Global Business Strategies MGT/448
(150 points = 25 questions @ 5 points each and one short answer question worth 25 points)
You may mark the correct answer with an X, Highlight it , or Bold. There is no requirement for references, citations, or a Certificate of Originality
1. List two benefits of Foreign Direct Investment (FDI)
2. In which type of economic system are all productive activities privately owned?
a) a mixed economy
b) a command economy
c) a representative economy
d) a market economy
3. Which is not one of Gerte Hofstede’s Cultural Dimensions?
d) Uncertainty Avoidance
4. The establishment of a wholly new operation in a foreign country is called?
a) an acquisition
b) a Greenfield investment
c) a merger
d) a multinational venture
5. The _______ is the rate at which a foreign exchange dealer converts one currency into another currency on a particular day.
a) Currency swap rate
b) Forward rate
c) Specific rate
d) Spot rate
6. The ________ is the rate at which one currency is converted into another.
a) Exchange rate
b) Cross rate
c) Conversion rate
d) Foreign exchange market
7. Which of the following is not true of NAFTA?
a) Its participants are the United States, Canada, and Mexico
b) It created the background for increased political stability in Mexico
c) Several other Latin American countries have indicated their desire to eventually join NAFTA
d) It created a free trade area of nearly 800 million people
8. NAFTA is an example of a(n) ________________ ?
a) Customs union
b) Free trade area
c) Common market
d) Economic union
9. Which of the following is not an advantage of buying from independent global suppliers?
a) it gives the firm greater flexibility
b) it helps drive down the firm’s cost structure
c) it protects proprietary property
d) it helps the firm to capture orders from international customers
10: List several purposes of the bill of lading?
11. List 4 different ways to enter a foreign market:
12: Which of the following is not important to a successful strategic alliance?
a) establishing a 50:50 relationship with partner
b) creating strong interpersonal relationships
c) a shared vision
d) learning from the partner
13: List 3 elements in Global Marketing that are affected by Culture?
14 Standardized advertising makes sense in all of the following situations except
a) when cultural differences among nations are significant
b) when a firm is trying to save money
c) when creative talent is scarce and one large effort to develop a campaign will be more successful than numerous smaller efforts
d) when brand names are global
15. Which of the following does not help predict a Manager’s success in a foreign posting?
a) Cultural toughness
b) Technical expertise
d) Perceptual ability
16. Compared to developed nations, less developed nations have ____________ ?
a) smaller capital markets
b) more investment opportunities
c) similar costs of capital
d) greater liquidity
17. Which type of exchange rate system do most IMF countries follow today?
a) Free float
b) Managed float
c) Fixed peg
d) Adjustable peg
18. The term euro-currency refers to __________ ?
a) the currency used by the European Union countries
b) any currency banked outside its country of origin
c) currencies purchased in the international equities market
d) bonds sold outside the borrower’s country that are denominated in the currency of the country in which they are issued
19. The Exchange Rate for the Euro was 1.3 Dollars in September 2013. How many $US is a 225 Euro Hotel Room?
20. According to ________, a company’s home-country standards of ethics are the appropriate ones to follow in foreign countries.
a) the righteous moralist
b) the naïve immoralist
c) the Friedman doctrine
d) cultural relativism
21. List 3 different costs of relocation to an overseas location.
22. List 3 factors to be considered when considering outsourcing to a Foreign Supplier. (Wk4 DQ discussions)
23 List 3 risks of starting an overseas business venture.
24. What is the advantage of “Countertrade” in global trade?
a) it is a form of global competition.
b) it mitigates Interest Rate Risk.
c) it enables trade without the need for repatriation of funds.
d) none of the above.
25. What is a company’s formal statement of ethical priorities called?
a) Mission statement
b) Code of ethics
c) Code of values
d) Organizational culture
Short Answer Question. Describe how “Culture” can potentially impact a global Business venture (5 points per sentence to a maximum of 25 points)