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Managing Globalization > Quizlets > Flashcards

Quizlets Flashcards

1
Q

What effect does a command economy have on the process of globalization?
A. The economy is competitive, so the globalization process will be slowed.
B. The government is less flexible, so the globalization process is challenged.
C. The economy is self-sufficient, so the globalization process remains unaffected.
D. The government encourages a free market, so the globalization process is accelerated.

A

The government is less flexible, so the globalization process is stopped.

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2
Q

Which core principle of the World Trade Organization supports equality among member nations and helps fight discrimination among them?

A. Multilateral trade agreements
B. Controlled tariffs
C. Most-favored-nation (MFN) status
D. Free trade

A

C. Most-favored-nation (MFN) status

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3
Q

What is true regarding free trade?

A. Free trade leads to specialization of each country and increases production efficiency.
B. Free trade generates manufacturing jobs in developed countries.
C. Free trade is weakened when countries join regional economic integrations.
D. Free trade generates more losses than gains for participating countries

A

A. Free trade leads to specialization of each country and increases production efficiency.

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4
Q

Countries A and B participate in trade agreements that allow free trade among participant countries. However, Country A imposed quotas on several imported products to protect its domestic products.
What is the effect, if any, on the domestic prices of these products?

A. Cannot be determined
B. Stays the same
C. Increases
D. Decreases

A

C. Increases

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5
Q

How do governments help companies offset the cost of manufacturing domestically?

Tariffs
Subsidies
Anti-trust laws
Anti-dumping laws

A

Subsidies

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6
Q

What would a mercantilist value the most?
Absolute advantage
2 A trade surplus
Factors of production
Comparative advantage

A

A trade surplus

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7
Q

A firm in Country A exports products to Country B. The currency in Country B is strong relative to the currency in Country A. What does this mean for the firm?

Increased domestic sales
More valuable export sales
Decreased foreign sales
Less valuable export sales

A

More valuable export sales

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8
Q

How is global business positively affected by intercultural exchange?

A

It increases worldwide connections that support commodity trading.

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9
Q

How does globalization support tolerance for different people and ideas?

A

By increasing the access to information

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10
Q

A business has recently started selling in a new global marketplace. Shortly after the company made this global expansion, the new country opted to implement ad valorem tariffs. How will this change affect the company?

A

It will levy a variable tax based on the value of goods imported.

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11
Q

Which business component does the TRIPS agreement help protect for member nations?

A

Intellectual property protection for all member nations

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12
Q

Countries A, B, and C have a trade agreement. Country C imposes high tariffs on all raw materials imported from Country A, and Country B imposes a lower tax on the same raw materials. These raw materials are unique to Countries B and C and essential to Country A. What is the effect of this set of actions on these countries?

A

Country A will do more business with Country B.

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13
Q

A company is conducting a legal risk analysis for a country that has a civil law system. Which statement accurately characterizes this legal system?

It relies on the opinions of those well-trained in law.
It is based on a detailed set of laws that form a code.
It permits judges to interpret the law.
It is a moral, not a commercial, system.

A

It is based on a detailed set of laws that form a code.

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14
Q

Which fact should a company opening its operations in the U.S. state of Louisiana note?

The state follows the canon law system.
The state has a mixed law system.
The state follows a Talmudic law system.
The state follows a customary law system.

A

The state has a mixed law system.

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15
Q

Which organizational structure is used by global firms and allows employees to share information more readily across assignment boundaries?

A

Matrix

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16
Q

A company is reviewing the advantages and disadvantages of using mass production and packaging for products in large quantities. Which outcome will result if this approach is used?

A

Reduce marketing costs while leveraging power and scope

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17
Q

A business has decided to engage in foreign direct investment (FDI).
Which reason should influence the business to take this step?

A

To take advantage of lower costs in the host country

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18
Q

A car manufacturer purchases raw materials from Country A, manufactures the product in Country B, and has a sales force in Country C. Which term reflects this production process that international agreements now enable?

A

Value chain

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19
Q

A business invests in an assembly plant located near a port in a foreign country. The business will import parts and raw materials for final assembly as a finished product, then export these products for international sales. The business receives tax incentives.

What is the name for the geographic area where these products are assembled?

A

Export processing zones (EPZs)

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20
Q

A multinational corporation has manufacturing facilities in many Asian countries due to cheaper labor. Which strategy is the corporation using?

Market expansion
Acquisition of resources
Realignment of capital expenditures
Centralized portfolio management

A

Acquisition of resources

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21
Q

What is the directional nature of contracts between international businesses?

A

Horizontal contracts with vertical legal structure

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22
Q

A company is reviewing intangible assets that are covered by intellectual property laws.
Which asset is being reviewed?

A

Copyright

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23
Q

Which organization aims to create support and cooperation among participating nations as well as respecting the unique laws and regulations of each sovereign country?

