Ch 17

Question 1

Global Economy

Answer 1

resources, markets, and competition are worldwide in scope

Question 2

Globalization

Answer 2

process of growing interdependence among elements of the global economy

Question 3

Insourcing

Answer 3

creating of domestic jobs by foreign employers

Question 4

Outsourcing

Answer 4

shifts local jobs to foreign locations to take advantage of lower-wage labor in other countries

Question 5

International Business

Answer 5

conducts commercial transactions across national boundries

Question 6

Global Sourcing

Answer 6

firms purchase materials, manufacturing, or services around the world for local use

Question 7

Global Supply Chain

Answer 7

network of a firm’s outsourcing suppliers and contractors

Question 8

Reshoring

Answer 8

moves foreign production and jobs back to domestic locations

Question 9

Exporting

Answer 9

local products are sold abroad

Question 10

Importing

Answer 10

process of acquiring products abroad and selling them in domestic markets

Question 11

Licensing

Answer 11

one firm pays a fee for rights to make or sell another company’s products

Question 12

Franchising

Answer 12

foreign firm buys the rights to use another’s name and operating methods in its home country

Question 13

Joint Venture

Answer 13

operates in a foreign country through co-ownership with local partners

Question 14

Global Strategic Alliance

Answer 14

each partner hopes to achieve through cooperation things they couldn’t do alone

Question 15

Foreign Subsidiary

Answer 15

local operation completely owned by a foreign firm

Question 16

Greenfield Venture

Answer 16

establishes a foreign subsidiary by building an entirely new operation in a foreign country

Question 17

Global Corporation or Multinational Corporation

Answer 17

extensive international business dealings in many foreign countries

Question 18

Transnational Corporation

Answer 18

an MNC that operates worldwide on a border less basis

Question 19

Globalization Gap

Answer 19

where large global firms gain disproportionately from the global economy versus smaller firms

Question 20

Corruption

Answer 20

involves illegal practices to further one’s business interests

Question 21

Foreign Corrupt Practices Act

Answer 21

makes it illegal for US firms and their representatives to engage in corrupt practices overseas

Question 22

Sweatshops

Answer 22

employ workers at very low wages, for long hours, and in poor working conditions

Question 23

Child Labor

Answer 23

full-time employment of children for work otherwise done by adults

Question 24

Currency Risk

Answer 24

possible profit loss because of fluctuating exchange rates

Question 25

Political Risk

Answer 25

possible loss because of instability and political changes in foreign countries

Question 26

Politiccal-risk Analysis

Answer 26

forecasts how political events may have an impact on foreign investments

Question 27

Global Area Structure

Answer 27

arranges production and sales functions into separate geographical units and puts top managers in charge- such as Area Manager Africa

Question 28

Global Product Structure

Answer 28

gives worldwide responsibilities to product group managers who are assisted by area specialists who work as part of the corporate staff

Question 29

Global Manager

Answer 29

culturally aware and informed on international affairs

Question 30

What are Universal Facilitators of Leadership Success

Answer 30

- Acting trustworth, just, honest - Showing foresight, planning - Being positive, dynamic, motivating - Inspiring confidence - being informed and communicative - being a coordinator and team builder

Question 31

Universal Inhibitors of Leadership Success?

Answer 31

- being a loner - acting uncooperative - being irritable - acting autocratic

Question 32

In addition to gaining new markets, businesses often go international in the search for......

Answer 32

Lower Labor Costs

Question 33

When boot-maker Rock Brands bought 70% ownership of a manufacturing company in the Dominican Republic, Rocky was engaging in what form of international business?

Answer 33

Joint Venture

Question 34

When Limited Brands buys cotton in Egypt and has tops sewn from it in Sri Lanka according to designs made in Italy and then sells the tops at Victoria's Secret stores in US this is a form of international business known as?

Answer 34

Global Sourcing

Question 35

When foreign investment creates new jobs in the US this is a form of ...... that is welcomed by the local economy

Answer 35

insourcing

Question 36

When a Hong Kong firm makes an agreement with the Walt Disney Company to use the Disney logo and legally make jewelry in the shape of Disney cartoon characters, Disney is engaging in a form of international business known as

Answer 36

licensing

Question 37

One Major difference between international business and transnational corporation is that they transnational tries to operate....

Answer 37

without a strong national identity

Question 38

The Foreign Corrupt Practices Act makes it illegal for...

Answer 38

US businesses to make "payoffs" abroad to gain international business contracts

Question 39

The World trade Organization or WTO would most likely become involved in disputes between countries over...

Answer 39

tariffs and protectionism

Question 40

The athletic footwear maker New Balance discovered that exact copies of its running shoe designs were on sale in China under the name New Barlun. This is an example of ..... problem in international business

Answer 40

intellectual property rights

Question 41

When the profit of large international businesses are disproportionately high relative to those of smaller firms and even the economies of some countries this is called...

Answer 41

the globalization gap

Question 42

if a government seizes all foreign assets of global firms operating in the country, the loss of foreign firms is considered a ....risk of international business

Answer 42

political

Question 43

Who gains most when the dollar weakens versus a foreign currancy such as the Brazilian real?

Answer 43

American firms selling products in Brazil

Question 44

Which of the following is identified by researches as a universal inhibitor of leadership success across cultures

Answer 44

acting autocratic

Question 45

If an international business firm has separate vice presidents in charge of its Asian, African, and European divisions, it is most likely using a global ....... structure

Answer 45

area

Question 46

Which is the best definition of a truly "global manager?"

Answer 46

A manager who is competent working across cultures