Chapter 8: Global Management
TRUE/FALSE
1. Export restraints, government subsidies, and quotas are all examples of nontariff trade barriers.
2. More than any other regional trade agreement, the Maastricht Treaty of Europe liberalizes trade
between countries so that businesses can plan to operate in a single market instead of multiple national
markets.
3. Historically, companies have generally followed the phase model of globalization.
MULTIPLE CHOICE
1. The two general kinds of trade barriers are:
a.
government import standards and industry import standards
b.
qualitative and quantitative barriers
c.
voluntary and involuntary barriers
d.
nationalistic and geocentric barriers
e.
tariff barriers and nontariff barriers
2. The trade agreement that represented the most significant change to the regulations governing global
trade during the 1990s was the:
a.
Maastricht Treaty of Europe
b.
North American Free Trade Agreement
c.
General Agreement on Tariffs and Trade
d.
Mercosur
e.
Asian Free Trade Arrangement
3. In a multinational firm, managers at company headquarters typically prefer an emphasis on
__________ because it simplifies decisions.
a.
local consistency
b.
local adaptation
c.
global adaptation
d.
global consistency
e.
domestic adaptation
4. Which of the following represents the correct sequence for the phase model of globalization?
a.
exporting; wholly owned affiliates; cooperative contracts; strategic alliances
b.
exporting; cooperative contracts; wholly owned affiliates; strategic alliances
c.
exporting; cooperative contracts; strategic alliances; wholly owned affiliates
d.
exporting; strategic alliances; cooperative contracts; wholly owned affiliates
e.
home country sales; exporting; job ventures; strategic alliances, and direct investment
5. A country or region that has an attractive business climate for companies that want to go global has:
a.
a large population of unskilled workers
b.
an effective and cost-efficient place to build an office or manufacturing site
c.
a small youth population
d.
natural boundaries
e.
all of these
6. Two factors help determine the growth potential of foreign markets. They are foreign competition
and:
a.
communications and transportation systems
b.
purchasing power
c.
political stability
d.
creative differences
e.
product diffusion rate
7. What are the strategies that can be used to minimize or adapt to the political risk inherent to global
business?
a.
protectionist, avoidance, and offensive strategies
b.
creative, cooperative, and defensive strategies
c.
cooperative, customary, and nationalistic strategies
d.
avoidance, protectionist, and guerrilla strategies
e.
control, avoidance, and cooperative strategies
8. Hofstede’s research has shown there are:
a.
no cultural differences among nations in which Spanish is the national language
b.
two distinct methods for dealing with cultural differences—adaptation and continuation
c.
direct relationships existing between type of infrastructures and growth potential
d.
five consistent dimensions of cultural differences across countries
e.
four factors upon which a company should base its decision to globalize
9. An expatriate is someone who:
a.
claims dual citizenship
b.
lives and works outside of his or her own country
c.
believes strongly in nationalization
d.
is unhappy with his or her present residence
e.
desires to be employed in a country outside of his or her own