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Managment Chapter 8

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

__________happens when a company builds a new business or buys an existing one in a foreign country.

a)

Direct foreign investment

b)

Indirect global investment

c)

Indirect foreign investment

d)

Direct global investment

2.

There are ____ types of nontariff barriers?

a)

3

b)

7

c)

5

d)

4

3.

A quota is a direct tax on imported goods.

a)

True

b)

False

4.

Which organization administers trade agreements, provides a forum for trade negotiations, handles trade disputes, monitors national trade policies, and offers technical assistance and training for developing countries?

a)

GATT

b)

WTO

c)

U.S Customs Service

d)

U.S Trade Rep

5.

Global consistency is using the same guidelines, rules, and procedures in different countries.

a)

True

b)

False

6.

What kind of business would allow companies to avoid tariff and non tariff barriers to enter a foreign market?

a)

Strategic alliance

b)

Wholly owned affiliates

c)

Joint venture

d)

Cooperative contracts

7.

A joint venture is a _______?

a)

Corporation

b)

Partnership

c)

Sole proprietorship

d)

Limited liability company

8.

What is one factor that determines growth potential for a company?

a)

Exporting

b)

Franchise

c)

Licensing

d)

Purchasing power

9.

Policy uncertainty is the risk of changes in laws and government policies that directly affect the way foreign companies conduct business.

a)

True

b)

False

10.

__________ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country.

a)

Regional culture

b)

Domestic culture

c)

National culture

d)

Global culture

11.

A regional trade agreement among the U.S, Canada, and Mexico

a)

UCM

b)

NAFTA

c)

TFTA

d)

UNASUR

12.

A regional trade agreement among 27 African countries

a)

NAFTA

b)

ATA

c)

AEFTA

d)

TFTA

13.

What is NOT one of the worst countries for business

a)

Venezuela

b)

Ukraine

c)

Switzerland

d)

Eqypt

14.

What is NOT an advantage of franchising?

a)

Fast way to enter foreign markets

b)

Good strategy when a company’s domestic sales have slowed

c)

Joint venture represent a merging of four cultures

d)

Franchising success may be culture-bound

15.

What is a qualitative factor of office location?

a)

Workforce quality

b)

Exchange rate

c)

Transportation

d)

Labor costs

16.

An agreement in which a company receives royalty payments for allowing another company to sell its service or use its brand name

a)

Franchising

b)

Licensing

c)

Selling

d)

Signing

17.

Wholly owned affiliates have no control over foreign facilities

a)

True

b)

False

18.

_____ limit the amount of a product that can be imported annually

a)

Tariffs

b)

Voluntary export restraints

c)

Government import standard

d)

Non tariff barriers

19.

Which of the following is an active strategy to prevent political risks

a)

Control

b)

Power distance

c)

Masculinity and femininity

d)

Individualism

20.

What is NOT part of Hofstede's six cultural dimensions?

a)

Indulgence

b)

Indvidualism

c)

Protectionism

d)

Power Distance