Chapter 8: Global Management
MULTIPLE CHOICE
1. Global business:
a.
is the buying and selling of goods and services to people from different countries
b.
includes any sale of goods and services
c.
only involves companies with more than 50 employees
d.
refers to sales made to people from different cultures, different regions, and different
nations
e.
is unregulated
2. 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
3. The General Agreement on Tariffs and Trade (GATT):
a.
replaced the United Nations court system
b.
eliminated government subsidies
c.
eliminated tariffs in ten specific industries
d.
operated in a fashion similar to the Chamber of Commerce
e.
did all of these
4. One of the major questions that a company must typically answer once it has decided to go global is:
a.
How many additional employees will the company need?
b.
To what extent should the company standardize or adapt business procedures?
c.
To what extent should a company abide by global or regional trade agreements?
d.
Will the organization’s mission statement need to be changed?
e.
How many new shareholders will be influenced by global activities?
5. 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
6. Managing global joint ventures can be difficult because they:
a.
represent a merging of four cultures
b.
increase the number of tariffs that have to be paid
c.
can only be used by large companies that already have an international presence
d.
use local consistency in marketing
e.
do all of these
7. 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
8. 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
9. 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
10. 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
11. 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
12. The evidence clearly shows that __________ is the most important factor in determining the success or
failure of an international assignment.
a.
the amount of language training provided to the expatriate
b.
the amount of cross-cultural training provided to the expatriate
c.
how well an expatriate’s spouse and family adjust to the foreign culture
d.
how willing the expatriate was to accept the foreign assignment
e.
the similarity of the foreign language to the expatriate’s native language