MGMT 309 TEST QUESTIONS AND
ANSWERS
globalization - ANSWER Everyone is part of the global village; all
organizations are affected by competition in the global economy; firms are
reshaping themselves for international competition and discovering new ways to
exploit markets; failure to take a global perspective is one of the biggest
mistakes managers can make
domestic business, international business, multinational business, global
business - ANSWER They are four general levels of international activity that
distinguish organizations
domestic business - ANSWER When an organization buys all its resources and
sells all its products within a single country
international business - ANSWER When a firm is based in one nation but
receives a large percentage of its resources and/or revenue from other countries
(largest business done in home country)
multinational business aka multinational corporations - ANSWER When a
business transcends the borders of its nation and buys raw materials, borrows
capital, manufactures and sells its product on an international market (equal
amount of business in foreign countries and home country)
global business - ANSWER When a business transcends the borders of its
country and does not remain loyal to one home country
exporting - ANSWER Manufacturing the product in a company's home country
and shipping it to another country
, importing - ANSWER Bringing in a good, service, or capitol from abroad into
a home country
small cash capital expenditure, low exchange risk, and no change in product or
service is required - ANSWER These are the advantages of import/export,
which generally is the first type of international business that a firm gets
involved
tariffs and taxes imposed on cross-border goods, high transportation cost
to/from distant markets, and government controls and regulations - ANSWER
These are the disadvantages of import/export
licensing - ANSWER An agreement whereby a company allows another
business to use its brand name, trademark, technology, patent, copyright, or
other assets in exchange for royalty on sales
Increased profitability through licensing without capital investment, lower
foreign market operation cost, and extended profitability from existing
technologies in less developed countries - ANSWER These are advantages to
licensing
Inflexibility within the agreement of license, loss of revenue through failure of
the licensee, and licensing can help the competitors to compete - ANSWER
These are the disadvantages of licensing
strategic alliance - ANSWER When two or more firms cooperate together for
mutual gain
joint venture - ANSWER A type of special strategic alliance where the partners
do indeed have equity in a new business
quick market entry, access to technology and materials, and reduced risk -
ANSWER These are the advantages to strategic alliance and joint ventures
ANSWERS
globalization - ANSWER Everyone is part of the global village; all
organizations are affected by competition in the global economy; firms are
reshaping themselves for international competition and discovering new ways to
exploit markets; failure to take a global perspective is one of the biggest
mistakes managers can make
domestic business, international business, multinational business, global
business - ANSWER They are four general levels of international activity that
distinguish organizations
domestic business - ANSWER When an organization buys all its resources and
sells all its products within a single country
international business - ANSWER When a firm is based in one nation but
receives a large percentage of its resources and/or revenue from other countries
(largest business done in home country)
multinational business aka multinational corporations - ANSWER When a
business transcends the borders of its nation and buys raw materials, borrows
capital, manufactures and sells its product on an international market (equal
amount of business in foreign countries and home country)
global business - ANSWER When a business transcends the borders of its
country and does not remain loyal to one home country
exporting - ANSWER Manufacturing the product in a company's home country
and shipping it to another country
, importing - ANSWER Bringing in a good, service, or capitol from abroad into
a home country
small cash capital expenditure, low exchange risk, and no change in product or
service is required - ANSWER These are the advantages of import/export,
which generally is the first type of international business that a firm gets
involved
tariffs and taxes imposed on cross-border goods, high transportation cost
to/from distant markets, and government controls and regulations - ANSWER
These are the disadvantages of import/export
licensing - ANSWER An agreement whereby a company allows another
business to use its brand name, trademark, technology, patent, copyright, or
other assets in exchange for royalty on sales
Increased profitability through licensing without capital investment, lower
foreign market operation cost, and extended profitability from existing
technologies in less developed countries - ANSWER These are advantages to
licensing
Inflexibility within the agreement of license, loss of revenue through failure of
the licensee, and licensing can help the competitors to compete - ANSWER
These are the disadvantages of licensing
strategic alliance - ANSWER When two or more firms cooperate together for
mutual gain
joint venture - ANSWER A type of special strategic alliance where the partners
do indeed have equity in a new business
quick market entry, access to technology and materials, and reduced risk -
ANSWER These are the advantages to strategic alliance and joint ventures
