1) Which of the following best explains why international business has grown rapidly in
the past few decades?
A) the end of the political division between the Communist and non-Communist blocs
B) greater income equality in most countries
C) growing concern about climate change
D) increased concerns about terrorism
2) Tyrone is a production manager at Penderhall Electronics, an MNE with operations
in Asia, Europe, and the United States. Tyrone has very little decision-making authority
at Penderhall, since most decisions are made at headquarters and distributed downward.
Which structure is most likely used by Penderhall?
A) centralized
B) systematic
C) decentralized
D) multidomestic
3) Which type of exchange rate arrangement is based on supply and demand?
A) soft peg
B) hard peg
C) crawling
D) floating
4) Some companies select locations in different countries to specialize in the production
of parts or final goods, which is known as ________.
A) centralized manufacturing
B) the multidomestic approach
C) offshore manufacturing
D) rationalization
5) Amazon relies on the Internet to join together suppliers with companies and
companies with customers. Amazon is most likely using ________.
A) value-added networks
B) e-commerce
C) electronic data interchange
D) private technology exchange
6) Many economists have predicted that Hong Kong will change its currency system to
the ________.
A) U.S. dollar
B) euro
C) yuan
D) won
7) A major challenge faced by Western Union in wiring money between the United
States and Mexico is that ________.
A) it can only transfer funds in one direction
B) it is facing competition from some commercial banks
C) Mexican citizens do not like to use its services because it does not have strong ties
with Mexican banks
D) Mexican citizens trust the banks but do not trust Western Union due to its heritage as
a Western bank
8) Which term refers to restricting imports in order to boost domestic production and
consumption of goods that would otherwise be imported?
A) import substitution
B) terms-of-trade
C) most-favored nation
D) in-sourcing
9) The marketing orientation used by Bantam Shoes for its foreign sales focuses
primarily on efficiency and product quality. Bantam most likely uses a ________.
A) production orientation
B) customer orientation
C) sales orientation
D) strategic marketing orientation
10) Under mercantilism, governments sought to influence trade by ________.
A) establishing bilateral trading agreements with other countries
B) limiting exports
C) limiting imports and subsidizing exports
D) encouraging the development of manufacturing in their colonies
11) The Internet supports more companies’ efforts to launch a direct exporting strategy
by ________.
A) providing information quickly and inexpensively
B) eliminating the need for highly detailed export plans
C) letting software take over customer service responsibilities
D) countering the power of electronic data interchange systems
12) From an accounting perspective, countries with strong equity markets and
shareholder orientations tend to be ________.
A) macro-uniform systems
B) micro-based systems
C) law-based systems
D) tax-based systems
13) Jeanette Thompson, a native Texan, is being sent by her company, Samsung of
South Korea, to head up a new facility in Hong Kong. Jeanette would be considered
a(n) ________.
A) inpatriate
B) host-country citizen
C) third-country national
D) local executive
14) What types of payments are legal and illegal under the Foreign Corrupt Practices
Act (FCPA) of the United States? Provide an example.
15) Concord Foods, an international firm based in the U.S., is in the process of
transitioning from a classical organizational structure to a neoclassical structure. Which
of the following tools would most likely enable Concord to make this change?
A) annual performance appraisals
B) cross-functional task forces
C) flexible benefits plans
D) merit awards
16) According to the integration-responsiveness (IR) grid, consumer electronics and
corporate banking are two types of industries with ________ industry pressure for
global integration and ________ industry pressure for local responsiveness.
A) low; low
B) high; high
C) low; high
D) high; low
17) The best way for a Euroequity to get a listing in the United States is to issue a(n)
________.
A) Global Depositary Receipt
B) European Depositary Receipt
C) American Depositary Receipt
D) Domestic Depositary Receipt