International Business: Competing In The Global Marketplace 10th Edition

an ethnocentric approach is compatible with both global standardization and transnational strategies. Answer: false broadly speaking, an ethnocentric approach is compatible with an international strategy, a polycentric approach is compatible with a localization strategy, and a geocentricapproach is compatible with both global standardization and transnational strategies. Answer: false broadly speaking, an ethnocentric

a key benefit resulting from the adoption of the euro is the ability to compare prices across member markets. Answer: true the adoption of a common currency makes it easier to compare prices across europe. this has been increasing competition because it has become easier for consumers to shop around. Answer: true

concentration of production is not favored when important exchange rates are expected to remain relatively stable. Answer: false concentration of production is favored when important exchange rates are expected toremain relatively stable. Answer: false concentration of production is favored when important exchange rates are expected toremain relatively stable. Answer: false concentration of production

when a company emphasizes personal selling, the company is probably using a push strategy. Answer: true a push strategy emphasizes personal selling rather than mass media advertising in the promotional mix. Answer: true a push strategy emphasizes personal selling rather than mass media advertising in the promotional mix. Answer: true a push strategy

a multinational firm may need to delegate marketing functions to national subsidiaries to be responsive to local differences in distribution channels. Answer: true a firms marketing strategies may have to be responsive to differences in distribution channels among countries, which may necessitate the delegation of marketing functions to national subsidiaries. Answer: true

core competencies enable a firm to reduce the costs of value creation and/or to create perceived value in such a way that premium pricing is possible. Answer: true core competencies are the bedrock of a firms competitive advantage. they enable a firm to reduce the costs of value creation and/or to

a theocratic law system is one in which the law is based on religious teachings. Answer: true a theocratic law system is one in which the law is based on religious teachings. Answer: true a theocratic law system is one in which the law is based on religious teachings. Answer: true a theocratic

Advocates of a floating exchange rate regime argue that removal of the obligation to maintain exchange rate parity would restore monetary control to a government. Answer: TRUE Advocates of a floating exchange rate regime argue that removal of the obligation to maintain exchange rate parity would restore monetary control to a

support activities are always less important than the primary activities in achieving a competitive advantage. Answer: false the support activities of the value chain provide inputs that allow the primary activities to occur. in terms of attaining a competitive advantage, support activities can be as important as, if not more important

exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. Answer: true exporting has two distinct advantages. first, it avoids the often substantial costs of establishing manufacturing operations in the host country.

the process of identifying distinct groups of consumers whose purchasing behavior differs from others in important ways is known as consumer behavior analysis. Answer: false market segmentation refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways. Answer: false market segmentation refers to identifying distinct groups

a benefit to companies of economic integration is the opportunity to centralize their production and reduce costs. Answer: true rather than producing a product in each of the 27 eu countries or the 3 nafta countries, a firm may be able to serve the whole eu or north american market from

firms pursuing a multipoint pricing strategy on an international scale will price low worldwide in an attempt to build global sales volume as rapidly as possible. Answer: false many firms pursuing an experience pricing curve strategy on an international scale will price low worldwide in attempting to build global sales volume

new processes that might lead to a competitive advantage can be developed anywhere within the organizations global network of operations. Answer: true it is particularly important for a multinational enterprise to recognize that valuable new processes that might lead to a competitive advantage can be developed anywhere within the organizations global

The budget is the main instrument of financial control in an organization. Answer: TRUE The budget is the main instrument of financial control. The budget is typically prepared by the subunit, but it must be approved by headquarters management. Answer: TRUE The budget is the main instrument of financial control. The budget

the product life-cycle theory argues that a large proportion of the worlds new products had been developed by u.s. firms. Answer: true the product life-cycle theory argues that a large proportion of the worlds new productshad been developed by u.s. firms. Answer: true the product life-cycle theory argues that a large proportion

a country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it. Answer: true a country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it. Answer: true

unlike other trade policies, local content regulations tend to benefit consumers and not producers. Answer: false local content regulations provide protection for a domestic producer of parts in the same way an import quota does: by limiting foreign competition. as with all trade policies, local content regulations tend to benefit producers

the ethical obligations of a multinational corporation toward employment conditions, human rights, environmental pollution, and the use of power are always clear-cut. Answer: false the ethical obligations of a multinational corporation toward employment conditions, human rights, corruption, environmental pollution, and the use of power are not always clear-cut. Answer: false the ethical

