mana 1301 final exam

Ironically, customer complaints can sometimes result in improved customer service.

a. True

b. False

a. True

An international division is advantageous because it allows global businesses to concentrate all international efforts and expertise in one location.

a. True

b. False

a. True

A major advantage of making components and raw materials in-house is that the firm is not required to honor protections of intellectual property.

a. True

b. False

b. False

Abdullah is an executive manager working for Amazon in Cleveland; he earns a bonus based on his

performance, which is tied to quarterly goals. This is a common practice among US executives.

a. True

b. False

a. True

When it comes to franchising, the parent company’s objective is to make sure that when a customer visits its franchisee in any country, the quality of products and services provided are similar in every store.

a. True

b. False

a. True

Under a matrix structure, the functional managers and the divisional managers have equal authority within the

organization.

a. True

b. False

a. True

Key aspects of globalization include the elimination of barriers to trade and information technology.

a. True

b. False

a. True

nternational marketing managers have four main methods of promoting products and services in

international markets: advertising, personal selling, sales promotion, and distribution.

a. True

b. False

b. False

For the World Trade Organization, increasing trade barriers has been one of the most simple ways to

encourage trade and globalization.

a. True

b. False

b. False

Singapore, a regional center for global companies, continues to attract sizable amounts of foreign investment given its strategic location, world-class infrastructure, and productive workforce.

a. True

b. False

a. True

Globalized economies like New Zealand and Singapore rank at the top in index for absence of corruption by Transparency International.

a. True

b. False

a. True

The origins of the European Union (EU) can be traced to the creation of the North Atlantic Treaty

Organization (NATO) in 1949.

a. True

b. False

b. False

The decoupling of world economic order and the move to a multipolar world helps explain why China is now the world's largest recipient of FDI.

a. True

b. False

a. True

Agents for companies shipping products overseas who are chiefly involved with physical distribution

activities and documentation are called freight forwarders.

a. True

b. False

a. True

In operations management, the acquisition of goods and services is referred to as logistics.

a. True

b. False

b. False

Remote regions with small local markets which Paul Collier calls the “bottom billion,” are located in Central Asia; East, Central and West Africa; and the Pacific Islands.

a. True

b. False

a. True

USMCA is a comprehensive free-trade agreement among Canada, United States, and Mexico that addresses issues ranging from protection of workers’ rights and the environment to phased reduction of tariff and non-tariff trade barriers, which were finally eliminated in 2009.

a. True

b. False

a. True

Microsoft (United States), Toyota (Japan), Lenovo, (China), and Petrobras (Brazil) are just a few of the

hundreds of large multinational enterprises that are based in one country but own and operate establishments in others.

a. True

b. False

a. True

Tariffs are oftentimes used as a proactive move to protect early-stage local producers from foreign

competitors.

a. True

b. False

a. True

The three major considerations for deciding the location of production facilities for products are: does the product serve the needs of all customers around the world, proximity to market and proximity to suppliers, and the effect on product’s image being produced in that location.

a. True

b. False

a. True

ronically, studies have shown that people who have lived and worked abroad are not particularly good

sources of information about the cultures of various countries.

a. True

b. False

b. False

The organizational structure that results from combining functional and divisional structures is called a

geographic region structure.

a. True

b. False

b. False

When MNEs go abroad, they generally do so for two major reasons. There could be massive competition in the home market or firms may genuinely identify new business opportunities abroad based upon the company’s competitive advantage in production, technology and management.

a. True

b. False

a. True

Critics argue that open trade and foreign direct investment always take jobs from workers in developing economies and transfer them to workers in advanced industrial countries, which leave the workers in the developing country out of work.

a. True

b. False

b. False

Rankings of countries throughout the world by potential political risks typically place Scandinavian and European countries such as Norway, Sweden, Switzerland, Luxembourg, and Denmark near the top of the list, meaning that companies engaging in business in these countries face the least number of potential political risks.

a. True

b. False

a. True

Airbus is an example of a global company employing a manufacturing system.

a. True

b. False

a. True

Under Communist economic ideology, collectivistic rights give way in the extreme to individual rights.

a. True

b. False

b. False

Subsidiaries require major marketing efforts to penetrate the international market because of cultural

differences and because the entrant is new and relatively unknown.

a. True

b. False

a. True

Latin American negotiators will frequently engage in long periods of silence, or may have peripheral discussions among one another while ignoring foreign business people in the room.

a. True

b. False

b. False

Product counterfeiting occurs when a company in a foreign country copies an American product as sells it as the "real thing" without the U.S. marketer receiving any compensation.

a. True

b. False

a. True

An important element of cultural marketing is identifying consumers’ reference groups. Consumers are

influenced by people that influence opinions and behaviors, a component of

a. material culture.

b. aesthetics.

c. social institutions.

d. stratification

c. social institutions.

In which country is the EU headquartered?

a. Belgium

b. France

c. Germany

d. Italy

a. Belgium

A French judge presiding in a court case has little power; they simply enforce the rules that have been

written. This illustrates which type of law?

a. Civil

b. Common

c. Theocratic

d. Representative

a. Civil

The most recent devices that enable the greatest ease in portability and accessibility of information are

a. magazines.

b. newspapers

c. advertisements.

d. smartphones

d. smartphones

Shipping internationally using different modes of transportation is called

a. freight lining.

b. overnight shipping.

c. an intermodal transporter.

d. right-timing.

c. an intermodal transporter.

