The international monetary system created by the Bretton Woods Agreement collapsed
because ________.
A) of its heavy dependence on the stability of the dollar
B) it was not accepted by a majority of the world’s nations
C) it did not have the funds necessary for its functioning
D) it favored only the developed countries and was of no help to struggling nations
Answer:
Small companies selling traditional products benefit from ________.
A) the barriers to trade that restrict their products from crossing domestic boundaries
B) increased investment by foreign competitors in domestic markets
C) government policies that seek to regulate the flow of capital across national borders
D) technology that lowers the costs and difficulties of global communication
Answer:
A restriction on the amount of a good that can enter or leave a country during a certain
period of time is called a(n) ________.
A) administrative delay
B) local content requirement
C) quota
D) tariff
Answer:
Which of the following refers to a contract between the exporter and shipper that
specifies merchandise destination and shipping costs?
A) sight draft
B) bill of lading
C) letter of credit
D) bill of exchange
Answer:
Alistair has identified an option that might help the firm deal with the importer’s
inability to pay with hard currency. The option involves selling goods or services that
are paid for in whole or part with other goods or services. Which of the following
methods is Alistair considering?
A) auction
B) bidding
C) countertrade
D) tendering
Answer:
A firm’s subsidiary built abroad from the ground up is called a(n) ________.
A) greenfield investment
B) portfolio investment
C) distributive channel
D) shell corporation
Answer:
The positive or negative condition of relations between employers and their workers is
referred to as ________.
A) international relations
B) labor-management relations
C) corporatism
D) organizational hierarchy
Answer:
The physical path a product follows on its way to customers is called a(n) ________.
A) distribution channel
B) demand chain
C) critical path
D) external value network
Answer:
Which of the following, if true, demonstrates that Kirawi has an unstable business
environment?
A) Its business laws are inflexible and cannot be intrepreted according to the comfort of
government officials.
B) Its government does not enforce product liability laws or protect individual property
rights.
C) Its activities are bound by several multilateral agreements conducted with
neighboring countries.
D) Its private sector comprises independently owned firms that exist to make profits.
Answer:
The French Government promotes the concept of ________ by building museums and
monuments to preserve the legacies of important events and people.
A) subculture
B) national culture
C) popular culture
D) monoculture
Answer:
The European Union (EU) and European Free Trade Association (EFTA) created the
European Economic Area (EEA).
Answer:
Totalitarian political systems include authoritarian regimes such as ________.
A) democracy and theocracy
B) anarchism and pluralism
C) communism and fascism
D) capitalism and secularism
Answer:
Which of the following is a promotional strategy designed to pressure channel members
to carry a product and promote it to final users?
A) differentiation strategy
B) retrenchment strategy
C) push strategy
D) pull strategy
Answer:
A firm that buys from another company a good or service that is part of the firm’s
value-added activities is practicing ________.
A) outsourcing
B) vertical integration
C) horizontal integration
D) lean production
Answer:
Which of the following is true of distributors?
A) The use of distributors increases the exporter’s control over the price buyers are
charged.
B) They are compensated with a fixed salary plus commissions based on the value of
their sales.
C) They are seldom required to take ownership of the merchandise when it enters their
country.
D) They can stunt the growth of the exporter’s market share by charging very high
prices.
Answer:
Which of the following is a source of secondary data for conducting international
market research?
A) surveys
B) interviews
C) focus groups
D) trade associations
Answer:
________ says that nations should accumulate financial wealth, usually in the form of
gold, by encouraging exports and discouraging imports.
A) Absolute advantage theory
B) Factor proportions theory
C) Mercantilism
D) Communism
Answer:
________ refers to anything that disrupts the audience’s ability to receive and interpret a
promotional message.
A) Noise
B) Interpolation
C) Feedback
D) Resonance
Answer:
Which of the following statements, if true, strengthens their argument?
A) The Education Board of France has made it mandatory for schools to teach students
English as a second language.
B) The sales of English novels have risen sharply, while those of French novels have
declined to a corresponding extent.
C) Stores now advertise their presence with two placards; one in English and one in
French.
D) French fashions are no longer popular in English speaking countries.
Answer:
ABC Software has had difficulty obtaining funds to expand. A friend of the CEO
recommends that the company should explore an offshore financial center, which
________.
A) is a country or territory whose financial sector features very few regulations and few,
if any, taxes
B) tends to be characterized by political and economic instability making, it is an
inexpensive but risky source of funds
C) typically lends money to companies that have had difficulty getting financing
elsewhere because of poor credit records
D) is a financial center located in a resort community and is characterized by poor
telecommunications infrastructure
Answer:
Economic transition is the process of moving from ________.
A) developed to developing economies
B) centrally planned to free-market economies
C) developed to emerging economies
D) free-market to centrally planned economies
Answer:
It the actual euro/dollar exchange rate on currency markets is €1.2/$, and a kilogram of
wheat still costs $1 in the U.S. and €1.5 in France, Sam also knows that the price of a
kilogram of wheat in France is ________.
A) $1.25
B) $.80
C) €.80
D) €1.2
Answer:
One of the major pillars upon which the practice of mercantilism rested was ________.
A) economies of scale
B) pricing mechanism
C) excessive imports
D) trade surpluses
Answer:
The ________ was an agreement among the G7 nations that the dollar was
appropriately valued and that they would intervene in currency markets to maintain its
current market value.
A) Bretton Woods Agreement
B) Smithsonian Agreement
C) Plaza Accord
D) Louvre Accord
Answer:
A currency used as an intermediary to convert funds between two other currencies in
the foreign exchange market is called a ________.
A) local currency
B) vehicle currency
C) community currency
D) private currency
Answer:
________ is the environmental impact of greenhouse gases (measured in units of
carbon dioxide) that results from human activity.
A) Carbon footprint
B) Greenhouse log
C) Carbon cycle
D) Greenhouse check
Answer:
Which of the following statements about approaches to political risk management is
NOT true?
A) Passive political risk management discourages managers from fully or partially
hedging their bets against exposure to political hazards.
B) Passive political risk management assumes that it is difficult, if not impossible, to
systematically model political risk.
C) Active political risk management assumes that positive and negative political events
in any country are neither independent nor random events.
D) Active political risk management assumes that political events unfold in observable
patterns that statistical methods can detect.
Answer:
________ require that member countries concede a certain amount of their national
autonomy to the supranational union of which they are a part.
A) Free trade areas
B) Customs unions
C) Economic unions
D) Preferential trade areas
Answer:
Countries belonging to a ________ maintain whatever policies they see fit against
nonmember countries.
A) economic union
B) customs union
C) common market
D) free trade area
Answer:
Country risk is considered similar to ________.
A) political risk
B) commercial risk
C) currency risk
D) cross-cultural risk
Answer:
Economic integration whereby countries remove all barriers to trade and the movement
of labor and capital between themselves and set a common trade policy against
nonmembers is called a ________.
A) free trade area
B) customs union
C) common market
D) preferential trade area
Answer:
Which of the following terms is defined as the set of values, beliefs, rules, and
institutions held by a specific group of people?
A) law
B) philosophy
C) culture
D) science
Answer:
A ________ is a separate company created and owned by two or more independent
entities to achieve a common business objective.
A) wholly owned subsidiary
B) joint venture
C) strategic alliance
D) turnkey project
Answer:
The process of obtaining information that already exists within the company or that can
be obtained from outside sources is called ________.
A) secondary market research
B) data mining
C) data harvesting
D) scientific data archiving
Answer: