Licensing Is Most Common For _____ Companies.

Select all that apply
Which of the following are among the most-imported goods in the United States? (Choose every correct answer.)

TVs
Cell phones
Auto parts
Pharmaceuticals

TVs
Cell phones
Pharmaceuticals

Select all that apply
What two things are credited with creating the "global village?" (Choose every correct answer.)

Electronic media
Corporate sustainability
Convenient air travel
Assembly line production

Electronic media
Convenient air travel

The process of buying and selling products and services through computer networks is called _____.

the global village
social networking
the World Wide Web
e-commerce

e-commerce

Wal-Mart is an example of a(n) ______ because it is a business with operations in multiple countries.

dual partnership
multinational organization
international partner
multinational corporation

multinational corporation

Select all that apply
Which businesses would be categorized as "multinational organizations," as opposed to "multinational corporations"? (Choose every correct answer.)

Exxon Mobil
International Red Cross
Johnson & Johnson
World Health Organization

International Red Cross
World Health Organization

True or false: Currently, the United States exports more than it imports.

True
False

False

Another way to describe ethnocentrism is as a narrow view in which people see things solely through their own perspective. This is called _____.

geocentrism
individualism
collectivism
parochialism

parochialism

The "shrinking" of time and space as air travel and the electronic media make it easier for people of the world to communicate with one another refers to _____.

the World Wide Web
the global village
e-commerce
social networking

the global village

Polycentric managers believe that ______.

managers should use whatever techniques are most effective regardless of where they come from
their native country, culture, and practices are superior to all others and should always be followed.
native managers in foreign offices should understand native personnel and practices and be left alone by the home office

native managers in foreign offices should understand native personnel and practices and be left alone by the home office

E-commerce is the ______.

shrinking of time and space as air travel and electronic media make it easier for people around the world to communicate
transportation of electronic information in the global village
buying and selling of products and services through computer networks
manufacture and exchange of computer processors and other electronic merchandise

buying and selling of products and services through computer networks

Which statement best describes geocentric managers?

We know best, and we should follow our customs.
What's best is what's effective, regardless of origin.
They know best, and we should follow their customs.

What's best is what's effective, regardless of origin.

A company that has operations in several countries is called a(n) ______.

dual partnership
multinational corporation
foreign venture
sole proprietorship

multinational corporation

True or false: It is always profitable for a company to expand internationally when it has the means to do so.

True
False

False

A nonprofit organization that has operations in several countries is called a(n) _____ organization.

international
conglomerate
multinational
corporation

multinational

The United States government has put a limit on the number and types of olives that can be imported. This limit is an example of an import _____.

tariff
barter
quota
license

quota

Managers who are ______ believe that their native country, culture, language, and behavior are superior to all others.

ethnocentric
polychronic
geocentric
polycentric

ethnocentric

Refer to Figure 4.1 in the text. Which method of international expansion is likely to hold the highest risk and investment for the organization?

Licensing and franchising
Importing, exporting, and countertrading
Global outsourcing
Wholly owned subsidiaries

Wholly owned subsidiaries

Managers who are ______ believe that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone.

geocentric
monochronic
ethnocentric
polycentric

polycentric

What is outsourcing?

Locating portions of your business in a foreign country
Using suppliers outside the company to provide goods and services
Selling products to customers in a foreign country
Using internal employees to manufacture goods and provide services

Using suppliers outside the company to provide goods and services

Managers who are ______ accept that there are differences and similarities between home and foreign personnel and practices. These types of managers believe that they should use whatever techniques are most effective to get the job done.

polycentric
ethnocentric
geocentric
monochronic

geocentric

A US company that chooses to use suppliers outside of the United States to provide labor, goods, or services, is practicing _______.

importing
global outsourcing
exporting
trade protectionism

global outsourcing

Of the many reasons companies decide to expand internationally, what do all the reasons have in common?

They all foster sustainability.
They help the company make or save money.
They increase offshoring capabilities.
They make the company more attractive to consumers.

They help the company make or save money.

There is currently a trend known as "reshoring" in the fashion industry. What is occurring with this trend?

Manufacturers are moving production of garments back to the US to respond more quickly to consumer trends.
Garment suppliers are decreasing in number, requiring remaining suppliers to produce new component parts.
More retailers are stocking "second-hand" or "resale" products in direct competition with new items.
Manufacturers are importing all component parts, such as zippers and snaps, from developing nations.

Manufacturers are moving production of garments back to the US to respond more quickly to consumer trends.

When a country places a tariff on an imported product, it is _____.

removing any additional taxes from the import
requiring a fee be paid on the import
limiting the quantity of the import
banning the product from importation

requiring a fee be paid on the import

What is an appropriate synonym for countertrading?

licensing
bartering
warehousing
exporting

bartering

Licensing is most common for _____ companies.

online
nonprofit
manufacturing
service-based

manufacturing

Many fast-food chains have operations in foreign countries because these restaurant corporations allow a foreign company to pay a fee to use the name of the fast-food restaurant. The foreign company would also need to pay a share of the profits to the fast-food corporation. What type of situation does this describe?

Joint venture
Countertrade
Franchising
Licensing

Franchising

Select all that apply
What are reasons for global outsourcing, or offshoring, to a foreign supplier? (Choose every correct answer.)

It has resources not available in the U.S.
It has a longer supply chain than your current supply chain.
It has labor that is cheaper than American labor.
It has higher tariffs than the U.S.
It has special expertise.

It has resources not available in the U.S.
It has labor that is cheaper than American labor.
It has special expertise.

Another name for a joint venture is a ______.

strategic alliance
greenfield venture
wholly owned subsidiary
multinational franchise

strategic alliance

Athletic wear made by Under Armour is undergoing a change as the manufacturer focuses on a "local for local" initiative as it finds ways to bring manufacturing jobs back to the United States. The actions taken by Under Armour demonstrate the concept of _____.

licensing
reshoring
franchising
offshoring

reshoring

Adieu Enterprises, based in Toronto, decides to expand into the South American market. To do so, it establishes a separate operation in Brazil that is owned and controlled in its entirety by Adieu. Which form of expanding internationally does this represent?

Wholly owned subsidiary
Joint venture
Global outsourcing
Licensing

Wholly owned subsidiary

If the currency exchange rate is not conducive for business, a US-based company may decide to exchange goods for goods rather than goods for money. This is known as _____.

arbitration

outsourcing

countertrading

franchising

countertrading

In order to expand internationally, Bolt Energy Corp. based in Houston, decides to build a new energy plant in Finland rather than purchase an existing company. What format is this company using to expand internationally?

Franchise
Licensing venture
Partially owned subsidiary
Greenfield venture

Greenfield venture

A company that allows a foreign company to pay it a fee to make or distribute its products or services is engaging in _____.

licensing
countertrading
a joint venture
franchising

licensing

Select all that apply
What are companies involved in a franchise deal required to do? (Choose every correct answer.)

Place a limit on the amount of goods that can be imported
Pay a fee to use the brand name of a company
Provide a share of the profits to the brand name company
Exchange goods for goods and not goods for money

Pay a fee to use the brand name of a company
Provide a share of the profits to the brand name company