The intentional raising of the value of a currency by a nation’s government is called
________.
A) revaluation
B) securitization
C) fundamental disequilibrium
D) currency hedging
Answer:
Which of the following is least likely a reason for companies to seek cross-border
mergers and acquisitions?
A) to get a foothold in new geographic markets
B) to raise company budgets for increased research and development activities
C) to increase a firm’s global competitiveness
D) to fill the gaps in companies’ product lines in a global industry
Answer:
The European Union plan that established its own central bank and currency in January
1999 is known as the ________.
A) Single European Act
B) European monetary union
C) Copenhagen Criteria
D) Southern Common Market
Answer:
TeleToys’ organizational structure can best be referred to as a(n) ________ structure.
A) international division
B) global product
C) global matrix
D) international area
Answer:
Wallace expects that markets abroad will soon become fully aware of the existence of
the product and its benefits. Which of the following life cycle stages will the product be
a part of during that period?
A) maturing product stage
B) product decline stage
C) standardized product stage
D) new product stage
Answer:
The theory of absolute advantage destroys the mercantilist idea that international trade
is a ________.
A) positive-sum game
B) zero-sum game
C) negative-sum game
D) win-win game
Answer:
If the income-elasticity coefficient for coffee is 0.5, the demand for coffee will
________.
A) decrease 0.5 percent for every 1.0 percent increase in income
B) increase 1.0 percent for every 5.0 percent increase in income
C) increase 0.5 percent for every 1.0 percent increase in income
D) decrease 0.5 percent for every 0.5 percent increase in income
Answer:
Which of the following is an example of a dual use product?
A) a blowdryer
B) a GPS navigation device
C) a food processor
D) a vacuum cleaner
Answer:
A ________ is a right granted to the inventor of a product or process that excludes
others from making, using, or selling the invention.
A) patent
B) trademark
C) watertight
D) copyright
Answer:
________ involves the idea that a nation-state is autonomous, cannot intervene in the
affairs of other nations, and can enter into binding international agreements.
A) National sovereignty
B) Authoritarianism
C) Cultural liberalism
D) Communalism
Answer:
Which of the following terms refers to the broadest measure of economic development
of a country?
A) gross domestic product (GDP)
B) purchasing power parity (PPP)
C) gross national product (GNP)
D) human development index (HDI)
Answer:
The most basic level of training that can be given to the managers is ________.
A) language training
B) field experience
C) sensitivity training
D) environmental briefings
Answer:
________ place limits on the quantity of a product being imported.
A) Embargoes
B) Trade blocs
C) Nontariff barriers
D) Anti-dumping duties
Answer:
The early return by an employee from an international assignment because of
inadequate job performance is called ________.
A) culture shock
B) decruitment
C) reverse culture shock
D) expatriate failure
Answer:
A major flaw of the original General Agreement on Tariffs and Trade (GATT) was that
it lacked the power to ________.
A) displace the WTO
B) reduce nontariff barriers to international trade
C) govern exchange rates
D) enforce world trade rules
Answer:
Which of the following stipulates that an identical product must have an identical price
in all countries when the price is expressed in a common currency?
A) purchasing power parity
B) the law of one price
C) the comparative advantage theory
D) the efficient market view
Answer:
A(n) ________ opportunity helps in buying a product in one country and selling it in
another country where it has a higher value.
A) barter
B) buyback
C) countertrade
D) arbitrage
Answer:
The Verandas U.S. subsidiary was turned down when it tried to borrow from a U.S.
bank. The bank manager suggested that the parent firm deposit money with the U.S.
bank’s Dutch branch, and then the U.S. bank’s home office would lend the money to the
U.S. subsidiary. This type of arrangement is known as a(n) ________.
A) mortgage loan
B) title loan
C) back-to-back loan
D) syndicated loan
Answer:
The relative ability of two countries’ currencies to buy the same basket of goods in
those two countries is called ________.
A) gross national product
B) gross domestic product
C) purchasing power
D) purchasing power parity
Answer:
Which of the following statements is true of the above scenario?
A) Foodland has a comparative advantage in producing drinks.
B) Drinkland cannot trade with Foodland because trade is too expensive.
C) Drinkland has an absolute advantage in producing drinks.
D) Foodland should stop producing food and just produce drinks.
Answer:
Old World should pursue a(n) ________ channel if it decides to greatly intensify its
direct marketing efforts.
A) intensive
B) one-level
C) zero-level
D) selective
Answer:
Which of the following types of joint ventures involve parties investing together in
downstream business activities?
A) backward integration
B) forward integration
C) multistage
D) buyback
Answer:
Freeland’s efforts to provide opportunities to its emerging industries is an example of its
________.
A) political motive
B) economic motive
C) cultural motive
D) social motive
Answer:
Which of the following terms describes Betty’s effort to learn more about the Chinese
culture?
A) cultural literacy
B) cultural imperialism
C) cultural divergence
D) cultural heterogeneity
Answer:
Which of the following is an exchange rate that requires delivery of the traded currency
within two business days?
A) forward rate
B) spot rate
C) cross rate
D) prime rate
Answer:
A distribution channel in which a producer grants the right to sell its product to many
resellers is referred to as a(n) ________.
A) one-level channel
B) zero-level channel
C) exclusive channel
D) intensive channel
Answer:
When developing a market-potential indicator for an emerging market, market intensity
is typically estimated from the ________.
A) per capita private consumption
B) GDP
C) total population
D) percentage of a market’s population in the middle class
Answer:
Which of the following statements about representative democracies is true?
A) All citizens participate freely and actively in political processes.
B) Leaders of representative democracies can stay in power indefinitely.
C) Citizens elect individuals from political groups to act on their behalf.
D) Representative democracies across the world share identical features.
Answer:
The main difference between a free trade area and a customs union is that the members
of a customs union ________.
A) agree to the free movement of all factors of production
B) harmonize their tax, monetary, and fiscal policies and create a common currency
C) agree to treat trade with all nonmember nations in a similar manner
D) accept a common stance on economic and political policies regarding nonmember
nations
Answer:
A(n) ________ is an international trip by government officials and businesspeople that
is organized by agencies of national or provincial governments for the purpose of
exploring international business opportunities.
A) focus group
B) field research
C) expo
D) trade mission
Answer:
Which of the following is a major purpose of the international capital market?
A) to reduce entrepreneurial initiatives
B) to increase the cost of borrowing
C) to reduce risk for lenders
D) to reduce the money supply for borrowers
Answer: