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University BUSI 303 exam 2 solutions answers right
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Companies often find motivational reasons to
expand globally. These motivations can be categorized into 4 groups: primary, alternate,
proactive and reactive
The progressive stages of economic
integration, in order of intensity are: Preferential Trade Area, Custom Union,
Free Trade Area, Common Market, and EU
A large portion of all FX market transactions
are spot transactions
The Euro is the world’s leading currency
Every country may not necessarily have its own
security exchange
The intended outcome of regional economic
integration is to promote economic prosperity and stability among signatory
nations
The initial goal of NAFTA was to increase
investment and decrease tariffs between Mexico and the U.S.
Decisions to move domestic operations and
products into the global marketplace include the desire to increase sales and
profitability and to realize cost savings and profitability as a result of a
partial or whole relocation in a foreign nation
Two types of entry modes are available into a
market: low intensity and high intensity. The main difference between the two
depends on how much risk and/or control an entering business is willing to
take
Capacity planning is suggested, but not
necessary, within operations management to allow companies to succeed
In the U.S., the Federal Reserve Bank is
responsible to regulate the growth of the economy
The intent of forming a trading bloc may range
from the potential of trade creation to the desire for economic protectionism
Firms with reactive motivation will most
likely enter the international market because they want to take the initiative
to be aggressive while proactive firms go international because they must in
order to compete
One of the benefits of trading blocs is
greater division of labor
Two major contributing circumstances of the
demise of the gold standard were the Great Depression and the Vietnam War
European Community established its Exchange
Rate Mechanism (ERM) in 1979 and formed the initial steps for the creation of a
single European currency
Operational bottleneck refers to the fact that
capacity of a multistep production process is limited to the total output of
the slowest process
Production related reasons seem to be a small
motivation why some domestic firms expand globally
Export intermediaries are utilized to provide
expertise to inexperienced exporters as they enter overseas markets
Total quality management stresses the importance
of teamwork
Make or buy decisions can be taken lightly
The reasoning behind layout of a facility is
to maximize the work environment for customers, employee and the building
itself
Mercosur was initiated to expand the markets
of Argentina, Brazil, Iran, and India
A license is an agreement that allows one
party to use an industrial property right in exchange for payment to the other
party. The party giving the license is the licensee, while the party that gets
to use the right is the licensor
Total quality management must be based on
ethics, integrity and trust in order to have a solid foundation
Tax on imports is one example of a tariff
barrier
A facilitator is an individual whose job is to
help to manage a process of information exchange
The following factors are reactive motivations
for firms to expand into the global economy: Competitive pressure, Excess
capacity, Underproduction, Saturated or declining home market
The futures market allows smaller traders to
participate in a trade
In a Free Trade area, member nations are
allowed to determine their own trade policies with non-members
Subsidies are special privileges that
governments provide to the businesses in order to attract them to a region or
simply to have funds required to operate successfully
Some firms would rather remain domestic, but
the market forces them global in order to remain profitable
The adoption of the floating exchange rate
resulted from the conclusion of the Bretton Woods Agreement
Centralization allows decisions making authority
to occur where the decisions are to be made
The necessary conditions for expansion into
global market, which drive global expansion, include expanding markets, gaining
access to resources, increasing costs, and capitalizing on special feature of location
In formulating a strategic global market entry
plan, business managers should focus on: identifying the most attractive
foreign markets to the firm; determining the best time to enter the global
market; and whether to enter a potential market utilizing a large or small
scale strategy
The core element of regional economic
integration is the trading bloc
Firms are not at risk if they decide not to
carefully examine, assess and evaluate a country’s organizational, social,
cultural, political, judicial, market, economic, technological and industry
trends prior to determine whether entry into an international market is
financially feasible, unfavorable, or risky.
