Question 1

Lay's potato chips are sold around the globe, but the selection of available flavors varies from country to country to accommodate different taste preferences.This is an example of the ____________________ practices of international and multinational corporations.

Accepted Answer

The practice of adjusting the selection of flavors to accommodate different taste preferences in different countries reflects the idea of "thinking globally" by recognizing cultural differences and adapting to local markets while "acting locally" by tailoring the product to meet those needs.

Question 2

Which of the following is most characteristic of multinational corporations?

Accepted Answer

Direct investment, meaning establishing and operating subsidiaries or branches in foreign countries, is a defining characteristic of multinational corporations. While strategic alliances and joint ventures, licensing and franchising, and importing/exporting may also be part of their operations, they do not differentiate multinational corporations from other types of businesses.

Question 3

The highest cost/highest risk form of global business is __________.

Accepted Answer

Direct investment involves establishing operations, such as a subsidiary or joint venture, in a foreign market. This requires a significant financial commitment and carries a high level of risk due to factors such as political instability, cultural differences, and changes in regulations. Franchising and contracting involve less financial commitment and lower risk as they rely on established business models and relationships with partners. Global sourcing involves purchasing goods or services from suppliers in other countries and while it carries some risk, it generally involves lower levels of financial commitment and risk compared to direct investment.

Question 4

__________ policies are designed to improve work outcomes for underrepresented groups by providing them with extra help in the employment process.

Accepted Answer

Affirmative action policies provide targeted assistance to underrepresented groups in hiring and employment processes, with the goal of improving diversity and equity in the workforce. They have been controversial and subject to legal challenges, but are still used by some organizations and governments.

Question 5

The relative cost of a product in different countries refers to __________.

Accepted Answer

Purchasing power refers to the relative cost of a product in different countries. It is the amount of goods and services that can be purchased with a given amount of money in a particular country.

Question 6

All of the following are methods a company can use to become global, except __________.

Accepted Answer

Leasing and renting are not methods a company can use to become global. Importing/exporting, contracting, and direct investment are all common methods used by businesses to expand their operations internationally.

Question 7

A __________ is created when two or more firms share ownership of a new company.

Accepted Answer

A joint venture is a business arrangement in which two or more firms agree to pool resources and expertise to create a new company that they jointly own and manage. This allows the companies to share the risks and rewards of the new venture while maintaining their separate identities and operations. Strategic alliances, direct investments, and contracts may also involve cooperation between firms, but they do not necessarily involve shared ownership of a new entity.

Question 8

The buying and building of operating facilities in a foreign country is a __________.

Accepted Answer

Direct investment involves the buying and building of operating facilities in a foreign country. Joint venture and strategic alliance are forms of collaboration between two or more companies, while global manufacturing decision refers to the decision-making process involved in determining the optimal location and operation of manufacturing facilities around the world.

Question 9

Toyota, a Japanese company, owns manufacturing plants in Kentucky, Indiana, West Virginia, and several other states as well as in more than a dozen other countries outside of Japan.This is an example of __________.

Accepted Answer

This is an example of direct investment, where a company invests in and owns a manufacturing plant in a foreign country.

Question 10

__________ people make up the largest minority group in the United States.

Accepted Answer

According to the U.S. Census Bureau, Hispanic or Latino people are the largest minority group in the United States, making up about 18.5% of the total population.

Question 11

__________ is similar to global sourcing, but it tends to be on a large scale.

Accepted Answer

The answer of __________ is similar to global sourcing, but...

Question 12

Which of the following is not one of the six major management practices of global companies?

Accepted Answer

The answer of Which of the following is not one...

Question 13

__________ is the variety of people with different group identities within the same workplace.

Accepted Answer

Diversity refers to the variety of people with different group identities (such as ethnicity, race, gender, age, religion, etc.) within the same workplace. This diversity can lead to a more innovative and inclusive work environment, but also requires efforts to ensure everyone is treated with respect and given equal opportunities. The other choices (B, C, D) do not fully capture this concept.

Question 14

An agreement to share resources that does not necessarily involve creating a new company is a __________.

Accepted Answer

A strategic alliance is a partnership between two or more companies to pool resources in a way that does not require creating a new separate entity. The companies remain independent but work together towards a common goal. Joint venture involves creating a new company together, direct investment involves one company investing money in another, and contracting involves outsourcing specific tasks or services.

Question 15

A country decides to put a direct tax on imported jewelry in order to encourage citizens to purchase jewelry from their own country.What concept is at work in this situation?

Accepted Answer

A direct tax on imported jewelry is a tariff, which is a tax placed on goods imported from other countries. The purpose of the tariff in this situation is to make imported jewelry more expensive for citizens, thereby encouraging them to buy jewelry made in their own country.

Question 16

All the following are consequences of discrimination through stereotyping, except __________.

Accepted Answer

Discrimination through stereotyping can result in decreased self-esteem and individual performance for those being stereotyped, conflict between individuals and groups due to prejudice and assumptions, and harassment. However, it is unlikely to result in decreased turnover as discrimination and stereotyping can lead to a hostile work environment and decreased job satisfaction, ultimately increasing turnover.

Question 17

Licensing and franchising are also known as __________.

Accepted Answer

Licensing and franchising are both types of cooperative contracts, which involve two or more firms working together to achieve a common goal. Contract manufacturing involves outsourcing production to a third-party manufacturer, diversification refers to expanding a company's products or services into new markets, and investments are financial assets that a company or individual owns.

Question 18

Apple designs and markets products that are actually manufactured by a Taiwanese company.This is an example of __________.

Accepted Answer

This situation describes contracting, which is the practice of hiring a third party to manufacture goods or provide services. In this case, Apple contracts with a Taiwanese company to manufacture their products, but Apple retains control over the design and marketing of the products. Joint ventures involve two or more parties combining resources to create a new business entity, licensing involves granting permission to use a product or intellectual property, and importing/exporting refers to the movement of goods across international borders.

Question 19

The lowest cost/lowest risk form of global business is __________.

Accepted Answer

Global sourcing, also known as international procurement, involves acquiring goods and services from the global market across geopolitical boundaries. It is considered the lowest cost and lowest risk form of global business because it allows companies to take advantage of lower costs of materials or labor in other countries without the need for significant investment in foreign operations, franchises, or contractual agreements that might carry higher costs and risks.

Question 20

__________ saves money and better allocates global resources, as it benefits everyone because countries specialize in what they can do better than others.

Accepted Answer

Global sourcing allows for companies to identify the most efficient and cost-effective locations to produce or acquire goods and services, which ultimately saves money and allocates resources more efficiently on a global scale. This specialization also enables countries to focus on producing what they do best, leading to increased productivity and economic growth. Joint ventures, direct investment, and franchising may also have benefits, but they are not specifically focused on saving money and allocating resources on a global scale.

Quiz 3: Managing Diversity in a Global Environment