A tax credit allows an entity to reduce the taxes paid to the home government by the amount of taxes paid to the foreign government. Answer: TRUE A tax credit allows an entity to reduce the taxes paid to the home government by theamount of taxes paid to the foreign government. Answer:

one of the successful outcomes of the doha round negotiations has been that many nations have proceeded with bilateral free trade agreements. Answer: false as of early 2013, the goal was to reduce tariffs for manufactured and agricultural goods by 60 to 70 percent and to cut subsidies to half of

the structure of market segments may differ significantly from country to country. Answer: true an important market segment in a foreign country may have no parallel in the firms home country, and vice versa. Answer: true an important market segment in a foreign country may have no parallel in the firms home

ricardos theory makes fewer simplifying assumptions compared to heckscher-ohlin theory. Answer: false most economists prefer the heckscher-ohlin theory to ricardos theory because it makes fewer simplifying assumptions. Answer: false most economists prefer the heckscher-ohlin theory to ricardos theory because it makes fewer simplifying assumptions. Answer: false most economists prefer the heckscher-ohlin theory to

buying a product from external vendors is highly appropriate when a firm intends to protect proprietary technology. Answer: false making a product in-house is more appropriate when a firm intends to protect proprietary technology. Answer: false making a product in-house is more appropriate when a firm intends to protect proprietary technology. Answer: false

Capital budgeting is the technique financial managers use to try to quantify the benefits, costs, and risks of an investment. Answer: TRUE Capital budgeting is the technique financial managers use to try to quantify the benefits, costs, and risks of an investment. Answer: TRUE Capital budgeting is the technique financial managers use to

in a classic matrix structure, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss). Answer: true in the classic global matrix structure, horizontal differentiation proceeds along two dimensions: product division and geographic area. it is believed that

in the modern era, the concept of countertrade arose as a way for the united states to purchase imports. Answer: false in the modern era, countertrade arose in the 1960s as a way for the soviet union and the communist states of eastern europe, whose currencies were generally nonconvertible, to purchase

although a foreign exchange transaction can involve any two currencies, most transactions involve pounds on one side. Answer: false although a foreign exchange transaction can involve any two currencies, most transactions involve dollars on one side. Answer: false although a foreign exchange transaction can involve any two currencies, most transactions involve dollars

the carrying value of a bond is equal to the market price on the date of sale. Answer: t Answer: t Answer: t The amount of a currency needed to purchase one ounce of gold was referred to as the gold par value under the gold standard. Answer: TRUE Under the gold standard, the amount

In the face of unpredictable movements in exchange rates, businesses should pursue strategies that will reduce their economic exposure. Answer: TRUE It makes sense for businesses to pursue strategies that will increase the companys strategic flexibility in the face of unpredictable exchange rate movementsthat is, to pursuestrategies that reduce the economic

the spread between the eurocurrency deposit rate and the eurocurrency lending rate is more than the spread between the domestic deposit and lending rates. Answer: false banks offer higher interest rates on eurocurrency deposits than on deposits made in the home currency. the lack of regulation also allows banks to charge

in ethnocentric firms, the lack of managers mobility among national operations implies that pay can and should be kept country-specific. Answer: true in ethnocentric firms, the issue can be reduced to that of how much home-country expatriates should be paid. as for polycentric firms, the lack of managers mobility among national

the number of intermediaries between the producer and the consumer is known as the channel length. Answer: true channel length refers to the number of intermediaries between the producer (or manufacturer) and the consumer. Answer: true channel length refers to the number of intermediaries between the producer (or manufacturer) and the consumer. Answer:

an integrated international capital market is less volatile compared to a nonintegrated market. Answer: false the integration facilitated in the global capital markets cause shocks that occur in one financial center now spread around the globe very quickly. this makes the global markets highly volatile. Answer: false the integration facilitated in the

mercantilism supports the idea that countries should export more than what they import. Answer: true the main tenet of mercantilism was that it is in a countrys best interests to maintain a trade surplus, to export more than it imported. Answer: true the main tenet of mercantilism was that it is in

upon meeting a foreign business executive, a japanese executive will hold his business card in both hands and bow while presenting the card to the foreigner. this is an example of ritual behavior. Answer: true rituals and symbols are the most visible manifestations of a culture and constitute the outward expression

social responsibility refers to the idea that businesspeople should favor decisions that have both good economic and social consequences. Answer: true the concept of social responsibility refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions, and that there should be a presumption

