Trompenaars’ achievement vs. ascription dimension describes social status based on
what one does or who one is. The United States is a culture in which people build who
they are through work, so its social status tends to be based on ascription.
Multilateral netting is an approach to debt management in which subsidiaries aggregate
their debt service.
The first step in the process of strategic planning is to define the company’s business
and mission.
Trompenaars’ dimension of individualism vs. communitarianism differs greatly from
Hofstede’s individualism-collectivism dimension.
The types of information a firm will need to judge country risks vary according to the
nature of its business and the amount of money invested.
Low-context cultures tend to be polychronic, with a lot going on at one time.
The length of the investment in a foreign country has no impact on the risk assessment
for that investment. What matters is the economic and political situations in the country.
The sales agreement should specify as simply as possible the duties of the
representative and the firm.
The cultural forces tend to be closely allied to the legal forces, which exert a strong and
pervasive influence on advertising.
New types of dumping include tax dumping.
(p.206)-Global foreign currency exchange transactions total in the area of $4 trillion
daily.
New institutional theory suggests that institutions be understood as collections of rules
and codes of conduct that limit behavior.
When production equipment is similar, home office control of quality in foreign
affiliates is more difficult because management must ensure that all plants adhere to the
same standard.
Uncontrollable forces are external forces over which management cannot exert any
influence.
The main argument against 3BL is that business is concerned with generating profit, not
with social and ecological issues, except where the law requires it to be.
Most companies establish worldwide organizations based on product, region, function,
or customer classes.
The temporal method of translation translates fixed assets at the rates in effect the day
the assets were acquired.
Tax law is exempt from extraterritoriality.
Many U.S. laws affect activities of international firms, and their impacts have been
coordinated.
Importing refers to the transportation of any good or service to a destination into a
country or region, from a foreign origination point.
Protection of infant industries through trade restrictions is used only in developing
nations.
The major part of foreign direct investment is made by large, research-intensive firms in
oligopolistic industries.
Trading blocs always bring cost savings to international firms.
Tactical/operational plans are more detailed than strategic plans.
While international business as a discipline is relatively new, international business as a
business practice is not.
The international division is a division in the organization that is responsible for all
non-home-country activities and reports to the domestic division.
Arguments in support of mercantilism largely disappeared after the end of the
mercantilist era in the late 1700s.
The Bretton Woods system worked until the late 1960s.
Hofstede describes his Confucian dynamism dimension as dealing with Virtue
regardless of Truth.
The WTO has negotiated a TRIPS agreement whereby property rights do not take
precedence over public health.
Generally, as marketers go down the economic and social strata in each country, they
will tend to find:
A. similarities among countries with respect to social and cultural values.
B. dissimilarities among countries with respect to social and cultural values.
C. no significant differences with respect to social and cultural values.
D. greater government support for each succeeding lower stratum.
E. none of the above
The reasons a government may nationalize a firm include:
A. to extract more money from the firm.
B. to increase the firm’s profitability.
C. to preserve jobs.
D. all of the above.
E. two of A, B, and C.
Hilton and Delta provide assistance to other international companies. That is an
example of:
A. a joint venture.
B. a management contract.
C. a strategic alliance.
D. contract manufacturing.
E. licensing.
One measure of the magnitude of international trade and how it has grown is that
_____________ of everything grown or made in the world is now exported.
A. 10 percent
B. 25 percent
C. 32 percent
D. 45 percent
E. over two-thirds
Although it pollutes heavily, this energy source is on the rise everywhere, especially in
China:
A. natural gas.
B. coal.
C. nuclear.
D. diesel.
The functional currency of a foreign operation is:
A. the currency of the parent company.
B. the currency of the host country.
C. whichever currency the company chooses to declare as the functional currency.
D. the currency in which cash flows, pricing, expenses, and financing are denominated.
When a government requires a permit to purchase foreign currency, the exchange rates:
A. are market-driven.
B. can be negotiated by the firm.
C. are unpredictable.
D. are set by the government, often above the free market rate.
The __________ organization has evolved from management’s attempt to mesh product
and regional and functional expertise while maintaining clear lines of authority.
A. hybrid
B. matrix
C. global
D. functional
E. network
Dalton suggests that moral reasoning is a skill:
A. not needed by global leaders.
B. that belongs in the legal arena, not the business arena.
C. needed by global leaders to confront ethical dilemmas.
D. included in the concept of complexity.
E. needed by global managers who implement, not leaders.
According to the text, approximately ______ percent of the companies surveyed
required cross-cultural training for their expats or their families.
