GMS 522 LATEST REVIEW EXAMS ALL QUESTIONS
AND ANSWERS SURE A+
✔✔Jeff is a 'hard-nosed' Canadian executive who represents his company Accelerated
Technologies in high stakes joint venture negotiations. Despite his years of experience
Jeff was taken aback recently when representatives for the other negotiating team did
nothing and said nothing for long periods during a critical negotiating session. Jeff did
not know what to make of their reaction and was very concerned that a deal would not
be reached. Jeff was most likely working in: - ✔✔Japan
✔✔The Mauritius government is interested in attracting additional foreign investment
and in creating employment. Government officials are considering a plan to allow
foreign firms to import goods for further processing, testing and transshipment to final
consumer markets around the world. The Government of Mauritius plans to exempt
such transactions from all duties and taxes and has identified an area close to the port
where foreign firms would be able to operate under this arrangement. Such a
designated area is called a (n) - ✔✔Foreign trade zone
✔✔Mary, a Canadian executive, did not know why she needed to waste her time
attending this workshop. She was relocating to India on a long term assignment for the
company and was due to leave in six weeks. Instead of allowing her time to work on the
financials for the new operation her boss had sent her to a three day workshop to learn
, about Indian culture. Even though Mary did not "get it" her boss was trying to improve
her: - ✔✔Cultural literacy
✔✔In 2016 the government of Venezuela seized 4 million toys owned by Kreisel, a
private company, and distributed them to poor children. Kreisel received no
compensation for the toys. Instead William Contreras, Director of the fair pricing agency,
told the media this will teach companies "that you can't play with the rights of
Venezuelans'. This is an example of: - ✔✔Confiscation
✔✔Foreign sales subsidiaries are wholly owned by their parent firms and are
incorporated under the laws of their home country. True/False? - ✔✔False
✔✔Small, technology-driven companies with innovative products and which operate in a
range of foreign countries almost from inception are described as being: - ✔✔Born
global
✔✔Mary was reviewing the documentation provided by her firm's freight forwarder. She
noticed, as she reviewed the figures for the latest shipments to Pakistan, that tariffs had
been calculated differently than she was used to. It seemed that a specific dollar
amount was levied up to 100,000 tons and that the Pakistani government levied a
charge of 5% of the shipments' value on amounts over 100,000 tons. Mary called the
freight forwarder for an explanation and was told that Pakistan used _______________
tariffs - ✔✔Compound
✔✔The CEO of Rio Tinto was interested in opening a mine in Northern Bolivia. He knew
that the country was politically unstable but he was most worried about being able to
repatriate profits earned back to the firm's home country. Which sub-index of the Profit
Opportunity Recommendation index (POR) would be most helpful to this CEO's
decision? - ✔✔The R Factor
✔✔According to transactions cost analysis, firms seek to minimize transaction costs in
their efforts to expand and market their products globally. These may be classified as:
Contracting costs; Search costs, Monitoring Costs and Enforcement costs. True/False?
- ✔✔True
✔✔In order to enter the Japanese market Jeff knew that he would have to be
innovative. He knew that once his firm's products were being sold in Japan they would
be able to quickly build market share. "Why not?" he asked. His firm's products were of
the highest quality and the price points were attractive. Two other things were clear to
Jeff - his company did not have a lot of money to devote to this market and the issue of
control wasn't all that important. Which mode of entry would you recommend for Jeff's
company? - ✔✔Joint venture
AND ANSWERS SURE A+
✔✔Jeff is a 'hard-nosed' Canadian executive who represents his company Accelerated
Technologies in high stakes joint venture negotiations. Despite his years of experience
Jeff was taken aback recently when representatives for the other negotiating team did
nothing and said nothing for long periods during a critical negotiating session. Jeff did
not know what to make of their reaction and was very concerned that a deal would not
be reached. Jeff was most likely working in: - ✔✔Japan
✔✔The Mauritius government is interested in attracting additional foreign investment
and in creating employment. Government officials are considering a plan to allow
foreign firms to import goods for further processing, testing and transshipment to final
consumer markets around the world. The Government of Mauritius plans to exempt
such transactions from all duties and taxes and has identified an area close to the port
where foreign firms would be able to operate under this arrangement. Such a
designated area is called a (n) - ✔✔Foreign trade zone
✔✔Mary, a Canadian executive, did not know why she needed to waste her time
attending this workshop. She was relocating to India on a long term assignment for the
company and was due to leave in six weeks. Instead of allowing her time to work on the
financials for the new operation her boss had sent her to a three day workshop to learn
, about Indian culture. Even though Mary did not "get it" her boss was trying to improve
her: - ✔✔Cultural literacy
✔✔In 2016 the government of Venezuela seized 4 million toys owned by Kreisel, a
private company, and distributed them to poor children. Kreisel received no
compensation for the toys. Instead William Contreras, Director of the fair pricing agency,
told the media this will teach companies "that you can't play with the rights of
Venezuelans'. This is an example of: - ✔✔Confiscation
✔✔Foreign sales subsidiaries are wholly owned by their parent firms and are
incorporated under the laws of their home country. True/False? - ✔✔False
✔✔Small, technology-driven companies with innovative products and which operate in a
range of foreign countries almost from inception are described as being: - ✔✔Born
global
✔✔Mary was reviewing the documentation provided by her firm's freight forwarder. She
noticed, as she reviewed the figures for the latest shipments to Pakistan, that tariffs had
been calculated differently than she was used to. It seemed that a specific dollar
amount was levied up to 100,000 tons and that the Pakistani government levied a
charge of 5% of the shipments' value on amounts over 100,000 tons. Mary called the
freight forwarder for an explanation and was told that Pakistan used _______________
tariffs - ✔✔Compound
✔✔The CEO of Rio Tinto was interested in opening a mine in Northern Bolivia. He knew
that the country was politically unstable but he was most worried about being able to
repatriate profits earned back to the firm's home country. Which sub-index of the Profit
Opportunity Recommendation index (POR) would be most helpful to this CEO's
decision? - ✔✔The R Factor
✔✔According to transactions cost analysis, firms seek to minimize transaction costs in
their efforts to expand and market their products globally. These may be classified as:
Contracting costs; Search costs, Monitoring Costs and Enforcement costs. True/False?
- ✔✔True
✔✔In order to enter the Japanese market Jeff knew that he would have to be
innovative. He knew that once his firm's products were being sold in Japan they would
be able to quickly build market share. "Why not?" he asked. His firm's products were of
the highest quality and the price points were attractive. Two other things were clear to
Jeff - his company did not have a lot of money to devote to this market and the issue of
control wasn't all that important. Which mode of entry would you recommend for Jeff's
company? - ✔✔Joint venture
