Which negative outcome on political systems comes from globalization? ✔✔Creation of
isolationist policies
Which factor results in a higher rate of globalization? ✔✔Reduced trade barriers
What are the four factors in G
...
Which negative outcome on political systems comes from globalization? ✔✔Creation of
isolationist policies
Which factor results in a higher rate of globalization? ✔✔Reduced trade barriers
What are the four factors in Ghemawat's CAGE analysis? ✔✔Culture, administration,
geography, economy
What is a major drawback to the home country when companies outsource manufacturing jobs to
countries with lower worker wages? ✔✔Loss of manufacturing jobs
A country has a characteristic traditional economic system with poor infrastructure and limited
economic opportunity.
What is the impact of this system on the process of globalization? ✔✔The globalization process
is at a disadvantage as the country has a lower standard of living.What is a characteristic of a market economy? ✔✔Firms seek to maximize profi ts.
Which impact does Islamic law directly have on businesses? ✔✔It forbids charging interest.
Which institution helps to maintain availability of global financing to solve trade deficit issues?
✔✔International Monetary Fund
What is the current focus of the World Bank? ✔✔Improving quality of life
For which concern has the World Trade Organization been criticized? ✔✔Adoption of labor
standards protecting labor rights
How is the Special Drawing Right of the International Monetary Fund (IMF) valued? ✔✔It is
based on the value of the five most significant members' currencies.
Two countries agree to open their borders to international business transactions with one another
without tariffs.How does this affect global business? ✔✔It leads to developing free trade policies with strategic
partners.
A country uses its established technology infrastructure to produce a good.
What is the impact of this infrastructure on trade? ✔✔It will create barriers to entry for other
nations.
What was the economic impact of the North American Free Trade Agreement (NAFTA)?
✔✔The shift of jobs away from low comparative advantage industries
A company that is located in Country A would like to sell products in Country B. The
government of Country B is pushing for a tariff-based international trade agreement on the
product.
What is the reasoning behind Country B's decision? ✔✔Country B seeks to protect its economy
and give it the opportunity for long-term expansion.Countries A and B participate in trade agreements that allow free trade among participant
countries. However, Country A imposed quotas on several imported products to protect its
domestic products.
What is the effect, if any, on the domestic prices of these products? ✔✔Increases
Two countries decide to open up trade with each other.
What is likely to happen when trade opens up? ✔✔Jobs will increase in comparative advantage
industries.
What is a purpose of a country implementing trade protectionism? ✔✔To protect an infant
industry
Country A and Country B are trying to mend their relationship. A company from Country A
would like to invest in a company in Country B.
Which action by Country B will help these two countries meet their goal? ✔✔Provide tax
exemptionsWhich level of regional economic integration is a key feature of a Customs Union? ✔✔Unified
trading policies with non-members
What is a drawback of creating regional trade agreements? ✔✔They shift employment
opportunities.
The United States-Mexico- Canada Agreement (USMCA), a modification of the North American
FreeTrade Agreement (NAFTA), broadened the scope of free trade between member nations and
tightened restrictions in the region.
Which regulation was established by this new agreement? ✔✔Almost half of all automobile
parts must be made by a labor force that earns a minimum of $16 per hour by 2023.
A U.S. capital investment firm is researching new markets to enter to diversify its portfolio. The
director of foreign investments presented a pitch to the board of directors encouraging entry into
the Costa Rican telecommunications market by investing in local companies in the region
through acquisition.
Which alliance supports this director's suggestion? ✔✔Central America Free Trade AgreementA firm based in Country A manufactures its products in Country B and pays the manufacturing
employees in the currency in which they are located.
Which currency situation will result in the maximum profit for the firm? ✔✔The currency in
Country A is strong relative to the currency in Country B.
