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1.     Restrictive trade barriers most likely influence the globalization of business by encoring firms to


a.      Import all supplies from foreign vendors

b.     Switch from exporting to overseas manufacturing

c.      Expand the expectation of raw materials

d.     Globalization of contrasts

2.     Which of the following is true about Arab negotiators?

a.      Arab negotiators do not use conferences as mediating devices

b.     Arab negotiators prefer short-term relationships to long-term relationships

c.      Arab negotiators use mediators to settle disputes

d.     Arab negotiators generally use factual rather than affective appeals

3.     Which of the following is the most beneficial aspect of an international joint venture?

a.      The international partner receives the entire profit

b.     The responsibility of risks is solely taken by the international partner

c.      The partner's local contacts and markets will be utilized

d.     None of these answers is correct

4.     One of the primary purposes of relationship building during the negotiation process is to                         

a.      Avoid direct confrontations

b.     Exchange task-related information

c.      Create formal contracts

d.     Build mutual trust

5.     Which of the following is a similarity between the negotiation styles of both North Americans and Latin Americans?

a.      They give great importance to documentation

b.     They display strong commitment to their employers

c.      They tend to be argumentative when they think they are right

d.     They highly value emotional sensitivity

6.     Jamie decides to plan his strategies for starting an electric equipment manufacturing company. His main aim is to ensure that it runs efficiently. He decides to perform this in two phases: the planning phase and the implementation phase. Which of the following processes is Jamie employing?

a.      Globalization

b.     Retrenchment

c.      Organizational restructuring

d.     Strategic management

7.     Which of the following is an example of a lag indicator?

a.      None of these answers are correct

b.     The total revenue of the sales team

c.      The number of sales calls made

d.     The number of sales appointments set up

8.     Two major variables in choosing the structure and design of an organization are the opportunities and need for globalization and localization.

a.      True

b.     False

9.     Which of the following is a part of the rational decision-making process?

a.      Comparison of competitor products

b.     Gathering and analyzing relevant data

c.      Marketing the respective products or services

d.     Background check on individuals involved in decision-making

10. Which of the following statements is true of licensing?

a.      Like exporting and franchising, licensing is one the least risky method of international expansion

b.     Licensing increases the likelihood that a licensor's product will appear on the black market

c.      None of these statements are true

d.     Licensing restricts finances needed for international expansion

11. During the negotiation process, the general, polite conversation and informal communication before the meeting is known as cultural distance

a.      True

b.     False

12. Which of the following is the most critical aspect of a franchising strategy?

a.      Distribution

b.     Headquarters location

c.      Local marketing

d.     Quality control and consistency

13. All of the following are true about culture except                                         

a.      Organizationally, it can be defined as how we do everything

b.     It does not differentiate you from your competition

c.      The same strategy can be implemented differently by two different companies

d.     None of these answers are correct

14. Which of the following is NOT a typical reason for forming cross-border alliances?

a.      To gain access to specific markets

b.     To test marketing campaigns overseas

c.      To share R&D costs and risks

d.     To avoid import barriers

15. Which of the following is generally viewed as the riskiest and most expensive entry strategy?

a.      Service sector outsourcing

b.     Semi-lateral joint ventures

c.      Fully-owned subsidiaries

d.     Turnkey operations

16.                         are partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive competitive advantages

a.      Strategic alliances

b.     Foreign subsidiaries

c.      Greenfield investments

d.     None of these answers is correct

17. The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called                               

a.      Product planning

b.     Organizational design

c.      Strategic planning

d.     Strategic delegation

18. From a United States perspective, the                        stage of negotiation is straightforward, objective, efficient and direct

a.      Nonverbal communication

b.     Exchange task-related information

c.      Motivation

d.     Relationship building

19. One of the primary purposes of relationship building during the negotiation process is to                         

a.      Build mutual trust

b.     Avoid direct confrontations

c.      Exchange task-related information

d.     Create formal contracts

20. Which of the following cultures views formal contracts as insulting and wasteful, and prefers to make agreements based on mutual understanding and trust?

a.      Americans

b.     Japanese

c.      Swedes

d.     Russians

21. Which of the following is most likely a subtle and complex behavior that makes cross-cultural negotiations difficult?

a.      Nonverbal communication

b.     Exchanging objective information

c.      Developing goals of negotiation

d.     None of these answers are difficult

22. Research in the United States indicates that during the final stage of negotiations, it is best to start with                                    

a.      Diametric relationship building

b.     Extreme positions

c.      Avoiding building informal relationships

d.     A holistic approach

23. Which of the following is a pitfall of cross-border alliances?

a.      Disputes over management

b.     Convincing expatriates

c.      Increase in the number of existing competitors

d.     All of these answers are correct

24. Which of the following is the most common reactive reason for a firm to extend its operations overseas?

a.      Globalization of competitors

b.     Resource access and cost savings

c.      Economies of scale

d.     Tax incentives

25. Which of the following is the most likely result of regulations and restrictions enforced by a firm's home government that prove to be expensive for the firm's operations?

a.      The firm responds to customers' demand more promptly

b.     The firm searches for less restrictive operating environmental overseas

c.      The firm expands its domestic operations

d.     The firm becomes entangled in lengthy litigation

26. During the negotiation process, if you try to save face your opponent, tend not to be argumentative or insistent when correct, and spend time getting to know your adversary with nontask sounding and tend to be a stickler for details of written documents you are probably from                               


