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Exam 7: Global Management

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Question 21

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Which of the following countries has the largest direct foreign investment in the United States?

A) Netherlands
B) Germany
C) Japan
D) Canada
E) United Kingdom

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

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Question 22

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____ is used to assess how well managers and their families are likely to adjust to foreign cultures.

A) cultural awareness screening
B) sociocultural analysis
C) sensitivity screening
D) sociocultural diagnostics
E) adaptability screening

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

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Question 23

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All global new ventures share two common factors. One is that the company founders successfully develop and communicate the company's global vision from the start. The other is ____.

Define direct foreign investment. Name one of the top five countries with the largest direct foreign investment in the United States.

Define national culture. List the five consistent cultural dimensions across countries.

Nestlé is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of a ____.

Coca-Cola Georgia-based Coca-Cola is reentering the Indian market. Coke is attracted to India's market because India's per capita consumption of carbonated beverages is less than half of Pakistan and about five percent of China's, yet India has the fastest-growing demand for consumer products in the world. Coke's first attempt to enter the Indian market over a decade ago was plagued by gross mismanagement, and the company lost 20 billion Indian rupies. In that first attempt, Coke purchased Thumbs Up, the leading India-based carbonated soft drink. The company hoped to replace Thumbs Up with Coke, while maintaining the Thumbs Up distribution strategy. For its return to the market, Coke built five plants, cut costly staff, revamped transport, and reduced the size and weight of bottles in order to increase a truck's carrying capacity. It also increased its number of distributors and dumped a global advertising campaign that proved irrelevant to the Indian market. Refer to Coca-Cola. What kind of strategy has Coca-Cola used for its second entry into the Indian market?

Hofstede's research has shown that there are ____.

A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In other words, which of the following would be a determining factor in its global strategy?

An expatriate is someone who ____.

Regional trading is defined as a method of investment in which a company builds a new business or buys an existing business in a foreign country.

Unlike licensing, franchising, or joint ventures, wholly owned affiliates are 100 percent owned by the parent company.

What are the two types of political risk that affect companies conducting global business?

All global new ventures share two common factors. One is the bringing of a good or service to several different foreign markets at the same time. The other is ____.

German chip manufacturer Infineon AG has joined with Motorola Inc. and Agere Systems Inc. to establish a new company to develop and license chip designs for cellphones. These three companies have created a ____.

To protect its farmers, Japan put limitations on the amount of mushrooms and leeks that could be imported into Japan from China. This limitation is an example of a(n) ____.

The phase model of globalization means that companies made the transition from a domestic company to a global company in three sequential phases. The three phases are exporting, followed by wholly owned subsidiaries, and finishing with strategic alliances.

Multinational corporations are corporations that own businesses in two or more countries.

The ____ strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts.

The most important factor used by a globalizing company for determining if a country or a region has an attractive business climate is ____.