Chapter 11 Global and International Issues: Strategic Management: A Competitive Advantage Approach, 17e (David/David)

Strategic Management: A Competitive Advantage Approach, 17e (David/David)
Chapter 11 Global and International Issues
1) The average level of union membership across the whole European Union, weighted by the
numbers employed in the different member states, is ________ percent compared to about
________ percent in the United States.
A) 11; 23
B) 15; 44
C) 23; 11
D) 51; 26
E) 70; 30
Answer: C
Diff: 2
LO: 11.1: Discuss the nature of doing business globally, including labor union issues and tax
rates.
AACSB: Analytical thinking
2) Which of the following is a European country in which union membership is growing?

A) Australia
B) Austria
C) France
D) Italy
E) Sweden
Answer: D
Diff: 2
rates.
3) In an industry that is, or is rapidly becoming global, the riskiest possible posture is to
A) become a global competitor.
B) remain a domestic competitor.
C) remain a global competitor.
D) expand beyond the role of domestic competitor.
E) embrace strategic alliances.
Answer: B
Diff: 2
rates.
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4) Organizations that conduct business operations across national borders are called
A) protectionists.
B) national firms.
C) multinational corporations.
D) domestic companies.
E) born global.
Answer: C
Diff: 1
rates.
5) Exports constitute ________ percent of Singapore's gross domestic product (GDP).

A) 78
B) 102
C) 87
D) 221
E) 172
Answer: E
Diff: 2
rates.
6) The various opportunities and threats that face multinational corporations are almost limitless,
and the number and complexity of these factors ________ the number of products and the
number of geographic areas served.
A) decrease dramatically with
B) dramatically increase with
C) drop slightly with
D) are constant despite
E) are unaffected by
Answer: B
Diff: 2
rates.
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7) Multinational corporations face unique and diverse risks, which include all of the following
EXCEPT
A) favorable foreign court interpretations of contracts and agreements.
B) currency losses through exchange rate fluctuations.
C) social/political disturbances.
D) import/export restrictions.
E) tariffs.
Answer: A
Diff: 2
rates.
8) Communication between domestic headquarters and overseas operations is often made

difficult by
A) type of products.
B) cultural differences.
C) type of services.
D) location of headquarters.
E) age of firm.
Answer: B
Diff: 2
rates.
9) The U.S. government's OPIC

A) offers insurance to offset some risks of doing business internationally.
B) provides insurance to eliminate all of the risks of doing business internationally.
C) is a leading source of humanitarian aid worldwide.
D) requires that paperwork be filed by U.S. companies desiring to do business internationally.
E) discourages foreign companies from doing business in the United States.
Answer: A
Diff: 2
rates.
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10) ________ is a process of doing business worldwide, so strategic decisions are made based on
global profitability of the firm rather than just domestic considerations.
A) Multinational corporation
B) Protectionism
C) Globalization
D) Assimilation
E) World recession
Answer: C
Diff: 1
rates.
11) Mass communication and high technology have ________ in diverse cultures worldwide.
A) created similar patterns of consumption
B) resulted in highly individualized patterns of consumption
C) rendered patterns of consumption identical
D) had little to no effect on patterns of consumption
E) ignored patterns of consumption
Answer: A
Diff: 2
rates.
12) As of 2018 which of the following countries had the highest corporate tax rate?
A) Bermuda
B) Cayman Islands
C) United Arab Emirates
D) USA
E) Turkey
Answer: C
Diff: 3
rates.
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13) High corporate tax rates
A) encourage investment in new factories.
B) provide strong incentives to avoid and evade taxes.
C) attract foreign investors.
D) make a nation a desirable location for investment.
E) have been a growing trend since the 1980s.
Answer: B
Diff: 2
rates.
14) The average tax rate across Europe is ________ percent.

