Question 1

Which of the following is a disadvantage of joint ventures/strategic alliances?

Accepted Answer

A)  More rapid market entry 
B)  Access to technology 
C)  Access to raw materials 
D)  Reduced risk 
E)  Shared control over operations 
A)  More rapid market entry 
B)  Access to technology 
C)  Access to raw materials 
D)  Reduced risk 
E)  Shared control over operations

Question 2

The United States, Canada, and Mexico are major trading partners with one another.  They are an example of a(n)

Accepted Answer

A)  mature market. 
B)  market system. 
C)  market economy. 
D)  high potential/high growth economy. 
E)  other economy. 
A)  mature market. 
B)  market system. 
C)  market economy. 
D)  high potential/high growth economy. 
E)  other economy.

Question 3

Maquiladoras face competition in China.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an example of how cultural differences directly impact international business practices?

Accepted Answer

A)  Government stability 
B)  Schools 
C)  Buy national legislation 
D)  Hospitals 
E)  Religious practice that separates men and women 
A)  Government stability 
B)  Schools 
C)  Buy national legislation 
D)  Hospitals 
E)  Religious practice that separates men and women

Question 5

Which of the following statements does NOT describe a characteristic of importing/exporting?

Accepted Answer

A)  Importing/exporting is an easy way to enter a market. 
B)  There is very little risk involved with importing and exporting. 
C)  The cost of importing/exporting may be high due to transportation costs. 
D)  Due to government restrictions, not all products can be imported or exported. 
E)  The costs of initiating an import/export strategy are high. 
A)  Importing/exporting is an easy way to enter a market. 
B)  There is very little risk involved with importing and exporting. 
C)  The cost of importing/exporting may be high due to transportation costs. 
D)  Due to government restrictions, not all products can be imported or exported. 
E)  The costs of initiating an import/export strategy are high.

Question 6

A French ministry has banned the word e-mail from official communication. Instead, the French words for quick and mail have been combined to form a new word. This is an official attempt to protect the French

Accepted Answer

A)  political-legal system. 
B)  economic system. 
C)  cultural environment. 
D)  economic community. 
E)  natural resources. 
A)  political-legal system. 
B)  economic system. 
C)  cultural environment. 
D)  economic community. 
E)  natural resources.

Question 7

The challenge with high-potential/high-growth economies is that they can be high risk. Describe the risks MNCs face entering these economies.

Accepted Answer

Entering high-potential/high-growth econ

Question 8

In the U.S. Starbucks does not franchise. It has a(n) ____ agreement with Barnes and Noble.

Accepted Answer

A)  importing 
B)  exporting 
C)  strategic 
D)  global sourcing 
E)  direct investment 
A)  importing 
B)  exporting 
C)  strategic 
D)  global sourcing 
E)  direct investment

Question 9

Match between columns
                        Premises: People willing to challenge authority have
Passive and value relationships and quality of life
People who prefer immediate rewards
Thrive on new opportunities
People in the U.S., U.K., and Canada tend to be individualistic
Avoid ambiguity
Characterized by clusters of countries that engage in high levels of trade with each other
Immediate rewards needed
Transcends national boundaries and has a worldwide marketplace for its resources and products/services
Collectivism
Cultural emphasis on social relationships and quality of life
Aggressive and value possessions and assertiveness
Accept that it may take years to achieve a goal
People who dislike ambiguity and change have
Willing to question higher level decisions
Based primarily in one country but gets a significant share of its resources/revenue from other countries
Acquires most of its resources and sells most of its products in one country
Characterized by private ownership of property and allocation of resources by the law of supply and demand
Cultural belief that one person comes first
Accept the authority of their boss based on position

Accepted Answer

The Answer of Power tolerance and Domestic business and Market is...

Question 10

TransFair USA promotes fair trade programs so farmers in developing countries can earn high enough wages to afford adequate nutrition and basic health care. TransFair is trying to change the ____ environment of international management.

Accepted Answer

A)  technological 
B)  cultural 
C)  political 
D)  economic 
E)  legal 
A)  technological 
B)  cultural 
C)  political 
D)  economic 
E)  legal

Question 11

Which of the following is a problem associated with the implementation of a direct investment strategy?

