GMS 200 - CHAPTER 5 - WEEK 3/4

The reasons why businesses go international include gaining new markets, finding investment capital, and reducing _____.

• political risk

• protectionism

• labour costs

• most favoured nation status

When shoe maker Rocky Brands decided to buy full ownership of a manufacturing company in the Dominican Republic, Rocky was engaging in which form of international business?

• import/export

• licensing

• foreign subsidiary

• joint venture

A form of international business that falls into the category of a direct investment strategy is _____.

• exporting

• joint venture

• licensing

• global sourcing

The World Trade Organization would most likely become involved in disputes between countries over _____.

• exchange rates

• ethnocentrism

• nationalization

• tariffs

Business complaints about copyright protection and intellectual property rights in some countries illustrate how differences in _____ can affect international operations.

• legal environments

• political stability

• sustainable development

• economic systems

In _____ cultures, members tend to do one thing at a time; in _____ cultures, members tend to do many things at once.

• monochronic, polychronic

• polycentric, geocentric

• collectivist, individualist

• neutral, affective

It is common in Malaysian culture for people to value teamwork and to display great respect for authority. Hofstede would describe this culture as high in both _____.

• a. uncertainty avoidance and feminism

• b. universalism and particularism

• c. collectivism and power distance

• d. long-term orientation and masculinity

In Hofstede’s study of national cultures, Canada was one of the most _____ compared with other countries in his sample.

• a. individualistic

• b. collectivist

• c. feminine

• d. long-term oriented

It is _____ when a foreign visitor takes offence at a local custom such as dining with one’s fingers, considering it inferior to practices of his or her own culture.

• a. universalist

• b. prescriptive

• c. monochronic

• d. ethnocentric

When a company buys cotton in Egypt, has tops sewn from it in Sri Lanka according to designs made in Italy, and then offers the garments for sale in the United States, this form of international business is known as _____.

• a. licensing

• b. importing

• c. joint venturing

• d. global sourcing