According to supporters of free trade, as countries get richer they commit greater violation of environmental and labor regulations. Answer: FALSE Supporters of free trade and greater globalization argue that tougher environmentalregulations and stricter labor standards go hand in hand with economic progress. In general, as countries get richer, they enact

top management should be viewed as part of the firms infrastructure. Answer: true the final support activity is the company infrastructure, or the context within which allthe other value creation activities occur. because top management can exert considerable influence in shaping these aspects of a firm, top management should also be

one of the sources of economies of scale is the ability to spread fixed costs over a large volume. Answer: true economies of scale refer to the reductions in unit cost achieved by producing a large volume of a product. attaining economies of scale lowers a firms unit costs and increases

regional economic integration involves agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other. Answer: true by regional economic integration we mean agreements among countries in a geographic region to reduce,

the entry of large discount superstores such as tesco and carrefour has shortened channel length in some countries. Answer: true the business model of these retailers is in part based upon the idea that in an attempt tolower prices, they cut out wholesalers and instead deal directly with manufacturers. Answer: true the

according to the righteous moralist, if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either. Answer: false a righteous moralist claims that a multinationals home-country standards of ethics arethe appropriate ones for companies to follow

hofstedes concept of power distance focused on the extent to which different cultures socialized their members into tolerating uncertainty. Answer: false hofstedes power distance dimension focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities. Answer: false hofstedes power distance dimension focused on how

ethics officers are hired by many businesses to make sure that all employees are trained to be ethically aware and that ethical considerations enter the business decision-making process at all levels of the organization. Answer: true to make sure that a business behaves in an ethical manner, a number of firms

Chapter 01 - Globalization 1-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved.

Chapter 10 - The Foreign Exchange Market 10-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education.

Chapter 11 - The International Monetary System 11-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education.

Chapter 12 - The Global Capital Market 12-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education.

Chapter 13 - The Strategy of International Business 13-1 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017

Chapter 14 - The Organization of International Business 14-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill

Chapter 15 - Entry Strategy and Strategic Alliances 15-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill

Chapter 15 - Entry Strategy and Strategic Alliances 15-13 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill

Chapter 16 - Exporting, Importing, and Countertrade 16-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education.

Chapter 17 - Global Production and Supply Chain Management 17-1 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017

Chapter 18 - Global Marketing and R&D 18-1 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education.

Chapter 19 - Global Human Resource Management 19-1 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education.

Chapter 02 National Differences in Political Economy 2-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education.

Chapter 20 - Accounting and Finance in the International Business 20-1 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright

Chapter 03 National Differences in Economic Development 3-1 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education.

Chapter 04 - Differences in Culture 4-1 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education. All

Chapter 05 Ethics, Corporate Social Responsibility, and Sustainability 5-13 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill

Chapter 05 Ethics, Corporate Social Responsibility, and Sustainability 5-1 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2017 McGraw-Hill

Chapter 06 - International Trade Theory 6-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All

Chapter 07 - The Political Economy of International Trade 7-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015

Chapter 08 - Foreign Direct Investment 8-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All

Chapter 09 - Regional Economic Integration 9-1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All

Chapter 09 - Regional Economic Integration 9-14 9-14 9-14 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill

overpayment for assets of an acquired firm is one reason acquisitions fail. Answer: true acquisitions fail for several reasons. the acquiring firms often overpay for the assets ofthe acquired firm. Answer: true acquisitions fail for several reasons. the acquiring firms often overpay for the assets ofthe acquired firm. Answer: true acquisitions fail for

bureaucratic control involves personal contact with subordinates. Answer: false bureaucratic control is control through a system of rules and procedures that directs the actions of subunits. the most important bureaucratic controls in subunits within multinational firms are budgets and capital spending rules. Answer: false bureaucratic control is control through a system of

the bank promises to pay on behalf of the importer when a bank is used as third party in international transactions. Answer: true when trading with bank as a third-party, the importer obtains banks promise to pay on importers behalf at first. then, the bank promises exporter to pay on behalf of

by placing tariffs on imported goods, governments can increase the cost of exporting relative to foreign direct investment and licensing. Answer: true by placing tariffs on imported goods, governments can increase the cost of exporting relative to foreign direct investment and licensing. Answer: true by placing tariffs on imported goods, governments can

a worldwide product division structure tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions. Answer: true a worldwide product division structure tends to be adopted by firms that are reasonably diversified and, accordingly, originally had domestic structures based on product divisions.