A) 32
B) 18
C) 24
D) 16
E) 40
Answer: B
Diff: 2
rates.
15) Which of the following nations has the highest corporate tax rate?
A) Ireland
B) United Arab Emirates
C) Great Britain (United Kingdom)
D) France
E) Germany
Answer: B
Diff: 2
rates.
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16) The strategic-management process for multinational firms is ________ for purely domestic
firms, but the process is ________ for the purely domestic firms.
A) conceptually the same as; more complex
B) conceptually the same as; more simple
C) conceptually different than; more simple
D) conceptually different than; more complex
E) conceptually the same; less important
Answer: B
Diff: 2
rates.
17) In Nordic countries Denmark, Sweden, and Finland, about 70 percent of all employees are in
unions.
Answer: TRUE
Diff: 2
rates.
18) The average level of union membership across the whole European Union, weighted by the
numbers employed in the different member states, is close to 25 percent.
Answer: TRUE
Diff: 2
rates.
19) Asian-based multinational firms have historically kept cash earned offshore in U.S.
subsidiaries and banks to take advantage of low U.S. corporate taxes.
Answer: FALSE
Diff: 2
rates.
20) A global strategy means considering individual countries distinctly when designing,
producing, and marketing products.
Answer: FALSE
Diff: 3
rates.
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21) In today's global climate, many companies may find it difficult to survive by relying solely
on domestic markets.
Answer: TRUE
Diff: 2
rates.
22) An increasing number of U.S. companies are reincorporating in foreign countries to reduce
their tax burden and doing this typically involves acquiring a foreign firm.
Answer: TRUE
Diff: 3
rates.
23) Since the 1980s, the average corporate tax rate globally has been steadily falling.
Answer: TRUE
Diff: 2
rates.
24) The United States has the highest corporate tax rate among the G-7 nations.
Answer: FALSE
Diff: 3
rates.
25) Mass communication and high technology have led to highly individualized and distinct
patterns of consumption in diverse cultures worldwide.
Answer: FALSE
Diff: 2
rates.
26) It is an exaggeration to say that in an industry that is global, the riskiest possible posture is to
remain a domestic competitor.
Answer: FALSE
Diff: 2
rates.
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27) Discuss union membership across Europe.
Answer: Union membership in Europe ranges from 74 percent of employees in Finland to 8
percent in France. Percentage of membership is not the only indicator of strength, though. In
France, for example, unions have repeatedly shown that despite low membership, they are able
to mobilize workers in mass strikes and demonstrations to great effect. The average level of
union membership in the European Union, weighted by the numbers employed in the different
member states, is 23 percent compared to about 11 percent in the United States. High rates of
union membership in Nordic countries reflect an approach that sees union membership as a
natural part of employment. Central and Eastern European nations generally have below average
levels of union membership. Union membership levels are clearly trending downward in Europe.
The two exceptions appear to be Ireland and Italy where union membership is slowly growing.
Diff: 2
rates.
28) Discuss some things firms can do to diminish the risk of doing business internationally.
Answer: Before entering international markets, firms should scan relevant journals and patent
reports, seek the advice of academic and research organizations, participate in international trade
fairs, form partnerships, and conduct extensive research to broaden their contacts and diminish
the risk of doing business in new markets. Firms can also offset some risks of doing business
internationally by obtaining insurance from the U.S. government's Overseas Private Investment
Corporation.
Diff: 2
rates.
29) List some of the diverse and unique risks that face multinational corporations (MNCs).
Answer: MNCs face unique and diverse risks, such as expropriation of assets, currency losses
through exchange rate fluctuations, unfavorable foreign court interpretations of contracts and
agreements, social/political disturbances, import/export restrictions, tariffs, and trade barriers.
Strategists in MNCs are often confronted with the need to be globally competitive and nationally
responsive at the same time. With the rise in world commerce, government and regulatory bodies
are more closely monitoring foreign business practices. The U.S. Foreign Corrupt Practices Act,
for example, monitors business practices in many areas.
Diff: 3
rates.
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30) All of the following are potential advantages to initiating, continuing, and/or expanding
international operations EXCEPT
A) firms can gain new customers for their products.
B) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks
over a wider number of markets.
C) foreign operations can allow firms to establish low-cost production facilities in locations close
to raw materials and/or cheap labor.
D) foreign operations could be seized by nationalistic factions.
E) foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.
Answer: D
Diff: 2
LO: 11.2: Explain the advantages and disadvantages of doing business globally.
31) Which of the following is a potential advantage of conducting international operations?

A) Competitors in foreign markets may not exist, or competition may be less intense than in
domestic markets.
B) Dealing with two or more monetary systems can complicate international business operations.
C) Differing language, culture, and value systems can make communication difficult.
D) Gaining an understanding of regional organizations is difficult, but is often required in doing
business internationally.
E) The need to deal with two or more monetary systems.
Answer: A
Diff: 2
32) ________ can enable firms to learn the technology, culture, and business practices of other
people and to make contacts with potential customers, suppliers, creditors, and distributors in
foreign countries.
A) Economies of scale
B) Joint ventures
C) Low-cost production facilities
D) Reduced tariffs
E) Domestic operations
Answer: B
Diff: 2
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33) Which of the following is a valid reason for a firm's power and prestige in domestic markets
to be significantly enhanced if it competes globally?
A) This can translate into improved negotiating power among important groups.
B) This rarely results in a practical advantage.
C) This can hurt its bargaining power with suppliers and distributors.
D) This does nothing to improve its position with creditors.
E) This can alienate the firm from its domestic creditors, suppliers, and distributors.
Answer: A
Diff: 2
34) All of the following are potential disadvantages to initiating, continuing, or expanding
business across national borders EXCEPT
A) firms confront different social, cultural, and political forces when doing business
internationally, which can make communication in the firm difficult.
B) keeping informed about the number and nature of competitors is more difficult when doing
C) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks
over a wider number of markets.
D) dealing with two or more monetary systems can complicate international business operations.
E) foreign operations could be seized by nationalistic forces.
Answer: C
Diff: 2
35) Strengths of competitors in foreign lands are often ________, and weaknesses are often
________.
A) overestimated; overestimated
B) overestimated; underestimated
C) underestimated; underestimated
D) underestimated; overestimated
E) ignored; downplayed
Answer: D
Diff: 2
36) Organizations that conduct business operations across national borders are called
international firms or multinational corporations.
Answer: TRUE
Diff: 1
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37) The strategic-management process is conceptually different for multinational firms than for
purely domestic firms.
Answer: FALSE
Diff: 2
38) The strategic-management process is more complex for international firms due to more
variables and relationships.
Answer: TRUE
Diff: 2
39) The social, cultural, demographic, environmental, political, governmental, legal,

technological, and competitive opportunities and threats that face a multinational corporation are
almost limitless.
Answer: TRUE
Diff: 2
40) While multinational corporations face almost limitless social, cultural, demographic,
environmental, political, governmental, legal, technological, and competitive opportunities and
threats, the number and complexity of these factors do not dramatically increase with the number
of products produced and the number of geographic areas served.
Answer: FALSE
Diff: 3
41) More time and effort are required to identify and evaluate external trends and events in
domestic corporations than in multinational corporations.
Answer: FALSE
Diff: 2
42) Geographic distance and cultural differences are two of the factors that can make
communication between domestic headquarters and overseas operations difficult.
Answer: TRUE
Diff: 2
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43) Trade barriers are one of the unique and diverse risks that face multinational corporations.
Answer: TRUE
Diff: 2
44) With the rise in world commerce, government regulatory bodies are no longer able to closely
monitor foreign business practices.
Answer: FALSE
Diff: 2
45) Before entering international markets, firms should do research to try and diminish the risk
of doing business in new markets.
Answer: TRUE
Diff: 1
46) It is possible to obtain insurance from the U.S. government's OPIC to eliminate all risks
associated with doing business internationally.
Answer: FALSE
Diff: 2
47) Strategists in multinational corporations are often confronted with the need to be globally
competitive and nationally responsive at the same time.
Answer: TRUE
Diff: 2
48) As long as the price and quality of a firm's products and services are competitive on a local
basis, it has nothing to worry about.
Answer: FALSE
Diff: 2
49) One of the dangers of remaining a local competitor is that more aggressive companies will
use their global growth to capture economies of scale and learning.
Answer: TRUE
Diff: 3
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50) Perhaps the greatest advantage of international operations to a firm is the ability to gain new
customers for its products and services, thus increasing revenues.
Answer: TRUE
Diff: 2
51) Although growth in revenues and profits is a common expectation of shareholders, it is not a
measure of organizational success.
Answer: FALSE
Diff: 1
52) Potential advantages to initiating, continuing, or expanding international operations is that

foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over
a wider number of markets.
Answer: TRUE
Diff: 2
53) A motivation for initiating international operations is that competitors in foreign markets may
not exist, or competition may be less intense than in domestic markets.
Answer: TRUE
Diff: 2
54) The availability, depth, and reliability of economic and marketing information in different
countries vary extensively.
Answer: TRUE
Diff: 2
55) Language, culture, and value systems differ among countries, which can create barriers to
communication and problems managing people.
Answer: TRUE
Diff: 1
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56) Keeping informed about the number and the nature of competitors is easier when doing
Answer: FALSE
Diff: 2
57) Weaknesses of competitors in foreign lands are often underestimated, and strengths are often
overestimated.
Answer: FALSE
Diff: 2
58) U.S. firms doing business internationally face the complications of having to deal with two
or more monetary systems.
Answer: TRUE
Diff: 2
59) Although a firm's power and prestige in domestic markets may be significantly enhanced
when the firm competes globally, this rarely translates into improved negotiating power among
creditors, suppliers, or distributors.
Answer: FALSE
Diff: 2
60) List at least five potential advantages to initiating, continuing, and/or expanding international
operations.
Answer: Student answers will vary, but may include five of the following. 1) Firms can gain
new customers for their products. 2) Foreign operations can absorb excess capacity, reduce unit
costs, and spread economic risks over a wider number of markets. 3) Foreign operations can
allow firms to establish low-cost production facilities in locations close to raw materials and/or
cheap labor. 4) Competitors in foreign markets may not exist, or competition may be less intense
than in domestic markets. 5) Foreign operations may result in reduced tariffs, lower taxes, and
favorable political treatment. 6) Joint ventures can enable firms to learn the technology, culture,
and business practices of other people and to make contacts with potential customers, suppliers,
creditors, and distributors in foreign countries. 7) Economies of scale can be achieved from
operating in global, rather than solely domestic, markets. Larger-scale production and better
efficiencies allow higher sales volumes and lower-price offerings. 8) A firm's power and prestige
in domestic markets may be significantly enhanced if the firm competes globally, which can
translate into improved negotiating power with creditors, distributors, suppliers, etc.
Diff: 3
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61) Discuss at least four potential disadvantages to initiating, continuing, and/or expanding
international operations.
Answer: Student answers will vary, but may include four of the following. 1) Foreign operations
could be seized by nationalistic factions. 2) Firms confront different and often little-understood
social, cultural, demographic, environmental, political, governmental, legal, technological,
economic, and competitive forces when doing business internationally. This can make
communication in the firm difficult. 3) Weaknesses of competitors in foreign lands are often
overestimated, and strengths are often underestimated. Keeping informed about the number and
nature of competitors is more difficult when doing business internationally. 4) Language, culture,
and value systems differ among countries, which can create barriers to communication and
problems managing people. 5) Gaining an understanding of regional organizations such as the
European Economic Community, the Latin American Free Trade Area, the International Bank for
Reconstruction and Development, and the International Finance Corporation is difficult, but is
often required in doing business internationally. 6) Dealing with two or more monetary systems
can complicate international business operations.
Diff: 3
62) Which of the following statements is NOT true?

