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Which organization originated and supports the idea of small businesses operating on a global level?


A) GLOBE
B) EU
C) NAFTA
D) ASEAN
E) GATT

F) C) and E)
G) None of the above

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When Harbor Trades,a Korean-based company,makes resources including technology,managerial skills,and patent and trademark rights available to Nano Technologies,a Russian company,thereby allowing Nano to make products similar to Harbor,it is engaging in exporting.

A) True
B) False

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Austria's cultural preference is for achievement,heroism,assertiveness,and material success.This would be considered:


A) power distance.
B) individualism.
C) masculinity.
D) ethnocentrism.
E) collectivism.

F) None of the above
G) A) and E)

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Which of the following has a goal to guide the nations of the world toward free trade and open markets?


A) GATT
B) WTO
C) GLOBE
D) EU
E) NAFTA

F) A) and B)
G) A) and C)

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The primary emphasis of polycentric companies is on their home countries.

A) True
B) False

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The legal-political environment includes:


A) infrastructure.
B) tariffs and taxes.
C) religion.
D) exchange rates.
E) demographic profile.

F) B) and E)
G) A) and E)

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A multinational corporation typically receives at least _____ percent of its total sales revenues from outside the parent's home country.

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25
twenty-...

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


A) franchising.
B) greenfield venture.
C) joint venture.
D) exporting.
E) licensing.

F) B) and E)
G) D) and E)

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B

The _____ dimension of the global mind-set means knowing about the global environment and global business,mentally understanding how cultures differ,and having the ability to interpret complex global changes.

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Because of cheap labor,most international business firms are headquartered in the less developed countries of Asia and South America.

A) True
B) False

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A.R.C.is a large non-profit humanitarian aid organization that has been forced to pull out of several African markets in recent years due to civil wars and large-scale violence.This demonstrates which frequently cited problem for international companies?


A) Political instability
B) Communist governments
C) Economic instability
D) Political risk
E) Financial risk

F) A) and E)
G) C) and D)

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The goal of the European Union is to create a powerful single market system for Europe's millions of consumers.

A) True
B) False

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_____ is the criterion traditionally used to classify countries as developed or developing.

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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:


A) MFN.
B) political risk.
C) tariffs.
D) political instability.
E) terrorism.

F) B) and C)
G) A) and D)

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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?


A) Franchising
B) Licensing
C) Market entry strategy
D) Outsourcing
E) Activity

F) A) and C)
G) C) and D)

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D

Kim,a Japanese expatriate working in Denmark,tends to use communication primarily to build personal social relationships.She feels that relationships and trust are more important than business.Kim is surprised that her business associates in Denmark do not share the same views.Based on this information,Kim most likely grew up in what type of culture?


A) Human-oriented
B) Passive
C) Assertive
D) Low-context
E) High-context

F) C) and D)
G) B) and E)

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An example of global outsourcing is seen when Gap,Inc.uses low-cost Caribbean labor to cheaply produce its clothing,and then finishes off and sells its clothing in the United States.

A) True
B) False

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_____ place an emphasis on a worldwide perspective.


A) Polycentric companies
B) Geocentric companies
C) Ethnocentric companies
D) Regiocentric companies
E) Domestic companies

F) A) and B)
G) A) and C)

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The least costly and least risky direct investment is called a greenfield venture.

A) True
B) False

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False

In a(n)_____,people use communication primarily to exchange facts and information.

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