a well-functioning market economy requires laws protecting private property rights and providing mechanisms for contract enforcement. Answer: true without a legal system that protects property rights, and without the machinery to enforce that system, the incentive to engage in economic activity can be reduced substantially by private and public entities, including

a key assumption in the heckscher-ohlin theory is that technologies are the same across countries. Answer: true a key assumption in the heckscher-ohlin theory is that technologies are the same across countries. Answer: true a key assumption in the heckscher-ohlin theory is that technologies are the same across countries. Answer: true a key

an investor purchases the right to receive a specified fixed stream of income from the corporation when he purchases a share of stock. Answer: false an equity loan is made when a corporation sells stock to investors. the money the corporation receives in return for its stock can be used to

ex-im bank has a direct lending operation under which it lends dollars to foreign borrowers. Answer: true ex-im bank has a direct lending operation under which it lends dollars to foreign borrowers for use in purchasing u.s. exports. Answer: true ex-im bank has a direct lending operation under which it lends dollars

porters theory of national competitive advantage recommends unrestricted free trade between countries. Answer: false porters theory of national competitive advantage can be interpreted as justifying somelimited government intervention to support the development of certain export-oriented industries. Answer: false porters theory of national competitive advantage can be interpreted as justifying somelimited government intervention

unions bargaining power is largely derived from their ability to threaten to disrupt production. Answer: true labor unions generally try to get better pay, greater job security, and better working conditions for their members through collective bargaining with management. unions bargaining power is derived largely from their ability to threaten to

culture is not static. Answer: true culture is not static. it can and does evolve, although the rate at which culture can change is the subject of some dispute. Answer: true culture is not static. it can and does evolve, although the rate at which culture can change is the subject of

the forward exchange market does not provide adequate coverage for long-term borrowings. Answer: true although using forward exchange markets may lower foreign exchange risk with short-term borrowings, it cannot remove the risk. most important, the forward exchange market does not provide adequate coverage for long-term borrowings. Answer: true although using forward exchange

arbitrage opportunities abound in the foreign exchange markets and they tend to be available for long periods of time. Answer: false because foreign exchange dealers are always watching their computer screens for arbitrage opportunities, the few that arise tend to be small, and they disappear in minutes. Answer: false because foreign exchange

according to porter, the way to create superior value is to drive down the cost structure of the business and/or differentiate the product in some way so that consumers value it more. Answer: true michael porter has argued that low cost and differentiation are two basic strategies for creating value and

since its establishment, the euro has had a stable trading history. Answer: false since its establishment january 1, 1999, the euro has had a volatile trading history against the worlds major currency, the u.s. dollar. Answer: false since its establishment january 1, 1999, the euro has had a volatile trading history against

a firms vertical differentiation determines where in its hierarchy the decision-making power is concentrated. Answer: true vertical differentiation refers to the location of decision-making responsibilities withina structure. Answer: true vertical differentiation refers to the location of decision-making responsibilities withina structure. Answer: true vertical differentiation refers to the location of decision-making responsibilities within a structure. Rivers

education plays an important role, from an international business perspective, as a determinant of national competitive advantage. Answer: true from an international business perspective, one important aspect of education is its role as a determinant of national competitive advantage. the availability of a pool of skilledand educated workers seems to be

A company does not need a large size to facilitate, and benefit from, the globalization of markets. Answer: TRUE A company does not have to be the size of multinational giants to facilitate, and benefit from, the globalization of markets. In the United States, for example, nearly 90 percent of firms that

political freedom is one of the measures used by the human development index (hdi) to measure the quality of human life in different nations. Answer: false the hdi is based on three measures: life expectancy at birth (a function of health care),educational attainment (measured by a combination of the adult literacy

