QUIZES IN MGT304  It refers to the risk associated with the fact
that there are often competing companies
 It is the term used to describe the often
lengthy and paperwork laden task of
getting anything done through a
governmental agency- RED TAPE
 It refers to consumers in each country
may more conveniently substitute certain
products or services than consumers in
some other countries- SUBSTITUTION
 It happens when countries change
policies that might negatively affect a
business, such as trade barriers.-
POLITICAL RISK
 The decision makers can perform a
detailed analysis of a manageable number
of geographical locations- SCANNING
 It is an agreement in which one firm
contracts with another to build complete,
read-to-operate facilities- TURNKEY
OPERATIONS
 It refers to consumers in developing
economies do not necessarily follow the
same patterns as those higher-income
countries.- OBSOLESCENCE AND
LEAPFROGGING OF PRODUCTS
 It refers to each partner in a collaborative
arrangement has its own primary objective
for operating internationally and its own
motive for collaborating. –BASIC
MOTIVES
 It weighs and scores are given on those
basis country is selected- MATRICES
 It is the number of individuals in a certain
market segment who are potential
buyers.- MARKET SIZE
 It is wherein countries with similar capita
GDPs may have different preferences for
products and services because of values
of tastes- CULTURAL FACTORS AND
TASTES
 It refers to paid a fee to transfer
management personnel and
administrative know-how abroad to assist
a company- MANAGEMENT CONTRACT
 It is determined by competitiveness and
profitability factors- OPPORTUNITIES
 It refers to consumers may spend more on
these products that what one would
expect based on per capita GDP, thus
having less on discretionary purchases-
PRICES
 The host country could significantly affect
an enterprise’s success or failure-
ENVIRONMENTAL CLIMATE
on the market. Each of which seeks to
obtain the highest position and consumer
ratings on it in order to gain maximum
benefits for themselves- COMPETITIVE
RISK
 It refers to the differences in the exchange
rates can create gains or losses-
EXCHANGE RATE CHANGES
 It is a direct investment in which two or
more partners share ownership- JOINT
VENTURE
 It is making new commitments to maintain
competitiveness- REINVESTMENT
 It is a formal, long term contractual
agreement between or amongst firms-
COLLABORATIVE ARRANGEMENT
 Its purpose alliance is to solidify a
collaboration, thus making it more difficult
to break a contract- EQUITY ALLIANCES
 It is to minimize exposure in risky
environments wherein you need to
“secure the safety of foreign assets and
earnings; smooth risk across counties”-
INTERNATIONAL MOTIVES
 It is where income inequality is high, the
per capita GDP figures are less
meaningful, because many people have
little to spend and many others have
substantial income to spend. –INCOME
INEQUALITY
 It is where the company are naturally
attracted to counties that are located
nearby, share the same language and
offer market conditions similar to those in
their home countries- EASE AND
COMPATIBILITY OF OPERATIONS
 The firms usually experience higher risk
and uncertainty when they operate
abroad.-RISK
 It is done based on potential returns and
perceived risks present in the country.