Accepted Answer

A)  Complexity of decision making 
B)  Sharing of profits 
C)  Loss of managerial control 
D)  Inability to purchase the brand identification of a product 
E)  Having to develop an organizational infrastructure 
A)  Complexity of decision making 
B)  Sharing of profits 
C)  Loss of managerial control 
D)  Inability to purchase the brand identification of a product 
E)  Having to develop an organizational infrastructure

Question 12

Which of the following describes one of the reasons for the establishment of the European Union?

Accepted Answer

A)  It eliminates trade barriers between member countries. 
B)  It decreases tariffs on products from nonmember countries. 
C)  It enhances movement of capital and labor between nonmember nations. 
D)  It increases the usage of member labor pools by nonmembers. 
E)  It gradually eliminates imports from nonmember nations. 
A)  It eliminates trade barriers between member countries. 
B)  It decreases tariffs on products from nonmember countries. 
C)  It enhances movement of capital and labor between nonmember nations. 
D)  It increases the usage of member labor pools by nonmembers. 
E)  It gradually eliminates imports from nonmember nations.

Question 13

Two U.S. companies Cargill and Archer Daniels Midland purchase 25% of the world cocoa supply from farmers in West Africa. These companies use

Accepted Answer

A)  importing. 
B)  direct investment. 
C)  global sourcing. 
D)  exporting. 
E)  joint venture. 
A)  importing. 
B)  direct investment. 
C)  global sourcing. 
D)  exporting. 
E)  joint venture.

Question 14

Magna International Inc., a Canadian company, offered to buy Opel, a German company, from GM. This is an example of direct investment.

Accepted Answer

A) True 
 B)False

Question 15

American Eagle is a regional airline that flies in the United States and Canada. It is an example of a(n) ____ business.

Accepted Answer

A)  international 
B)  domestic 
C)  multinational 
D)  intercontinental 
E)  global 
A)  international 
B)  domestic 
C)  multinational 
D)  intercontinental 
E)  global

Question 16

Riots in Egypt, Libya, and Syria changed the political legal environment for business because of a decrease in ____________________.

Accepted Answer

government

Question 17

McDonalds operates restaurants in airports around the world. The agreement between McDonalds and the airports is a(n)

Accepted Answer

A)  global sourcing agreement. 
B)  strategic alliance. 
C)  global business. 
D)  exporting agreement. 
E)  direct investment. 
A)  global sourcing agreement. 
B)  strategic alliance. 
C)  global business. 
D)  exporting agreement. 
E)  direct investment.

Question 18

A(n) ____ is the most common form of trade restriction.

Accepted Answer

A)  import tariff 
B)  export tariff 
C)  quota 
D)  embargo 
E)  maquiladoras 
A)  import tariff 
B)  export tariff 
C)  quota 
D)  embargo 
E)  maquiladoras

Question 19

In 2002, ______ of the EU members eliminated their home currencies.

Accepted Answer

A)  all 
B)  28 
C)  3 
D)  11 
E)  6 
A)  all 
B)  28 
C)  3 
D)  11 
E)  6

Question 20

Supervising a group of five managers, each of whom is from a different state in the United States, is likely to be much ____________________ than supervising a group of five managers, each of whom is from a different culture.

Accepted Answer

The answer of Supervising a group of five managers, each...

Which of the following is a disadvantage of joint ventures/strategic alliances?

The United States, Canada, and Mexico are major trading partners with one another. They are an example of a(n)

Maquiladoras face competition in China.

Which of the following is an example of how cultural differences directly impact international business practices?

Which of the following statements does NOT describe a characteristic of importing/exporting?

A French ministry has banned the word e-mail from official communication. Instead, the French words for quick and mail have been combined to form a new word. This is an official attempt to protect the French

The challenge with high-potential/high-growth economies is that they can be high risk. Describe the risks MNCs face entering these economies.

In the U.S. Starbucks does not franchise. It has a(n) ____ agreement with Barnes and Noble.

TransFair USA promotes fair trade programs so farmers in developing countries can earn high enough wages to afford adequate nutrition and basic health care. TransFair is trying to change the ____ environment of international management.

Which of the following is a problem associated with the implementation of a direct investment strategy?

Which of the following describes one of the reasons for the establishment of the European Union?

Two U.S. companies Cargill and Archer Daniels Midland purchase 25% of the world cocoa supply from farmers in West Africa. These companies use

Magna International Inc., a Canadian company, offered to buy Opel, a German company, from GM. This is an example of direct investment.

American Eagle is a regional airline that flies in the United States and Canada. It is an example of a(n) ____ business.

Riots in Egypt, Libya, and Syria changed the political legal environment for business because of a decrease in ____________________.

McDonalds operates restaurants in airports around the world. The agreement between McDonalds and the airports is a(n)

A(n) ____ is the most common form of trade restriction.

In 2002, ______ of the EU members eliminated their home currencies.

Supervising a group of five managers, each of whom is from a different state in the United States, is likely to be much ____________________ than supervising a group of five managers, each of whom is from a different culture.

Managing and the Managers Job

Traditional and Contemporary Opportunitieschallenges

Understanding the Organizations Environment

Responding to the Ethical and Social Environment

Basic Elements of Planning and Decision Making

Managing Strategy and Strategic Planning

Managing Decision Making and Problem Solving

Managing Start-Ups and New Ventures

Basic Elements of Organizing

Managing Organization Design

Managing Organization Change and Innovation

Managing Human Resources

Basic Elements of Individual and Interpersonal Behavior

Managing Employee Motivation and Performance

Managing Leadership and Influence Process

Managing Interpersonal Relations and Communication

Managing Work Groups and Teams

Basic Elements of Control

Managing Operations, Quality and Productivity

Filters

Exam 5: Navigating the Global Environment

Which of the following is a disadvantage of joint ventures/strategic alliances?

The United States, Canada, and Mexico are major trading partners with one another. They are an example of a(n)

Maquiladoras face competition in China.

Which of the following is an example of how cultural differences directly impact international business practices?

Which of the following statements does NOT describe a characteristic of importing/exporting?

A French ministry has banned the word e-mail from official communication. Instead, the French words for quick and mail have been combined to form a new word. This is an official attempt to protect the French

The challenge with high-potential/high-growth economies is that they can be high risk. Describe the risks MNCs face entering these economies.

In the U.S. Starbucks does not franchise. It has a(n) ____ agreement with Barnes and Noble.

TransFair USA promotes fair trade programs so farmers in developing countries can earn high enough wages to afford adequate nutrition and basic health care. TransFair is trying to change the ____ environment of international management.

Which of the following is a problem associated with the implementation of a direct investment strategy?

Which of the following describes one of the reasons for the establishment of the European Union?

Two U.S. companies Cargill and Archer Daniels Midland purchase 25% of the world cocoa supply from farmers in West Africa. These companies use

Magna International Inc., a Canadian company, offered to buy Opel, a German company, from GM. This is an example of direct investment.

American Eagle is a regional airline that flies in the United States and Canada. It is an example of a(n) ____ business.

Riots in Egypt, Libya, and Syria changed the political legal environment for business because of a decrease in ____________________.

McDonalds operates restaurants in airports around the world. The agreement between McDonalds and the airports is a(n)

A(n) ____ is the most common form of trade restriction.

In 2002, ______ of the EU members eliminated their home currencies.

Supervising a group of five managers, each of whom is from a different state in the United States, is likely to be much ____________________ than supervising a group of five managers, each of whom is from a different culture.

Managing and the Managers Job

Traditional and Contemporary Opportunitieschallenges

Understanding the Organizations Environment

Responding to the Ethical and Social Environment

Basic Elements of Planning and Decision Making

Managing Strategy and Strategic Planning

Managing Decision Making and Problem Solving

Managing Start-Ups and New Ventures

Basic Elements of Organizing

Managing Organization Design

Managing Organization Change and Innovation

Managing Human Resources

Basic Elements of Individual and Interpersonal Behavior

Managing Employee Motivation and Performance

Managing Leadership and Influence Process

Managing Interpersonal Relations and Communication

Managing Work Groups and Teams

Basic Elements of Control

Managing Operations, Quality and Productivity

Filters