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Terms in this set (110)To see and appreciate the world from the perspective of others has become a matter of survival for business. True As long as the price and quality of a firm's products and services are competitive on a local basis, it has nothing to worry about. False Mass communication and high technology have led to highly individualized and distinct patterns of consumption in diverse cultures worldwide. False In today's global climate, many companies may find it difficult to survive by relying solely on domestic markets. True It is an exaggeration to say that in an industry that is global, the riskiest possible posture is to remain a domestic competitor. False One of the dangers of remaining a local competitor is that more aggressive companies will use their global growth to capture economies of scale and learning. True Organizations that conduct business operations across national borders are called international firms or multinational corporations. True The strategic-management process is conceptually different for multinational firms than for purely domestic firms. False The strategic-management process is more complex for international firms due to more variables and relationships. True The social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats that face a multinational corporation are almost limitless. True While multinational corporations face almost limitless social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats, the number and complexity of these factors do not dramatically increase with the number of products produced and the number of geographic areas served. False More time and effort are required to identify and evaluate external trends and events in domestic corporations than in multinational ones. False Geographic distance and cultural differences are two of the factors that can make communication between domestic headquarters and overseas operations difficult. True Trade barriers are one of the unique and diverse risks that face multinational corporations True
With the rise in world commerce, government regulatory bodies are no longer able to closely monitor foreign business practices. False Before entering international markets, firms should do research to try and diminish the risk of doing business in new markets. True It is possible to obtain insurance from the U.S. government 's OPIC to eliminate all risks associated with doing business internationally. False Strategists in multinational corporations are often confronted with the need to be globally competitive and nationally responsive at the same time. True Perhaps the greatest advantage of international operations to a firm is the ability to gain new customers for its products and services, thus increasing revenues. True Although growth in revenues and profits is a common expectation of shareholders, it is not a measure of organizational success. False A potential advantage to initiating, continuing, or expanding international operations is that foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. True Although a firm's power and prestige in domestic markets may be significantly enhanced when the firm competes globally, this rarely translates into improved negotiating power among creditors, suppliers, or distributors. False
Firms are often motivated to initiate international operations because competitors in foreign markets may not exist, or competition may be less intense than in domestic markets. True The availability, depth, and reliability of economic and marketing information in different countries vary extensively. True Language, culture, and value systems differ among countries, which can create barriers to communication and problems managing people. True Keeping informed about the number and the nature of competitors is easier when doing business internationally. False Weaknesses of competitors in foreign lands are often underestimated, and strengths are often overestimated. False One aspect of the global challenge faced by U.S. business involves the complications of having to deal with two or more monetary systems. True Foreign banks currently operate and compete in most parts of the United States. False
American firms that seem insulated from foreign competition today may be vulnerable tomorrow. True Brazil offers skilled labor and technology, while Germany offers abundant natural resources and rapidly developing markets. False Many countries became less protectionist during the recent global economic recession. False Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people. True Investors are now looking closely at Africa in the wake of low interest rates and slow growth elsewhere on the planet. True In the three Nordic countries of Denmark, Sweden, and Finland about 70 percent of all employees are in unions. True Shifts in the nature and location of production systems, especially to China and India, are reducing the response time to changing market conditions. True The drive to improve the efficiency of global business operations is leading to lesser functional specialization. False Though China has more than 1.3 billion residents, the middle class segment that is able to buy goods and services is rapidly shrinking. False Labor markets have become steadily more international with more and more countries around the world welcoming foreign investment and capital. True A primary reason why most domestic firms are engaging in global operations is that growth in demand for goods and services outside the USA is considerably higher than inside. True Foreign revenue as a percentage of total company revenues is approaching 20 percent for Colgate-Palmolive. False Joint ventures and partnerships between domestic and foreign firms are becoming the exception rather than the rule. False Exactly 70 percent of the world's population lives outside of the USA. False The U.S. furniture manufacturing industry is not yet greatly challenged by foreign competitors. true While there are a few U.S. industries that are not yet greatly challenged by foreign competitors, many products and components within these industries too are now manufactured in foreign countries. True The need to amortize massive R&D investments over many markets is a major reason why the aircraft manufacturing industry became global. True A global strategy means considering individual countries distinctly, one at a time, when designing, producing, and marketing products. False Since the 1980s, most countries including the USA have been steadily lowering their tax rates. False In China, business relations revolve around guanxi, or personal relations. True The understanding of Asian cultures is a strength U.S. firms have in competing with Pacific Rim firms. False In China, one