1) Global integration occurs as countries from all over the world decide to cooperate
through the ________.
A) EU
B) NAFTA agreement
C) WTO
D) CARICOM
2) Which of the following statements about small and medium-sized enterprises
(SMEs) is true?
A) SMEs are steadily reducing their export intensity ratios
B) SMEs make up the majority of all U.S. exporters
C) SMEs are the source of more than half of the monetary value of U.S. exports
D) SMEs that export goods have fewer than 20 employees
3) A major challenge to Global Positioning Systems in providing foreign-exchange
services to its clients is that ________.
A) GPS lacks access to major foreign exchange quoting services
B) GPS has to constantly upgrade the quality of the services it offers
C) GPS cannot provide individualized attention to its customers, so it has to
commoditize its product lines
D) new regulations have stopped GPS from selling foreign-exchange services that
compete with the banks
4) The central bank in the United States is the ________.
A) Federal Reserve System
B) U.S. Exchange Reserve
C) Board of Governors
D) U.S. Treasury
5) International accounting firms, such as Deloitte and KPMG, have the most influence
on ________.
A) international and domestic tax laws
B) public record disclosure rules
C) global auditing practices
D) domestic legal systems
6) In societies where trust is high, ________.
A) people tend to be more future-oriented
B) business costs are typically lower
C) people tend to be more fatalistic
D) family businesses are dominant
7) 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 US 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
8) The Gini coefficient estimates a country’s ________.
A) gross national product
B) economic development
C) political and legal risk
D) income inequality
9) According to the PLC theory, at an early stage of a product’s life cycle the product is
likely to be made in a more ________ method than in its later stages.
A) capital-intensive
B) labor-intensive
C) land-intensive
D) low-cost
10) The lower survival rate of foreign companies in comparison to local firms for many
years after they begin operations is known as ________.
A) ethnocentric reaction
B) polycentric reaction
C) liability of foreignness
D) most-favored-nation behavior
11) When the European Union was formed, the size of the market increased for
European companies. This is most likely an example of a ________.
A) dynamic effect
B) static effect
C) trade diversion
D) trade reflection
12) 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
13) Managers should be more precise in their directions to subordinates when
________.
A) the company has a philosophy of geocentrism
B) the society believes age equals wisdom
C) uncertainty avoidance is high
D) power distance is low