1) Differences in culture, geography, and financial methods make it complicated for
MNEs to identify cause-and-effect performance measures.
2) Export intensity, the percentage of total revenues coming from exports, is not always
correlated with company size.
3) According to the unity-of-command principle, workers and organizations benefit the
most from dual hierarchies of communication.
4) In some collectivist systems, such as Venezuela, politicians control media outlets and
limit individual property rights in order to acquire power in the business environment.
5) Technical forecasting relies on trends in economic variables to predict future
exchange rates.
6) A widely successful strategy for introducing change into a foreign country is to
introduce many changes simultaneously.
7) Practical predeparture training for the expatriate is often geared toward developing
his or her sensitivities to overcome culture fright.
8) Successful trade retaliation is most likely achieved ________.
A) on agricultural products
B) on manufactured products
C) by a large trading country
D) by a small trading country
9) In which quadrant of a disclosure/assessment matrix for accounting systems would
you most likely find less-developed Latin countries?
A) conservatism and secrecy
B) transparency and conservatism
C) secrecy and transparency
D) optimism and secrecy
10) The basis for designing an effective export strategy most likely begins with
________.
A) identifying how a firm can leverage its core competencies into foreign markets
B) hiring local personnel in target markets to build the business
C) enlisting the support of an export management company
D) simultaneously targeting a large number of foreign markets
11) What is the most likely reason that sales to a mass market would be necessary for a
company selling internationally?
A) gaining economies in production and distribution
B) earning initial sales in emerging economies
C) eliminating excess domestic capacity
D) gaining brand recognition
12) The international bond market is a major source of debt financing for which of the
following?
A) world governments
B) regional organizations
C) small firms
D) small businesses
13) ________ refer(s) to the creative ideas, innovative expertise, or intangible insights
that give an individual, company, or country a competitive advantage.
A) Proprietary goods
B) Exclusive ownership
C) Restrictive goods
D) Intellectual property
14) A distinct disadvantage of an international strategy is ________.
A) restricting the movement of core competencies to local markets
B) capitalizing on the benefits of global learning
C) customizing product offerings to local conditions
D) relying on home managers’ knowledge of foreign markets
15) The ________ starts with the same accounting framework used to calculate GDP
but then adjusts for values assigned to environmental quality, population health,
livelihood security, equity, free time, and educational attainment.
A) Gross National Index
B) Net National Product
C) Genuine Progress Indicator
D) Human Development Index
16) Franchisees sometimes wish to change the product or service offered by the
franchisor to better fit local market needs abroad. Why are these changes a problem for
franchisors?
A) Too many changes eliminate the need for the franchisors
B) The royalties as a percentage of sales decrease
C) Governments impose more stringent operating restrictions
D) Sales decrease because consumers want to get the “real thing”
17) Hard currencies are usually ________.
A) not fully convertible
B) undesirable assets
C) highly liquid
D) unstable
18) Which of the following is NOT true about the harvesting or divestment of foreign
operations?
A) One of the motives is to use resources where the performance prospects are better
B) Companies can harvest or divest by selling existing facilities
C) Closing a facility can be difficult because of governmental performance contracts
D) Companies have tended to divest too soon, rather than working to improve
performance
19) Mona, a native of India, is employed by IBM in the firm’s facility in New Delhi.
Mona is best described as a(n) ________.
A) expatriate
B) local
C) third-country national
D) home-country national
20) An element of total quality management (TQM) that focuses on continuous
improvement by identifying problems and enlisting employees to help eliminate them is
known as ________.
A) kaizen
B) Six Sigma
C) kanban
D) acceptable quality level (AQL)
21) A strategy that focuses on lowering operating costs is referred to as a ________
strategy.
A) differentiation
B) cost leadership
C) niche market
D) diversification
22) Which accounting systems are shaped more by government practice?
A) macro-uniform accounting systems
B) micro-based systems
C) pragmatic business practice systems
D) business economic theory systems
23) Which tool is used by most firms to monitor the data linkages among product
planning, parts purchasing, and inventory maintenance activities?
A) reports
B) clan controls
C) financial metrics
D) information systems
24) Unemployed workers are most apt to form a pressure group to support ________.
A) export restrictions
B) import restrictions
C) price limitations
D) import subsidies