A) America's economy is becoming much less American.
B) A world economy and monetary system are emerging.
C) Corporations in every corner of the globe are taking advantage of the opportunity to obtain
customers globally.
D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices.
E) Innovative transport systems are accelerating the transfer of technology.
Answer: D
Diff: 2
LO: 11.3: Discuss the global challenge facing firms, including outsourcing, reshoring.
63) Most economists argue that protectionism ________ the world economy because it
________ trade among countries.
A) helps; inhibits
B) helps; encourages
C) harms; inhibits
D) harms; encourages
E) doesn't impact; doesn't affect
Answer: C
Diff: 2
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64) What percent of the world's population lives outside the United States?
A) 55
B) 65
C) 75
D) 85
E) 95
Answer: E
Diff: 1
65) In which of the following industries is the United States NOT yet greatly challenged by
foreign competitors?
A) Auto industry
B) Electronics
C) Manufacturing
D) Retailing
E) Pharmaceuticals
Answer: D
Diff: 2
66) ________ involves companies hiring other companies to take over various parts of their
functional operations, such as human resources, information systems, payroll, accounting,
customer service, and even marketing.
A) Reshoring
B) Vertical integration
C) Onshoring
D) Outsourcing
E) Strategic alliances
Answer: D
Diff: 2
67) Foreign revenue as a percentage of total company revenues ________ in hundreds of U.S.
firms, including ExxonMobil, Gillette, Dow Chemical, and Citicorp.
A) is almost 10 percent
B) approaches 20 percent
C) is 25 percent
D) exceed 50 percent
E) is at least 70 percent
Answer: D
Diff: 2
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68) The domestic food industry ________, so Kraft Foods is focusing on foreign acquisitions.
A) is falling 5 percent per year
B) is falling 1 percent per year
C) is stagnant
D) is growing 3 percent per year
E) is growing 7 percent per year
Answer: D
Diff: 2
69) ________ refers to U.S. companies moving a portion of their manufacturing back to the
United States.
A) Outsourcing
B) Offshoring
C) Vertical integration
D) Reshoring
E) Strategic alliance
Answer: D
Diff: 2
70) Approximately what percent of the world's population lives in the United States?
A) 5
B) 10
C) 15
D) 85
E) 95
Answer: A
Diff: 1
71) Which of the following U.S. industries is NOT yet greatly challenged by foreign
competitors?
A) Aircraft manufacturing
B) Auto manufacturing
C) Heavy equipment manufacturing
D) Tire manufacturing
E) Furniture manufacturing
Answer: E
Diff: 2
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72) Which U.S. industry is already greatly challenged by foreign competitors?
A) Printing
B) Retailing
C) Retail banking
D) Consumer packaged goods
E) Automobile
Answer: E
Diff: 2
73) The lowest cost source for precision machinery is

A) Japan.
B) Sri Lanka.
C) Malaysia.
D) Europe.
E) Mexico.
Answer: D
Diff: 2
74) Protectionism involves all of the following EXCEPT

A) tariffs against firms outside the country.
B) imposing taxes on firms outside the country.
C) imposing regulations on firms outside the country.
D) liberalizing restrictions on the import of foreign goods.
E) Protectionism involves all of the above.
Answer: D
Diff: 2
75) For many years, the Omega Company manufactured all of its products in Brazil. In early
2018, the company made the decision to bring back its manufacturing by establishing several
large plants in the state of Florida. What the Omega Corporation did is called
A) reshoring.
B) strategizing.
C) consolidation.
D) outsourcing.
E) offshoring.
Answer: A
Diff: 2
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76) Foreign banks currently operate and compete in most parts of the United States.
Answer: FALSE
Diff: 2
77) American firms that seem insulated from foreign competition today may be vulnerable
tomorrow.
Answer: TRUE
Diff: 2
78) Brazil offers skilled labor and technology, while Germany offers abundant natural resources
and rapidly developing markets.
Answer: FALSE
Diff: 2
79) Most economists argue that protectionism harms the world economy because it inhibits trade
among countries and invites retaliation.
Answer: TRUE
Diff: 2
80) Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the
country to favor their own companies and people.
Answer: TRUE
Diff: 2
81) The drive to improve the efficiency of global business operations is leading to lesser
functional specialization.
Answer: FALSE
Diff: 3
82) Labor markets have become steadily more international with more and more countries
around the world welcoming foreign investment and capital.
Answer: TRUE
Diff: 2
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83) A primary reason why most domestic firms are engaging in global operations is that growth
in demand for goods and services outside the United States is considerably higher than inside.
Answer: TRUE
Diff: 2
84) Foreign revenue as a percentage of total company revenues is approaching 20 percent for
Colgate-Palmolive.
Answer: FALSE
Diff: 2
85) Reshoring involves companies hiring other companies to take over various parts of their
functional operations.
Answer: FALSE
Diff: 2
86) Nearly 70 percent of the world's population lives outside of the United States.
Answer: FALSE
Diff: 1
87) The U.S. furniture manufacturing industry is not yet greatly challenged by foreign
competitors.
Answer: TRUE
Diff: 2
88) While there are a few U.S. industries that are not yet greatly challenged by foreign
competitors, many products and components within these industries are now manufactured in
foreign countries.
Answer: TRUE
Diff: 2
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50) Perhaps the greatest advantage of international operations to a firm is the ability to gain new
customers for its products and services, thus increasing revenues.
Answer: TRUE
Diff: 2
51) Although growth in revenues and profits is a common expectation of shareholders, it is not a
measure of organizational success.
Answer: FALSE
Diff: 1
52) Potential advantages to initiating, continuing, or expanding international operations is that

foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over
a wider number of markets.
Answer: TRUE
Diff: 2
11 0
53) A motivation for initiating international operations is that competitors in foreign markets may
not exist, or competition may be less intense than in domestic markets.
Answer: TRUE
Diff: 2
54) The availability, depth, and reliability of economic and marketing information in different
countries vary extensively.
Answer: TRUE
Diff: 2
55) Language, culture, and value systems differ among countries, which can create barriers to
communication and problems managing people.
Answer: TRUE
Diff: 1
13
11 0
56) Keeping informed about the number and the nature of competitors is easier when doing
Answer: FALSE
Diff: 2
57) Weaknesses of competitors in foreign lands are often underestimated, and strengths are often
overestimated.
Answer: FALSE
Diff: 2
58) U.S. firms doing business internationally face the complications of having to deal with two
or more monetary systems.
Answer: TRUE
Diff: 2
59) Although a firm's power and prestige in domestic markets may be significantly enhanced
when the firm competes globally, this rarely translates into improved negotiating power among
creditors, suppliers, or distributors.
Answer: FALSE
Diff: 2
60) List at least five potential advantages to initiating, continuing, and/or expanding international
operations.
Answer: Student answers will vary, but may include five of the following. 1) Firms can gain
new customers for their products. 2) Foreign operations can absorb excess capacity, reduce unit
costs, and spread economic risks over a wider number of markets. 3) Foreign operations can
allow firms to establish low-cost production facilities in locations close to raw materials and/or
cheap labor. 4) Competitors in foreign markets may not exist, or competition may be less intense
than in domestic markets. 5) Foreign operations may result in reduced tariffs, lower taxes, and
favorable political treatment. 6) Joint ventures can enable firms to learn the technology, culture,
and business practices of other people and
11
to make
0
contacts with potential customers, suppliers,
creditors, and distributors in foreign countries. 7) Economies of scale can be achieved from
operating in global, rather than solely domestic, markets. Larger-scale production and better
efficiencies allow higher sales volumes and lower-price offerings. 8) A firm s power and prestige
in domestic markets may be significantly enhanced if the firm competes globally, which can
translate into improved negotiating power with creditors, distributors, suppliers, etc.
Diff: 3
14
11 0
61) Discuss at least four potential disadvantages to initiating, continuing, and/or expanding
international operations.
Answer: Student answers will vary, but may include four of the following. 1) Foreign operations
could be seized by nationalistic factions. 2) Firms confront different and often little-understood
social, cultural, demographic, environmental, political, governmental, legal, technological,
economic, and competitive forces when doing business internationally. This can make
communication in the firm difficult. 3) Weaknesses of competitors in foreign lands are often
overestimated, and strengths are often underestimated. Keeping informed about the number and
nature of competitors is more difficult when doing business internationally. 4) Language, culture,
and value systems differ among countries, which can create barriers to communication and
problems managing people. 5) Gaining an understanding of regional organizations such as the
European Economic Community, the Latin American Free Trade Area, the International Bank for
Reconstruction and Development, and the International Finance Corporation is difficult, but is
often required in doing business internationally. 6) Dealing with two or more monetary systems
can complicate international business operations.
Diff: 3
62) Which of the following statements is NOT true?

