Q&A Hero

Q: (p. 409) The uniform currency used by the European Union (EU) is called the: A. euro. B. dollar. C. yen. D. pound.

Q: (p. 409) This is a treaty in which two or more nations agree to reduce or eliminate barriers, opening their borders to freer mutual trade. A. Protectionism B. Free trade agreement C. Customs union D. Global trade compliance

Q: A broad-based formula for how a business is going to accomplish its mission, what its goals should be, and what plans and policies will be needed to carry out those goals best defines A) strategy. B) business case. C) business focus. D) business objective.

Q: For ________ companies, it may be even more important to change strategies quickly. A) traditional B) pure play C) service D) retail

Q: (p. 408) In the Uruguay Round, developed countries concluded an Agreement on Trade-Related Aspects of Intellectual Property Rights that required participants to: A. protect private property owners' rights in all countries. B. protect property rights in products such as software, digital entertainment, and pharmaceuticals. C. liberalize restrictions on direct investment in a wide range of areas. D. limit the exportation of products by a business.

Q: Social networking sites are a particular good fit for smaller businesses because SMEs often do not have a peer group nearby with which to discuss relevant topics.

Q: (p. 407) The World Trade Organization (WTO): A. allows the defendant in a dispute to veto a decision if it disagreed. B. is not a full-fledged international organization. C. has been unsuccessful in adding to the GATT legacy of trade liberalization. D. succeeded in launching a new round at meetings in Seattle in 1999.

Q: By using a currency exchange service, it is feasible to offer prices and payments in all currencies.

Q: (p. 405) Which of the following refers to a set of free market policies imposed on developing nations by the IMF and the World Bank as loan conditions? A. Structural adjustment program B. Autarky C. The Bretton Woods system D. Washington Consensus

Q: The geographical issues of shipping goods and services across international borders are not well known.

Q: (p. 405) A set of economic policies prescribed to correct flaws in a national economy is known as: A. the Washington Consensus. B. a structural adjustment program. C. autarky. D. liberalization.

Q: One of the most contentious areas of global EC is the resolution of international legal issues.

Q: (p. 405) What is the primary mission of the International Monetary Fund? A. To promote international economic stability. B. To promote long-term development in the poorest countries. C. To promote international fair trade. D. To overcome shortages of private capital.

Q: A major advantage of EC is the ability to do business at any time, from anywhere, and at a reasonable cost.

Q: (p. 404) What is the national treatment principle? A. Increasing national power by managing the economy to create a trade surplus. B. A principle of national self-sufficiency and economic independence. C. Equal treatment for imported and local goods in a domestic market. D. A principle enacted in some trade agreements requiring that if one participant extends any benefit to another, that participant must extend the same benefit to all.

Q: A metric is a specific, measurable standard against which actual performance is compared.

Q: (p. 404) What is the purpose of the General Agreement on Tariffs and Trade (GATT)? A. To devalue currencies and limit cross-border movement of funds. B. To overcome shortages of private capital to make loans for rebuilding war-torn nations. C. To raise the cost of imports, making them less competitive with similar domestic goods. D. To expand trade by eliminating discriminatory barriers.

Q: The use of key performance indicators makes assessing EC easy.

Q: (p. 403) A policy of national self-sufficiency and economic independence is called: A. an embargo. B. autarky. C. free trade. D. a tariff.

Q: Identifying failing projects as soon as possible and determining why they failed to avoid the same problems on subsequent projects is an important strategic implementation objective.

Q: (p. 403) A tax or duty charged by a government on goods moved across a border is known as a: A. tariff. B. subsidy. C. quota. D. trade barrier.

Q: Business process management is a method for business restructuring that combines workflow systems and redesigned methods. It covers three process categories including people-to-people, systems-to-systems, and systems-to people interactions.

Q: (p. 403) Which of the following laws raised 890 tariff lines covering tens of thousands of items and increasing the average American duty on imported goods? A. The Fordney-McCumber Tariff Act B. The Buy American Act C. The Trade and Tariff Act D. The Smoot-Hawley Tariff Act

Q: An internal issue many firms face at the strategic alignment stage is the need to change business processes to accommodate the changes an EC strategy brings.

Q: (p. 402) Which of the following refers to a policy of increasing national power by managing the economy to create a trade surplus? A. Capitalism B. Laissez-faire C. Mercantilism D. Free trade

Q: Outsourcing can create strategic advantages for firms in that it provides access to highly skilled, low-cost labor and provides potential market opportunities.

Q: (p. 402) What is the mainspring of globalization? A. Educational changes B. Trade C. Culture D. Changes in communications

Q: E-collaboration is the use of an external vendor to provide all or part of the products and services that could be provided internally.

Q: (p. 400) Which of the following is a measure of social globalization? A. Telephone traffic B. The number of embassies in a country C. Tariff rates D. Import barriers

Q: Having a strong project champion on an e-commerce project is seldom important to the success of the project because of interpersonal conflicts caused by a powerful champion.

Q: (p. 400) Social globalization is based on: A. specialization and international exchange. B. trade and investment flows and restrictions. C. measures of political cooperation between countries. D. the flow of ideas, images, and information.

Q: In a click-and-mortar business, the allocation of resources between offline and online activities can create difficulties, especially in sell-side projects because the two activities could be competitors.

Q: (p. 400) One of the measures of political globalization is: A. inflows of foreign direct investment as a percent of GDP. B. newspaper and book sales. C. participation in international organizations. D. trade as a percent of GDP.

Q: Risk management plans are a specific outcome associated with the strategy implementation process.

