21.The ____ a regional trade agreement that liberalizes trade between
21.The ____ is a regional trade agreement that liberalizes trade between countries more than any other such agreement.
a.Maastricht Treaty of Europe
b.Association of South East Nations
c.Asia-Pacific Economic Cooperation agreement
d.North American Free Trade Agreement
e.Free Trade Area of South America
22.Trade barriers and free trade agreements matter to consumers because they do which of the following:
c.increase purchasing power
d.decrease what people pay for necessities
e.all of the choices
23.One of the major questions that a company must typically answer once it has decided to go global is:
a.How many additional employees will the company need?
b.To what extent should the company standardize or adapt business procedures?
c.To what extent should a company abide by global or regional trade agreements?
d.Will the organization’s mission statement need to be changed?
e.How many new shareholders will be influenced by global activities?
24.When a multinational company that acts with ____ has offices, manufacturing plants, and distribution facilities in different countries, it will run those offices, plants, and facilities based on the same rules, guidelines, policies, and procedures.
25.In a multinational firm, managers at company headquarters typically prefer an emphasis on ____ because it simplifies decisions.
26.Which of the following approaches tends to be most important to making an international business successful in any given country?
27.Historically, most companies have used the ____ to successfully enter foreign markets.
a.phase model of globalization
b.global new venture approach
d.market echo approach
28.Which of the following represents the correct sequence for the phase model of globalization?
a.exporting; wholly-owned affiliates; cooperative contracts; strategic alliances
b.exporting; cooperative contracts; wholly owned affiliates; strategic alliances
c.exporting; cooperative contracts; strategic alliances; wholly owned affiliates
d.exporting; strategic alliances; cooperative contracts; wholly owned affiliates
e.home country sales; exporting; job ventures; strategic alliances, and direct investment
29.____ occurs when a company sells domestically produced products to customers in foreign countries.
a.Direct foreign investment
e.A joint venture
30.Jim Beam is a distillery in the United States. In 2000, it began marketing its U.S. made liquor to customers in 27 different European countries. Since it was at the first stage of the phase model of globalization, it used ____ to reach European customers.