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67.
An organizational model that consists of a company's overseas subsidiaries and is
characterized by centralized decision making and tight control by the parent company over
most aspects of worldwide operations is known as the
68.
A disadvantage of the global model is that it
69.
Très Chic, a cosmetics manufacturer, assumes that people all over the world will view and
use its products in the same way. Therefore it produces exactly the same makeup
products, using the same color palettes, in several countries with attractive labor rates,
and offers them to all of its markets around the world. Très Chic uses the _____ model of
international competition.
70.
The organizational model that enables managers to "think globally but act locally" is the
71.
In companies that adopt the _____ model of organizational structure, functions are
centralized where it makes sense to do so, but a great deal of decision making also takes
place at the local level.
72.
Which model involves fostering communication among subsidiaries to permit transfer of
skills?
73.
Which of the following companies is an example of a transnational company?
6-83
74.
Which of the following models of organization structure depends most heavily on
communication and coordination between subsidiaries?
75.
In order to achieve cost economies, Peak Manufacturing bases its production plants in
Mexico and gets its engineering services from skilled workers in Japan. In this case, Peak
is using the _____ model of organizational structure.
76.
Exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are all
methods of
6-85
77.
Which of the following entry modes do most manufacturing companies use to begin global
expansion?
78.
What is an advantage of exporting as a global expansion entry mode?
79.
A disadvantage of exporting is that
80.
_____ is an arrangement by which an organization in another country buys the rights to
manufacture a company's product in its own country for a negotiated fee.
81.
An advantage of licensing as a method of entering global competition is that the
6-88
82.
A disadvantage of licensing is that the licensing company
83.
Bob's Better Burgers sells small business owners the rights to use the company's brand
name in return for a lump-sum payment and a share of the buyer's profits. This practice is
referred to as
84.
Which of the following is a disadvantage of franchising?
85.
Which of the following methods of entering global competition runs the biggest risk of
conflict between partners over who controls what?
86.
When a company sets up its own overseas operations, independent of foreign partners or
governments, it has established a(n)
87.
A major disadvantage of operating a wholly owned subsidiary is that
6-92
88.
Which of the following methods of entering global competition best allows a company to
have operations in other countries and maintain tight control over them?
89.
Parent company nationals who are sent to work at a foreign subsidiary are known as ____.
90.
_____ are natives of a country other than the home country or the host country of an
overseas subsidiary.
6-94
91.
Which of the following is a reason why some companies prefer to use expatriates at their
overseas operations?
92.
The main cause of failure of overseas managers is
93.
Which of the following characteristics is most likely associated with an international
executive?
94.
Heinrich is a German engineer working in Africa. He often complains that Africans do not
have the efficiency or punctuality of Germans. What characteristic is Heinrich displaying?
95.
The disorientation and stress associated with being in a foreign environment is termed
