During which stage of the market or site screening process do managers normally want
to visit locations?
A) identification of basic appeal of a product
B) measurement of market or site potential
C) assessment of the national business environment
D) selection of the market or site
A ________ is a monetary regime that is based on an explicit commitment to exchange
domestic currency for a specified foreign currency at a fixed exchange rate.
A) currency option
B) currency board
C) currency speculation
D) currency arbitrage
A company proposes that in exchange for a hard-currency sale, it will make a
hard-currency purchase of an unspecified product from the buyer nation in the future.
Which of the following is the company proposing?
A) a counterpurchase
B) an offset
C) a buyback
D) a barter
Which of the following statements is true of foreign trade zone?
A) It is an area through which merchandise is allowed to pass with fewer procedures
but higher taxes.
B) These areas provide very limited employment opportunities.
C) Goods imported into these zones require import licenses and are subject to import
duties.
D) International companies can store goods in these zones without incurring taxes,
before shipping them to other countries.
The main objectives of the Andean Community include ________.
A) introduction of tariffs for trade among member countries
B) separate policies in both transportation and certain industries
C) a common external tariff
D) a common currency
As former competitors in many industries link up to challenge others on a worldwide
basis, ________ occurs.
A) segregation
B) denationalization
C) consolidation
D) technological stagnation
Scenario: Konesia Joins the World
Konesia, a former totalitarian economy and pariah state, is taking steps toward a free
market economy. The government wants to encourage trade but also wants to find a
balance so that local businesses and industries are not harmed. If Konesia chooses to
levy tariffs as a percentage of the stated price of an imported product, this would be an
example of a(n) ________.
A) compound tariff
B) specific tariff
C) ad valorem tariff
D) tariff-quota
Gentian Violet is a dye manufacturing company that uses computer networks to sell its
products, service customers, and collaborate with partners. Which of the following
technologies is the company engaging in this scenario?
A) rapid prototyping
B) e-business
C) simulation
D) console automation
Scenario: Owen’s HomeCare Products
Owen McCain, owner of Owen’s HomeCare Products, is considering going
international. He feels that the products he manufactures will be well-received,
especially in developing countries. He wants to understand the exporting process and
then scale his exporting activities accordingly.
Through his research, Owen learns that the first step in developing a successful export
strategy is ________.
A) initiation of meetings with intermediaries
B) identification of a potential market
C) commitment of resources
D) matching of market needs to company abilities
________ refers to the most commonly quoted interest rate that London banks charge
other large banks that borrow Eurocurrency.
A) London Interbank Offer Rate (LIBOR)
B) London Interbank Bid Rate (LIBID)
C) Spot rate
D) Cross rate
The rise of a new international entity called the ________ suggests that any company,
regardless of age, experience, and resources, can engage in international business.
A) transnational corporation
B) multinational corporation
C) born global firm
D) global firm
Which of the following factors should the legal experts of Wayne’s consider while
evaluating the legal systems of Paribo and Kirawi?
A) the profits made by local companies in the countries
B) the prevalence of crime in the two countries
C) the resolution of contractual dispute with local vendors
D) the profits made by international companies in other countries
Storage facilities, retail outlets, and production equipment are examples of ________.
A) liquid assets
B) current assets
C) fixed assets
D) intangible assets
Companies typically recruit ________ to train individuals placed in more demanding
nonmanagerial positions at foreign branches.
A) workers from the local market
B) recent college graduates from the host country
C) qualified third-party nationals
D) specialists from the home country
Which of the following is a disadvantage of conducting business in totalitarian nations?
A) Laws regarding the resolution of contractual disputes are rigid and inflexible.
B) Companies have to contend with the interference of local political opposition.
C) A refusal to pay a bribe can result in the forfeiture of investments in the country.
D) The government has little power over the economic activities of the nation.