University of Southern Mississippi

MANAGEMENT 300

1)The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the                                                                .

1. The biggest disadvantage associated with licensing is that the licensor gives up control over the
   1. 1. quality of the good or service sold by the foreign licensee.
2. When conducting global business, companies should attempt to identify the two types of
   1. 1. political risk, which are political uncertainty and economic uncertainty.
3. Protectionism is the use of trade barriers to protect local companies and their workers from
   1. 1. .

4. Which of the following is true of global business?
5. The General Agreement on Tariffs and Trade (GATT):
6. According to Hofstede's research on cultural dimensions,                      cultures emphasize the
   1. 1. importance of relationships, modesty, caring for the weak, and quality of life.
7.           is the set of shared values and beliefs that affects the perceptions, decisions, and behavior
   1. 1. of the people from a particular country.
8. Multinational corporations are corporations that own businesses in two or more countries.
9. A particular society emphasizes the importance of relationship in its culture. They take good care of the weak people in their society and value modesty. In this context, this society has a(n)
   1. 1. culture.
10. Triston is a company owned by a single owner with headquarters in Switzerland and
    1. 1. manufacturing plants in 90 other nations. Triston is an example of a(n)   .
11. Global business is defined as the buying and selling of goods and services by people from
    1. 1. different countries.
12. Regional trading is defined as a method of investment in which a company builds a new business or buys an existing business in a foreign country.
13. The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign
    1. 1. culture is the most important factor in determining the success or failure of an international assignment.
14. Robert Mondavi Wineries entered into an agreement with Baron Philippe de Rothschild, owner
    1. 1. of Boreaux's First Growth chateau, to produce a top quality wine in California. The two companies working together to create a new product is an example of .

15.           occurs when a company sells domestically produced products to customers in foreign
    1. 1. countries.
16. Tugstinia is one of only two countries in the world that produces a mineral required in the
    1. 1. manufacturing of cellular phones. Several mining companies recently moved their operations out of the region due to a civil war resulting from a change in rulers. This is an example of how
       2. can influence global business.
17. The acronym GATT stands for the                      .
18. Souzia, a small tropical country, boycotted the products of an international clothing store because the company manufactures and exports some of its goods from Argonia, the country with which Souzia has long standing political problems. This boycott is an example of                                                                  .
19. Multinational corporations are corporations that own businesses in two or more countries.

20. Clive Motor Company solely owns and operates manufacturing plants in Brazil, Chile, Germany and India. Which of the following methods for conducting global business has Clive Motor Company used in this example?
21. The General Agreement on Tariffs and Trade (GATT)
22. German chip manufacturer, Infineon AG, has joined with Motorola Inc. and Agere
    1. 1. Systems Inc. to establish a new company in order to develop and license chip designs for cellphones. These three companies have created a         .

23. The phase model of globalization is one in which a company makes the transition from a domestic company to aglobal company in three sequential phases. The three phasesare exporting, wholly owned subsidiaries, and strategicalliances.
24. A cosmetics company that is considering entering the South American market would be
    1. 1. especially interested in the discretionary income within that region. In this context, which of the following is a determining factor in its global strategy?
25. It appears that all companies follow the phase model of globalization when entering
    1. 1. foreign markets.
26.           occurs when a company sells domestically produced products to customers in
    1. 1. foreign countries.
27. What are the strategies that can be used to minimize or adapt to the political risk inherent
    1. 1. in global business?
28. What are the two types of political risk that affect companies conducting global business?
29. Which of the following is a trend that has allowed companies to skip the phase model
    1. 1. when going global?
30. A       is a nontax method of increasing the cost or reducing the volume of imported
    1. 1. goods.

31. Stardust Inc. is expanding its global operations into South Fordland in spite of the
    1. 1. terrorist activities in the country. As Stardust Inc. expands into South Fordland, it must deal with             .
32. The two general kinds of trade barriers are                             .
33. A multinational company that acts with                                has offices, manufacturing plants, and
    1. 1. distribution facilities in different countries that are run based on the same rules, guidelines, policies, and procedures.
34. Souzia, a small tropical country, boycotted the products of an international clothing store
    1. 1. because the company manufactures and exports some of its goods from Argonia, the country with which Souzia has long standing political problems. This boycott is an example of         .
35. Two factors that help companies determine the growth potential of foreign markets are
    1. 1. the purchasing power of the consumers and types of foreign competitors already in the market.
36. Tugstinia is one of only two countries in the world thatproduces a mineral required in the
    1. 1. manufacturing of cellularphones. Several mining companies recently moved theiroperations out of the region due to a civil war resulting from achange in rulers. This is an example of how  caninfluence global business.
37. For an initial fee and royalties, Lemmongrass Inc. has licensed its entire business to an
    1. 1. organization called Powersurge, located in another country. It has provided this

37. 1. 2. organization with training and marketing assistance to successfully run the business. In this context, Powersurge is a(n)                .
38. Clive Motor Company solely owns and operates manufacturing plants in Brazil, Chile,
    1. 1. Germany and India. Which of the following methods for conducting global business has Clive Motor Company used in this example?
39. A(n) is a direct tax on imported goods.
40. Tugstinia is one of only two countries in the world that produces
41. Identify a common factor of global new ventures?
42. The bringing of a product or service to several different foreign markets at the same time is one of the common factors of global new ventures
43. The term              is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
44. which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
45. TRUE OR FALSE: The phase model of globalization is one in which a company makes the transition from a domestic company to
46. a global company in three sequential phases. The three phases are exporting, wholly owned subsidiaries, and strategic alliances.
47. TRUE OR FALSE: Global business is defined as the buying and selling of goods and services by people from different countries.

48. Which of the following is true of global business?
49. business is the buying and selling of goods and services by people from different countries.
50. TRUE OR FALSE: It appears that all companies follow the phase model of globalization when entering foreign markets.
51. A(n)               is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.
52. pays a company a fee for the right to conduct that business in his or her country.
53. TRUE OR FALSE: Multinational companies typically have no difficulty determining the correct balance between global consistency and local adaptation.
54. The General Agreement on Tariffs and Trade (GATT):
55. a worldwide trade agreement that reduced and eliminated tariffs, limited government subsidies, and established protections for intellectual property. The tariffs were eliminated in ten specific industries.
56. Most companies have used the             to successfully enter foreign markets.
57. model of globalization, in which a company makes the transition from a domestic company to a global company.
58.   is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country.
59. perceptions, decisions, and behavior of the people from a particular country.
60. TRUE OR FALSE: The two kinds of cooperative contracts are licensing and franchising.
61. The term                is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
62. people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
63.   refers to the risk associated with changes in laws and government schemes that directly affect the way foreign companies conduct business.
64. government policies that directly affect the way foreign companies conduct business.

65. The                strategy of minimizing or adapting to the political risk inherent in global business makes use of joint ventures and collaborative contracts.
66. TRUE OR FALSE: Global new ventures bring a product or service to market in one foreign market at a time.
67. TRUE OR FALSE: Two factors that help companies determine the growth potential of foreign markets are the purchasing power of the consumers and types of foreign competitors already in the market.
68. TRUE OR FALSE: Global joint ventures can be difficult to manage because they represent a merging of four cultures.
69.   are two kinds of cooperative contracts.
70. franchising.
71. The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the                                    .
72. The biggest disadvantage associated with licensing is that the licensor gives up control over the quality of the good or service sold by the foreign licensee.
73. When conducting global business, companies should attempt to identify the two types of

political risk, which are political uncertainty and economic uncertainty.

74. Protectionism is the use of trade barriers to protect local companies and their workers from

75. Which of the following is true of global business?

76. The General Agreement on Tariffs and Trade (GATT):
77. According to Hofstede's research on cultural dimensions,                      cultures emphasize the
    1. 1. importance of relationships, modesty, caring for the weak, and quality of life.
78.           is the set of shared values and beliefs that affects the perceptions, decisions, and behavior
    1. 1. of the people from a particular country.
79. Multinational corporations are corporations that own businesses in two or more countries.

80. A particular society emphasizes the importance of relationship in its culture. They take good care of the weak people in their society and value modesty. In this context, this society has a(n)
    1. 1. culture.
81. Triston is a company owned by a single owner with headquarters in Switzerland and
    1. 1. manufacturing plants in 90 other nations. Triston is an example of a(n)   .
82. Global business is defined as the buying and selling of goods and services by people from
    1. 1. different countries.
83. Regional trading is defined as a method of investment in which a company builds a new business or buys an existing business in a foreign country.
84. The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign
    1. 1. culture is the most important factor in determining the success or failure of an international assignment.
85. Robert Mondavi Wineries entered into an agreement with Baron Philippe de Rothschild, owner
    1. 1. of Boreaux's First Growth chateau, to produce a top quality wine in California. The two companies working together to create a new product is an example of .