A) America's economy is becoming much less American.
B) A world economy and monetary system are emerging.
C) Corporations in every corner of the globe are taking advantage of the opportunity to obtain
customers globally.
D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices.
E) Innovative transport systems are accelerating the transfer of technology.
Answer: D
Diff: 2
63) Most economists argue that protectionism ________ the world economy because it
________ trade among countries.
A) helps; inhibits
B) helps; encourages
C) harms; inhibits
D) harms; encourages
E) doesn't impact; doesn't affect
Answer: C
Diff: 2
15
11 0
64) What percent of the world's population lives outside the United States?
A) 55
B) 65
C) 75
D) 85
E) 95
Answer: E
Diff: 1
65) In which of the following industries is the United States NOT yet greatly challenged by
foreign competitors?
A) Auto industry
B) Electronics
C) Manufacturing 11 0
D) Retailing
E) Pharmaceuticals
Answer: D
Diff: 2
66) ________ involves companies hiring other companies to take over various parts of their
functional operations, such as human resources, information systems, payroll, accounting,
customer service, and even marketing.
A) Reshoring
B) Vertical integration
C) Onshoring
D) Outsourcing
E) Strategic alliances
Answer: D
Diff: 2
67) Foreign revenue as a percentage of total company revenues ________ in hundreds of U.S.
firms, including ExxonMobil, Gillette, Dow Chemical, and Citicorp.
A) is almost 10 percent
B) approaches 20 percent
C) is 25 percent
D) exceed 50 percent
E) is at least 70 percent
Answer: D
Diff: 2
16
11 0
68) The domestic food industry ________, so Kraft Foods is focusing on foreign acquisitions.
A) is falling 5 percent per year
B) is falling 1 percent per year
C) is stagnant
D) is growing 3 percent per year
E) is growing 7 percent per year
Answer: D
Diff: 2
69) ________ refers to U.S. companies moving a portion of their manufacturing back to the
United States.
A) Outsourcing
B) Offshoring
C) Vertical integration
D) Reshoring
E) Strategic alliance
Answer: D
Diff: 2
70) Approximately what percent of the world's population lives in the United States?
A) 5
B) 10
C) 15
D) 85
E) 95
Answer: A
Diff: 1
LO: 11.3: Discuss the global challenge11
facing 0firms, including outsourcing, reshoring.
71) Which of the following U.S. industries is NOT yet greatly challenged by foreign
competitors?
A) Aircraft manufacturing
B) Auto manufacturing
C) Heavy equipment manufacturing
D) Tire manufacturing
E) Furniture manufacturing
Answer: E
Diff: 2
17
11 0
72) Which U.S. industry is already greatly challenged by foreign competitors?
A) Printing
B) Retailing
C) Retail banking
D) Consumer packaged goods
E) Automobile
Answer: E
Diff: 2
73) The lowest cost source for precision machinery is

A) Japan.
B) Sri Lanka.
C) Malaysia.
D) Europe.
E) Mexico.
Answer: D
Diff: 2
74) Protectionism involves all of the following EXCEPT

A) tariffs against firms outside the country.
B) imposing taxes on firms outside the country.
C) imposing regulations on firms outside the country.
D) liberalizing restrictions on the import of foreign goods.
E) Protectionism involves all of the above.
Answer: D
Diff: 2
75) For many years, the Omega Company manufactured all of its products in Brazil. In early
2018, the company made the decision to bring back its manufacturing by establishing several
large plants in the state of Florida. What the Omega Corporation did is called
A) reshoring.
B) strategizing.
C) consolidation.
D) outsourcing.
E) offshoring.
Answer: A
Diff: 2
18
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Chapter 11 Global and International Issues: Strategic Management: A Competitive Advantage Approach, 17e (David/David)

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Chapter 11 Global and International Issues: Strategic Management: A Competitive Advantage Approach, 17e (David/David)

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Strategic Management: A Competitive Advantage Approach, 17e (David/David)

Chapter 11 Global and International Issues

2) Which of the following is a European country in which union membership is growing?

5) Exports constitute ________ percent of Singapore's gross domestic product (GDP).

8) Communication between domestic headquarters and overseas operations is often made

9) The U.S. government's OPIC

14) The average tax rate across Europe is ________ percent.

31) Which of the following is a potential advantage of conducting international operations?

39) The social, cultural, demographic, environmental, political, governmental, legal,

52) Potential advantages to initiating, continuing, or expanding international operations is that

62) Which of the following statements is NOT true?

73) The lowest cost source for precision machinery is

74) Protectionism involves all of the following EXCEPT

52) Potential advantages to initiating, continuing, or expanding international operations is that

62) Which of the following statements is NOT true?

73) The lowest cost source for precision machinery is

74) Protectionism involves all of the following EXCEPT

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