MAN4720 CH 10 Quiz And Questions
With Complete Solutions
"A process of closer integration and exchange between different countries and
peoples worldwide, made possible by falling trade and investment barriers,
advances in telecommunications, and reductions in transportation costs" is the
definition of
- traditionalism
- privatization
- globalization
- nationalism - ANSWER Globalization
Rekall Autos Inc., an automobile company based in the country of Springfield,
made a capital investment of $400,000 to set up production units and
distribution channels in the country of Uganda from where it plans to access the
Uganda market. Such investments are best known as
- corporate leveraged buyouts
- foreign direct investments
- corporate venture capital investments
- foreign exchange - ANSWER Foreign direct investments
Relaxicab Inc. is a 100-year-old, multinational enterprise (MNE). Which of the
following activities would the company most likely have been involved in during
the stage of Globalization 2.0?
- Relaxicab would have restricted all its business activities to its home country
- It would have ventured into foreign markets essentially by exporting goods
- Relaxicab would have organized itself as a global collaboration network with
the help of internet technologies
- It would have increased its local responsiveness to country-specific
circumstances by duplicating business functions overseas - ANSWER It would
have increased its local responsiveness to country-specific circumstances by
duplicating business functions overseas
Which of the following is a feature of Logitech as a global collaboration network?
- It has been able to operate as a multinational company with self-contained
operations in a few key countries
,- Logitech has been able to keep its knowledge flow one-way, from its domestic
headquarters to international outposts
- The company has been able to organize work continuously because its teams
in different locations around the globe can work 24/7
- It has been unable to keep its costs low because of its centers of expertise that
are spread across the globe - ANSWER The company has been able to organize
work continuously because its teams in different locations around the globe can
work 24/7
The best explanation of why Gulf airlines are giving U.S. legacy carriers stiff
competition is that the Gulf carriers
- offer more special deals to business travelers than do the U.S. legacy carriers
- have taken advantage of U.S. trade laws that allow for unrestricted foreign
competition
- offer better service for lower costs than do the U.S. legacy carriers
- have built luxury hubs throughout Europe and the United States - ANSWER
Offer better service for lower costs than do the U.S. legacy carriers
The additional costs of doing business in an unfamiliar cultural and economic
environment, and of coordinating across geographic distances, are best
described as a(n)
- economic embargo
- social cost
- opportunity cost
- liability of foreignness - ANSWER Liability of foreignness
Which of the following strongly affects the cultural distance between two
countries?
- the difference in consumer income in the two countries
- the languages spoken in each country
- the status of financial institutions in each country
- the transportation networks connecting the two countries - ANSWER The
languages spoken in each country
According to the CAGE distance framework, cultural distance most affects
industries or products
- that a foreign government views as vital to national security
- that are related to national and/or religious identity
- for which demand varies by income
- with low value-to-weight ratio - ANSWER That are related to national and/or
religious identity
, According to the CAGE distance framework, what does cultural distance
represent?
- the cultural disparity between an internationally expanding firm's home country
and its targeted host country
- the difference between a firm's organizational culture and its competitor's
organizational culture
- the cultural disparity between the employees of two companies in a joint
venture
- the geographical distance between two countries that have similar national
cultures - ANSWER The cultural disparity between an internationally expanding
firm's home country and its targeted host country
Which of the following factors best helps capture administrative and political
distances?
- the wealth and per capita income of consumers
- the linguistic and religious differences between two countries
- the physical size and topography of a country
- the absence or presence of weak legal and financial institutions - ANSWER The
absence or presence of weak legal and financial institutions
Companies from wealthy countries tend to trade with other rich countries rather
than poor countries because they can
- benefit from economic arbitrage
- increase the per capita income of consumers in the poor countries
- replicate their existing business model more easily
- take advantage of the price differences between the two markets - ANSWER
Replicate their existing business model more easily
Which of the following foreign entry modes requires the highest level of
investment in terms of capital and other resources and allows for a high level of
control?
- exporting
- franchising
- joint ventures
- acquisitions - ANSWER Acquisitions
Which of the following is an advantage of using licensing or franchising as a
foreign entry mode?
- Licensing or franchising reduces a firm's exposure to loss of reputation
- Either one reduces a firm's exposure to loss of intellectual property
- Licensing or franchising allows for high levels of control
With Complete Solutions
"A process of closer integration and exchange between different countries and
peoples worldwide, made possible by falling trade and investment barriers,
advances in telecommunications, and reductions in transportation costs" is the
definition of
- traditionalism
- privatization
- globalization
- nationalism - ANSWER Globalization
Rekall Autos Inc., an automobile company based in the country of Springfield,
made a capital investment of $400,000 to set up production units and
distribution channels in the country of Uganda from where it plans to access the
Uganda market. Such investments are best known as
- corporate leveraged buyouts
- foreign direct investments
- corporate venture capital investments
- foreign exchange - ANSWER Foreign direct investments
Relaxicab Inc. is a 100-year-old, multinational enterprise (MNE). Which of the
following activities would the company most likely have been involved in during
the stage of Globalization 2.0?
- Relaxicab would have restricted all its business activities to its home country
- It would have ventured into foreign markets essentially by exporting goods
- Relaxicab would have organized itself as a global collaboration network with
the help of internet technologies
- It would have increased its local responsiveness to country-specific
circumstances by duplicating business functions overseas - ANSWER It would
have increased its local responsiveness to country-specific circumstances by
duplicating business functions overseas
Which of the following is a feature of Logitech as a global collaboration network?
- It has been able to operate as a multinational company with self-contained
operations in a few key countries
,- Logitech has been able to keep its knowledge flow one-way, from its domestic
headquarters to international outposts
- The company has been able to organize work continuously because its teams
in different locations around the globe can work 24/7
- It has been unable to keep its costs low because of its centers of expertise that
are spread across the globe - ANSWER The company has been able to organize
work continuously because its teams in different locations around the globe can
work 24/7
The best explanation of why Gulf airlines are giving U.S. legacy carriers stiff
competition is that the Gulf carriers
- offer more special deals to business travelers than do the U.S. legacy carriers
- have taken advantage of U.S. trade laws that allow for unrestricted foreign
competition
- offer better service for lower costs than do the U.S. legacy carriers
- have built luxury hubs throughout Europe and the United States - ANSWER
Offer better service for lower costs than do the U.S. legacy carriers
The additional costs of doing business in an unfamiliar cultural and economic
environment, and of coordinating across geographic distances, are best
described as a(n)
- economic embargo
- social cost
- opportunity cost
- liability of foreignness - ANSWER Liability of foreignness
Which of the following strongly affects the cultural distance between two
countries?
- the difference in consumer income in the two countries
- the languages spoken in each country
- the status of financial institutions in each country
- the transportation networks connecting the two countries - ANSWER The
languages spoken in each country
According to the CAGE distance framework, cultural distance most affects
industries or products
- that a foreign government views as vital to national security
- that are related to national and/or religious identity
- for which demand varies by income
- with low value-to-weight ratio - ANSWER That are related to national and/or
religious identity
, According to the CAGE distance framework, what does cultural distance
represent?
- the cultural disparity between an internationally expanding firm's home country
and its targeted host country
- the difference between a firm's organizational culture and its competitor's
organizational culture
- the cultural disparity between the employees of two companies in a joint
venture
- the geographical distance between two countries that have similar national
cultures - ANSWER The cultural disparity between an internationally expanding
firm's home country and its targeted host country
Which of the following factors best helps capture administrative and political
distances?
- the wealth and per capita income of consumers
- the linguistic and religious differences between two countries
- the physical size and topography of a country
- the absence or presence of weak legal and financial institutions - ANSWER The
absence or presence of weak legal and financial institutions
Companies from wealthy countries tend to trade with other rich countries rather
than poor countries because they can
- benefit from economic arbitrage
- increase the per capita income of consumers in the poor countries
- replicate their existing business model more easily
- take advantage of the price differences between the two markets - ANSWER
Replicate their existing business model more easily
Which of the following foreign entry modes requires the highest level of
investment in terms of capital and other resources and allows for a high level of
control?
- exporting
- franchising
- joint ventures
- acquisitions - ANSWER Acquisitions
Which of the following is an advantage of using licensing or franchising as a
foreign entry mode?
- Licensing or franchising reduces a firm's exposure to loss of reputation
- Either one reduces a firm's exposure to loss of intellectual property
- Licensing or franchising allows for high levels of control