Which drawback is associated with regional economic integration? ✔✔Increased exclusive
internal trade
Which factor contributes to the creation of a monopoly? ✔✔Control of natural resources
Which convention provides gap fillers for terms that may not be expressly stated in agreements
between two companies? ✔✔Contracts for the International Sale of Goods
Which laws are violated by practices such as price-fixing, price discrimination, restraints, and
monopolization? ✔✔Anti-trustAn international company's consumers are demanding that the owners make socially ethical
business decisions concerning their packaging, but the company is finding that the suggested
green modifications are increasing the costs of producing the product.
Which concern is this company facing by meeting these ethical demands? ✔✔Decreased
profitability
A business is entering a global market at the same time it has been trying to improve its level of
corporate social responsibility (CSR).
Which CSR goal should this company remember during this process? ✔✔Increase shareholder
trust via high ethical standards
A company would like to expand its corporate social responsibility (CSR) initiatives to a global
level.
Which strategy should the company use to meet this goal? ✔✔Engage stakeholders on the issue
of air qualityAn individual is encouraged to provide a small, quiet fee to local offi cials to get some critical
work doneoverseas for a global offi ce. The individual was told that this would greatly expedite
the work. Theindividual took that advice, and the work was completed, but the manager in the
United States was upsetwith the action and called the individual to discuss the matter.
What is the most challenging aspect of this individual's ethical dilemma? ✔✔Ethical behaviors
are not standardized across the world.
A CEO of a multinational corporation tells employees that they are expected to follow the
organization's values, remember the mission, and adapt behaviors to be in alignment with the
vision and mission, regardless of the situation.
Which ethical standard is being stressed by this company? ✔✔Code of ethics
An international company has employees divided into departments related to designated areas of
the business, such as marketing, production, human resources, information technology, and
customer service.
What is the organizational structure of this company? ✔✔FunctionalWhich organizational structure is common in international high-tech and engineering firms that
have projects of limited lengths of time where employees can be put on different teams to
maximize ingenuity? ✔✔Matrix
Which organizational structure helps increase employee creativity, productivity, and mutual
accountability? ✔✔Teams
A global household appliance company competes in three areas: washers, dryers, and
refrigerators.
Which type of departmentalization does this company use? ✔✔Product
A multinational corporation (MNC) with headquarters in the United States is seeking to limit its
supply chain to U.S. companies so that decision-making authority is localized at the highest level
of the organization.
What is a result of using this decision-making structure? ✔✔There is increased consistency in
operations.A company wants to hold a direct operating presence in a foreign country, so it buys a company
in the target country and runs the operations.
Which type of business agreement is this company using? ✔✔Subsidiary
A multinational beverage company decides to export products into a new market in order to
grow its business. Exporting products was determined to be one of the cheapest methods of
market entry for this company; however, the company realizes there are some disadvantages to
exporting.
Which challenge is this company likely facing by exporting its products? ✔✔Costs of
transporting goods is high.
A multinational company hires a distributor to manage the distribution of products in a new
international market that it recently entered.
Which entry strategy is the company using? ✔✔ExportingA company located in the United States ships its products to a country overseas. Frequent bad
weather causes significant delays, thus leading to reduced profits. As a result, the company wants
to encourage leadership to consider adding a location in this overseas country.
Which strategy solves this problem? ✔✔Decentralized manufacturing
As a company enters a foreign market, it provides assets, takes on all of the responsibility, and
assumes the significant risk.
What is this market entry strategy? ✔✔Greenfield venture
A company has entered several foreign markets and maintains the same branding in all of them.
What is the term for this marketing strategy? ✔✔Standardization
A company would like to have a direct operating presence in a foreign country. The company is
concerned about being exposed to the highest levels of risk and a slow market entry.
Which entry strategy is the company concerned about? ✔✔SubsidiaryWhich national cultural dimension refers to how agreeably a society accepts hierarchical
differences between people in the global workplace? ✔✔Power distance
Which national cultural dimension in global business refers to the amount of ambiguity a society
is willing to accept? ✔✔Uncertainty avoidance
Which national cultural dimension in global business refers to people's inclination to take care of
themselves and their close circle of family and friends, often at the cost of the whole society?
✔✔Individualistic
A senior manager from the head office of a company based in the United States is assigned to
work in its overseas office in Indonesia where the significant emphasis is placed on workplace
harmony. The manager ensures that the local culture and language are understood and is often
perceived as an insider who follows the normal traditions.
How will the cultural dimensions of the local country influence the manager's evaluation?
✔✔The senior manager would be given a very favorable performance evaluation.An employee for a global technology company was assigned to the overseas office in Asia. Once
the assignment was completed, the employee experienced disorientation in repatriating to the
head office in the United States.
What caused this disorientation? ✔✔Changes in work culture and customs
Human resources policies are determined by how a particular global company decides to oversee
its diverse workforce.
What is the disadvantage of using this polycentric approach? ✔✔
A computer technology company has several factories in three countries. The headquarters
introduces steps in the manufacturing process so that waste decreases dramatically.
Which supply chain practice is this company using to optimize production efficiency? ✔✔Lean
manufacturing
A company is evaluating where it will locate its next facility to minimize its distribution shipping
costs.Which factor must the company consider as part of this decision? ✔✔Value-to-weight ratio
A multinational company sources the components for its products from multiple countries
around the globe and assembles the final finished product locally in the country of sale.
However, the consumers in the local country do not prefer locally made goods.
Which phenomenon is the company experiencing? ✔✔Country-of-origin effect
What is an advantage of using intermediaries in an indirect distribution channel? ✔✔It reduces
up-front costs with the use of an existing channel
A new start-up company wants to connect directly with its consumers.
How many layers of intermediaries should the company consider? ✔✔0
A company's distribution channel consists of a producer, a distributor, a retailer, and a consumer.What is a distribution channel with this structure called? ✔✔Indirect
Which form of funding requires a low cost of capital and does not require time to mature?
✔✔Loans
A manufacturing company in the United States acquired a small national supplier based in
California.
Which accounting method should the company use to record the acquisition? ✔✔Generally
accepted accounting principles
How do banks and investors use financial statements? ✔✔To decide whether to grant access to
money
A company wants to reduce the effects of currency fluctuations with its host country subsidiaries
for the coming year.
Which action should the company take? ✔✔Use a forward contractA multinational company uses transfer pricing to reduce its tax burden in the subsidiaries'
countries.
Which effect does this action have on subsidiaries? ✔✔Lowered profit
What is an example of a micro risk for multinational companies? ✔✔Government
nationalization of assets
A community has the skills and ability to access computers and the internet but does not value
that form of technology. A company is trying to change the situation in order to facilitate
increased online transactions.
Which stage of the digital divide is the company hoping to correct? ✔✔Empowerment
A global company wants to share and store business information online 24/7 for employees so
they can access the items when they are not physically in the office.
Which tool should the company use for this purpose? ✔✔Cloud-based fi le shareA manufacturing facility would like to consider the use of artificial intelligence deep learning.
Which practice illustrates the use of this approach? ✔✔Machines become familiar with common
defects in products
A company is interested in working with the technology that will allow consumers to privately
and securely store personal information such as social security and credit card numbers, making
it accessible around the world.
Which piece of technology is of interest to this company? ✔✔Blockchain
An international business experienced significant changes due to advances in global technology
such as autonomous cars, 3D printing, biometrics, nanotechnology, and quantum computing.
Which era caused this impact on the business? ✔✔Fourth Industrial Revolution
An international company works with many economic sectors and notices that one sector, in
particular, is slower to adopt artificial intelligence, which limits their opportunities on a global
scale.Which economic sector shows this slower pace? ✔✔Education
Workers at a company are struggling to efficiently address daily problems because the
company's current information systems do not communicate across departments.
What type of system should the company implement to solve this problem? ✔✔Enterprise
resource planning system
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