27. Globe Cars, a leading automobile ancillary firm in China, has decided to form a global alliance with Fulda, a German tire manufacturing company. Which of the following is a primary challenge that Globe Cars is most likely to face in this alliance?

a.      Differences in national cultures

b.     Existing competitors

c.      Extreme trade barriers in China

d.     Risk of investment

28. All of the following are lead measures except one. Which is the lag measure?

a.      Weight

b.     Calories consumed

c.      Miles run

d.     Minutes exercised

29. Due to the high demand for its handmade soaps in Canada, Fragrance Exotica, an Indian Soap manufacturer, has decided to open a new manufacturing unit in Canada, thereby expanding overseas. In this scenario, which of the following reasons prompted Fragrance Exotica to set up a manufacturing unit overseas?

a.      Trade barriers

b.     Tax incentives

c.      Customer demands

d.     Manufacturer demands

30. The country that is known as the leading service sector outsourcing center of the world is

a.      Canada

b.     Spain

c.      Mexico

d.     India

31. Which of the following cultures views formal contracts as insulting and wasteful, and prefers to make agreements based on mutual understanding and trust?

a.      Japanese

b.     Russians

c.      Italians

d.     Swedes

32. Which of the following is the first step of the planning phase of a strategic management process?

a.      Seeking alternative strategies using competitive analysis

b.     Analysis of the firm's relative capabilities to deal successfully with the external environment

c.      Establishment of the company's mission

d.     Assessment of the external environment that the firm will face in the future

33. In which of the following stages in the negotiation process does the hard bargaining begin?

a.      Preparation

b.     Persuasion

c.      None of these answers are correct

d.     Nontask sounding

34. The export international entry strategy requires little investment, is typically the way most small business enter the international market while still enabling quick and easy market withdrawal?

a.      True

b.     False

35. According to the video on global and local strategy of McDonald's, all of the following are reasons that even a global company like McDonald's needs a local strategy except local                           

a.      Service quality

b.     Franchise operations

c.      Administrative distance

d.     Tastes and customs

36.                         refers to the establishment of worldwide operations and the development of standardized products and marketing

a.      Globalization

b.     Unicameral

c.      Nationalization

d.     Customization

37. Which of the following is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time?

a.      Franchising

b.     Licensing

c.      Strategic alliance

d.     Management contract

38.                         is the process of getting to know one's contracts in a host country and building mutual trust before embarking on business discussions and transactions

a.      Conflict management

b.     Persuasion

c.      Exchange of task-related information

d.     Relationship building

39. Dell is an American corporation that deals with computer technology. With its worldwide sourcing and fully merged production and marketing system. Dell is considered to be a                               

a.      Greenfield investment

b.     Shell corporation

c.      A bankrupt operation

d.     Globally integrated company

40. The United States and North Korea do not get along. Ghemawat's cage framework would classify this kind of relationship as an example of                                     distance

a.      Administrative

b.     Global

c.      Military

d.     Regional

41. During which stage of the negotiations process does hard bargaining begin?

a.      Relationship building

b.     Agreement

c.      Information gathering

d.     Persuasion

42. Roch, a Swiss chocolate company, recently opened a manufacturing unit in Spain. The purpose of this move was that Roch wanted to avoid Spain's high import tariffs. Which of the following reasons prompted Roch to open the manufacturing unit in Spain?

a.      Trade barriers

b.     Customer demands

c.      Globalization of competitors

d.     Growth opportunities

43. A company's choice to operate in a business or businesses and the ways in which it differentiates itself from its competitors is called its                                            

44. Which of the following international market entry strategies requires little investment and enables quick and easy market withdrawals?

a.      Exporting

b.     Joint ventures

c.      Turnkey projects

d.     Franchising

45. Which of the following is most likely to be true about negotiators in the Far East?

a.      Negotiators begin the discussions by pointing out proposals that they are prepared to accept

b.     Negotiators approach issues in a holistic manner, deciding on the whole deal at the end

c.      Negotiators avoid building informal relationships

d.     Negotiators are particular about formal contracts and insist on specific clauses

46. The organizational structure that has the advantage of sharing skillsets and people across the company but may cause confusion or communication issues because employees may have more than one boss is known as a(n)                         structure

a.      Negative

b.     Import

c.      Matrix

d.     Political risk

47. Which international entry strategy requires little investment, is typically the way most small businesses enter the international place market while still enabling quick and easy market withdrawal?                                    

a.      Exporting

b.     Strategic alliance

c.      Franchising

d.     Joint venture

48. A                     is an assessment of a firm's capabilities relative to those of its competitors as pertinent to the opportunities and threats in the environment for those firms

a.      Break-even analysis

b.     SWOT analysis

c.      Transactional analysis

d.     ZESCH analysis

49. A French businessman has a meeting scheduled with a Brazilian to negotiate terms of a joint venture. The Frenchman prepares for the meeting in the way he always does when negotiating with French firms. The Frenchman assumes that the Brazilian will perceive and reason the way he does. Which of the following terms best describes the Frenchman's mistake?

a.      Moral idealism

b.     Parochialism

c.      Projective cognitive similarity

d.     Cognitive dissonance

50. The forces for globalization and localization are always complementary and never opposing

a.      True

b.     False

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