|250 Questions with verified answers
A business has experienced significant internal and external events, and the
owner decides to respond effectively while maintaining the rules of behavior the
company has always vocalized as being appropriate.
Which component has guided this owner's response?
Organizational ethics
Ethical conundrum
Personal ethics
Ethical standardization Ans✓✓✓ Organizational ethics
A business has recently started selling in a new global marketplace. Shortly after
the company made this global expansion, the new country opted to implement ad
valorem tariffs. How will this change affect the company? Ans✓✓✓ It will levy a
variable tax based on the value of goods imported.
A business partner is hoping to persuade the other partners on the benefits that
can be gained by expanding into foreign markets.
Which reason should the business partner use to illustrate these benefits?
Improves the quality of the product
Extends the reach of the brand
Grows domestic sales
Reduces the risks in the home market Ans✓✓✓ Extends the reach of the brand
,A business, operating globally, wants to increase its overall productivity. Which
strategy should the business use? Ans✓✓✓ Increase process technology
A car company wants to expand internationally but encounters much
international competition to reduce cost while responding to local needs.
Which strategy should the company use to meet this goal under these conditions?
Export
Web
Communication
Transnational Ans✓✓✓ Transnational
A CEO decides to expand the company's business internationally by purchasing
production capability in another country, including the foreign country's buildings
and equipment.
Which type of market entry is the CEO using? Ans✓✓✓ Direct investment
A CEO is discussing an expansion of production of a company's highly perishable
dairy line in a country that can offer low labor costs and good internet
connections. The country has no highways, and roads are poorly maintained.
Which challenge to international business expansion do the road conditions
present? Ans✓✓✓ Infrastructure
A CEO seeks to better use the economies of scale and scope of production to
increase the international company's profits.
Which type of globalization driver is the CEO seeking to use? Ans✓✓✓ Cost
,A chief executive officer (CEO) of a Scandinavian company sought to expand
operations in Japan through a joint venture. When the CEO asked the Japanese
business owner whether she was committed to the venture, the business owner
responded with a flat-toned "yes." The outcome the CEO expected did not
happen, and the joint venture failed.
What was the CEO's misinterpretation in this communication?
The response indicated misunderstanding.
The response indicated possibility.
The response indicated excitement.
The response indicated agreement. Ans✓✓✓ The response indicated agreement.
A coffee company received international criticism for an employee negatively
responding towards a customer. The response was said to be racially motivated.
The company needs to take swift action to improve how all employees in the
organization are viewed by ethical consumers.
Which course of action should the company take to meet this goal?
Fire the worker's supervising manager
Give the person affected company gift cards
Have employees attend sensitivity training
Show instances of employees helping that population Ans✓✓✓ Have employees
attend sensitivity training
A company decides to focus on economies of scale to decrease production costs
and increase revenues.
Why is this strategy effective?
, Manufacturing in large quantities keeps costs low.
Ordering in small quantities ensures that shipping costs stay low.
Manufacturing in small quantities minimizes operational costs.
Ordering in large quantities takes advantage of bulk pricing. Ans✓✓✓
Manufacturing in large quantities keeps costs low.
A company has decided that a foreign direct investment should be made during
the next quarter to strengthen the organization.
Which method should be used for this purpose?
Exporting
Establishing a joint venture with another company
Licensing
Establishing a greenfield venture Ans✓✓✓ Establishing a greenfield venture
A company is beginning to operate on a more complex global scale and needs a
seamless integration of all the data the business uses. This integration must
include data from human resources (HR), employee data, sales information, and
development figures.
Which type of software solution should be used for this purpose?
Material requirements planning
Desktop publishing
Spreadsheet program
Enterprise resource planning Ans✓✓✓ Enterprise resource planning