Transactions involving the export of Happyland’s textile and computer products are
included in its ________ account.
A) capital
B) merchandise
C) services
D) income payments
Answer:
Which of the following variables attempts to estimate market openness when creating a
market-potential indicator for an emerging market?
A) market consumption capacity
B) market receptivity
C) market size
D) market intensity
Answer:
According to Hofstede’s framework, a culture that scores low on ________ can change
more rapidly because tradition and commitment are not impediments to change.
A) masculinity
B) individualism
C) long-term orientation
D) risk-taking
Answer:
________ is an activity under the monetary policy of a nation.
A) Increasing taxes
B) Lowering taxes
C) Increasing government spending
D) Selling government securities
Answer:
What do communists and socialists have in common?
A) Both believe in the elimination of political opponents.
B) Both believe that the government should control all types of economic activity.
C) Both believe that the pricing of goods should be the responsibility of individuals.
D) Both believe that a violent revolution is necessary to seize control over resources.
Answer:
The common market between Costa Rica, El Salvador, Guatemala, Honduras, and
Nicaragua is referred to as the ________.
A) Latin American Integration Association
B) Central American Common Market
C) Andean Community
D) Southern Common Market
Answer:
A(n) ________ policy can be pursued to hire employees at all levels in an organization.
A) ethnocentric staffing
B) polycentric staffing
C) vertical integration
D) horizontal integration
Answer:
Banks in the interbank market ________.
A) provide long-term loans to small-sized and medium-sized companies
B) provide long-term loans to large companies
C) offer advice on trading strategies
D) exchange currencies exclusively at spot rates
Answer:
Her argument is vulnerable to criticism because it fails to ________.
A) quantify the disparity between high-income and low-income nations
B) show that political and cultural factors have been taken into account
C) demonstrate the importance of market flexibility
D) highlight the environmental effect of globalization
Answer:
The free-market price that unrelated parties charge one another for a specific product is
called a(n) ________.
A) worldwide price
B) transfer price
C) dual price
D) arm’s length price
Answer:
GMI’s investments are examples of ________.
A) foreign direct investment
B) portfolio investment
C) vertical integration
D) horizontal integration
Answer:
________ will enable a company to reduce the degree to which it is vertically
integrated and the overall amount of specialized skills and knowledge that it would
have to possess.
A) Outsourcing
B) Skimming
C) Lean production
D) Centralized production
Answer:
Which of the following terms is used to refer to the process of ranking people into
social layers or classes?
A) social transformation
B) social stratification
C) social loafing
D) social mobility
Answer:
Central planning is rooted in the ideology that ________.
A) the welfare of a group is more important than individual well-being
B) individual concerns should be placed above group consensus
C) individual and group concerns are just as important as government concerns
D) privatization will enhance a country’s economic well-being
Answer:
The process of sending messages about products to target markets is called ________.
A) customer relations
B) customer service
C) market segmentation
D) marketing communication
Answer:
________ refers to the purchase, sale, or exchange of goods and services across
national borders.
A) Domestic trade
B) Foreign direct investment
C) International trade
D) Mercantilism
Answer:
________ is the process of identifying and selecting an organization’s objectives and
deciding how the organization will achieve those objectives.
A) Stratification
B) Planning
C) Economic transition
D) Value chain analysis
Answer:
Which of the following strategies is appropriate for companies in industries where
buyer preferences do not converge across national borders?
A) retrenchment strategy
B) global strategy
C) multidomestic strategy
D) mass customization strategy
Answer:
Which of the following was created by the Bretton Woods Agreement to enforce the
rules of the international monetary system?
A) International Bank for Reconstruction and Development
B) International Capital Market
C) International Monetary Fund
D) World Bank
Answer:
Decreasing levels of customer loyalty to an organization’s products is a major
disadvantage of the ________ strategy.
A) blue ocean
B) stability
C) low-cost leadership
D) growth
Answer:
Konesia is a country whose political leaders do not tolerate opposing viewpoints and
often suppress or punish dissidents. The lives of Konesians are tightly controlled by its
rulers. Which of the following political systems prevails in the country?
A) totalitarianism
B) democracy
C) anarchism
D) pluralism
Answer:
In the context of the sensitivity of demand for a product relative to changes in income, a
coefficient greater than 1.0 conveys a(n) ________.
A) surplus product
B) economic equilibrium
C) economic surplus
D) income-elastic product
Answer:
A(n) ________ channel gives producers a good deal of control over the sale of their
product by channel members such as wholesalers and retailers.
A) exclusive
B) intensive
C) two-level
D) selective
Answer:
A(n) ________ advantage is the one that a company gains from incorporating a
business activity within itself rather than leaving it to a relatively inefficient market.
A) ownership
B) internalization
C) location
D) comparative
Answer:
Which of the following is a contractual entry mode in which a company owning
intangible property grants another firm the right to use that property for a specified
period of time?
A) franchising
B) licensing
C) management contract
D) strategic alliance
Answer:
American Depository Receipts (ADRs) are ________.
A) certificates that represent shares of stock in American companies
B) dollar deposits made by foreign firms conducting business in the U.S.
C) certificates that trade in the U.S. and represent shares of stock in a non-U.S.
company
D) currency deposits made in the U.S. by firms based in other countries
Answer:
Most companies today operate in an environment of increased transparency and
scrutiny regarding their business activities. This is due to ________.
A) the rise of the social media
B) the prosperity of developing nations
C) the heterogeneity in markets
D) labor market flexibility in developing nations
Answer:
Political risk that affects all firms in a country is referred to as ________.
A) micropolitical risk
B) macropolitical risk
C) inclusive political risk
D) exclusive political risk
Answer:
Which of the following terms refers to the technology used in a culture to manufacture
goods and provide services?
A) vernacular culture
B) popular culture
C) trash culture
D) material culture
Answer:
Which of the following statements regarding ethnocentric staffing is true?
A) It can facilitate the transfer of special know-how.
B) It is a relatively inexpensive policy to implement.
C) It allows a company to “blend in” with the local market.
D) It is a poor choice for companies operating in highly nationalistic markets.
Answer:
If Trader’s Paradise purchases and sells the euros simultaneously in different markets
for profit, it would be engaging in currency ________.
A) swap
B) speculation
C) hedging
D) arbitrage
Answer: