Offering the same products using the same marketing strategy in all national markets of
an organization is referred to as a ________ strategy.
A) global
B) retrenchment
C) multinational
D) blue ocean
Answer:
Which of the following methods will Happyland use to discourage foreign direct
investment inflows?
A) tax incentives
B) low-interest loans
C) performance demands
D) tax breaks
Answer:
Which of the following will a company that is pursuing a low-cost leadership strategy
most likely use for creating its product?
A) implement handcrafted artisanship
B) manufacture in large production batches
C) manufacture components in-house
D) customize products for each customer
Answer:
The process of screening and hiring the best-qualified applicants with the greatest
performance potential is called ________.
A) performance appraisal
B) orientation
C) recruitment
D) selection
Answer:
The ________ theory states that when an aspect of the market makes a transaction less
efficient than it could be, a company will undertake foreign direct investment to
internalize the transaction and thereby remove the efficiency-reducing aspect.
A) market power
B) eclectic
C) international product life cycle
D) market imperfections
Answer:
Deciding the sequence of operations a company will use to create its product is called
________.
A) product planning
B) capacity planning
C) location economies
D) process planning
Answer:
Whereas relocating production to low-cost locales traditionally meant production of
goods almost exclusively, it increasingly applies to the production of ________.
A) domestic products
B) perishables
C) services
D) global brands
Answer:
The Leontief paradox describes evidence ________.
A) in support of the predictions of the mercantilist theory
B) contrary to the predictions of the factor proportions theory
C) that the assumptions of international product life cycle theory are invalid
D) that the assumptions of the new trade theory are invalid
Answer:
Which of the following is the first stage of the strategy-formulation process?
A) identification of value-creating activities
B) formulation of strategies
C) identification of company mission and goals
D) identification of core competency
Answer:
British pounds of a British trading company that are deposited in a U.S. bank are called
________.
A) Eurodollars
B) U.S. dollars
C) Europounds
D) Pounds
Answer:
Today, countries seen by others as trying to maintain a trade surplus and expand their
national treasures at the expense of other nations are accused of practicing ________.
A) totalitarianism
B) anti-mercantilism
C) social stratification
D) economic nationalism
Answer:
________ is defined as the dispersal of production activities to locations that help a
company achieve its cost-minimization or quality-maximization objectives for a good
or service.
A) Global offering
B) Globalization of production
C) Global governance
D) Globalization of markets
Answer:
Which of the following is most likely a potential benefit for Echo if it outsources some
of its manufacturing activities?
A) heightened communications awareness
B) increased activity in e-commerce sales
C) strong intellectual property protection
D) eliminating the exposure of assets to political risk
Answer:
________ is the extension of company activities into stages of production that provide a
firm’s inputs or absorb its outputs.
A) Decentralization
B) Vertical integration
C) Market penetration
D) Social stratification
Answer:
Exports and imports of tourism and business consulting are included in the ________
account of a country’s balance of payments.
A) services
B) merchandise
C) capital
D) savings
Answer:
________ is an investment that does not involve obtaining a degree of control in a
company.
A) Portfolio investment
B) Foreign direct investment
C) Horizontal integration
D) Vertical integration
Answer:
An ongoing process of gathering, analyzing, and dispensing information for tactical or
strategic purposes is called ________.
A) data harvesting
B) peer production
C) survey research
D) environmental scanning
Answer:
Which of the following is a method of restricting trade?
A) export financing
B) local content requirements
C) subsidy
D) foreign trade zones
Answer:
Locating production facilities within regional markets is popular because ________.
A) regional markets offer greater range of resources needed for production
B) it provides duty-free access to every consumer in a trade bloc
C) the marketing strategies applied at the regional market level will also be applicable
at the global level
D) it simplifies political and economic activities
Answer:
Which of the following is a major obstacle to economic transition?
A) lack of government support
B) environmental degradation
C) privatization
D) black markets
Answer:
Both Pat and Terry believe that social and economic equality can be obtained only by
establishing an economic system in which the government owns and controls all types
of economic activity. Which of the following statements proves that Pat is a communist
and Terry is a socialist?
A) Unlike Terry, Pat believes that the government should decide the prices at which
goods are sold.
B) Unlike Pat, Terry does not believe in the elimination of political opponents.
C) Unlike Terry, Pat believes that the means of production should be owned only by the
public.
D) Unlike Pat, Terry believes that a violent revolution is necessary to seize control over
resources.
Answer:
________ is a payment method commonly used when there is an ongoing relationship
between the involved parties.
A) Advance payment
B) Documentary collection
C) Letter of credit
D) Open account
Answer:
In reviewing his fulfillment process, Jack realizes that different customers opt for
different types of shipping based on their preferences. Which of the following would
most likely help Jack provide better shipping service to his customers?
A) introduce overnight delivery but at a very high cost
B) reduce costs by implementing a cheaper but slower delivery method
C) implement a universal delivery method to capitalize on efficiency gains
D) offer customers a choice of delivery methods with different speeds and costs
Answer:
Andy comes from a culture that emphasizes hard work and promotes the
entrepreneurial spirit within individuals. While he and his coworkers are encouraged to
achieve their personal goals, they are also held responsible for their actions. According
to Hofstede’s framework, which of the following dimensions does this culture illustrate?
A) feminity
B) individualism
C) high power distance
D) high uncertainty avoidance
Answer:
Companies that produce entire inventories of products or components in one or very
few optimal locations are most likely to follow a ________ strategy.
A) retrenchment
B) global
C) blue ocean
D) multinational
Answer:
Which of the following lowers the price of a country’s exports on world markets and
increases the price of its imports?
A) revaluation
B) devaluation
C) currency hedging
D) currency arbitrage
Answer:
The ________ is an agency created to provide financing for national economic
development efforts.
A) Global Financial Markets Association
B) World Trade Organization
C) Financial Stability Board
D) World Bank
Answer:
The ________ is the collection of agreements and institutions that govern exchange
rates.
A) Bretton Woods Agreement
B) Plaza Accord
C) international monetary system
D) international bond market
Answer:
The strategy that Beanstalk would most likely want to follow is called a ________
strategy.
A) multinational
B) retrenchment
C) global
D) stability
Answer:
Which of the following letters of credit can be modified without obtaining approval
from either the exporter or the importer, by the bank issuing the letter of credit?
A) revocable letter of credit
B) confirmed letter of credit
C) at sight letter of credit
D) usance letter of credit
Answer:
The focus of factor proportions theory is on the ________.
A) productivity of the production process
B) cost-effectiveness of the production process
C) use of depleting production factors
D) use of expensive production factors
Answer: