Which of the following is a common pitfall that novice exporters come across?
A.Poor understanding of the opportunities in the domestic market
B.Low unit costs
C.Increased economies of scale
D.Problems securing financing
E.Familiar distribution systems
Answer:
As a result of which of the following, large amounts of economic activity in India are
unrecorded and the official GDP figures of the country fail to tell the entire story of the
economy?
A.A large population
B.Active bartering
C.Deregulation
D.Nationalization
E.Closed totalitarianism
Answer:
When a bill of lading is used to obtain payment or a written promise of payment before
the merchandise is released to the importer, it serves as a:
A.document of title.
B.contract.
C.receipt.
D.time draft.
E.collateral.
Answer:
Which of the following is true about the European Parliament?
A.It cannot propose amendments to legislations.
B.It is directly elected by the populations of the member-states.
C.It is primarily a legislative body rather than a consultative body.
D.It does not have the right to veto laws such as single-market legislation.
E.The European Parliament does not have the right to vote on the appointment of
commissioners.
Answer:
According to Rawls, which of the following principles would be unanimously accepted
by people under the veil of ignorance?
A.People should be discriminated on the basis of cast and class.
B.Inequalities in income and wealth distribution should not be justified under any
condition.
C.The political and economic freedom of people should be highly restricted in order to
promote collective goals.
D.Each person should be permitted the maximum amount of basic liberty that is
compatible with a similar liberty for others.
E.All property should be owned by the government and people should not have the
freedom or right to hold personal property.
Answer:
When an employee says no to a supervisor because what he or she was asked to do was
unethical, it exhibits the employee’s:
A.moral courage.
B.organizational citizenship.
C.ethical dilemma.
D.cross-cultural literacy.
E.cultural relativism.
Answer:
A distinction can be drawn between firms whose core competency is in which of the
following?
A.Scale of entry and strategic commitments
B.Location and experience curves
C.Acquisitions and greenfield ventures
D.Technological know-how and management know-how
E.Cost reductions and entry mode
Answer:
Geminia Systems, a manufacturer of car components, wants to set up a system that will
help in sending invoices to its customers once orders for input supply are placed. Which
of the following should the company use to perform this function?
A.Computer-aided design system
B.Lean production
C.Just-in-time inventory system
D.Electronic data interchange
E.Social networking
Answer:
Technological factors are making it feasible for firms to concentrate manufacturing
facilities at optimal locations. The major brakes on this trend are:
A.differences in endowment factors.
B.transportation costs and trade barriers.
C.rising national differences in consumer tastes and preferences.
D.growing free trade areas and democracy.
E.declining fluctuations in exchange rates.
Answer:
How does the International Monetary Fund (IMF) provide loans to deficit-laden
countries?
A.It prints the required currencies, thereby increasing money supply in those countries.
B.It acts as a market, buying goods from these countries and selling them to developed
countries.
C.A pool of gold and currencies contributed by its members provides the resources for
lending operations.
D.The World Bank lends the required amount to the IMF at a low interest rate.
E.It collects money from those countries that wish to devaluate their currencies.
Answer:
An argument in support of the falling barriers to international trade and investment is
that the falling barriers:
A.prohibit countries from specializing in the production of goods and services.
B.drive the global economy toward greater prosperity.
C.reduce the need to export jobs overseas.
D.increase the bargaining power of business firms by decreasing the incomes of
consumers.
E.reduce attacks from foreign competitors.
Answer:
Which of the following refers to identifying distinct groups of consumers whose needs,
wants, and purchasing behavior differ from others in important ways?
A.Market penetration
B.Market development
C.Market segmentation
D.Product development
E.Diversification
Answer:
When is decentralization of manufacturing facilities most appropriate?
A.When the product serves universal needs
B.When exchange rates are expected to remain relatively stable
C.When the product’s value-to-weight ratio is high
D.When there are few trade barriers
E.When the production technology has low minimum efficient scale
Answer:
The fall in the value of the U.S. dollar between 1985 and 1988 was caused by:
A.economic growth in the developed countries of Europe.
B.a fall in prices of exported U.S. goods.
C.a trade surplus in the United States during the previous years.
D.a combination of government intervention and market forces.
E.the protectionism measures adopted by European countries.
Answer:
Which of the following refers to currency speculation?
A.The short-term movement of funds from one currency to another in the hopes of
profiting from shifts in exchange rates
B.The exchange rate at which a foreign exchange dealer will convert one currency into
another that particular day
C.Simultaneous purchase and sale of a given amount of foreign exchange for two
different value dates
D.The purchase of securities in one market for immediate resale in another to profit
from a price discrepancy
E.The growth in a country’s money supply exceeding the growth in its output, leading
to price inflation
Answer:
From a strategic perspective, the key issue in international labor relations is:
A.dealing with multiple business units.
B.the degree to which organized labor can limit the choices of an international business.
C.whether to hire parent-country nationals, host-country nationals, or third-country
nationals.
D.helping expatriates cope with new role demands.
E.the extent to which a reciprocal tax treaty can be brought into effect.
Answer:
Which of the following statements is true about voluntary export restraints (VERs)?
