A business has experienced significant internal and external events, and the
owner decides to respond effectively while maintaining the rules of behavior the
company has always vocalized as being appropriate.
Which component has guided this owner's response?
Ethical conundrum
Organizational ethics
Ethical standardization
Personal ethics Ans✓✓✓ Organizational ethics
Correct! Organizational ethics is how a business responds to stimuli in an ethical
manner.
A business has recently started selling in a new global marketplace. Shortly after
the company made this global expansion, the new country opted to implement ad
valorem tariffs. How will this change affect the company?
It will provide increased corporate tax breaks.
It will levy a fixed tax on the goods imported.
It will levy a tax based on the value of goods imported, causing this company to
export less.
It will impose a value-added tax on corporate profits. Ans✓✓✓ It will levy a tax
based on the value of goods imported, causing this company to export less.
Correct! Ad valorem tariffs are taxes calculated as a percentage of the value of
the goods imported and are used to regulate imports and raise revenues for the
government.
A business operating globally wants to increase its overall production efficiency.
Which strategy should the business use?
,Focus on specialization
Enhance international relationships
Improve trade regulations
Maximize labor force Ans✓✓✓ Focus on specialization
Correct! When a business adds technology to its process, it allows the business to
maximize economies of scale.
A car company wants to expand internationally but encounters much
international competition to reduce cost while responding to local needs.
Which strategy should the company use to meet this goal under these conditions?
Transnational
Web
Export
Communication Ans✓✓✓ Transnational
Correct! This strategy is one in which a company must be nimble to respond to
cost pressures while customizing products to local markets. Transnational
strategies have to deal with the problems of standardization (cost) and
multidomestic strategies (local responsiveness).
A car manufacturing company manufacturers tires in Countries A, B, and C.
Country A has significant political turmoil that has resulted in a lengthy labor
strike. Countries B and C have ramped up production resulting in sustained tire
production for the company.
Which practice has the company used to optimize its production efficiency?
Lean manufacturing
Just-in-time
,Multinational production
Linear and sequential Ans✓✓✓ Multinational production
Correct! There are three countries producing the same tires. If something like a
strike occurs in one, the others can ramp up their production.
A CEO is discussing an expansion of production of a company's highly perishable
dairy line in a country that can offer low labor costs and good internet
connections. The country has no highways, and roads are poorly maintained.
Which challenge to international business expansion do the road conditions
present?
Ethical
Infrastructure
Legal
Relational Ans✓✓✓ Infrastructure
Since the product is perishable, having a good road system is critical to bringing a
product to market before it goes bad. Infrastructure includes the basic physical
and organizational structures needed for a society to operate and for an economy
to function. These include the roads and highways.
A CEO seeks to better use the economies of scale and scope of production to
increase the international company's profits.
Which type of globalization driver is the CEO seeking to use?
Competition
Market
Government
Cost Ans✓✓✓ Cost
, Companies seek to put production in low labor-cost countries to lower labor costs
and increase the contribution margin. Economies of scale and scope and the
exploitation of differences in costs for product development, manufacturing, and
sourcing in different parts of the world will assume greater importance as
determinants of global strategy.
A chief executive officer (CEO) of a Scandinavian company sought to expand
operations in Japan through a joint venture. When the CEO asked the Japanese
business owner whether she was committed to the venture, the business owner
responded with a flat-toned "yes." The outcome the CEO expected did not
happen, and the joint venture failed.
What was the CEO's misinterpretation in this communication?
The response indicated agreement.
The response indicated possibility.
The response indicated excitement.
The response indicated misunderstanding. Ans✓✓✓ The response indicated
agreement.
Correct! In Japan, the word "yes" can mean things other than agreement,
including "maybe" or "I understand you."
A coffee company received international criticism for an employee negatively
responding towards a customer. The response was said to be racially motivated.
The company needs to take swift action to improve how all employees in the
organization are viewed by ethical consumers.
Which course of action should the company take to meet this goal?
Give the person affected company gift cards
Have employees attend sensitivity training
Show instances of employees helping that population