A. 21 percent
B. 27 percent
C. nearly half
D. 77 percent
E. 90 percent
Arguments for trade restrictions include:
A. national defense, infant industry, and job protection.
B. punishment of offending nations.
C. fair competition and retaliation.
D. all of the above.
E. two of A, B, and C.
When a licensing agreement is made:
A. the licensee receives expertise from another company.
B. the licensee obtains permission from the government to do business in a foreign
country.
C. the licensor is a foreign government which grants the license.
D. the licensor pays to receive assistance from the licensee.
E. two of the above.
Transshipping is used to:
A. reduce shipping costs, like consolidation.
B. avoid import administration.
C. evade allocated quotas.
D. all of the above.
E. two of A, B, and C.
In an inflationary economy the following conditions may be present:
A. demand exceeds supply.
B. money supply is increasing.
C. prices are rising.
D. all of the above.
Control activities are the efforts to:
A. put plans into effect.
B. learn if plans are working as intended.
C. make corrections.
D. all of the above.
E. two of A, B, and C.
In many cases, a firm entering international markets becomes a follower because:
A. barriers are high for new entrants.
B. strong patent protection exists.
C. quicker competition beats it.
D. all of the above.
E. two of A, B and C.
The international structural stages model suggests that a typical evolutional path for an
international company’s structure would be:
A. from international division to geographic area division to worldwide product
division.
B. from international division to worldwide product division to geographic area
division.
C. from geographic area division to worldwide product division to global matrix.
D. from functional division to horizontal company to virtual corporation.
E. from international division to worldwide product division to global matrix.
The trend in diverse global teams is to:
A. treat everyone the same.
B. suppress differences and focus on commonalities.
C. focus on differences and suppress commonalities.
D. treat everyone as a unique individual.
E. avoid discussing politics, sex, and religion.
The Foreign Corrupt Practices Act (FCPA) clearly stipulates terminology and behavior
that is illegal on the part of U.S. businesses and of foreign businesses operating in the
United States
According to the text, the proportion of expatriates who are women has increased to
_____ percent.
A. 15
B. 21
C. 29
D. 35
E. over 50
A good example of the relationship between water supply and population concentration
is:
A. eastern Europe
B. China
C. Australia
D. Japan
Research found that suppliers cut invoice and ordering errors by an average of ___
percent when using an e-marketplace.
A. 10
B. 24
C. 37
D. 56
E. 69
According to the text, the dimensions along which management can globalize
(standardize) their company’s international activities include:
A. markets.
B. competitive strategy.
C. political exposure.
D. all of the above.
E. two of A, B, and C.
One danger of using the culture frameworks introduced in Chapter 4 is that if we apply
them prescriptively:
A. we’ll be able to understand too much detail of a culture, and this will slow down
decision making.
B. we’ll limit rather than enrich our perceptions.
C. our perceptions will become stereotypes, however sophisticated.
D. B and C.
The IBRD is a major institution of the World Bank whose function is to loan to:
A. countries whose income levels make them not creditworthy.
B. private-sector development-focused firms.
C. private individuals in developing nations whose entrepreneurial efforts support
development.
D. middle-income and creditworthy poor nations.
The SDR is:
A. a special deposit for corporate reimbursement.
B. special drawing rights, an international reserve asset.
C. a special deficit refund, made to compensate for currency devaluation.
D. a paper credit issued by the Bank for International Settlements.
A middle ground between an ad campaign that is standardized worldwide and an
entirely local ad campaign is called a:
A. hybrid advertising campaign.
B. programmed-management approach.
C. computerized-management approach.
D. shared-management approach.
E. none of the above.
In U.S. industry, the proportion of purchased materials in the overall cost of goods sold
has been rising for several decades, to a level of ________ percent today.
A. 40
B. 45 to 60
C. 55 to 79
D. 65 to 74
E. over 80
Leadership may be influenced by sociocultural forces, and its model might be:
A. either anachronistic or contemporary.
B. reasoned, emotional, strategic, or planned.
C. exogenous or endogenous.
D. paternalistic, heroic, integrative, or directive.
The level of technology chosen may be:
A. all of B, C, and D.
B. intermediate technology.
C. capital-intensive.
D. labor-intensive.
E. two of B, C, and D.
Regarding the structure of international companies:
A. managers have to consider the nature of their company’s international operating
environment, both currently and how it is expected to change in the future.
B. managers have to consider the nature of their competitors’ international strategies,
both currently and how they are expected to change in the future.
C. gains from increased specialization of labor may at times be nullified by the
increased cost of coordination.
D. all of the above.
E. two of A, B, and C.