Topic: Developing a Global Awareness
67.Which of the following will aid a manager in understanding the way people of different countries think and act?
A. A better understanding of global economic trends.
B. A deeper understanding of world market potential.
C. An understanding of foreign investment opportunities.
D. An understanding of microeconomics.
E. A historical perspective.
Knowledge of history is important because the way people think and act is influenced by their history. Some Latin Americans’ reluctance toward foreign investment or Chinese reluctance to open completely to outsiders can be understood better if you have a historical perspective.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 2 Medium
Learning Objective: 01-05 The increasing importance of global awareness
Topic: Developing a Global Awareness
68.Which of the following is the most effective way to achieve organizational global awareness?
A. Hiring employees based on the sole criterion of global awareness.
B. Organizing employee trips to foreign cultures to increase their sensitivity.
C. Increasing the diversity mix of the front-level employee profile.
D. Having a culturally diverse senior executive staff or board of directors.
E. Promoting social networking as a means to improve inter-cultural communication.
Global awareness can be obtained through personal relationships in other countries. But perhaps the most effective approach is to have a culturally diverse senior executive staff or board of directors.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty Level: 2 Medium
Learning Objective: 01-05 The increasing importance of global awareness
Topic: Developing a Global Awareness
69.Which of the following organizations seems better equipped for internationalization?
A. A firm that sells its products only to those foreign customers who directly contact the firm.
B. A firm that has a production capacity that is much greater than home market demand.
C. A firm that focuses its production activities on meeting the demands in the home market.
D. A firm that has a culturally diverse employee profile but few competitive offerings at the global level.
E. A firm that has little intention of maintaining a continuous market representation.
One of the factors favoring faster internationalization is smaller home markets and larger production capacities.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty Level: 3 Hard
Learning Objective: 01-06 The progression of becoming a global marketer
Topic: Stages of International Marketing Involvement
70.Which of the following firms has a better chance of accelerating the internationalization process?
A. International regulatory bodies set export/import limits.
B. The importing country can levy heavier import tariffs to override the VERs.
C. The exporting country sets the limits on the quantity it will export.
D. It is a mandatory tax imposed by a government on goods entering at its borders.
E. It is an absolute restriction against the importation of certain goods.
A VER is called voluntary because the exporting country sets the limits.
AACSB: Analytic
Blooms: Remember
Difficulty Level: 2 Medium
Learning Objective: 01-06 The progression of becoming a global marketer
Topic: Stages of International Marketing Involvement
71.Which of the following is true regarding the stages of international marketing involvement?
A. A firm essentially progresses through the stages in a linear order.
B. The international marketing stage represents the highest level of international involvement.
C. A firm begins its international involvement at the second stage.
D. A firm may be in more than one stage simultaneously.
E. The final stage of the process is involves no direct foreign marketing.
Though presented in a linear fashion, it cannot be inferred that a firm progresses from one stage to another; quite to the contrary, a firm may begin its international involvement at any one stage or be in more than one stage simultaneously.
AACSB: Analytic
Blooms: Understand