CHAPTER 8 MNGT STUDY GUIDE TEST.
A _____ is an agreement in which companies combine key resources, costs, risks, technology, and
people. - CORRECT ANSWER strategic alliance
Political uncertainty is the risk associated with: - CORRECT ANSWER social unrest.
_____ are new companies that are founded with an active global strategy and have sales, employees,
and financing in different countries. - CORRECT ANSWER Global new ventures
The criteria for choosing an office location are very similar to the criteria for entering a foreign market. -
CORRECT ANSWER false
_____ is the degree to which societies believe that a person should be self-sufficient. - CORRECT
ANSWER Individualism
Which of the following best defines a tariff? - CORRECT ANSWER It is a direct tax on imported goods
When conducting global business, companies should attempt to identify the two types of political risk
that are workforce quality and economic uncertainty. - CORRECT ANSWER False
A(n) _____ is someone who lives and works outside his or her native country. - CORRECT ANSWER
expatriate
Global new ventures are foreign offices, facilities, and manufacturing plants that are 100 percent owned
by the parent company. - CORRECT ANSWER false
Which of the following is a similarity between licensing and franchising? - CORRECT ANSWER Both are
types of cooperative contracts.
A _____ is an agreement in which companies combine key resources, costs, risks, technology, and
people. - CORRECT ANSWER strategic alliance
Political uncertainty is the risk associated with: - CORRECT ANSWER social unrest.
_____ are new companies that are founded with an active global strategy and have sales, employees,
and financing in different countries. - CORRECT ANSWER Global new ventures
The criteria for choosing an office location are very similar to the criteria for entering a foreign market. -
CORRECT ANSWER false
_____ is the degree to which societies believe that a person should be self-sufficient. - CORRECT
ANSWER Individualism
Which of the following best defines a tariff? - CORRECT ANSWER It is a direct tax on imported goods
When conducting global business, companies should attempt to identify the two types of political risk
that are workforce quality and economic uncertainty. - CORRECT ANSWER False
A(n) _____ is someone who lives and works outside his or her native country. - CORRECT ANSWER
expatriate
Global new ventures are foreign offices, facilities, and manufacturing plants that are 100 percent owned
by the parent company. - CORRECT ANSWER false
Which of the following is a similarity between licensing and franchising? - CORRECT ANSWER Both are
types of cooperative contracts.