A true democracy works best in very small populations and is one in which every person’s voice is heard. Rather than true democracies, democratic nations of today employ

a. Athenian democracy.

b. symbolic democracy.

c. representative democracy.

d. egalitarian democracy.

c. representative democracy.

The International Finance Corporation (IFC) performs which of the following functions?

a. Provides long-term low-interest social sector and infrastructure loans to the poorest members,

utilizing foreign aid funds provided by rich nation members

b. Provides loans and takes equity positions in private companies of developing countries, and works

toward developing capital markets in those economies

c. Supports the reconstruction and restructuring of member countries, utilizing funds raised in

international capital markets

d. Provides political risk coverage for private investments made in developing countries

b. Provides loans and takes equity positions in private companies of developing countries, and works

toward developing capital markets in those economies

Which of the following is an advantage of locating R&D facilities in foreign countries?

a. The MNC can take advantage of lower tax brackets using local infrastructure grants.

b. The new R&D facility will cost less to build.

c. Often, the domestic technology can be transferred over to the foreign country.

d. The MNC can use the intelligence of foreign scientists and engineers.

d. The MNC can use the intelligence of foreign scientists and engineers.

Which of the following is a disadvantage of making (in-house manufacturing)?

a. The firm would incur both fixed and variable costs.

b. Lower costs mean lower tax brackets leading to a shift in scale.

c. Quality control is maximized on behalf of the buyer.

d. The firm has less control over quality.

a. The firm would incur both fixed and variable costs.

Which of the following statements about totalitarian governments is true?

a. Totalitarian governments rule without the support or consent of the citizens.

b. A country run by a prime minister would be an example of a totalitarian government.

c. Totalitarian governments rule based on elite voting methods.

d. The majority of emerging markets are run by totalitarian regimes.

a. Totalitarian governments rule without the support or consent of the citizens.

The practice in which the parent firm is obligated to provide its brand name as well as specialized equipment and/or service, and to sometimes fund certain startup costs to another firm in return for an annual fee is known as

a. licensing.

b. franchising.

c. a foreign acquisition.

d. a joint venture.

b. franchising.

USMCA is in which stage of the economic integration process?

a. First stage (free trade area)

b. Second stage (customs union)

c. Third stage (common market)

d. Fourth stage (economic union)

a. First stage (free trade area)

Which of the following is a disadvantage of global procurement?

a. Buying from suppliers could unintentionally lead to suppliers becoming competitors.

b. The firm may need to compete for the attention of foreign trade consulates.

c. The firm has to invest the money that is associated with making products.

d. Buying from suppliers could force the local competition out of business.

a. Buying from suppliers could unintentionally lead to suppliers becoming competitors.

Mexican business executives who buy business-to-business products from U.S. suppliers indicate that “knowledge of the Mexican culture” and “enthusiasm” were the most important cultural variables determining from which supplier they purchased. This example of which of the four characteristics of culture which is important for global companies to recognize?

a. Culture is learned, not inherited.

b. It is nearly impossible to change an entire country’s culture.

c. It is the responsibility of the global firm to ascertain the level of importance of various aspects of

culture in the foreign markets it serves.

d. Companies’ operations, chiefly marketing and management, need to recognize and adjust to the

cultural environment existing in the countries the global company serves.

c. It is the responsibility of the global firm to ascertain the level of importance of various aspects of

culture in the foreign markets it serves.

According to the text regarding a study of corporate bribery in developed countries conducted by

Transparency International, which of the following nations had the most corporate bribery?

a. Russia

b. The United States

c. Hong Kong

d. Japan

a. Russia

46. Which of the following is an important characteristic of culture for global companies to recognize?

a. Culture is learned, not inherited.

b. It is possible to change an entire country’s culture, so long as you move quickly.

c. Culture can be imposed from home country to host country.

d. Companies need to send native employees to foreign markets in order to ensure cultural compliance.

a. Culture is learned, not inherited.

The management of the direct resources that are involved in the production system of a business

organization is known as

a. procurement management.

b. operations management.

c. logistics management.

d. research and development.

b. operations management.

Laws to promote “fair competition” among businesses are known as which type of laws?

a. Tax

b. Common

c. Antitrust

d. Theocratic

c. Antitrust

What is the goal of the ASEAN Security Community (ASC)?

a. To ensure that countries in the region live in peace with one another

b. To come to the aid of member nations in time of war

c. To ensure that the ASEAN workforce is prepared to benefit from economic integration

d. To oversee the construction of roads and railways between member nations

a. To ensure that countries in the region live in peace with one another

The purchase of established firms abroad with the goal of using the existing production, marketing, and

distribution networks, and of having instant access to foreign markets that fit the purchasing firm’s global

strategy is known as a(n)

a. subsidiary.

b. multinational enterprise.

c. foreign acquisition.

d. strategic alliance.

c. foreign acquisition.