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A(n) ____ and ____ experience are fast becoming prerequisites for managerial success.

b. global mind-set; international

Today's companies compete in a ____.

e. borderless world

Companies that think ____ have a competitive edge.

a. globally

In which stage, market potential is limited to home country, with all production and marketing facilities located at home?

a. Domestic

In the ____ stage a company usually adopts a multidomestic approach.

d. International

Global Dandelion, with marketing and production facilities located in many countries, is participating at what stage in the international arena?

d. Multinational stage

Quality-cast Telecom with an international division would be participating in what stage of the international arena?

b. International stage

The process of globalization typically passes through all of the following stages EXCEPT

d. interdomestic stage.

Stateless stage is also referred to as the ____ stage.

b. global

Color Copiers operates in a true global fashion, making sales and acquiring resources in whatever country offers the best opportunities and lowest cost, what stage of international development is it in?

a. Stateless stage

Which of the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country?

d. Outsourcing

The Maquiladora industry along the Texas-Mexico border uses cheap labor for assembling products. This lowers the price for U.S. consumers and is an example of

c. outsourcing.

Most firms begin with which strategy to enter foreign markets?

a. Exporting

Which of the following is an entry strategy in which the organization maintains its production facilities within its home country and transfers its products for sale in foreign markets?

c. Exporting

What is exporting?

d. All of these

A form of exporting to less-developed countries is called

e. countertrade.

Heineken begins by exporting its product into new markets, and then ____ to a local brewer to establish its position in the market.

b. licenses

Which of the following is a form of franchising?

b. Licensing

Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system. What type of strategy are you going to use?

c. A franchise

Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk obtained in operating international businesses?

d. Franchising/licensing

A foreign subsidiary over which an organization has complete control is called a

d. wholly owned foreign affiliate.

The Write Pens, Inc. wants to reduce transferring costs by producing closer to the consumer in a foreign country. This will also help in reducing transportation and storage costs. Which strategy would be the best to use given the circumstances?

c. Direct investing

Go RVing, a U.S. company, built a subsidiary from scratch in England. This is an example of

b. greenfield venture.

The Mercedes-Benz plant in Alabama is an example of a ____.

a. greenfield venture

As a first step into international business, which two countries are most companies going to today?

c. China and India

____ is the most widespread approach to international involvement in China and India.

d. Outsourcing

The management of business operations conducted in more than one country is called

b. international management.

____ aspects of management do not change when doing business internationally.

e. All of these

Language, values, religion, and education all describe which dimension in the international environment?

d. Sociocultural

In international operations, the economic environment represents all of the following factors EXCEPT

c. laws and regulations.

Resource development, infrastructure, and exchange rates all describe which dimension in the international environment?

a. Economic

In international operations, the economic environment includes

d. infrastructure.

Which of the following is a sociocultural factor in the international environment?

a. Language

____ is normally used to classify countries as developed or developing.

d. Per capita income

____ generally are located in Asia, Africa and South America.

c. LDCs

A country's physical facilities that support economic activities make up its ____.

b. infrastructure

If you built a computer company in Africa and then found that your product was having difficulty being distributed to customers because of the road system, your problem would be related to

a. an inadequate infrastructure.

Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem with India's

b. resource market.

Exchange rates are included in which of the following international environments?

b. The economic environment

Which of the following refers to the rate at which one country's currency is exchanged for another country's currency?

d. Exchange rate

Assume that until yesterday, one U.S. dollar could be exchanged for 85 Japanese yens. Today, a dollar gets you 102 yens. Which of the following statements is true?

a. U.S. goods will be more expensive in Japan.

The legal-political environment, in international operations, includes which of the following?

b. Political risks

Political risk is defined as an organization's risk of ____ due to politically based events or actions by host governments.

d. all of these

A company's risk of loss of assets, earning power, or managerial control due to politically based events or action by host government is referred to as

b. political risk.

Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This is an example of which sector of the international environment?

a. Legal-political

Which of the following is NOT a legal-political factor in the international environment?

b. Language

A foreign terrorist kidnaps your firm's marketing VP while the VP is in the host country. This is a harsh example of

c. political risk.

A nation's ____ includes the shared knowledge, beliefs and values, as well as the common modes of behavior and ways of thinking, among members of a society.

b. culture

Cultural factors in foreign countries are ____ the political and economic factors.

c. more perplexing than

____ refers to the degree to which people accept inequality in power among institutions, organizations, and people.

a. Power distance

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