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BA 370 Exam 2 | Questions with Verified Answers The computer maker Lenovo started in China but has since expanded its operations. In addition to purchasing IBM's PC division and Motorola's handset business unit, it established parallel headquarters in both Beijing and North Carolina. This is an ...

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BA 370 Exam 2

The computer maker Lenovo started in China but has since expanded its operations. In
addition to purchasing IBM's PC division and Motorola's handset business unit, it
established parallel headquarters in both Beijing and North Carolina. This is an example
of which global entry strategy?
direct investment

Because the United States imports more goods than it exports, it operates under a(n)
trade deficit

As noted in your text, the complexity of a global distribution channel is determined by
the type of product that must be distributed

Determining the selling price in the global marketplace is an extremely difficult task.
Many countries still have rules governing the ________, including those that affect
pricing.
competitive marketplace

For most of the 20th century, ________ experienced foreign occupation, civil unrest,
major famine, and a strict one-party Communist regime.
China

Problems with which entry approach can arise when the partners disagree or if the
government places restrictions on the firms ability to move its profits out of the foreign
country and back to its home country?
Joint venture

To sell the same product or service in both the home-country market and the host
country, referred to as
Glocalization

_____ involves a binding contractual agreement between a firm and another firm or
individual whereby the business name and format have already been developed by the
originating firm.
Franchising

The processes by which goods, services, capital, people, information, and ideas flow
across national borders are referred to as
Globalization

, Marsha is conducting a country market assessment and is focusing on four key
elements: distribution channels, transportation systems, communication systems, and
commerce. In doing so, Marsha is evaluating which component of the market
assessment?
Infrastructure

refers to collaborative relationships between independent firms, though the partnering
firms do not create an equity partnership; that is, they do not invest in one another.
Strategic Alliances

Which of Hofstede's cultural dimensions relates to a willingness to accept social
inequality as natural?
Power Distance

The fact that Mercedes-Benz is known by three Chinese names in Asia-peng zee in
Cantonese for Hong Kong, Peng chi in Mandarin for Tawian, and ben chi for mainland
China-- illustrates the importance of different ______ global markets
Communication Strategies

Which global entry strategy has the highest degree of risk?
Direct Investment

the global product strategy a firm chooses depends on
The needs of its target market

the United States wants to limit the amount of product that can be imported into the
country for a period of timely setting a maximum import quantity. To do so, the US
should institute a
Quota

The measure of how much one currency is worth in relation to another
Exchange rate

BRIC countries
Brazil, Russia, India, China

Major trade agreement between the US, Canada, and Mexico
USMCA

Standardized metric of output used to gauge the size and market potential of the
economy
Gross domestic product

If a small business wants to take the least risky strategy to enter its first foreign market,
it would choose which of the following global entry strategies?
Exporting

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