MGMT 301 Chapter 8 Global Management

NedStark Inc., a software manufacturing firm in Winterfell, a European country, bought TheFarm Corp., a software manufacturing firm in Westeros, an Asian country. This scenario is an example of _____.

• a strategic alliance

• direct foreign investment

• licensing

• a joint venture

Which of the following best defines a tariff?

• It is a specific limit on the volume of imported goods.

• It is a direct tax on imported goods.

• It is a complete ban on trade of a certain item.

• It is a limit on the number of products exported to a particular country.

In the context of nontariff barriers, which of the following is a similarity between quotas and voluntary export restraints?

• Both impose a complete ban on any kind of trade with a specific country.

• Both limit the amount of a product that can be imported annually.

• Both are imposed by the exporting country rather than the importing country.

• Both levy a direct tax on imported goods.

Shelmerdine Inc., a multinational retail corporation with its headquarters in Australia, wants to open shopping malls in China and Japan. The company wants the new malls to follow the same set of rules and regulations that the parent company follows. It is evident from the scenario that Shelmerdine Inc. wants to _____.

• incorporate local adaptation

• establish global consistency

• create franchises

• form strategic alliances

Which of the following is defined as selling domestically produced products to customers in foreign countries?

• Domestic trade

• Entrepot trade

• Importing

• Exporting

The difference between voluntary export restraints and quotas is that _____.

• unlike quotas, voluntary export restraints limit the amount of a product that can be imported annually

• unlike quotas, voluntary export restraints are imposed by the importing company

• unlike quotas, voluntary export restraints limit the amount of a product that can be exported annually

• unlike quotas, voluntary export restraints are imposed by the exporting company

In the context of nontariff barriers, which of the following include government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition?

• Export restraints

• Embargoes

• Quotas

• Subsidies

Which of the following trends has allowed companies to skip the phase model of globalization when going global?

• Countries with growing levels of purchasing power are good choices for attractive global markets.

• Low-cost communication technologies make it easier to communicate with global customers.

• Companies do not have to establish a manufacturing location in each country they enter.

• Masculinity and femininity capture the difference between highly assertive and nurturing cultures.

C.Merck, a U.S.-based information technology firm, was created with the goal of standardizing its services in all the developing nations of the world. Rather than strategizing for one country at a time, C.Merck's plan is to focus on all the nations at the same time. C.Merck is an example of a _____.

• licensee

• strategic alliance

• global new venture

• franchise

Which of the following is associated with the risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events?

• Political conflict

• Political uncertainty

• Political failure

• Political corruption