Q: (p. 400) This is based on trade and investment flows and restrictions; measures include trade as a percent of GDP, inflows of foreign direct investment as a percent of GDP, tariff rates, and import barriers. A. Social globalization B. Economic globalization C. Democratic globalization D. Alternative globalization

Q: (p. 399) The World Bank is an example of which force in globalization? A. Multilateral organizations B. Technology C. Ideas D. Labor

Q: Marketers are increasingly using social networking tools in a wide range of activities, including advertising, public relations, customer service, and product development.

Q: Disintermediation is the process by which the consumer bypasses the services of an intermediary or intermediaries in the chain of distribution to purchase products directly from those who supply or produce them.

Q: (p. 399) Transportation is an example of which force in globalization? A. Capital B. Ideas C. NGOs D. Technology

Q: The disadvantages a brick-and-mortar company faces by creating an independent online division are that it may be very costly, risky, or both.

Q: (p. 399) FDI is an example of which force in globalization? A. Ideas B. Capital C. Labor D. Technology

Q: In e-commerce, evidence shows that there is always a real advantage to being the first mover in an industry or market segment.

Q: (p. 399) Human rights are an example of which force in globalization? A. Capital B. Technology C. Ideas D. NGOs

Q: A business plan is a tool that is an alternative to narrowly focused financial assessments that measures organizational performance in four areas: finance, customers' assessments, internal business processes, and learning and growth.

Q: (p. 399) Under which of the following forces of globalization does environmentalism come? A. MNCs B. Governments C. Capital D. Ideas

Q: Strategy maps represent a hypothetical model of a business or one of the focus areas of the business.

Q: (p. 399) Creation of externalities such as pollution and resource depletion come under which force of globalization? A. MNCs B. Governments C. Capital D. NGOs

Q: A competitor analysis grid is a methodology that surveys external opportunities and threats and relates them to internal strengths and weaknesses.

Q: (p. 399) All of the following are governmental forces of globalization EXCEPT: A. erosion of sovereignty by capital markets. B. pressure to lower trade barriers. C. pressure to reduce social welfare for citizens. D. creation of externalities such as resource depletion.

Q: The basic method in scenario planning is that a group of analysts generates simulation games for policy makers. The games combine projected factors about the future, such as demographics, geography, and industrial information with plausible alternative social, technical, economic, and political trends.

Q: (p. 399) Identify the force of globalization that comes under "ideas." A. Wealth creation B. Financial crises C. Corporate citizenship D. Health care

Q: Strategy assessment is the continuous evaluation of progress toward the organization's strategic goals, resulting in corrective action and, if necessary, strategy reformulation.

Q: (p. 397) _____ occurs when networks of economic, political, social, military, scientific, and environmental interdependence grow to span worldwide distances. A. Globalization B. Sovereignty C. Socialism D. Protectionism

Q: Resource allocation refers to the process of making the selected applications and projects a reality, such as hiring staff; purchasing equipment; licensing, purchasing, or writing software; and contracting vendors.

Q: (p. 425) One basic action that multinational corporations should take to fight corruption is to use face-to-face payments in place of electronic transfers.

Q: In the strategy implementation phase, general long-term plans are developed for carrying out the projects that had been agreed on in the strategy formulation phase.

Q: (p. 423) Bribes paid by managers of one corporation to managers of another are legal under the Foreign Corrupt Practices Act (FCPA).

Q: The two major and successful Internet-based businesses, Google and eBay, have similar core competencies.

Q: (p. 422) Studies show that as anti-bribery laws in developed nations are enforced, corrupt countries receive less FDI from MNCs headquartered in less corrupt countries.

Q: A value proposition is actually a financial statement that summarizes the annual revenue and profit targets.

Q: (p. 420) For corruption to exist there must be both demand and supply.

Q: In the strategy initiation phase, the organization examines itself, its environment, and the potential contribution that the Internet and other emerging technologies can make to the business.

Q: (p. 418) Facilitation payments violate anti-bribery laws in almost every nation but are still widely tolerated.

Q: Regardless of organizational size, the strategic planning process forces executives, general managers, or business owners to assess the current position of the firm, where it should be, and how to get from here to there.

Q: (p. 417) Even as nations' nontariff barriers have generally fallen, tariffs have multiplied.

Q: In Porter's view, the majority of the Internet's impacts on the five competitive forces have been positive.

Q: (p. 416) The "Buy American" laws seek to influence governments and agencies to purchase U.S.-made goods and services rather than foreign-made goods and services.

Q: (p. 415) One main argument against protectionism is that a major cause of the rise in world trade is the widespread reduction in defensive barriers.

Q: Any contemporary strategy-setting process must include the Internet.

Q: (p. 413) Protectionism is principally an economic issue.

Q: An organizational strategy is a detailed plan for how a business is going to accomplish its mission, what its goals should be, and what plans and policies it will need to accomplish these goals.

Q: (p. 412) "Competitive advantage of nations" is a phrase coined by Joseph Stiglitz, identifying a nation as having a cluster of similar producers which gives the nation a special advantage over other countries.

Q: Strategies are based on performance indexes that are used as targets and measures of success.

Q: (p. 411) Globalization has been the official policy of the United States throughout most of its history.

Q: Travelocity's initial strategy was to concentrate on airline ticketing, hotel booking, and selling advertisements on its Web site. This business model worked very well until the airlines eliminated travel agents' commissions and competitors entered the market successfully.

Q: Identify three advantages and three disadvantages of EC for small and medium-sized businesses.

Q: (p. 410) The Association of Southeast Asian Nations was formed in 1967 by the Philippines, Indonesia, Malaysia, Singapore, Thailand, and China.

Q: Briefly discuss three suggestions on how to break down the barriers to global EC.

Q: (p. 408) The current WTO-led multilateral trading system has yet to produce a major advance in trade liberalization.

Q: Identify five security issues to consider when setting an EC strategy.