1) What role has the IMF played in the Greek financial crisis of 2010-2011?
A) setting the value of the drachma
B) releasing funds for debt payments
C) demanding the sale of state-owned assets
D) lowering interest rates for international investors
2) A computer firm has high foreign sales in Asia and wants to expand sales into Europe
Which of the following statements provides the most appropriate advice for Elway
executives?
A) Although countries’ market sizes differ, companies usually face about the same
number of competitors in each national market
B) In most industries, companies face the same competitors in each country where they
operate
C) It takes about the same amount of resources to gain national distribution in one
country versus another
D) Being a leader in one country does not guarantee market leadership in another
country
3) Which of the following statements most accurately describes the relationship
between trading groups and MNEs?
A) Trading groups have no influence on the size of the regional market
B) Regional trading groups can define the rules under which companies must operate
within that region
C) Companies never need to change their organizational structure to take advantage of
regional trading groups
D) Regional trading groups have no influence on an MNE’s strategy since they operate
worldwide
4) Which of the following is most likely a characteristic of a “partly free” country, such
as Guatemala, Kenya, or Malaysia?
A) strict religious constraints
B) fair election procedures
C) respect for civil liberties
D) weak rule of law
5) All of the following would be examples of international joint ventures EXCEPT
________.
A) two Japanese companies sharing ownership of a company in Canada
B) a Danish company sharing ownership with a South African company in South Africa
C) a government-owned company from China sharing ownership with an Australian
company in Panama
D) two Venezuelan companies sharing ownership of a company in Venezuela
6) 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
7) Exporters who opt for direct exporting are most likely to ________.
A) sustain long-term profitability
B) sell products to domestic retailers
C) depend on international marketers
D) sell products to a foreign distributor
8) Jeff manages global purchasing for his employer and needs to select a new supplier.
Jeff should most likely ________.
A) implement e-commerce
B) focus mainly on purchase price
C) establish clear performance expectations
D) maintain the same type of relationship with every supplier
9) Johnson Enterprises manufactures computer chips used in cell phones. The MNE has
long production runs that lower the per unit cost of each chip. The firm also purchases
materials in bulk from its suppliers with whom Johnson has long-term contracts.
Johnson is most likely benefiting from ________.
A) economies of scale
B) the cluster effect
C) digitization
D) location economies
10) A guideline for responsible action by a firm in its operations worldwide is a(n)
________.
A) code of conduct
B) corporate monitoring policy
C) education program
D) honor code
11) Which of the following is Walmart’s competitive advantage in Mexico?
A) Walmart purchased all Mexican retail chains and eliminated competitors
B) Walmart is able to transfer its “everyday low prices” concept to Mexico
C) Walmart offers affordable, unique products for niche markets in Mexico
D) Customers prefer to buy from American companies instead of Mexican companies
12) In which of the following situations would Company X most likely seek a
collaborative arrangement with Company Z in which Company Z would handle work
for Company X?
A) Company X has excess capacity
B) Fixed costs for the work are high, and Company X has large volumes of work
C) Company X is inexperienced in outsourcing work
D) Fixed costs for the work are high, and Company X has small volumes of work
13) Acquiring and allocating financial resources among the company’s activities and
projects is the responsibility of the ________.
A) accounting function of the firm
B) external auditors
C) CFO
D) financial marketing manager