MGMT 320 TEST 2 (TOMA) QUESTIONS & ANSWERS
Globalization - Answer -the trend of the world economy toward becoming a more
interdependent system
Global village - Answer -shrinking of time and space as air travel and electronic media
has made it easier for ppl around the world to communicate
E-commerce - Answer -buying and selling of products or services
Global economy - Answer -economies of the world that interact with one another as 1
market
An advantage of one big world market - Answer -foreign firms create revenue in the
U.S. by building plants here
Negatives of one big world market - Answer -outsourcing of jobs
Mergers - Answer -when big companies come together to become even bigger and
dominate their field
Mini firms - Answer -small companies that can get started more easily and maneuver
faster for change
Multinational corporation (enterprise) - Answer -business firm with operations in several
countries ; Chase
Multinational organization - Answer -nonprofit org with operations in several countries;
Red Cross
We exist in a - Answer -global economy
GATT - Answer -general agreement on trades and tariffs; reduces tariffs and trade
barriers
WTO - Answer -world trade org; designed to monitor and enforce trade agreements
The answer to everything that involves international business always depends on -
Answer -the differences in the external business environment
3 RESULTS of globalization - Answer --rise of global village & e-commerce
-world becomes one market instead of many
-rise of both megafirms and internet enabled minirfirms worldwide
, International mgmt - Answer -mgmt that oversees the conduct of operations in or with
organizations in foreign countries; can be through multinational corps or organizations
Geocentric managers - Answer -accepts cultural differences and uses what is most
effective
Ethnocentric managers - Answer -"we know best"; their native culture is superior
Polycentric managers - Answer -"they know best"; home offices leave native offices
alone
Why international business ? - Answer -access to finance capital
-avoid tariffs and import quotas
-low labor costs
-new markets
-availability of supplies
How companies expand internationally - Answer -global outsourcing
-import, export, countertrade
-licensing and franchising
-joint ventures
-wholly owned subsidiaries
Outsourcing - Answer -using suppliers outside the company to provide goods and
services
Offshoring - Answer -defined as using suppliers outside the U.S. to provide labor,
goods and services
Importing - Answer -a company buys goods outside the country and resells them
domestically
What is the managerial hierarchy **ODDI** - Answer --top managers: organizational
-which becomes divisional
-which translates to departmental
-and ends in individual objectives set by each employee
Planning has two steps which include - Answer --make the plan and carrying out the
plan
Controlling has two steps which include - Answer -controlling the direction by
comparing results with the plan and by taking corrective action in two ways
**correct deviations in the plan being carried out
** by improving future plans
Planning - Answer -setting goals and determining how to achieve them
Globalization - Answer -the trend of the world economy toward becoming a more
interdependent system
Global village - Answer -shrinking of time and space as air travel and electronic media
has made it easier for ppl around the world to communicate
E-commerce - Answer -buying and selling of products or services
Global economy - Answer -economies of the world that interact with one another as 1
market
An advantage of one big world market - Answer -foreign firms create revenue in the
U.S. by building plants here
Negatives of one big world market - Answer -outsourcing of jobs
Mergers - Answer -when big companies come together to become even bigger and
dominate their field
Mini firms - Answer -small companies that can get started more easily and maneuver
faster for change
Multinational corporation (enterprise) - Answer -business firm with operations in several
countries ; Chase
Multinational organization - Answer -nonprofit org with operations in several countries;
Red Cross
We exist in a - Answer -global economy
GATT - Answer -general agreement on trades and tariffs; reduces tariffs and trade
barriers
WTO - Answer -world trade org; designed to monitor and enforce trade agreements
The answer to everything that involves international business always depends on -
Answer -the differences in the external business environment
3 RESULTS of globalization - Answer --rise of global village & e-commerce
-world becomes one market instead of many
-rise of both megafirms and internet enabled minirfirms worldwide
, International mgmt - Answer -mgmt that oversees the conduct of operations in or with
organizations in foreign countries; can be through multinational corps or organizations
Geocentric managers - Answer -accepts cultural differences and uses what is most
effective
Ethnocentric managers - Answer -"we know best"; their native culture is superior
Polycentric managers - Answer -"they know best"; home offices leave native offices
alone
Why international business ? - Answer -access to finance capital
-avoid tariffs and import quotas
-low labor costs
-new markets
-availability of supplies
How companies expand internationally - Answer -global outsourcing
-import, export, countertrade
-licensing and franchising
-joint ventures
-wholly owned subsidiaries
Outsourcing - Answer -using suppliers outside the company to provide goods and
services
Offshoring - Answer -defined as using suppliers outside the U.S. to provide labor,
goods and services
Importing - Answer -a company buys goods outside the country and resells them
domestically
What is the managerial hierarchy **ODDI** - Answer --top managers: organizational
-which becomes divisional
-which translates to departmental
-and ends in individual objectives set by each employee
Planning has two steps which include - Answer --make the plan and carrying out the
plan
Controlling has two steps which include - Answer -controlling the direction by
comparing results with the plan and by taking corrective action in two ways
**correct deviations in the plan being carried out
** by improving future plans
Planning - Answer -setting goals and determining how to achieve them
