way street. What is Dan
experiencing?
32.
Which of the following is an effective way to prevent failed global assignments?
33.
While Cork Commercial Containers was planning how it was going to open a plant in the
Philippines, it brought in Rodrigo, a native of the country, to teach the development team
about the country's culture and economy. Rodrigo is an example of a(n) _____.
34.
Research suggests that regardless of nationality or religion, most people embrace a set of
five core values. Which of the following is one of the five core values?
35.
U.S. business people working abroad may face ethical challenges, in particular because of
cultural differences regarding _____.
36.
Which of the following is a consequence of an increasingly integrated global economy?
37.
Collaborating with other countries in trade
