WorksheetsINTERNATIONAL BUSINESS CHAPTER 15&16
Total questions: 20
Worksheet time: 10mins
Why might a company produce goods in another country?
A. To increase taxes
To raise transportation costs
To reduce production costs
To avoid hiring local workers
What is one reason importing may not be enough for international success?
It’s always more profitable
It avoids foreign markets
It may face trade restrictions
It needs fewer employees
What does FDI stand for?
Foreign Direct Investments
Final Data Index
Free Domestic Imports
Foreign Development Initiative
What is a benefit of wholly owned FDI?
Shared profits
Less Market Control
Freedom to pursue global strategies
Fewer legal responsibilities
What is greenfield investment?
Buying an existing foreign business
Starting a new operation in a foreign country
Renting office space abroad
Selling goods to a foreign market
Why do companies form collaborative arrangements?
To increase competition
To share risks and knowledge
To avoid foreign markets
To lower product quality
What type of agreement involves one company giving another the right to use its brand and system?
Licensing
Franchising
Turnkey
Merger
What is a common reason for collaboration failure?
Clear communication
Cultural differences
Equal goals
Strong partnerships
What can help make a collaborative arrangement successful?
Ignoring the partner's goals
Clear roles and communication
Conflicting interests
Rushing decision
Which of the following is a type of collaborative arrangement?
Licensing
Outsourcing
Exporting
Direct mail
What is one key reason organizations exist?
To increase competition
To operate without employees
To coordinate and control activities
To avoid international trade
What does vertical differentiation refer to?
Sharing information
Creating new products
Level of decision-making in an organization
Hiring international worker
What is centralization in an organization?
Decisions are made by lower-level employees
Decisions are made outside the company
Decision are made at the top level
Everyone makes decisions equally
What type of structure organizes departments based on job functions like marketing or finance?
Divisional structure
Matrix structure
Functional structure
Virtual structure
What is a key feature of a matrix structure?
One manager for each employee
Two overlapping reporting lines
No structure at all
Only one type of department
What defines neoclassical structures?
Strict top-down control
Focus on removing organizational boundaries
Only working in physical offices
Very centralized management
What is a virtual structure?
A company with no real products
A structure based on physical location
An organization that operates using technology over distance
A team that never meets
What is coordination by standardization?
Giving freedom to all departments
Using formal rules and routines
Relying on market prices
Allowing total flexibility
What is clan control based on?
Market demand
Shared values and company culture
Formal rules
Financial penalties
What is one key role of organizational culture
Limiting communication
Encouraging competition
Creating a shared sense of purpose
Preventing teamwork