A

WTO

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24
Q

An individual works in a global office where it is typical to pay small, unofficial fees to top administrators in the city to gain an advantage. The individual agrees to pay the fee needed to expedite placement of a business phone line at home so work can be completed after normal work hours. What is this inducement called?

A

Grease payment

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25
Q

A large U.S. corporation is entering a foreign market but is having significant delays in acquiring the necessary permits to begin operations. A local official tells the project manager that a financial incentive should be paid to speed up the permit process. The official stresses that other companies engage in this practice and that it is acceptable in the local culture, so the project manager pays the incentive. How is this action characterized?

A

It is a violation of the U.S. Foreign Corrupt Practices Act.

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26
Q

A cruise ship employs over 200 workers over the course of 18 years. One worker describes terrible living conditions and the limited amount of food that employees are given to eat. Which labor convention is being violated by the employer?

A

The Maritime Labour

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27
Q

What does Article 2 of the Uniform Commercial Code (UCC) govern?

A

The required conduct of both parties in accordance with the contract

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28
Q

A company is concerned about source code theft of digital property. The company is reviewing a law that governs this behavior. Which law is being reviewed by this company?

A

Intellectual property

29
Q

An employee at the U.S. Patent and Trademark Office was casually talking to a friend who worked at Company XYZ. The patent office employee mentioned that a pending patent application for Company XYZ was about to be denied, and the decision would become public in a few days. The public release of the report was likely to result in a severe reduction in the stock price of the company. The friend who worked at Company XYZ then placed an online trade transaction to sell all shares of stock they owned in Company XYZ the next day. Which specific law passed by the U.S. Congress did the Company XYZ employee violate?

A

Sarbanes-Oxley Act (SOX)

30
Q

During a training session, the employees are asked to identify irregularities. Which activity should be identified?

A

An employee siphoning funds from the office account

31
Q

Which action of an organization would change consumer perceptions of the organization’s ethical standards?

A

Remedy negative events immediately with change

32
Q

Which legislation is aimed at increasing ethical financial transparency in corporate America and affects foreign businesses that want to be listed on a U.S. stock exchange?

A

SOX

(The Sarbanes-Oxley Act (SOX) is legislation aimed at increasing ethical transparency in corporate America and applies to foreign businesses that want to be listed on a U.S. stock exchange.)wp

33
Q

What is the term for the concept that people should purchase goods and services from organizations that match their own values and beliefs?

A

Ethical consumerism

34
Q

A new employee has recently transferred from the U.S. headquarters to a foreign office, and a coworker has been assigned to help the employee become acclimated to the new location. The coworker decides that the best place to start is with a description of the culture of the region since it is significantly different from the United States.

Which piece of information is this coworker providing to this employee?

A

Details about how the community functions

35
Q

A multinational corporation (MNC) headquartered in Belgium makes and sells dark chocolate truffles in its own branded retail stores in Paris, Geneva, and London.
What is a result of using this international business strategy?

A

Product design efficiencies

(The MNC headquartered in Belgium makes and sells one product in its own branded retail stores. The MNC will be able to achieve product design efficiencies because it is only selling one product and can create economies of scale.)

36
Q

A company is thinking about including online shopping to improve its ability to reach global markets. It is closely examining the challenges associated with using these web strategies before adopting the new process. Which challenge is associated with this change?

A

Communication barriers with global audiences

(Reaching more people in global markets will cause challenges in communication with diverse global audiences, especially if the local language and images must change with each country.)

37
Q

A company desires to scale its international business by taking over established organizations in the intended markets. Which strategy will allow this process to occur quickly?

A

Acquisition

(Acquisitions appeal to companies due to the ability to have quick access to added international subsidiaries to their organization for new market entry.)

38
Q

A few employees in a company are newly assigned to work in China to plan effective social media campaigns. What should the employees know about media in China?

A

Sites are controlled by Chinese companies

(Baidu, Alibaba, and Tencent are the main Chinese media companies that replaced banned social media sites such as Facebook and Twitter in China. These media companies control most of the digital content in China.)

39
Q

Which national cultural dimension in global business refers to how a culture ranks on values of assertiveness and materialism?

A

Masculinity

40
Q

Which national cultural dimension in global business refers to the degree of freedom that societal standards give to people in satisfying their needs?

A

Indulgence

41
Q

An international company has employees with complementary skill sets work together toward a mutual goal.
What is the organizational structure of this company?

A

Teams

42
Q

A company looks to capture foreign markets in mature economies where the total goods and services provided in a one-year period is high. Which type of information is the company including in its strategy prior to entering the foreign markets?

A

Gross domestic product

43
Q

How is global business marketing affected by cultural dimensions?

A

Through consumer preferences

44
Q

What is the strategic importance of ethnocentrism in international business?

A

Places one’s own culture as the most important cultural factor

45
Q

A multinational company produces a product in a country where the leaders are known for occasional asset seizure.

Which risk does the company need to mitigate?

A

Flow of goods

46
Q

A company is considering using a direct distribution strategy.