Countries are ranked in order of those
factors.- GRIDS
 It is a common tool for predicting a total
market potential is to divide the
percentage of change in product demand
by the percentage of change in income in
a given country- INCOME ELASTICITY
 It is specialized form of licensing that
includes providing an intangible assets
and continually infusing necessary assets-
FRANCHISING
 It is reducing commitments because they
do not fit the overall strategy or because
there are more attractive alternatives.-
HARVESTING
 It is an intangible property rights to
another company to use in specified
geographic area for a specified period in
exchange for royalties- LICENSING
 It is to avoid or counter competition
wherein markets are too small to support
many competitors or firms to challenge a
market leader- GENERAL MOTIVES
 London, but it has offices around the
world. For example, the bank began
operations in Japan in 1924 and in
Indonesia during the early 1920s. The
bank has operated in Saudi Arabi and
India since the 1930s. Because
regulations and regulators are unique to
each country, JP Morgan Chase has
chosen. - MULTIDOMESTIC STRATEGY
 China has made a commitment to convert
to electric cars and Testa, an electric car
manufacturer, hopes to participate in this
market. The company is negotiating to
manufacture cars in Shanghal. Most of the
car parts will be the same as those built in
the US, but adaptation to local conditions
and regulations is necessary to appeal to
Chinese customers. Tesla foresee a need
for a TRANSNATIONAL STRATEGY
 It occurs when two parties agree to
exchange currency and execute the deal
0/1 at some specific date in the-
FORWARD EXCHANGE
 It refers to the losses that an international
financial transaction may Incur due to
currency fluctuations.- FOREIGN
EXCHANGE RISK
 It involves borrowing in one currency
where interest rates are low, and then
using the proceeds in another currency
where interest rates are high. CARRY
TRADE
 In designing an export strategy,
companies make two broad choices along
the dimensions of: GLOBAL
INTEGRATION AND LOCAL
RESPONSIVENESS
 It is used when a company faces
significant cost pressure from international
competitors but must also offer products
that meet local customer needs.-
TRANSNATIONAL STRATEGY
 It is the simultaneous purchase and sale
of a given amount of foreign exchange for
two different value dates. CURRENCY
SWAP
 MakerBot manufactures 3D printers which
"print" objects by depositinginyers of
plastic or other materials until the object is
complete. MakerBot actively sells its
machines to every country in the world but
its machines are the same
everywhere. MakerBot global strategy is
STANDARDIZATION STRATEGY
 It refers to a range of barter-like
agreement by which goods and services
can be traded for other goods and
services. --COUNTERTRADE
 It is the simultaneous purchase and sale
of the same asset in different markets is
order to profit from tiny differences in the
asset's listed price.- ARBITRATION
 It is used when a company is primarily
focused on its domestic operations.
EXPORT STRATEGY
 It is when the country's government allows
both residents and nonresidents to
purchase unlimited amounts of foreign
currency with it.- FREELY CONVERTIBLE
 It is the rate at which a foreign exchange
dealer converts one currency into another
currency on a particular day.- SPOT
EXCHANGE RATE
 It is the rate at which one currency is
converted into another.- EXCHANGE
RATE
 It can be defined as the actions that
managers take to attain the goals of the
firm.-STRATEGY
 It customizes products or processes to the
specific conditions in each country.-
MULTIDOMESTIC STRATEGY
 The degree which the company must
customize their products and methods 1/1
to meet condition in other countries.-
LOCAL RESPONSIVENESS
 It occurs when two parties agree to
exchange currency and execute the deal
 at some specific date in the future. -
SPOT EXCHANGE RATE
 It refers to the losses that an international
financial transaction may incur due 1/1 to
currency fluctuations-
FOREIGN EXCHANGE RISK
 It involves borrowing in one currency
where interest rates are low, and then
using the proceeds in another currency
where interest rates are high. CARRY
TRADE
 In designing an export strategy,
companies make two broad choices along
the dimensions of: GLOBAL
INTEGRATION and GLOBAL
RESPONSIVENESS
 London, but it has offices around the
world. For example, the bank began
operations in Japan in 1924 and in
Indonesia during the early 1920s. The
bank has operated in Saudi Arabi and
India since the 1930s. Because
regulations and regulators are unique to
each country, JP organ Chase has
chosen- MULTIDOMESTIC STRATEGY
 China has made a commitment to convert
to electric cars and Tesla, an electric car
manufacturer, hopes to participate in this
market. The company is negotiating to
manufacture cars in Shanghai, Most of the
car parts will be the same as those built in
the US, but adaptation to local conditions
and regulations is necessary to appeal to
Chinese customers. Tesla foresee a need
for a- STANDARDIZATION STRATEGY
 It is an over the counter (OTC) global
marketplace that determines the
exchange rate for currencies around the
world.-FOREIGN EXCHANGE MARKET
 The degree to which the company is able
to use the same products and methods in
other countries- GLOBAL INTEGRATION
 The decisions attempt to manage the
firm's global cash resources-its working
capital-most efficiently. This involves
minimizing cash balances, reducing
transaction costs, and minimizing the
corporate tax burden. - MONEY
MANAGEMENT
 The activities an organization carries out
to use its human resources effectively that
include determining the firm's human
resource strategy, staffing, performance
evaluation, management development.
compensation, and labor relations.-
HUMAN RESOURCE MANAGEMENT 
 It occurs where a candidate is not fully
prepared for the new culture their
assignment requires them to be part of,
whether there are language barriers, strict
laws or customs or even just a totally
familiar climate and daily routine.
