Chapter 8 Quiz Mgmt

34 Questions  I  By Trarnold
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Chapter 8 Quiz Mgmt
MGMT Quiz Ch. 8 Chuck Williams in correspondence with BA 3305 TTU

  
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  • 1. 
    Global business is the ____________ and ___________ of good and services from _____________ countries.
    • A. 

      Importing, exporting, similar

    • B. 

      Buying, selling, similar

    • C. 

      Importing, exporting, different

    • D. 

      Buying, selling, different


  • 2. 
    Direct foreign investment is a method of investment in which a company ______________ a/an __________ business or ___________ an existing business in a foreign country. 
    • A. 

      Builds, new, buys

    • B. 

      Builds, old, sells

    • C. 

      Grows, new, buys

    • D. 

      Grows, old, sells

    • E. 

      None of the above


  • 3. 
    Direct foreign investment throughout the world is an increasingly important and common method of conducting global business.  
    • A. 

      True

    • B. 

      False


  • 4. 
    Companies from many countries own businesses in the US, and US companies have made large direct foreign investments in countries throughout the world. However, it is unlawful for a US Company to have more investments in foreign markets than its domestic markets.
    • A. 

      True

    • B. 

      False


  • 5. 
    Trade Barriers are government imposed regulations that ______________ the cost and ___________ the _______________ of ____________ goods. 
    • A. 

      Lower, increase, number, imported

    • B. 

      Increase, diminish, quality, exported

    • C. 

      Lower, diminish, quality, exported

    • D. 

      Increase, restrict, number, imported


  • 6. 
    Tariffs are a/an ____________ tax on ____________ goods.
    • A. 

      Indirect, imported

    • B. 

      Direct, imported

    • C. 

      Indirect, exported

    • D. 

      Direct, exported


  • 7. 
    Non-tariff barriers are ___________ methods of ___________ the cost or ____________ the volume of __________ goods. 
    • A. 

      Non-tax, decreasing, increasing, exported

    • B. 

      Non-tax, increasing, reducing, exported

    • C. 

      Non-tax, increasing, reducing, imported

    • D. 

      Taxable, decreasing, increasing, exported

    • E. 

      Taxable, increasing, reducing, imported


  • 8. 
    Non-tariff barriers include all of following except: 
    • A. 

      Quotas

    • B. 

      Voluntary export restraints

    • C. 

      Government import standards and subsidies

    • D. 

      Government export standards and subsidies

    • E. 

      Customs classification


  • 9. 
    Quotas are defined as:
    • A. 

      Gov’t loans, grants, and tax deferments given to domestic companies to protect them from foreign competition

    • B. 

      A classification assigned to imported products by gov’t officials that affects the size of the tariff and imposition of import quotas

    • C. 

      A standard ostensibly established to protect the health/safety of citizens, but in reality is often used to restrict imports

    • D. 

      Voluntarily imposed limits on the number or volume of exports. The diff. bw quotas and voluntary export restraints is that the exporting country rather than the importing country imposes the limit.

    • E. 

      Specific limits imposed by the importing country on the number or volume of imported products


  • 10. 
    Voluntary export restraints are defined as: 
    • A. 

      Gov’t loans, grants, and tax deferments given to domestic companies to protect them from foreign competition

    • B. 

      A classification assigned to imported products by gov’t officials that affects the size of the tariff and imposition of import quotas

    • C. 

      A standard ostensibly established to protect the health/safety of citizens, but in reality is often used to restrict imports

    • D. 

      Voluntarily imposed limits on the number or volume of exports. The diff. bw quotas and voluntary export restraints is that the exporting country rather than the importing country imposes the limit.

    • E. 

      Specific limits imposed by the importing country on the number or volume of imported products


  • 11. 
    Government import standards are defined as: 
    • A. 

      Gov’t loans, grants, and tax deferments given to domestic companies to protect them from foreign competition

    • B. 

      A classification assigned to imported products by gov’t officials that affects the size of the tariff and imposition of import quotas

    • C. 

      A standard ostensibly established to protect the health/safety of citizens, but in reality is often used to restrict imports

    • D. 

      Voluntarily imposed limits on the number or volume of exports. The diff. bw quotas and voluntary export restraints is that the exporting country rather than the importing country imposes the limit.

    • E. 

      Specific limits imposed by the importing country on the number or volume of imported products


  • 12. 
    Government subsidies are defined as 
    • A. 

      Gov’t loans, grants, and tax deferments given to domestic companies to protect them from foreign competition

    • B. 

      A classification assigned to imported products by gov’t officials that affects the size of the tariff and imposition of import quotas

    • C. 

      A standard ostensibly established to protect the health/safety of citizens, but in reality is often used to restrict imports

    • D. 

      Voluntarily imposed limits on the number or volume of exports. The diff. bw quotas and voluntary export restraints is that the exporting country rather than the importing country imposes the limit.

    • E. 

      Specific limits imposed by the importing country on the number or volume of imported products


  • 13. 
    Customs classification is defined as: 
    • A. 

      Gov’t loans, grants, and tax deferments given to domestic companies to protect them from foreign competition

    • B. 

      A classification assigned to imported products by gov’t officials that affects the size of the tariff and imposition of import quotas

    • C. 

      A standard ostensibly established to protect the health/safety of citizens, but in reality is often used to restrict imports

    • D. 

      Voluntarily imposed limits on the number or volume of exports. The diff. bw quotas and voluntary export restraints is that the exporting country rather than the importing country imposes the limit.

    • E. 

      Specific limits imposed by the importing country on the number or volume of imported products


  • 14. 
    The General Agreement on Tariffs and Trade (GATT) is a ______________ trade agreement that ____________ and _____________ tariffs, ________________ government subsidies, and established protections for ______________ property. It features _______ countries. 
    • A. 

      Free, increased, supported, restricted, domestic, 124

    • B. 

      European, reduced, eliminated, limited, foreign, 125

    • C. 

      Worldwide, reduced, eliminated, limited, intellectual, 125

    • D. 

      Worldwide, reduced, eliminated, limited, intellectual, 124

    • E. 

      Free, increased, supported, restricted, domestic, 125


  • 15. 
    GATT made it more difficult and more costly for consumers in all countries to buy foreign products. 
    • A. 

      True

    • B. 

      False


  • 16. 
    The regional trading zones include all of the following, except: 
    • A. 

      WTO

    • B. 

      Maastricht Treaty of Europe

    • C. 

      NAFTA/CAFTA

    • D. 

      ASEAN/APEC

    • E. 

      GATT


  • 17. 
    The United States belongs to which of the following regional trading zones?
    • A. 

      WTO

    • B. 

      WTO, NAFTA, CAFTA

    • C. 

      WTO, NAFTA

    • D. 

      NAFTA, CAFTA

    • E. 

      WTO, NAFTA, CAFTA, ASEAN


  • 18. 
    The Maastricht Treaty transferred _____ different economies in to the European Union, and converted their form of currency to the __________.
    • A. 

      11, Euro

    • B. 

      12, Euro

    • C. 

      13, Euro

    • D. 

      11, Euro Dollars

    • E. 

      12, Euro Dollars


  • 19. 
    The World Trade Organization (WTO) is the successor of the GATT.
    • A. 

      True

    • B. 

      False


  • 20. 
    Global consistency is when a multinational company 
    • A. 

      Has offices/plants in diff’t countries and uses the same rules, guidelines, policies, and procedures

    • B. 

      Has offices/plants in diff’t countries and uses different rules, guidelines, policies, and procedures

    • C. 

      Maintains its operating procedures to adapt to differences in foreign customers, gov’ts, and regulatory agencies

    • D. 

      Modifies its operating procedures to adapt to differences in foreign customers, gov’ts, and regulatory agencies


  • 21. 
    Local adaptations are when a multinational company
    • A. 

      Has offices/plants in diff’t countries and uses the same rules, guidelines, policies, and procedures

    • B. 

      Has offices/plants in diff’t countries and uses different rules, guidelines, policies, and procedures

    • C. 

      Maintains its operating procedures to adapt to differences in foreign customers, gov’ts, and regulatory agencies

    • D. 

      Modifies its operating procedures to adapt to differences in foreign customers, gov’ts, and regulatory agencies


  • 22. 
    If multinational companies lean too much toward _____________, they run the risk of using management procedures poorly-suited to particular countries' markets, cultures, and employees. 
    • A. 

      Local adaptation

    • B. 

      Global consistency

    • C. 

      Both a and b


  • 23. 
    If companies focus too much on _________________, they run the risk of losing the cost efficiencies and productivity that result from using standardized rules and procedures throughout the world. 
    • A. 

      Global consistency

    • B. 

      Local adaptation

    • C. 

      Both a and b


  • 24. 
    The phase model of globalization is when companies make the transition from a _____________ company to a ____________ company in ______________ stages.
    • A. 

      Domestic, global, sequential

    • B. 

      Global, domestic, non-sequential

    • C. 

      Global, domestic, sequential

    • D. 

      Domestic, global, non-sequential


  • 25. 
    The four stages of "The Phase Model of Globalization" are: 
    • A. 

      Importing, exporting, licensing, franchising

    • B. 

      Exporting, cooperative contracts, strategic alliances, wholly owned affiliates

    • C. 

      Importing, exporting, cooperative contracts, strategic alliances, wholly owned affiliates

    • D. 

      Importing, exporting, licensing, franchising, strategic alliances


  • 26. 
    All of the following are disadvantages to exporting, except:
    • A. 

      Transportation costs

    • B. 

      Subjection to tariff and non-tariff barriers

    • C. 

      Global communication

    • D. 

      Distribution issues


  • 27. 
    Cooperative contracts are an agreement in which a foreign business owner pays a company a fee for the right to conduct business in his/her country.
    • A. 

      True

    • B. 

      False


  • 28. 
    There are two types of cooperative contracts, these are:
    • A. 

      Licensing, sharing

    • B. 

      Sharing, explicit

    • C. 

      Sharing, franchising

    • D. 

      Franchising, explicit

    • E. 

      Licensing, franchising


  • 29. 
    Disadvantages to licensing include
    • A. 

      They give up control over quality of product or service sold

    • B. 

      They face a loss of control

    • C. 

      Their partners can eventually become competitors

    • D. 

      Success may be culture-bound

    • E. 

      Both a and c


  • 30. 
    Disadvantages to franchising include:
    • A. 

      They give up control over quality of product/service, face a loss of control

    • B. 

      They face a loss of control/their partners become competitors

    • C. 

      They face a loss of control/success may be culture-bound

    • D. 

      They give up control over quality of product/service, their partners become competitors


  • 31. 
    Global joint ventures are the most common strategic alliance.
    • A. 

      True

    • B. 

      False


  • 32. 
    Disadvantages of global joint ventures include all of the following, except:
    • A. 

      Companies must share profits

    • B. 

      Expense of building new operations or buying businesses can be high

    • C. 

      Represents a merging of many cultures

    • D. 

      With equal ownership, power struggles or lack of leadership may occur


  • 33. 
    A global new venture is characterized by skipping the phase model through three trends. These are: 
    • A. 

      Sales, allies, affiliates

    • B. 

      Sales, employees, financing

    • C. 

      Sales, employees, property

    • D. 

      Employees, financing, political support


  • 34. 
    An ideal global location for doing business is characterized by:
    • A. 

      Low degree of global competition

    • B. 

      High degree of global competition

    • C. 

      Political certainty

    • D. 

      A and c

    • E. 

      None of the above


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