The competitive opportunities and threats that face a multinational corporation are almost limitless

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1. Social Science
2. Business

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Terms in this set (20)

1) The ________ competitive opportunities and threats that face a multinational corporation are almost limitless.
A) social
B) cultural
C) environmental
D) political
E) all of the above

E

2) 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

B

3) Communication between domestic headquarters and overseas operations is often made difficult by A) geographic distance. B) cultural differences. C) variations in business practices. D) national differences. E) all of the above

E

4) 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

A

5) A global strategy means considering individual countries distinctly when designing, producing, and marketing products.

B

6) 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

B

7) 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) All of the above

A

8) ________ 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

B

9) A firm's power and prestige in domestic markets may be significantly enhanced if it competes globally
A) which can translate into improved negotiating power among important groups.
B) though this rarely results in a practical advantage.
C) but this can hurt its bargaining power with suppliers and distributors. D) yet this does nothing to improve its position with creditors.
E) which can alienate the firm from its domestic creditors, suppliers, and distributors.

A

10) 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) none of the above

D

11) Mass communication and high technology have led to highly individualized and distinct patterns of consumption in diverse cultures worldwide.

B

12) 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.

A

13) The social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats that face a multinational corporation are almost limitless.

A

14) 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.

B

15) 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

C

16) The drive to improve the efficiency of global business operations is leading to lesser functional specialization.

B

17) The need to amortize massive R&D investments over many markets is a major reason why the aircraft manufacturing industry became global.

A

18) 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.

B

19) An increasing number of U.S. companies are reincorporating in foreign countries to reduce their tax burden, doing this typically by acquiring a foreign firm.

A

20) Which of the following is NOT true regarding European workers and workplaces?
A) Most European workers are unionized.
B) Most European workers enjoy more frequent vacations and holidays than U.S. workers.
C) A 90-minute lunch break plus 20-minute morning and afternoon breaks are common in European firms. D) Many Europeans respond enthusiastically to pay-for-performance, commission salaries, and objective measurement reward systems.
E) Many Europeans find the notion of team spirit difficult to grasp

D

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QUESTION

Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 55; and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. If Lancaster decides to forgo discounts, how much additional credit could it obtain, and what would be the nominal and effective cost of that credit? If the company could get the funds from a bank at a rate of 9%, interest paid monthly, based on a 365-day year, what would be the effective cost of the bank loan? Should Lancaster use bank debt or additional trade credit? Explain.

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QUESTION

The Davidson Corporation’s balance sheet and income statement are provided here. $$ \begin{matrix} \text{Assets} & \text{Liabilities and Equity}\\ \text{Cash and equivalents} & \text{\$ 15} & \text{Accounts payable} & \text{\$ 120}\\ \text{Accounts receivable} & \text{515} & \text{Accruals} & \text{280}\\ \text{Inventories} & \text{880} & \text{Notes payable} & \text{220}\\ \text{Total current assets} & \text{\$ 1.410} & \text{Total current liabilities} & \text{\$ 620}\\ \text{Net plant and equipment} & \text{2.590} & \text{Long-term bonds} & \text{1.520}\\ \text{ } & \text{ } & \text{Total liabilities} & \text{\$ 2.140}\\ \text{ } & \text{ } & \text{Common stock (100 million shares)} & \text{260}\\ \text{ } & \text{ } & \text{Retained earnings} & \text{1.600}\\ \text{ } & \text{ } & \text{Common equity} & \text{\$ 1.860}\\ \text{Total assets} & \text{\$ 4.000} & \text{Total liabilities and equity} & \text{\$ 4.000}\\ \end{matrix} $$ $$ \begin{matrix} \text{Sales} & \text{\$ 6.250}\\ \text{Operating costs excluding depreciation & amortization} & \text{5.230}\\ \text{EBITDA} & \text{\$ 1.020}\\ \text{Depreciation and amortiaztion} & \text{220}\\ \text{EBIT} & \text{\$ 800}\\ \text{Interest} & \text{180}\\ \text{EBT} & \text{\$ 620}\\ \text{Taxes (40\\%)} & \text{248}\\ \text{Net income} & \text{\$ 372}\\ \text{Common dividends paid} & \text{\$ 146}\\ \text{Earning per share} & \text{\$ 3.72}\\ \end{matrix} $$ a. Construct the statement of stockholders’ equity for December 31, 2016. No common stock was issued during 2016. b. How much money has been reinvested in the firm over the years? c. At the present time, how large a check could be written without it bouncing? d. How much money must be paid to current creditors within the next year?

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QUESTION

What are the various forms of business organization? What are the advantages and disadvantages of each?

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QUESTION

When the Bell System was broken up, the old AT&T was split into a new AT&T and seven regional telephone companies. The specific reason for forcing the breakup was to increase the degree of competition in the telephone industry. AT&T had a monopoly on local service, long distance, and the manufacture of all equipment used by telephone companies; and the breakup was expected to open most of those markets to competition. In the court order that set the terms of the breakup, the capital structures of the surviving companies were specified and much attention was given to the increased competition telephone companies could expect in the future. Do you think the optimal capital structure after the breakup was the same as the pre-breakup optimal capital structure? Explain your position.

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