A.VERs benefit consumers by limiting import competition.
B.VERs reduce the domestic price of an imported good.
C.When imports are limited to a low percentage of the market by a VER, the price is
bid up for that limited foreign supply.
D.Foreign producers agree to VERs because they fear economic instability in the world
economy.
E.VERs negatively affect domestic producers by increasing import competition.
Answer:
Democracy, in its purest form, is based on the belief that:
A.citizens should be directly involved in decision making.
B.political freedom of the citizens should be limited.
C.citizens are responsible for their own economic health and thus need no government.
D.individual freedom in the economic sphere should be restricted.
E.one person should have an absolute control over all the citizens of a nation.
Answer:
The sogo shosha of Japan:
A.proactively and continuously seek export opportunities for their affiliated companies.
B.exclusively serve the largest and most prestigious companies in Japan.
C.have offices concentrated in the business district of Tokyo.
D.have monopolized the export market in the country.
E.consider export only when there is excess production at home.
Answer:
A lack of trust between two parties engaged in international trade is exacerbated by the:
A.saturation of the domestic market.
B.similar preferences of the parties regarding how a transaction should be configured.
C.narrowing distance between the two parties due to technological advances.
D.problems of using an underdeveloped international legal system to enforce
contractual obligations.
E.possibility of doing business with someone with whom they have been associated for
a long time.
Answer:
The 1993 Uruguay Round:
A.increased trade and investment barriers.
B.excluded the trade of services from international trade.
C.transformed the World Trade Organization into the GATT.
D.provided enhanced protection for patents, trademarks, and copyrights.
E.promoted the worldwide rise of communism.
Answer:
Which of the following statements is true about import quotas?
A.Import quotas benefit domestic producers by limiting import competition.
B.Import quotas always lower the prices for domestically produced goods.
C.Higher tariff rates are usually applied to imports within the quota than those over the
quota.
D.Import quotas benefit consumers by decreasing the domestic price of an imported
good.
E.Import quotas help foreign producers gain a competitive advantage.
Answer:
According to the product life-cycle theory, the locus of global production initially
switches from the United States to other advanced nations and then from those nations
to developing countries. Which of the following is most likely to be a consequence of
these trends?
A.U.S. imports become less capital-intensive than U.S. exports.
B.The pattern of international trade is affected by differences in factor endowments
rather than differences in productivity.
C.Over time, the United States switches from being an exporter of a product to an
importer of the product.
D.The wage rates in the United States decrease.
E.Developing nations fail to upgrade their skill levels to compete with advanced
countries.
Answer:
Some contemporary moral philosophers view Kant’s ethical philosophy as incomplete
because his system has no place for:
A.basic human rights.
B.the moral worth of actions.
C.moral emotions and sentiments.
D.just and fair treatment of a minority.
E.human dignity.
Answer:
The threat of antidumping action:
A.helps the firm raise capital in the primary market.
B.limits the ability of a firm to raise prices in response to high demand.
C.enhances the firm’s ability to disperse its productive activities in an efficient manner.
D.limits the ability of a firm to use aggressive pricing to gain market share in a country.
E.enhances a firm’s competitive advantage to indigenous competitors in that country.
Answer:
Which of the following countries has seen a relative decline in its share of world output
between 1960 and 2012?
A. United States
B. Thailand
C. Japan
D. China
E. South Korea
Answer:
Which of the following is a major obstacle to the establishment of the Free Trade Area
of the Americas?
A.The United States wants its southern neighbors to agree to tougher enforcement of
intellectual property rights, which they do not want to embrace.
B.Some constituent nations insist on a common currency, an initiative that has not
found support among many nations.
C.Brazil and Argentina want the United States to open up critical industries such as
telecom and airlines.
D.The major trading blocks in the region, NAFTA and Mercosur, have opposed its
establishment.
E.There is no consensus on trade policies between Brazil and Argentina.
Answer:
Which of the following refers to an export specialist that acts as an export marketing
department for client firms?
A.Export management company
B.Export-import firm
C.Foreign direct investment management firm
D.Strategy management company
E.Association of export companies
Answer:
“Not all democracies are free, as some still restrict certain political and civil liberties.”
Which of the following countries best fits this argument?
A.Australia
B.United States
C.Great Britain
D.Russia
E.Canada
Answer:
What is the most widely practiced theocratic legal system in the modern world?
A.Christian law
B.Islamic law
C.Jewish law
D.Hindu law
E.Buddhist law
Answer:
Which of the following is a drawback of adopting the euro?
A.Loss of control over national monetary policy
B.Increase in the cost of capital
C.Reduction in the liquidity of capital markets
D.Reduction of price differentials within the euro zone
E.Loss of investment options open to both individuals and institutions
Answer:
In the context of the changing political economy since the late 1980s, which of the
following statements is true?
A.There has been a rapid spread of communism worldwide.
B.Capitalist ideologies have been in retreat.
C.A wave of totalitarian revolutions has swept the world.
D.Most countries have moved toward centrally planned and mixed economies.
E.Most of the world’s nation-states are providing greater political and civil liberties to
their citizens.
Answer: