tf- the Maastricht Treaty formally established the trade area in North America
tf- north america, south america and africa are the tree spheres of economic influence that re most dominant in the global environment
tf- the goal of the unified Europe is to strengthen Europe's position as an economic superpower vis-a-vis the United States
tf- germany is a member of the Group of Five
tf- japan is in fourth place both as an importer to and exporter from the US
tf- the value of US imports from China is more than 5 times the value of US exports to China
tf- members of APEC include south korea, US, australia and russia
tf- NAFTA created one of the world's largest trading blocs
tf- NAFTA has had an immediate and negative effect on the US automobile industry
tf- to maintain its strong growth for the foreseeable future, Starbucks has been expanding aggressively overseas
tf- foreign direct investment flows to less-developed countries by firms in developed countries has dropped substantially
tf-one consequence of an increasing integrated global economy is imports that are penetrating deeper into the world's largest economies
off shoring occurs when the organization contracts with an outside provider to produce one or more of an organization's products or services
universal needs exist when the tastes and preferences of consumers in different countries, with regard to a product are similar
the need to lower costs is a key globalization driver
when pressures for local responsiveness are high and pressures for global integration are low, the global model is appropriate
when there are differences in traditional practices among countries, pressures for local responsiveness emerge
companies that adopt the global model tend to be those pursuing a cost focus as a competitive strategy
transnational companies are companies that produce products in one country and export these products to many overseas countries
in the international model, managers use their organization's existing core capabilities to expand into foreign markets
the multinational model uses subsidiaries in each country in which the company does business and provides a great deal of discretion to those subsidiaries to respond to local conditions
exporting offers scale economies
a drawback of exporting is that high transportation costs can make it uneconomical, particularly in the case of bulk products
licensing is primarily utilized by manufacturing industries while franchising is used more often in service industries
the advantages of franchising as an entry mode to global expansion are similar to the disadvantages of licensing
the least preferred strategy when a company's competitive advantage is based on technology is the wholly owned subsidiary
parent-company nationals who are sent to work at a foreign subsidiary are known as expatriates
host-country nationals are natives of a country other than the home country of an overseas subsidiary
cultural shock is an example of an executive coping strategy for international assignments
one reason for repatriation is disappointment with unfulfilled expectations
human resource managers around the globe said the main reason for the failures of an overseas assignment is family issues, especially dissatisfaction of the employee's spouse
one way to prevent failed global assignments is to create clear job objectives
ethnocentrism is the tendency to judge others by the standards of one's own culture or group, which are seen as superior
culture shock is the disorientation and stress associated with being in a foreign environment
according to the power distance/individualism scale, in the US is labeled as a large power distance, collectivist culture
cross cultural management extends beyond US employees going abroad
inpatriates are foreign nationals that are sent abroad for a short period
ethical behavior and decision making is (surprisingly) harder in a purely domestic situation than in the international arena
the areas described in the text as the most dominant in the global economy include
A. north america, western europe and Asia
which of the following is the overarching goal of unification of the European Union?
C. strengthen europe's position as an economic superpower, particularly vis-a-vis the United States
under the ___ member countries have agreed to adopt a common European currency called the euro
to be competitive in a global economy, Europeans must increase their level of
which country does the text describe as becoming the largest producer and consumer of many of the world's goods?
one study found that manufacturing labor costs about ___ an hour in China, compared to ___ dollars in the US
C. less than $1, about 25
NAFTA combined the economies of
A. the US, canada, and mexico
the passage of NAFTA has provided short term benefits to which of the following industries?
E. all of the above
which of the following existing agreements includes Guatemala, Honduras and the US?
which country does the text describe as having become an important provider of online computer and software support for the US?
which of the following are consequences of the increasing integration of the global economy?
B. many companies find their home markets under attack from foreign competition
today's managers operate in an environment that is ___ complex and competitive and offers more___
C. more, opportunities
operating in a global marketplace is considered more complex because
D. of varying cultures and coordination of globally dispersed operations
___ occurs when the organization contracts with an outside provider to product one or more of an organization's products or services
___ occurs when companies move jobs to another country, typically where wages are lower.
Which of the following factors should be considered by managers who are deciding whether to offshore?
E. all of the above
when identifying the best strategy for competing in a global marketplace, it is helpful to plot a company's position on a
C. integration-responsiveness grid
the grid used for identifying the best strategy for competing in a global marketplace measures what two dimensions?
C. financial viability and employee satisfaction
pressure for global integration includes
A. pressures to reduce costs
which of the following is a global strategy used as an approach to international competition?
E. all of the above
the model in which managers use their organization's existing core capabilities to expand into foreign markets is called the
A. international model
pressure for local responsiveness includes
E. all of the above
___ includes threats of protectionism, economic nationalism and local rules
C. economic and political demands
the disney corp has marketed its facility in France somewhat differently than its US facilities in order to appeal to the European consumer. This type of strategy is known as ___ model.
The international model of organization structure consists of
B. subsidiaries located in countries where the company does business with much of the control exercised by the parent company
which model of organizational structure did IBM and Xerox profit from to transfer skills and know-how to subsidiaries around the globe?
A. international model
the overseas success of Kellogg, Cocacola, Heinz, and Proctor and Gamble are based on marketing know-how. These companies are using which model of organizational structure?
A. international model
character corporation has subsidiaries in each country in which it does business. As the parent company, character transfers its core skills in technology and R and D overseas so that each subsidiary remains dependent on it for new products, processes and ideas. This illustrates the ___ of organizational structure.
where global efficiency is not required but adapting to local conditions offers advantages, the ___ model of organizational structure is appropriate
evans manufacturing has subsidiaries in each country in which it does business and provides a great deal of discretion to those subsidiaries to respond to local conditions. each subsidiary has its own manufacturing, marketing, research and human resource functions
B. multinational model
the model which is appropriate where global efficiency is not required but adapting to local conditions offers advantages is the ___ model.
the multinational model of organization structure consists of
C. subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries
companies that decentralize their operations throughout the globe in order to appeal to the varying tastes and preferences of global consumers are utilizing a ___ model.
competing globally under the assumption that consumer tastes and preferences in varying countries differ is referred to as a ___ model.
in which models or organization structure are manufacturing costs relatively high?
C. multinational and international
which organizational structure realizes the advantage of local responsiveness but the disadvantage of high manufacturing costs?
a disadvantage of a multinational model is that
D. manufacturing costs are generally higher
the ___ organizational model is designed to enable a company to market a standardized product in the global marketplace and to manufacture that product in a limited number of locations where the mix of costs and skills is most favorable
Laura Inc is a company that views the entire world as one market and assumes that there are no tangible differences among countries with regard to consumer tastes and preferences. Laura illustrates the ___ model of organizational structure.
the model designed to enable a company to market a standardized product in the global marketplace and to manufacture the product in a limited number of locations is called the
C. global model
when a company such as Proctor and Gamble approaches the European market as a unified whole, thus reducing costs and improving efficiency,, it is using the ___ model of organizational structure
The ___ model of organizational structure has a disadvantage in that it may result in a product that fails to satisfy anyone.
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
the organizational structure that enables managers to "think globally but act locally" is called
E. transnational model
E. do all of the above
in order to achieve cost economies, Strong Man. Co bases production plants for labor-intensive products in low-wage countries such as China and locates production plants that require skilled workers in high-skill countries like Japan. This illustrates the ___ model of organizational structure.
the transnational model of organizational structure consists of
D. manufacturing various components at appropriate lower-cost sites and assembling the components at national subsidiaries to assure local responsiveness
Grant Fire Corporation manufactures engines for its fire trucks in a central location in order to attain cost economies and then sends these engines to various subsidiaries for final assembly of the truck bodies in order to meet local safety specifications. this type of organizational structure uses the ___ model.
which of the following companies is an example of a transnational company?
which of the models of organization structure depends most heavily on communication and coordination between subsidiaries?
B. the transnational model
exporting, licensing, franchising, joint ventures and wholly owned subsidiaries are all methods of
C. entering overseas markets
advantages of exporting as a global expansion entry mode are that
A. economies of scale may be realized
most manufacturing companies begin global expansion through which entry mode?
A. a common entry strategy for global expansion
A disadvantage of exporting is that
A. it is quite risky
___ is an arrangement by which Company A in Country A buys the rights to manufacture Company B's product in Country A for a negotiated fee.
B. International licensing
an advantage of licensing as a method of entering global competition is that the
A. licensing company need not bear the costs and risks of opening up an overseas market
a disadvantage of licensing is that the licensing company (licensor)
A. may lose control over its technology
selling the rights to use your company's brand name in return for a lump-sum payment and a share of the buyer's profits is referred to as
the most significant disadvantage of franchising concerns
E. quality control
an advantage of joint ventures in the international marketplace is
E. all of the above
a disadvantage of entering global competition through a joint venture is
C. conflict over who controls what within a joint venture that causes many joint ventures to fail
when a company sets up overseas operations, independent of foreign partners or governments, they have established
C. a wholly owned subsidiary
the greatest disadvantage of operating a wholly owned subsidiary is
C. high costs and risk are associated with this type of operation
which of the following is an advantage of a wholly owned subsidiary?
E. a wholly owned subsidiary gives a company tight control over operations in other countries
individuals sent from a company's parent country to work in overseas operations are referred to as
Alice Novatel is being sent by her company to head up a new facility in Hong Kong. Alice would be considered a
A. third-country nationals
samantha has just agreed to participate in her first expatriate experience. the first thing her employer should do is
D. encourage self and family evaluation
the trend away from using expatriates in top management positions is especially apparent in companies trying to create a ___ culture
the biggest cause of failure of overseas manager is
D. personal and social issues
which of the following characteristics is most likely associated with an international executive?
the disoriented and stress associated with being in a foreign environment is termed
C. culture shock
___ is the tendency to judge others by the standards of one's group or culture, which are seen as superior
Cristy Smith has been assigned to manage an operation in Peru. Upon her arrival she encouraged all of her employees to feel free to individually approach her with ideas on improving operations. after many months, no employees had offered suggestions. crusty should have realized that Peruvian culture has not only a ___ degree of collectivism but accepts a ___ power distance
C. high; large
in Hofstede's chart showing individualism/collectivism and power distance, the US is most like
C. New Zealand
___ are foreign nationals who are brought in to work at the parent company
steps for establishing and reinforcing the codes of conduct for international business include which of the following steps
E. all of the above are
despite differences across cultures, research suggests that regardless of nationality or religion, most people embrace which of the following values?
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