MGCR 382 FINALEXAM QUESTIONS
WITH SOLVED SOLUTIONS.
indirect internationalization Answer sell components to larger local firm which is int'l--
becoming part of int'l supply chain
export management company Answer acts as its clients export department; may or
may not take titles to goods
international trading company Answer -directly engages in importing and exporting a
wide variety of goods for its own account
licensing Answer granting the right to intangible property--to another entity for a
specified period of time
franchising Answer more control than licensing
-reduces costs and risk of est enterprise
-prohibit movement of profits from one country to support operations in another country
turnkey Answer -contractor agrees to handle every detail of the project and then turn
the project over to the purchaser
contract manufacturing Answer -outsourcing of manufacturing to other firms
management contract Answer managerial assistance, technical expertise in exchange
for monetary compensation
wholly-owned subsidiaries Answer company completely owned by another company
strategic alliances Answer cooperative arrangement with potential or actual
competitor
joint venture Answer a commercial enterprise undertaken jointly by two or more
parties that otherwise retain their distinct identities.
5 myths of globalization Answer 1. its new
2. its extensive
3. its unavoidable
4. it erases geographical distance
5. it erases economic distance
, Jones Act Answer increases goods transport costs for consumers in PR, Hawaii and
Guam----requires that all US costal shipping be carried in US built, owned, registered
and crewed ships
gravity model Answer firms engage in higher volume of business with countries that
are close from the home country along the various measures of distance
culture Answer system of values and norms that are shared among a group of people
levels: society, profession, organization
Hofstede's dimensions of societal culture Answer individualism vs. collectivism
uncertainty avoidance
power distance
masculinity vs. femininity
long vs. short term orientation
3 cultural features with globalization Answer preservation
homogenization
hybridization
polycentrism Answer business units abroad should act like local companies
ethnocentrism Answer home culture is superior to local culture
-overlook national diffs
geocentrism Answer integrate home and host practices
rule of law Answer the principle that every member of society must follow the same
laws
rule of man Answer the notion that the word and whim of the ruler no matter how
arbitrary are the law
common law Answer based on cumulative wisdom of judges decisions on individ
cases through histoy
civil law Answer based on codification of what is and isnt permissible
-relies on declarations of broad, general principles
theocratic (religious) law Answer based on the official est rules governing faith and
practice of a particular religion
sanction Answer restraints against commerce with another country
WITH SOLVED SOLUTIONS.
indirect internationalization Answer sell components to larger local firm which is int'l--
becoming part of int'l supply chain
export management company Answer acts as its clients export department; may or
may not take titles to goods
international trading company Answer -directly engages in importing and exporting a
wide variety of goods for its own account
licensing Answer granting the right to intangible property--to another entity for a
specified period of time
franchising Answer more control than licensing
-reduces costs and risk of est enterprise
-prohibit movement of profits from one country to support operations in another country
turnkey Answer -contractor agrees to handle every detail of the project and then turn
the project over to the purchaser
contract manufacturing Answer -outsourcing of manufacturing to other firms
management contract Answer managerial assistance, technical expertise in exchange
for monetary compensation
wholly-owned subsidiaries Answer company completely owned by another company
strategic alliances Answer cooperative arrangement with potential or actual
competitor
joint venture Answer a commercial enterprise undertaken jointly by two or more
parties that otherwise retain their distinct identities.
5 myths of globalization Answer 1. its new
2. its extensive
3. its unavoidable
4. it erases geographical distance
5. it erases economic distance
, Jones Act Answer increases goods transport costs for consumers in PR, Hawaii and
Guam----requires that all US costal shipping be carried in US built, owned, registered
and crewed ships
gravity model Answer firms engage in higher volume of business with countries that
are close from the home country along the various measures of distance
culture Answer system of values and norms that are shared among a group of people
levels: society, profession, organization
Hofstede's dimensions of societal culture Answer individualism vs. collectivism
uncertainty avoidance
power distance
masculinity vs. femininity
long vs. short term orientation
3 cultural features with globalization Answer preservation
homogenization
hybridization
polycentrism Answer business units abroad should act like local companies
ethnocentrism Answer home culture is superior to local culture
-overlook national diffs
geocentrism Answer integrate home and host practices
rule of law Answer the principle that every member of society must follow the same
laws
rule of man Answer the notion that the word and whim of the ruler no matter how
arbitrary are the law
common law Answer based on cumulative wisdom of judges decisions on individ
cases through histoy
civil law Answer based on codification of what is and isnt permissible
-relies on declarations of broad, general principles
theocratic (religious) law Answer based on the official est rules governing faith and
practice of a particular religion
sanction Answer restraints against commerce with another country
