A ________ strategy can create cost savings due to product and marketing
standardization.
A) retrenchment
B) multidomestic
C) blue ocean
D) global
Adapting products and their marketing strategies in each of the national markets of a
company to suit local preferences is called a ________ strategy.
A) multinational
B) blue ocean
C) global
D) retrenchment
Which of the following institutions is least likely to play an important role in
monitoring and enforcing economic and political integration in the European Union?
A) European Parliament
B) Council of the European Union
C) European Court of Human Rights
D) European Commission
________ is an activity under the monetary policy of a nation.
A) Increasing taxes
B) Lowering taxes
C) Increasing government spending
D) Selling government securities
Scenario: Blickinstock at the Crossroads
Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin
America. To that end, Blickinstock is trying to decide whether to purchase an existing
company in a remote region of Argentina or build its own subsidiary. Keith Moon,
Blickinstock’s vice president of global business development, will be making a
presentation to the board outlining the company’s options. One reason a home country
may discourage foreign direct investment outflows is to protect its ‘sunset” industries.
Which of the following steps would Owen implement toward the end while developing
a successful export strategy?
A) initiation of meetings with intermediaries
B) identification of a potential market
C) commitment of resources
D) matching of market needs to company abilities
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
Subcultures mimic the values, preferences, and beliefs of dominant cultures.
Scenario: Foodland and Drinkland
Two countries, Foodland and Drinkland, produce food and drinks. In Foodland, one
resource unit produces 20 tons of food and one resource unit produces 10 tons of
drinks. In Drinkland, one resource unit produces 12 tons of food and one resource unit
produces 24 tons of drinks. Food Drinks
Foodland 20 10
Drinkland 12 24
Based on the above scenario, which of the following statements is true?
A) Foodland has an absolute advantage in producing food.
B) Foodland has an absolute advantage in producing drinks.
C) Drinkland has an absolute advantage in producing both food and drinks.
D) Drinkland has an absolute advantage in producing food.
________ is an investment that does not involve obtaining a degree of control in a
company.
A) Portfolio investment
B) Foreign direct investment
C) Horizontal integration
D) Vertical integration
A ________ strategy typically increases the cost structure for international companies
and forces them to charge higher prices to recover such costs.
A) retrenchment
B) global
C) multidomestic
D) blue ocean
Globalization is criticized because it ________.
A) does not generate labor market flexibility in developing nations
B) prevents developed countries from outsourcing work to developing nations
C) creates fewer manufacturing jobs in developing nations
D) exploits workers in low-wage nations
Shimmer and Sparkle is an American jewelry store which discovers that several shops
in developing countries are selling counterfeited necklaces under their name and label.
Which of the following problems are they facing?
A) patent expiration
B) trademark infringement
C) copyright expiration
D) monopolization
Which of the following actions can be adopted by developed nations to lessen the
negative effects of globalization?
A) restrict the import of goods from developing countries
B) slash agricultural subsidies that hurt the exports of developing nations
C) discontinue foreign-aid programs to developing countries
D) pressurize developing nations to fend for themselves in matters of health and
education
Which of the following refers to the price charged for products sold between a
company’s divisions or subsidiaries?
A) dual pricing
B) transfer price
C) price skimming
D) arm’s length price