CULTURE SHOCK
 It focuses on controlling the actions that
ultimately lead to results and tend to focus
their efforts on the rewarded behaviors.
BEHAVIORAL CONTROL
 The set of choices the firm offers to its
targeted markets- MARKETING MIX
 This strategy is partly defined by its choice
of channel- COMMUNICATION
STRATEGY
 This type of expatriate compensation
package is normally in the same range as
salary for a similar position in the home
country and can be paid in home or local
currency like pound or dollar. BASE
SALARY
 ___exist whenever consumers in different
countries are charges prices for the same
product, or for slightly different variations
of the products- PRICE
DISCRIMINATION
 ___is concerned with the selection of
employees for particular job and can be a
tool for developing and promoting
corporate culture- STAFFING POLICY
 The activities an organization carries out
to use its human resources effectively that
include determining the firm’s human
resource strategy, staffing, performance
evaluation, management development,
compensation, and labor relations.-
HUMAN RESOURCE MANAGEMENT
 It enables the business to work and
spread across without any walls-
GLOBAL MARKETING MIX
 This type of appraisal refers to an
individual’s workgroup or coworkers rate
their performance- PEER ASSESSMENT
 This structures tend to be useful during
conflicts between subordinates and
supervisors- NEGOTIATED APPRAISAL
 ____is a country with an exceptionally
low, or even no, income tax and
international businesses avoid or defer
income taxes by establishing a wholly
owned, nonoperating- TAX HAVEN
 This strategy determines which channel
firm will use to reach potential consumers-
DISTRIBUTION STRATEGY
 An organizational structure in which terms
are ranked according to levels of
importance- HIERARCHY
 The decisions attempt to manage the
firm’s global cash resources. This involves
minimizing cash balances, reducing
transaction costs, and minimizing the
corporate tax burden- MONEY
MANAGEMENT
 This type of policy seeks the best people
for key jobs throughout the organization,
regardless of nationality. –GEOCENTRIC
STAFFING POLICY
 It refers to an extra pay the expatriate
receives for working outside his or her
country of origin. – FOREIGN SERVICE
INDUCEMENT
 ____are usually designed by human
resources(HR) departments as a way for
employees to develop in their careers. –
PERFORMANCE APPRAISAL
 This type of training helps the expatriate
manager and family ease themselves into
day-to-day life in the host country-
PRACTICAL TRAINING
 This type of policy requires host-country
nationals to be recruited to manage
subsidiaries, while parent-country
nationals occupy key positions at
corporate headquarters-POLYCENTRIC
STAFFING POLICY
 It defines as the underlying belief,
assumptions, values and ways of
interacting that contribute to the unique
social and psychological environment of
an organization- ORGANIZATIONAL
CULTURE
 It refers to a citizen of one country who is
working abroad in one of the firm’s
subsidiaries.- EXPATRIATE MANAGER
 Products reach consumers through a
series of firms or individuals who facilitate
the movement of the product from the
producer to the final consumer.-
CHANNEL DISTRIBUTION
 ___refers to the fact a firm’s pricing
strategy in one market may have an
impact on its rivals’ pricing strategy in
another market- MULTIPOINT PRICING
 ______is used to set expatriate
compensation. There the goal is to protect
or equalize an expatriate’s purchasing
power while on assignment abroad-
BALANCE SHEET APPROACH
 It allows executives to track how well the
organization is performing, identify areas
of concern, and then take action to
address the concerns-
ORGANIZATIONAL CONTROL SYSTEM
 This refers in obtaining skills for a
particular foreign posting and develop the
manager’s skills over his or her career
with the firm. –TRAINING AND
MANAGEMENT DEVELOPMENT
 It contains one or more intermediaries
between the consumer and the producer.
These intermediaries include distributors,
wholesalers, agents, brokers, and
retailers. INDIRECT CHANNEL
 ____encompasses everything from the
delivery of source materials from the
supplier to the manufacturer through to its
eventual delivery to the end user.
SUPPLY CHAIN
 _____refers to the relationship between
the country of assignment and how well
an expatriate adjusts to a particular
posting.- CULTURAL TOUGHNESS