Moral hazard arises when people behave recklessly because they know they will be saved if things go wrong. Answer: TRUE Moral hazard arises when people behave recklessly because they know they will be saved if things go wrong. Answer: TRUE Moral hazard arises when people behave recklessly because they know they will

there is a tendency for greater retail concentration in developing countries. Answer: false there is a tendency for greater retail concentration in developed countries. Answer: false there is a tendency for greater retail concentration in developed countries. Answer: false there is a tendency for greater retail concentration in developed countries. deming, the proponent of

expatriate failure refers to a manager's failure to understand host-country cultural norms and values, leading to ineffective work. Answer: false a prominent issue in the international staffing literature is expatriate failurethe premature return of an expatriate manager to his or her home country. Answer: false a prominent issue in the international staffing literature

the values and norms of a culture do not emerge fully formed. Answer: true the values and norms of a culture do not emerge fully formed. they evolve over time in response to a number of factors, including prevailing political and economic philosophies, the social structure of a society, and the

an expatriate manager is a citizen of one country who is working abroad in one of the firms subsidiaries. Answer: true an expatriate manager is a citizen of one country who is working abroad in one of the firms subsidiaries. Answer: true an expatriate manager is a citizen of one country who

democracy is a form of government that prohibits opposing political parties. Answer: false democracy refers to a political system in which government is by the people, exercised either directly or through elected representatives. totalitarianism is a form of government in which one person or political party exercises absolute control over all

The great virtue claimed for a pegged exchange rate is that it imposes monetary discipline on a country and leads to low inflation. Answer: TRUE As with a full fixed exchange rate regime, the great virtue claimed for a pegged exchange rate is that it imposes monetary discipline on a country

if $150,000 face value bonds are issued at 102, the proceeds received will be $102,000. Answer: f Answer: f Answer: f adam smith argued that countries should specialize in the production of goods for which they have an absolute advantage. Answer: true according to smith, countries should specialize in the production of goods for which they

domestic currency deposits are regulated in most industrialized countries. Answer: true domestic currency deposits are regulated in all industrialized countries. such regulations ensure that banks have enough liquid funds to satisfy demand if large numbers of domestic depositors should suddenly decide to withdraw their money. Answer: true domestic currency deposits are regulated

Doing business in Russia involves risks because the country has shown signs of shifting back toward greater state involvement in economic activity and authoritarian government. Answer: TRUE Disturbing signs of growing unrest and totalitarian tendencies continue to be seen inseveral Eastern European and Central Asian states, including Russia, which has shown signs

poor product quality and low productivity are hidden costs associated with basing production in a foreign location. Answer: true there may be some "hidden costs" to basing production in a foreign location. numerous anecdotes suggest that high employee turnover, shoddy workmanship, poor product quality, and low productivity are significant issues in

a subsidy helps domestic producers to compete against foreign imports. Answer: true a subsidy is a government payment to a domestic producer. by lowering production costs, subsidies help domestic producers in two ways: (1) competing against foreign imports and (2) gaining export markets. Answer: true a subsidy is a government payment to

an installment note calling for equal total payments each period will result in an interest portion that decreases in each successive period. Answer: t Answer: t Answer: t firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. Answer: false firms pursuing global standardization or transnational strategies tend to prefer

a chinese firm borrows 1 million u.s. dollars from an american bank. the cost of this loan will be less if u.s. dollar appreciates against the chinese currency. Answer: false movements in foreign exchange rates can substantially increase the cost of foreign currency loans. in this case, the value of the

bringing managers together in one location for extended periods and rotating them through different jobs in several countries helps the firm build a formal management network. Answer: false bringing managers together in one location for extended periods and rotating them through different jobs in several countries helps the firm build an

firms based in less-developed nations tend to build a lot of extra performance attributes into their products. Answer: false firms based in highly developed countries tend to build a lot of extra performance attributes into their products. these extra attributes are not usually demanded by consumersin less developed nations, where the

Differences between countries require that an international business vary its practices country by country. Answer: TRUE As their organizations increasingly engage in cross-border trade and investment, managers need to recognize that the task of managing an international business differs from that of managing a purely domestic business in many ways. Differences