Global Management Pt.2 (EXAM 2)

Question 1

Growing markets

Answer 1

upwards direction of a market/economy

Question 2

Purchasing power

Answer 2

relative cost of standard set of goods and services

Question 3

Degree of global competition

Answer 3

number and quality of companies that compete in a foreign market

Question 4

Qualitative factors of location criteria and political risk

Answer 4

• work force quality
• company strategy

Question 5

Quantitative factors of location criteria and political risk

Answer 5

• kind of facility built
• tariff and nontariff barriers
• Exchange rates
• Transportation and labor costs

Question 6

Political risk of location criteria and political risk

Answer 6

Political & Policy uncertainty

Question 7

What are the 3 strategies to minimize political risk?

Answer 7

• avoidance
• control
• cooperation

Question 8

Avoidance (minimize political risk)

Answer 8

• divesting or selling business
• postponing investment until risk shrinks

Question 9

Control (minimize political risk)

Answer 9

lobbying foreign governments or international trade agencies to change laws, regulations, or trade barriers

Question 10

Cooperation (minimize political risk)

Answer 10

using joint ventures and collaborative contracts

Question 11

National culture

Answer 11

shared values and beliefs that affects the perception, decisions, and behavior of people from a particular country