LESSON 4 Flashcards
(32 cards)
To see and appreciate the world from the perspective of others has become a matter of survival for
businesses. TRUE OR FALSE
TRUE
These two created similar
patterns of consumption in diverse cultures worldwide. This means
that many companies may find it difficult to survive by relying solely on domestic market
Mass communication and High technology
is a process of doing business worldwide, so strategic
decisions are made based on global profitability of the firm rather
than just domestic considerations.
Globalization
seeks to meet the needs of customers worldwide,
with the highest value at the lowest cost.
Global strategy
includes designing, producing, and marketing products
with global needs in mind, instead of considering individual countries
alone.
Global strategy
Organizations that conduct business operations across national borders are
called?
international firms or multinational corporations.
The strategic-management process is conceptually the different for
multinational firms as for purely domestic firms. TRUE OR FALSE
FALSE
What will arise when businesses consider offering their
products or services globally, or
manufacturing and securing resources
outside their own country?
Language
barriers
most of the world’s population does not speak
English. TRUE OR FALSE
TRUE
Foreign operations can absorb excess capacity, increase unit costs, and spread economic risks over a wider
number of markets. TRUE OR FALSE?
FALSE
Foreign operations can allow firms to establish high-cost production facilities in locations close to raw
materials or cheap labor. TRUE OR FALSE
FALSE
Competitors in foreign markets may not exist, or competition may be less intense than in domestic
markets. TRUE OR FALSE
TRUE
Weaknesses of competitors in foreign lands are often underestimated, and strengths are often
overestimated. TRUE OR FALSE
FALSE
Firms that seem insulated and comfortable today may
be vulnerable tomorrow. TRUE OR FALSE
TRUE
accelerating the transfer of technology
Innovative transport
systems
refers to countries imposing
tariffs, taxes, and regulations on firms outside the country to favor their
own companies and people.
Protectionism
important in strategic decisions regarding
where to build manufacturing facilities or retail stores or even where
to acquire other firms.
Tax rates
High corporate tax rates deter investment in
new factories and also provide strong incentives for corporations to
avoid and evade taxes. TRUE OR FALSE
TRUE
may be the most important word in strategic
management
Communication
They sometimes come across as intrusive, manipulative, and garrulous; this
impression may reduce their effectiveness in communication.
Americans
They view
extended periods of silence as important for organizing and evaluating one’s thoughts,
Asians manager
They have a low tolerance for silence.
Americans Manager
They see sitting through a
conference without talking is unproductive
Americans Manager
They view one’s silence helps preserve the unity
Japan
