According to the text, what is the most common concern that expatriates have before
they move overseas?
A) reestablishing a social life
B) missing friends and family
C) learning a foreign language
D) adapting to the culture
Which of the following is NOT true about distribution concerns when marketing
internationally?
A) Geographic barriers may divide countries into very distinct markets.
B) In some countries, few potential sales lie outside the large metropolitan areas.
C) Each country has its own distribution system, making standardization of distribution
difficult.
D) Because most foreign consumers are easily presold by advertising messages, it is
difficult to convince retailers to offer good service.
A company adopting a ________ strategy will likely aim to develop an organization
culture that helps employees around the world unconditionally accept common goals
and practices.
A) domestic
B) multidomestic
C) national
D) global
Which of the following is NOT an example of normativism?
A) A U.S. subsidiary operating in China that is forced to follow some U.S. laws, even
though China has no comparable laws
B) A U.S. sweatshop operating in Thailand that does not follow U.S. labor laws but
allows children to work 60 hours a week
C) An MNE manager who, after working in the host country, tries to implement foreign
practices in the home-country office
D) A British subsidiary operating in Indonesia that maintains the same health and safety
standards for its foreign factories that are required in Great Britain, even though the
British government does not require it to use those standards
Which of the following BEST supports a nation’s decision to implement a strategic
trade (industrial) policy?
A) The policies have usually resulted in big payoffs.
B) Governments, rather than entrepreneurs, should take the risks of developing new
industries.
C) Consumer needs would otherwise not be met.
D) Government actions should target industries that are believed to give the country its
best export advantages.
What is the primary concern about offshore financial centers?
A) engaging in illegal activities
B) enabling firms to avoid taxation
C) allowing the transfer of large funds
D) existing in politically risky environments
The ________ clause embodied the fundamental principle of GATT—trade without
discrimination.
A) most-favored-nation
B) nontariff barriers
C) free rider
D) normal trade relations
In which of the following situations would a company most likely benefit from using
the international division structure?
A) when the company’s different foreign markets pose significantly different
opportunities and threats
B) when the company relies on local managers in foreign operations to make strategic
decisions
C) when the company’s domestic market activity is much more important than its
international business activity
D) when the company’s domestic business activity has reached its full market potential
Which of the following statements referring to intellectual property rights and
violations is INCORRECT?
A) Richer countries claim looser regulation of intellectual property rights will hinder
innovation.
B) Companies can register a global patent, trademark, or copyright through the World
Trade Organization (WTO).
C) The International Anti-Counterfeiting Coalition estimates international trade in
counterfeit products at $600 billion a year.
D) Developing markets claim tougher regulation of IPRs will slow, if not halt, their
economic development.
The goal of a ________ is to abolish all tariffs among member countries.
A) customs union
B) common market
C) free trade agreement
D) common internal tariff
A go/no-go decision means ________.
A) an individual project decision is based on whether the project meets threshold
criteria
B) projects are ranked and approved from the top of the list down until available
resources are exhausted
C) management reviews existing information and decides whether additional
individualized feasibility studies are warranted
D) projects are approved or disapproved based on the potential ease of divestment
It is difficult to compare globalization of business over time because shifting national
borders have changed the nature of transactions from domestic to international and vice
versa.
Tyrone is a production manager at Penderhall Electronics, an MNE with operations in
Asia, Europe, and the United States. Tyrone has very little decision-making authority at
Penderhall, since most decisions are made at headquarters and distributed downward.
Which structure is most likely used by Penderhall?
A) centralized
B) systematic
C) decentralized
D) multidomestic
HRM refers to the range of activities that a company, whether solely domestic or
thoroughly global, undertakes to ________.
A) direct its strategy
B) staff its operations
C) improve its responsiveness
D) integrate business functions
Japanese ________ are groups of independent companies that work together to manage
the flow of goods and services along an entire value chain.
A) chaebol
B) keiretsus
C) sigmas
D) kaizen
Alta Designs is considering the idea of global sourcing. What would be the most likely
result for Alta Designs?
A) gain access to more domestic markets
B) gain access to more domestic products
C) lower costs and improve quality
D) shorten lengthy supply lines
Exporting below cost or below the home country price is called ________.
A) countertrade
B) an export-led development policy
C) a strategic trade policy
D) dumping
The best way for a Euroequity to get a listing in the United States is to issue a(n)
________.
A) Global Depositary Receipt
B) European Depositary Receipt
C) American Depositary Receipt
D) Domestic Depositary Receipt
The trade theory that says countries should concentrate production on those products
using their most abundant production factors is the ________.
A) factor proportions theory
B) theory of comparative advantage
C) theory of absolute advantage
D) theory of nontradable goods
Which of the following undesirable results will most likely occur for a country running
a favorable balance of trade?
A) higher unemployment
B) higher domestic interest rates
C) fewer funds to invest abroad
D) granting credit that may be risky
Foreign branch income is ________.
A) deferred from U.S. taxation until a dividend is remitted to the parent company
B) considered passive income and therefore not subject to U.S. taxation
C) directly included in the parent’s taxable income in the year in which it is earned
D) considered active income and therefore deferred until future years
Darvin Foods is an MNE that is in the process of revising its international business
strategy. Most of the firm’s top executives believe that Darvin should implement a
localization strategy. Which of the following conditions would most likely support this
type of strategy?
A) a high need for local responsiveness and a low need to reduce costs via global
integration
B) a high need for local responsiveness and a high need to create efficiencies via global
integration
C) a low need for local responsiveness and a low need to reduce costs via global
integration
D) a low need for local responsiveness and a high need to create efficiencies via global
integration
International managers most likely need to understand how to evaluate international
geographic alternatives because ________.
A) they usually have a surplus of resources and need to take advantage of all
opportunities
B) many regional trading groups prohibit companies from outside of the trading group
from manufacturing in more than one member country
C) the commitment of resources to one locale may require forgoing projects in other
locales
D) decreased worldwide transportation costs and increased trade liberalization now
allow companies to serve worldwide markets from a single production location
Kevin, marketing manager of the North American Bowling League, has decided to
televise major bowling competitions to viewers in multiple countries rather than only in
Canada and the U.S. Which of the following goals would this most likely help Kevin
accomplish?
A) acquiring new resources
B) minimizing corporate risks
C) increasing sales and profits
D) obtaining competitive advantages
The financial management activity that determines the proper mix of debt and equity is
________.
A) capital structure
B) long-term financing
C) capital budgeting
D) working capital management
Which of the following BEST describes a result of cultural collision in international
business?
A) A company implements practices that are less effective than intended.
B) Local employees are overlooked for promotions by home country managers.
C) Expatriate managers rely too heavily on local employees for negotiating business
deals.
D) Foreign and domestic companies make adjustments for the local culture and legal
environment.
Lesser-known franchisors sometimes enter foreign countries with company-owned
outlets. A reason for doing this is to ________.
A) guarantee profits
B) avoid competition
C) compete with local stores
D) attract potential franchisee
A technical forecaster is also known as a ________.
A) CFO
B) de facto economist
C) chartist
D) monetary administrator
Although English is referred to as the “international language of business,”________.
A) it is less frequently used than French in international business
B) there is a growing disagreement over which version of English to use, e.g. British,
American, or Australian
C) companies headquartered outside English-speaking countries all use their official
language as their operating language
D) monolingual English speakers may experience more difficulty in the future in
communicating on a worldwide basis
What is a key industry?
A) an industry that is locked up competitively by domestic producers
B) a turnkey operator specializing in the construction of infrastructure components
C) an industry that receives government subsidies
D) an industry that significantly affects the economy by virtue of its size or influence on
other sectors