Sarah Elise Alverson MANGMT 3000 Principles of Management Previously Submitted Lesson Review Lesson Submitted on 11 05 2014 Lesson Number 4 Remember to print a copy of this preview and mark your answers before submitting the actual progress evaluation 10 questions 2 points each 20 points total Multiple choice Choose the one best answer 1 NAFTA combined the economies of A the United States Canada and Mexico B Canada Mexico and South America C South America the United States and Latin America D Latin America the Pacific Rim and the European Union E the United States the European Union and North America 2 One reason why managing international businesses is considered more complex than managing a local business is A Competition with international companies is always more fierce B It is more expensive to manage an international business C There is less risk in managing an international business D Managers have to learn about other cultures and have more complex coordination issues E Managing an international business gives the company more exposure locally 3 occurs when an organization contracts with an outside provider to produce one or more of the organization s products or services A International development B Outsourcing C Offshoring D Expatriation E None of the above is correct 4 The grid used for identifying the best strategy for competing in a global marketplace measures what two dimensions A pressures for global integration and pressures for local responsiveness B pressures for local interaction and pressures for global responsiveness C financial viability and employee satisfaction D employee satisfaction and management credibility E pressures for global systems capacity and pressures for local financial success 5 One advantage of exporting as a global expansion entry mode is that A economies of scale may be realized B the target site may have lower production costs C transportation costs are generally lower D it is considered responsive to local needs E trade barriers may be imposed 6 The choice of whether to follow a global model or a multinational model is decided by comparing the A pressures for global integration to the pressures for local responsiveness B success of global competitors in each strategy C costs of producing in separate facilities to the costs of producing in a single facility D tastes and preferences of consumers in your home country E need for product differentiation across international borders 7 Happy Patty is a hamburger chain that has restaurants in several countries The chain s policy is to give a great deal of discretion to the restaurants in each country to respond to local conditions in designing the restaurant determining the menu pricing etc Happy Patty is following the A international model B multinational model C global model D multifunctional model E intranational model 8 Transnational companies A require effective communication and coordination networks B realize pressures for local responsiveness and cost economies C may centralize production facilities in one location and marketing functions in separate locations D must effectively transfer core skills or know how E All of the above are true of transnational companies 9 An advantage of licensing as a method of entering global competition is that the licensing company A takes on less risk and expense B has control over its technology C has control over quality levels D utilizes lower production costs E None of the above is true 10 The biggest cause of failure of overseas managers is A a lack of technical capability B a lack of language skills C the high cost of living D All of the above are big causes of failures of overseas managers E None of the above is a big cause of failures of overseas managers