The major disadvantage to the new form of
centralization is that it does not allow for innovative thinking, nor does it
engender employee initiative for problem solving
The World Bank was established to help finance
economic development in poor, under developed countries
Centralization allows decision making authority to occur
where the decisions are to be made
The intent of forming a trading bloc can range from the
potential of trade creation to the desire for economic protectionism
The four categories of motivational reasons why companies
expand globally are: primary, alternate, proactive and reactive
Two major contributing circumstances to the demise of the
gold standard were the Great Depression and the Vietnam War
OPEC was founded in 1960 in Baghdad
Export intermediaries provide expertise to inexperienced
exporters as they enter overseas markets
The greater division of labor is a benefit of trading blocs
In the U.S., the President sets exchange rate policies
Competitive pressure, excess capacity, underproduction, and
a saturated or declining home market are reactive motivational factors that propel
firms to expand into the global economy
The initial goal of NAFTA was to increase investment and
decrease tariffs between Mexico and the U.S.
An ISO is, in actuality, a codification or assurance of
quality and ISO is an internationally recognized certification system or
process
Trading blocs are the core elements of regional economic
integration
Total Quality Management (TQM) should be based, trust in
order to establish a solid foundation
Low intensity and high intensity are the two types of entry modes
used to access markets
A large portion of all FX market transactions are spot
transactions
The convergence of international and domestic pricing also
indicates the era of the global producer
National customer preferences is a market expansion risk variable
that occurs when the firm may not understand foreign customer preferences and
fail to offer “localized” products and services.
Firms are better off selecting non-equity, low-investment
entry modes in countries that have high environmental uncertainty
The adoption of the floating exchange rate system resulted
from the conclusion of the Bretton Woods Agreement
Production related reasons seem to be relatively small
motivational factors for domestic firms expand globally
Firms with reactive motivation will most likely enter the
international market because they want to take the initiative, while proactive
firms expand internationally by necessity to remain competitive
The major disadvantages to the new form of centralization
are that it does not allow for innovative thinking, nor does it engender
employee initiative for problem solving
A license is an agreement that allows one party to use an
industrial property right in exchange for payment to the other party. The party
giving the license is the licensee, while the party that gets to use the right
is the licensor
The SBA will provide prospective businessmen with “face to
face” services at one of their approximately 73 regional offices located within
the United States
Firms are not at risk if they decide not to carefully
examine, assess and evaluate a country’s organizational, social, cultural,
political, judicial, market, economic, technological and industry trends prior
to determining whether the entry into an international market is financially
viable
Decisions to move domestic operations and products into the
global marketplace include the desire to increase sales and profitability and
cost reductions from full or partial operational relocation to a foreign nation
Continuity is an important aspect of the KANBAN cluster,
which holds the distance between the supplier and the manufacturing hub as a
key focus in the acquisition of raw materials
In a Free Trade Area, member nations are allowed to
determine their own trade policies with non-members
In process planning, make or buy decisions can be taken
lightly
The main difference between low intensity and high intensity
entry modes depends on how much risk and/or control an entering business is
willing to accept or forgo
Italy, Japan, and Turkey are all members of the OEDC
Competitive
pressure, excess capacity, underproduction, and a saturated or declining home
market are reactive motivational factors that propel firms to expand into the global economy
The
reasoning behind the layout design of a facility is to maximize the work environment for
customers, employees, and the overall building
Technological turbulence and market dynamism are the two dimensions of environmental
turbulence
Two
major contributing circumstances to the demise of the gold standard were the Great
Depression and the Vietnam War
The Euro is the world’s leading currency
Firms are not at risk if they decide not to carefully examine, assess and evaluate a
country’s organizational, social, cultural, political, judicial, market, economic, technological and industry trends prior to determining whether the entry into an international market is financially viable.