should eat heartily to demonstrate enjoyment of the food. True The smile is one form of communication that works the same worldwide. True Time spent with the family and the quality of relationships are more important in some cultures than the personal achievement and accomplishments espoused by the traditional U.S. manager. True Punctuality is generally revered in all cultures of the world. False In the United States, an amicable relationship is often mandatory before conducting business. False In socialist countries such as France or Belgium, the only grounds for immediate dismissal from work is a criminal offense. True Europeans are especially motivated by pay-for-performance, commission salaries, and objective measurement and reward systems. False Mexican workers expect and desire a work environment in which self-expression and initiative are encouraged. False In Mexico, business associates usually entertain each other at their homes. False An important business activity in Japan is entertaining because it strengthens Wa. True The average level of union membership across the whole of the European Union, weighted by the numbers employed in the
different member states, is ________ percent compared to about ________ percent in the USA. C) 23; 11 Mass communication and high technology have ________ in diverse cultures worldwide. A) created similar patterns of consumption In an industry that is, or is rapidly becoming global, the riskiest possible posture is to B) remain a domestic competitor. Organizations that conduct business operations across national borders are called C) multinational corporations. The strategic-management process for multinational firms is
________ for purely domestic firms, and the process is ________ for international firms. B) conceptually the same as; more complex The ________ opportunities and threats that face a
multinational corporation are almost limitless. E) all of the above The various opportunities and threats that face multinational corporations are almost limitless, and the number and complexity of these factors ________ the number of products and the number of geographic areas served. A) decrease dramatically with Multinational corporations face unique and diverse risks, which include all of the following EXCEPT A) favorable foreign court interpretations of contracts and agreements. Communication between domestic headquarters and overseas operations is often made difficult by E) all of the above The U.S. government's OPIC A) offers insurance to offset some risks of doing business internationally. All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT D) foreign operations could be seized by nationalistic factions. Which of the following is a
potential advantage of conducting international operations? A) Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets. ________ can enable firms to learn the technology, culture, and business practices of other people and to make contacts with potential customers, suppliers, creditors, and distributors in foreign countries. B) Joint ventures A firm's power and prestige in domestic markets may be significantly enhanced if the firm competes globally A) which can translate into improved negotiating power among important groups. All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT C) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. Strengths of competitors in foreign lands are often ________, and weaknesses are often ________. D) underestimated; overestimated In 2012, ________ African countries held democratic elections. C) 23 Which of the following statements is NOT true? D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices. ________ countries are market leaders in labor-intensive industries and
________ offers abundant natural resources and rapidly developing markets. A) East Asian; Brazil Most economists argue that protectionism ________ the world economy because it ________ trade among countries. C) harms; inhibits Protectionism involves countries doing all of the following EXCEPT E) liberalizing restrictions on the import of foreign goods. What percent of the world's population lives outside the United States? A) 55 In which of the following industries is the USA NOT yet greatly challenged by foreign competitors? D) Retailing The world population that lives outside of the USA is growing ________ the U.S. population. D) 70 percent faster than
________ recently cut its corporate tax rate by five percentage points, leaving ________ with the highest corporate tax rate among all the nations in the world. E) Japan; the USA High corporate tax rates B) provide strong incentives to avoid and evade taxes. Foreign revenue as a percentage of total company revenues ________ in hundreds of U.S. firms, including ExxonMobil, Gillette, and Citicorp. D) exceeds 50 percent The domestic food industry ________, so Kraft Foods is focusing on foreign acquisitions. D) is growing 3% per year Joint
ventures and partnerships between domestic and foreign firms are D) extremely commonplace. What percent of the world's population lives in the United States? A) 5 Which of the following U.S. industries is NOT yet greatly challenged by foreign competitors? E) Furniture manufacturing Which U.S. industry is already greatly challenged by foreign
competitors? E) None of the above The lowest cost source for precision machinery is D) Europe. ________ is a process of doing business worldwide, so
strategic decisions are made based on global profitability of the firm rather than just domestic considerations. C) Globalization In South Korea, activities involve concern for ________, or harmony based on respect of hierarchical relationships, including obedience to authority. B) inhwa In Europe it is generally true that the farther ________ on the continent, the more participatory the management style. D) north Which of the following is NOT true regarding European workers and
workplaces? D) Many Europeans respond enthusiastically to pay-for-performance, commission salaries, and objective measurement reward systems. In general, U.S. managers feel the day has been productive if it is spent A) rushing to meetings and conferences. Marketing managers in Japan see
making a sale ________ the selling process. A) as the beginning of Americans place an exceptionally high priority on ________ whereas many foreigners place more worth on ________. A) time; relationships All of the following are things that many cultures around the world value more than the competitiveness that is so important in the USA EXCEPT C) individualism. U.S. managers in Japan have to be careful
about ________, whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting. B) nemaswashio Desire for ________ is a part of the social fabric in worker-manager relations in Mexico.
A) harmony Whereas ________ businesses embody individualism, achievement, competition, and informality, ________ businesses stress collectivism, continuity, cooperation, and formality. D) American; Mexican How does life in Mexico
compare to life in the United States? D) It is slower. Which of the following is NOT a typical characteristic of most Japanese managers? D) Impulsive Which of the following is NOT true concerning the Japanese concept of Wa? B) Discussions potentially disruptive to Wa are generally conducted in very formal settings. Which group generally softens up executives with praise before they criticize? A) Americans
Which of the following nations has the highest corporate tax rate? B) The USA To avoid paying U.S. taxes on income made in other countries, many U.S. companies are ________ outside the USA but ________ inside the USA. B) cash-rich; cash-poor Sets with similar termsCh. 11 Multiple Choice49 terms hnicolelacey MGMT 301 Final Exam Review Chapter 1710 terms esthxrpark Chapter 1745 terms mlblaylock42 D270 Exam 1 Chapter 146 terms brfontai Sets found in the same folderChapter 10 - Business Ethics, Social Responsibilit…110 terms sammieg20 Chapter 1-Strategic Management118 terms chris_ferguson16 Chapter 5-Strategic Management (CAP)120 terms zoyamonet Chapter 8 - Implementing Strategies: Marketing, Fi…103 terms sammieg20 Other sets by this creatorFinal SM 13, Final SM 12, Final SM 10, Final SM 11…343 terms sammieg20 Final SM 1371 terms sammieg20 Final SM 1271 terms sammieg20 Final SM 1070 terms sammieg20 Verified questionsQUESTION Zane Corporation has an inventory conversion period of 64 days, an average collection period of 28 days, and a payables deferral period of 41 days. a. What is the length of the cash conversion cycle? b. If Zane’s annual sales are $2,578,235 and all sales are on credit, what is the investment in accounts receivable? c. How many times per year does Zane turn over its inventory? Assume that the cost of goods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio. Verified answer
QUESTION Which of the following would likely encourage a firm to increase the debt in its capital structure? a. The corporate tax rate increases. b. The personal tax rate increases. c. Due to market changes, the firm’s assets become less liquid. d. Changes in the bankruptcy code make bankruptcy less costly to the firm. e. The firm’s sales and earnings become more volatile. Verified answer
QUESTION Interest rates on 4-year Treasury securities are currently 6.7%, while 6-year Treasury securities yield 7.25%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Verified answer QUESTION Hartman Motors has $18 million in assets, which were financed with$6 million of debt and $12 million in equity. Hartman’s beta is currently 1.3, and its tax rate is 35%. Use the Hamada equation to find Hartman’s unlevered beta,$$\mathrm{b}$_$${\mathrm{U}}$. Verified answer Other Quizlet setshistology chapter 930 terms Anna_Stolarczyk8 FIN 728_T/F_Chapter 434 terms hb_fost Musculoskeletal - Pelvis & Thigh (Chapte…62 terms s3alpha OA Quiz 381 terms anat36 Related questionsQUESTION When would it be most beneficial to use the skimming approach to pricing? 3 answers QUESTION Practice whereby a foreign producer intentionally sells products in U.S for less than the cost of production to undermine the competition and take control of the market 2 answers QUESTION Microsoft released its latest operating system, Windows Vista, and intended it to replace earlier versions of Windows. Buyers of Vista had to learn how to use the features of the new software; thus, buyers were facing 2 answers QUESTION Semiglobalization suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely. (t/f) 4 answers Which of the following is a potential advantage of conducting international operations?A potential advantage to initiating, continuing, or expanding international operations is that foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
Which of the following is the greatest advantage of international operations?Perhaps the greatest advantage of international operations to a firm is the ability to gain new customers for its products and services, thus increasing revenues. Although growth in revenues and profits is a common expectation of shareholders, it is not a measure of organizational success.
In which of the following industries is the US not yet seriously challenged by foreign competitors?44) The U.S. furniture manufacturing industry is not yet greatly challenged by foreign competitors.
What is the first thing you should consider when thinking about building an international information system?What is the first thing you should consider when thinking about building an international information system? globalization.
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