a theocratic law system is one in which the law is based on religious teachings.
in practice only a few countries country have adopted the free market view in its pure
form.
antidumping policies are designed to punish foreign firms that are engaged in dumping.
regardless of a firms domestic structure, its international division tends to be organized
on economy.
max weber thought that devout hindus would be less likely to engage in entrepreneurial
activity than devout protestants.
the connection between culture and competitive advantage has important implications
for the choice of countries in which to locate production facilities and do business.
according to mendenhall and oddou, poorly adjusted expatriates tend to be
nonjudgmental and nonevaluative in interpreting the behavior of host-country nationals.
a note payable must always be paid before an account payable.
which of the following observations is not true of the euro?
a.it is used by all member states of the european union
b.it required participating countries to give up their own currencies
c.it required participating countries to give up control over monetary policy
d.by adopting it, the eu created the second most widely traded currency in the world
_____ is most likely to occur when the value of the domestic currency is depreciating
rapidly because of hyperinflation or when a countrys economic prospects are shaky in
other respects.
a.the random walk effect
b.the fisher effect
c.the international fisher effect
d.capital flight
which of the following countries has a concentrated retail system?
a.china
b.usa
c.japan
d.india
other things being equal, the rate of new-product development seems to be greater in
countries where:
a.less money is spent on basic and applied r&d
b.consumers are affluent
c.underlying demand is weak
d.competition is mild
in early 2006, six caricom members and the united states established the ____, which
was modeled on the eus single market.
a.central american common market
b.central america free trade agreement
c.caribbean single market and economy
d.north american free trade area
Which of the following is an accounting problem that only international businesses
face?
A.Lack of consistency in the accounting standards
B.Inaccurate filing of profit-and-loss statements
C.False reporting of income to the government
D.Lack of a dedicated accounting function within the firm
what was the main objection raised by those in the united states and canada who
opposed the ratification of the nafta?
a.job losses
b.balance of payment problems
c.threat of competition from asian companies
d.threat of a loss of national sovereignty
_____ is the ability to understand why people of other countries behave the way they
do.
a.others-orientation
b.cultural myopia
c.perceptual ability
d.cultural toughness
which of the following is a major benefit of engaging in free trade?
a.it helps to reduce the financial volatility in global markets
b.it helps the countries protect the jobs that are available to their citizens
c.it gives countries access to products that they cannot produce
d.it allows the governments to exert more control on businesses
which of the following statements is true of turnkey projects?
a.turnkey projects are most common in industries which use simple, inexpensive
production technologies
b.a turnkey strategy can be more risky than conventional fdi
c.a turnkey strategy is particularly useful where fdi is limited by host-government
regulations
d.firms that enter into a turnkey deal have a long-term interest in the foreign country
which of the following is less likely to add to the pressure for a firm to be locally
responsive?
a.national differences in consumer tastes and preferences
b.differences in infrastructure and traditional practices
c.switching costs for consumers
d.host-government demands
under a(n) _____ agreement, a firm might license some valuable intangible property to
a foreign partner, but in addition to a royalty payment, the firm might also request that
the foreign partner license some of its valuable know-how to the firm.
a.integrated licensing
b.chartering
c.franchising
d.cross-licensing
a draft used in international transactions ____.
a.is a document requesting payment
b.explains the conditions of a contract
c.is the same as a letter of credit
d.gives bank guarantee to an exporter
a bond with a face value of $200,000 and a quoted price of 102 has a selling price of
a.$240,450
b.$204,050
c.$200,450
d.$204,500
Early outsourcing efforts were primarily confined to ____.
A.health care
B.service activities
C.technological research
D.manufacturing activities
contrary to levitts suggestions, consumers in the most developed countries are often:
a.willing to sacrifice their preferred attributes for lower prices
b.not willing to pay more for products that have additional features customized to their
tastes
c.not willing to sacrifice their preferred attributes for lower prices
d.willing to accept globally standardized products that have been developed with the
lowest common denominator in mind
which of the following products will have low value-to-weight ratios?
a.pharmaceuticals
b.refined sugar
c.microprocessor
d.electronic items
porter argues that a nations firms gain competitive advantage if ____.
a.their domestic consumers lack technical awareness
b.they function in a labor intensive market
c.the country has abundant supply of unskilled workers
d.their domestic consumers are demanding
which of the following observations is consistent with michael porters theory of
national competitive advantage?
a.factors such as domestic demand and domestic rivalry determine nations dominance
on production
b.countries should produce only those goods for which they have a comparative
advantage
c.interplay between the factors of production cause international marketing decisions
d.international differences in labor productivity determine nations supremacy in
production
which of the following statements is true about a class system?
a.a class system is a more rigid form of social stratification, compared to a caste system
b.a class system is a closed form of stratification
c.social mobility within a class system varies from society to society
d.in a class system, social position is determined at birth and cannot be changed during
an individuals lifetime