BUSI 303 exam 2 complete solutions correct answers key

Liberty University BUSI 303 exam 2 complete solutions correct answers key

Two versions

Italy, Japan, and Turkey are all members of the OEDC

Competitive pressure, excess capacity, underproduction, and a saturated or declining home market are reactive motivational factors that propel firms to expand into the global economy

The reasoning behind the layout design of a facility is to maximize the work environment for customers, employees, and the overall building

Technological turbulence and market dynamism are the two dimensions of environmental turbulence

Two major contributing circumstances to the demise of the gold standard were the Great Depression and the Vietnam War

The Euro is the world’s leading currency

Firms are not at risk if they decide not to carefully examine, assess and evaluate a country’s organizational, social, cultural, political, judicial, market, economic, technological and industry trends prior to determining whether the entry into an international market is financially viable.

Export intermediaries provide expertise to inexperienced exporters as they enter overseas markets

MERCOSUR was initiated to expand the markets of Argentina, Brazil, Iran, and India

When pursuing a mass customization strategy, demand for different features or options may be based on climate, culture, location, or personal preference

Centralization allows decision making authority to occur where the decisions are to be made

An Economic Union consists of several nations, each maintaining their own currency

A large portion of all FX market transactions are spot transactions

In the U.S., the Federal Reserve Bank is responsible for regulating the growth of the economy

Continuity is an important aspect of the KANBAN cluster, which holds the distance between the supplier and the manufacturing hub as a key focus in the acquisition of raw materials

Trading blocs are the core elements of regional economic integration

The progressive stages of economic integration in order of intensity are: Preferential Trade Areas, Custom Unions, Free Trade Areas, Common Markets, and EUs

The New York Stock Exchange itself does no business and keeps no record of transactions

Only governments can issue bonds

Every country may not necessarily have its own security exchange

Greenfield investments require only process adaptation, not product adaptation

The adoption of the floating exchange rate system resulted from the conclusion of the Bretton Woods Agreement

Capacity planning is used in operations management and is suggested, but not a necessity, to help companies facilitate successful operations

The intended outcome of regional economic integration is to promote economic prosperity and stability among signatory nations

Many industrial firms choose to export for their first international entry mode

National customer preferences is a market expansion risk variable that occurs when the firm may not understand foreign customer preferences and fail to offer “localized” products and services

A license is an agreement that allows one party to use an industrial property right in exchange for payment to the other party. The party giving the license is the licensee, while the party that gets to use the right is the licensor

Tax on imports is one example of a tariff barrier

The initial goal of NAFTA was to increase investment and decrease tariffs between Mexico and the U.S

Some firms would rather remain domestic, but the nature of the market forces them to globalize operations to remain profitable

A facilitator is an individual whose job it is to help manage an information exchange process

Firms must take into account the needs of the foreign market, the current economic trends, the political environment, and other important facts when timing their global expansion strategy

In process planning, make or buy decisions can be taken lightly

Low intensity and high intensity are the two types of entry modes used to access markets

The Theory of Constraints (TOC) suggests that the greater gain will come from increasing total output from an entire process

Total Quality Management (TQM) stresses the importance of teamwork

The main difference between low intensity and high intensity entry modes depends on how much risk and/or control an entering business is willing to accept or forgo

Firms are better off selecting non­equity, low­investment entry modes in countries that have high environmental uncertainty

The necessary developments for expansion into global markets include expanding markets, gaining access to resources, increasing costs, and capitalizing on a special feature of location.

Also known as the Toyota Production System, JIT was initially developed after WWII when the Japanese car industry was lagging far behind its U.S. competitors

In the U.S., the President sets exchange rate policies

The European Community established its Exchange Rate Mechanism (ERM) in1979 and formed the initial steps for the creation of a single European currency

When formulating a strategic global market entry plan, business managers should focus on: identifying the most attractive foreign markets to the firm; determining the best time to

enter the global market; and whether to enter a potential market utilizing a large or small scale strategy

In a Free Trade Area, member nations are allowed to determine their own trade policies with non­members

I have read all of the course requirements, and fully know that if I do not understand something about this course I should seek clarification from my professor

One of the advantages of management contracts is that the management contractor does utilizes many of its assets to meet the contract demands

An achievement of the Smoot­Hawley Tariff Act was the Economic and Monetary Union (EMU)

Operations managers are concerned with every aspect of the production process, including key areas such as research and development, acquisition and distribution, inventory management, technology, transportation, manufacturing, and customer service

Transferring current managers to run new foreign operations might not be the best strategy to pursue when expanding operations into global markets

Acquisitions and mergers are market strategies used is when a corporate entity needs complete control over every detail of the structure within the host country

Customer knowledge competence is characterized as the knack to acquire, interpret, and integrate information regarding the global competitive environment

The greater division of labor is a benefit of trading blocs

The futures market allows smaller traders to participate in a trade

Potential tax savings and managerial focus being drawn away from productivity to merger management are two advantages of mergers and acquisitions

The SBA will provide prospective businessmen with “face to face” services at one of their approximately 73 regional offices located within the United States

OPEC was founded in 1960 in Baghdad

The intent of forming a trading bloc can range from the potential of trade creation to the desire for economic protectionism

The four categories of motivational reasons why companies expand globally are: primary, alternate, proactive and reactive

Production related reasons seem to be relatively small motivational factors for domestic firms expand globally

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