Export
intermediaries provide expertise to inexperienced exporters as they enter overseas
markets
MERCOSUR
was initiated to expand the markets of Argentina, Brazil, Iran, and India
When pursuing a mass customization strategy, demand for different features or options may be based on climate, culture, location, or personal preference
Centralization
allows decision making authority to occur where the decisions are to be made
An Economic Union consists of several nations, each maintaining their own currency
A large portion of all FX market transactions are spot transactions
In the U.S., the Federal Reserve Bank is responsible for regulating the growth of the economy
Continuity is an important aspect of the KANBAN
cluster, which holds the distance
between the supplier and the manufacturing hub as a key focus in the acquisition of raw
materials
Trading blocs are the core elements of regional economic integration
The
progressive stages of economic integration in order of intensity are: Preferential Trade
Areas, Custom Unions, Free Trade Areas, Common Markets, and EUs
The
New York Stock Exchange itself does no business and keeps no record of
transactions
Only governments can issue bonds
Every country may not necessarily have its own security exchange
Greenfield investments require only process adaptation, not product adaptation
The
adoption of the floating exchange rate system resulted from the conclusion of the
Bretton Woods Agreement
Capacity planning is used in operations management and is suggested, but not a
necessity, to help companies facilitate successful operations
The intended outcome
of regional economic integration
is to promote economic prosperity and stability among signatory nations
Many industrial firms choose to export for their first international entry mode
National
customer preferences is a market expansion risk variable that occurs when the firm may not understand foreign customer preferences and fail to offer “localized” products and services
A license is an agreement that allows one party to use an industrial property right in exchange for payment to the other party. The party giving the license is the licensee,
while the party that gets to use the right is the licensor
Tax on imports is one example of a tariff barrier
The
initial goal of NAFTA was to increase investment and decrease tariffs between Mexico and the U.S
Some
firms would rather remain domestic, but the nature of the market forces them to globalize operations to remain profitable
A facilitator is an individual whose job it is to help manage an information exchange
process
Firms must take into account the needs of the foreign market, the current economic
trends, the political environment, and other important facts when timing their global
expansion strategy
In process planning, make or buy decisions can be taken lightly
Low
intensity and high intensity are the two types of entry modes used to access markets
The Theory of Constraints (TOC)
suggests that the greater
gain will come from increasing
total output from an entire process
Total Quality Management (TQM) stresses the importance of teamwork
The
main difference between low intensity and high intensity entry modes depends on how much risk and/or control an entering business is willing to accept or forgo
Firms are better off selecting nonequity, lowinvestment entry modes in countries that have high environmental uncertainty
The
necessary developments for expansion into global markets include expanding markets, gaining access to resources, increasing costs, and capitalizing on a special
feature of location.
Also known as the Toyota Production System, JIT was initially developed after
WWII when the Japanese car industry was lagging far behind its U.S. competitors
In the U.S., the President sets exchange rate policies
The
European Community established its Exchange Rate Mechanism (ERM) in1979 and formed the initial steps for the creation of a single European currency
When formulating a strategic global market entry plan, business managers should
focus on:
identifying the most attractive foreign markets to the firm; determining the best time to
enter the global market; and whether to enter a potential market utilizing a large or small scale strategy
In a Free Trade Area, member nations are allowed to determine their own trade policies with
nonmembers
I have read all of the course requirements, and fully know that if I do not understand
something about this course I should seek clarification from my professor
One
of the advantages of management contracts is that the management contractor does utilizes many of its assets to meet the contract demands
An achievement of the SmootHawley Tariff Act was the Economic and Monetary Union
(EMU)
Operations managers are concerned with every aspect of the production process, including key areas such as research and development, acquisition and distribution,
inventory management, technology, transportation, manufacturing, and customer service
Transferring
current managers to run new
foreign operations might not be the best strategy
to pursue when expanding operations into global markets
Acquisitions and mergers are market strategies used is when a corporate entity needs complete control over every detail of the structure within the host country
Customer knowledge competence is characterized as the knack to acquire, interpret, and integrate information regarding the global competitive environment
The greater division of labor is a benefit of trading blocs
The futures market allows smaller traders to participate in a trade
Potential
tax savings and managerial focus being drawn away from productivity to
merger
management are two advantages of mergers and acquisitions
The SBA will provide prospective businessmen with “face to face” services at one of their
approximately 73 regional offices located within the United States
OPEC
was founded in 1960 in Baghdad
The
intent of forming a trading bloc can range from the potential of trade creation to the desire for economic protectionism
The four
categories of motivational reasons why companies expand globally are: primary, alternate, proactive and reactive
Production
related reasons seem to be relatively small motivational factors for domestic firms expand globally
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