D080 Unit 4: Business Strategies Test with accurate expert solutions 2025

An international company has employees with complementary skill sets work together toward a mutual goal.

What is the organizational structure of this company?

A. Matrix

B. Divisional

C. Teams

D. Functional

C. Teams

Teams organizational structure has employees with complementary skill sets working together toward a mutual goal.

Which departmentalization is based on the primary roles performed within an organizational unit, such as marketing, finance, production, and sales?

A. Geographic

B. Customer

C. Functional

D. Process

C. Functional

This is based on the primary roles performed within an organizational unit.

A business has decided to engage in foreign direct investment (FDI).

Which reason should influence the business to take this step?

A. To create a political alliance with the host country

B. To take advantage of lower costs in the host country

C. To establish business policy in the host country

D. To increase economic development in the host country

B. To take advantage of lower costs in the host country

Global businesses engage in foreign direct investment (FDI) to take advantage of lower costs in the host country.

A chief executive officer (CEO) wants to grow the company by investing in foreign countries. The CEO is considering multiple entry strategies to accomplish this objective but has concerns about growth in foreign markets, especially the costs, risks, and entry time. The CEO would like to eliminate any entry strategies that take a long time, as well as any that contain high cost and risk. Which strategy should this CEO eliminate?

A. Exporting

B. Franchising

C. Greenfield venture

D. Licensing

C. Greenfield venture

Disadvantages of a Greenfield venture include high costs, high risk, and slow entry time.

A company desires to scale its international business by taking over established organizations in the intended markets.

Which strategy will allow this process to occur quickly?

A. International joint venture

B. Franchising

C. Licensing

D. Acquisition

D. Acquisition

Acquisitions are appealing to companies due to the ability to quickly take over foreign assets for new market entry.

Brazil is one of the world's lowest-cost producers of ethanol and soybeans. Japanese corporations have heavily invested in Brazil to lease large tracts of land to grow soybeans for export to Japan, where the soybeans are used to derive products such as soy sauce and chicken feed.

Why do these Japanese companies invest in Brazil?

A. To explore joint ventures

B. To react to exchange rate movements

C. To generate revenue

D. To minimize factor input costs

D. To minimize factor input costs

Japanese companies invest in Brazil to reduce factor input costs. Japan can get the cheapest soybeans in Brazil and then use them as raw materials to produce soy sauce and chicken feed.

How is global business marketing affected by cultural dimensions?

A. Through consumer preferences

B. Through company logistics

C. Through competitive pricing

D. Through cost-based pricing

A. Through consumer preferences

Marketing is impacted by culture as a result of different tastes and preferences present in diverse cultures, which requires adaptations to the marketing mix.

A few employees in a company are newly assigned to work in China to plan effective social media campaigns. What should the employees know about media in China?

A. Consumers are focused on individualism.

B. Marketing emphasizes low power distance.

C. Advertising by foreign entities is not permitted.

D. Sites are controlled by Chinese companies.

D. Sites are controlled by Chinese companies.

Baidu, Alibaba, and Tencent are the main Chinese media companies that replaced banned social media sites such as Facebook and Twitter in China. These media companies control most of the digital content in China.

What is the strategic importance of ethnocentrism in international business?

A. Uses language as the most important cultural dimension to be learned

B. Places one's own culture as the most important cultural factor

C. Allows conscious bias to become the most important factor in cultural expression

D. Disregards the impact of body language in cultural expression

B. Places one's own culture as the most important cultural factor

Ethnocentrism is the belief that one's own culture is the most important cultural factor and should be used as the focal point around which all other cultures revolve.

A major global technology company headquartered in France assigns a promising plant manager from its India operations to head a manufacturing plant in the United States. What is an advantage for the company of this workforce management approach?

A. Provides flexibility to adjust managerial decisions to local conditions

B. Lowers investments in executive cultural skills training

C. Maintains control and consistency of messaging

D. Increases cooperation and coordination across the company

D. Increases cooperation and coordination across the company

By staffing the leadership role with a staff member from another division or subsidiary increases cooperation and coordination across the company.