PARGAS FINAL EXAM #3 COB 300
QUESTIONS AND ANSWERS
Political Corruption - Answer-is a manipulation of policies, institutions and rules of
procedure in the allocation of resources and financing by political decision makers, who
abuse their positions to sustain their power, status and wealth
Grand Corruption - Answer-when political corruption takes place at high levels of
government, it is often referred to as grand corruption
Why deal with global management - Answer--You may deal with foreign customers or
partners
-You may deal with foreign suppliers
-You may work for a foreign firm in the US
-You may work for an American firm outside the US- or for a
Tariff - Answer-A tax on imported goods
Protectionism - Answer-the theory or practice of shielding a country's domestic
industries from foreign competition by taxing imports.
Exporting - Answer-selling products to another country
Licensing - Answer-a domestic company, the licensor, receives royalty payments for
allowing another company, the licensee, to produce its product, sell its service, or use
its brand name in a particular foreign market
Franchise - Answer-A collection of networked firms in which the manufacturer or
marketer of a product or service, the franchisor, licenses the entire business to another
person or organization, the franchisee
strategic alliance - Answer-When companies combine key resources, costs, risks,
technology, and people. Most common form is joint venture
Wholly owned affliaties - Answer-foreign offices, facilities, and manufacturing plants are
100 percent owned by the parent company
Trade barriers - Answer-government-imposed regulations that increase the cost and
restrict the number of imported goods
Global New Ventures - Answer-1. Ease of travel
2. Low cost telecommunications
3. There is now a critical mass of business people with extensive personal experience in
all aspects of global business
QUESTIONS AND ANSWERS
Political Corruption - Answer-is a manipulation of policies, institutions and rules of
procedure in the allocation of resources and financing by political decision makers, who
abuse their positions to sustain their power, status and wealth
Grand Corruption - Answer-when political corruption takes place at high levels of
government, it is often referred to as grand corruption
Why deal with global management - Answer--You may deal with foreign customers or
partners
-You may deal with foreign suppliers
-You may work for a foreign firm in the US
-You may work for an American firm outside the US- or for a
Tariff - Answer-A tax on imported goods
Protectionism - Answer-the theory or practice of shielding a country's domestic
industries from foreign competition by taxing imports.
Exporting - Answer-selling products to another country
Licensing - Answer-a domestic company, the licensor, receives royalty payments for
allowing another company, the licensee, to produce its product, sell its service, or use
its brand name in a particular foreign market
Franchise - Answer-A collection of networked firms in which the manufacturer or
marketer of a product or service, the franchisor, licenses the entire business to another
person or organization, the franchisee
strategic alliance - Answer-When companies combine key resources, costs, risks,
technology, and people. Most common form is joint venture
Wholly owned affliaties - Answer-foreign offices, facilities, and manufacturing plants are
100 percent owned by the parent company
Trade barriers - Answer-government-imposed regulations that increase the cost and
restrict the number of imported goods
Global New Ventures - Answer-1. Ease of travel
2. Low cost telecommunications
3. There is now a critical mass of business people with extensive personal experience in
all aspects of global business