What is a disadvantage of this distribution strategy?

A

Required to arrange for transportation

47
Q

A car manufacturing company manufacturers tires in Countries A, B, and C. Country A has significant political turmoil that has resulted in a lengthy labor strike. Countries B and C have ramped up production resulting in sustained tire production for the company.

Which practice has the company used to optimize its production efficiency?

A

Multinational production

48
Q

How does the Export-Import Bank of the United States (Ex-Im Bank) help exporters?

A

By offering financing support for a portion of the export value

49
Q

A company in the United States is considering a joint venture with a French supplier and needs to learn about the accounting standards used in that part of the world.

How should the U.S. company approach this situation?

A

Study IFRS standards online

(The international financial reporting standards (IFRS) provide globally accepted, authoritative, and standardized methods of recording and reporting financial accounting information used in over 110 countries outside of the United States. France uses IFRS standards for accounting.)

50
Q

A company wants to maintain a stable local currency exchange rate when it purchases raw materials in the host country during the year.

Which type of hedging contract can the company use for this purpose?

A

Forward

51
Q

A multinational company moves key production assets to a country with lower tax rates to avoid paying more taxes in the home country.

Which type of pricing should be used to reduce taxes during production?

A

Transfer

52
Q

A multinational company that is considering making a foreign direct investment is concerned that the new country has an indirect tax in addition to corporate taxes. This would reduce the company’s profit.

Which type of tax is of concern to this company?

A

Value-added

53
Q

A company in the United States has encountered a financial reporting situation that is not currently addressed by the accounting standards of the country.

How should the U.S. company proceed?

A

Consult with the FASB

(The Financial Accounting Standards Board (FASB) is an independent group that developed and oversees revisions to the generally accepted and standardized methods of recording and reporting financial accounting information used exclusively in the United States.)

54
Q

A multinational company seeks to reduce the risk of losing profit due to exchange rate fluctuations.

Which action should the company take to reduce its risk?

A

Hedging

55
Q

A multinational company chooses to locate a factory in a high corporate tax rate country.

Which factor encouraged the company to take this action?

A

Increased operational efficiency due to a high degree of standardization

56
Q

A company has a monetary advantage achieved by using a fronting loan with a subsidiary in a low corporate income tax rate country.

Which type of tax situation allows the country to achieve this monetary advantage?

A

Haven

57
Q

A global company wants to collect data and customer profiles to improve online shopping and buyer engagement. The company plans to collect and organize millions of pieces of data, including names, addresses, payment methods, products ordered, and price and order history.

Which approach should the company use to achieve this goal?

A

Database management system (DBMS)

58
Q

A manager at a software firm is preparing to interview a potential new candidate. The candidate was born into Generation Z.

Which benefit should be attractive to this candidate?

A

Remote work opportunity

59
Q

In which career area is the outlook for humans better than that of robots?

A

Creative arts

60
Q

A company pays a social influencer to post short videos about its products. The social influencer has been asked to comply with the FTC recommendations while communicating with the audience using this format.

Which piece of information has this person been asked to provide to the audience?

A

A disclosure of the financial relationship with the company

61
Q

The marketing manager of a major global financial transactions processing company remarked in the company meeting that 5G will be very critical for the continued success of the company.

Which component must be monitored by this company?

A

Wireless broadband technology

62
Q

A company based in the Philippines is attempting to develop world-class digital infrastructure to facilitate business and commerce in its country.

Which country in the Southeast Asia region should the company use to benchmark its

A

Singapore

(As per a recent study, Singapore was categorized as having the stand-out digital evolution in the region. This allows all other countries in the region, including the Philippines, to benchmark their progress to Singapore.)

63
Q

A survey revealed that farmers in a particular region of a country have extensive access to information and communication technologies.

What is the biggest advantage of digital technology access for this population?

A

Can obtain fair market prices for their produce

64
Q

A large multinational corporation is looking to expand its business to different countries across the globe. Fast internet speeds are very important for the company’s potential customers to access their product and service offerings.

Which country should the company target to offer its products and services?

A

South Korea

65
Q

A global company collects vast amounts of data from user activity and would like to use that data effectively to increase future sales.

How should this goal be accomplished?

A

Target advertising toward customer interests

66
Q

An international company with improved technology tools seeks to increase its remote workforce.

Which benefit is a result for remote workers?

A

Increased productivity

67
Q

A company is looking for technology that will allow workers to access their computers at work even when away from the office.

Which form of technology should the company use for this purpose?

A

Hosted virtual desktop

68
Q

An international company acquires technology that allows facial recognition software to be used for security purposes.

Which form of technology is the company using?

A

Biometrics

69
Q

A company pays a social influencer to post short videos about its products. The social influencer has been asked to comply with the FTC recommendations while communicating with the audience using this format.

Which piece of information has this person been asked to provide to the audience?

A

A disclosure of the financial relationship with the company

Managing Globalization (3 decks)

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