general business data bank

1. Today's companies compete in a ____.

a.	growingly domestic economy
b.	low-context culture
c.	high-context culture
d.	Greenfield economy
e.	borderless world

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

a.	Domestic
b.	International
c.	Global
d.	Multinational
e.	Stateless

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

a.	Global
b.	Multinational
c.	Stateless
d.	International
e.	Domestic

4. Global Dandelion, with explosion of international operations stage of developement, is participating at what stage of globalization in the international arena?

a.	International stage
b.	Global stage
c.	Domestic stage
d.	Multinational stage
e.	Interdomestic stage

5. Quality-cast Telecom with an export-oriented, multidomestic strategic orientation would be participating in what stage of the international arena?

a.	Domestic stage
b.	International stage
c.	Multinational stage
d.	Global stage
e.	Binational stage

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

a.	domestic stage.
b.	global stage.
c.	international stage.
d.	interdomestic stage.
e.	multinational stage.

7. 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

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

a.	licensing.
b.	joint venture.
c.	outsourcing.
d.	franchising.
e.	none of these.

9. Most firms begin with which strategy to enter foreign markets?

a.	Exporting
b.	Greenfield venture
c.	Joint venture
d.	Acquisition
e.	Direct investment

10. 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?

a.	Franchising
b.	Licensing
c.	Exporting
d.	Greenfield venture
e.	Joint venture

11. What is exporting?

a.	Countertrade
b.	The barter of products for products, often used in developing nations
c.	Items produced in the home country for sale in foreign markets
d.	All of these
e.	None of these

96

12. A form of exporting to less-developed countries is called

a.	licensing.
b.	franchising.
c.	greenfield venture.
d.	joint venture.
e.	countertrade.

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

a.	Russia and Japan
b.	Sweden and Germany
c.	China and India
d.	Brazil and Philippines
e.	Indonesia and Brazil

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

a.	Importing
b.	Exporting
c.	Manufacturing
d.	Outsourcing
e.	Greenfield venture

ANS:

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

a.	global management.
b.	international management.
c.	outsourcing management.
d.	planning management.
e.	domestic management.

ANS:

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

a.	Planning
b.	Organizing
c.	Controlling
d.	Leading
e.	All of these

ANS:

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

a.	Economic
b.	Legal
c.	Political
d.	Sociocultural
e.	Technological

ANS:

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

a.	infrastructure.
b.	resource and product markets.
c.	laws and regulations.
d.	inflation.
e.	exchange rates.

ANS:

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

a.	Economic
b.	Legal
c.	Political
d.	Sociocultural
e.	Technological

ANS:

20. In international operations, the economic environment includes

a.	shared knowledge, beliefs and values.
b.	political risks.
c.	social organizations.
d.	infrastructure.
e.	tariffs, quotas, and taxes.