A company can achieve market power through ________.
A) ownership advantages
B) internalization advantages
C) horizontal integration
D) vertical integration
Answer:
Crystal inc. is a multifaceted company that deals with the mining, cutting, and selling of
diamonds. It gives distributors and suppliers access to its database to place orders or
restock inventories electronically and automatically. Which of the following is the
network implemented in the company?
A) intranet
B) chaosnet
C) extranet
D) ethernet
Answer:
________ occurs if ownership of a property or assets of a company is transferred to the
host government.
A) Internalization
B) Nationalization
C) Deportation
D) Deracination
Answer:
The French government buying its own securities on the open market is part of the
________ of France.
A) fiscal policy
B) monetary policy
C) industrial policy
D) investment policy
Answer:
Buyback is defined as ________.
A) the export of industrial equipment in return for products produced by that equipment
B) an agreement that a company will offset a hard-currency sale to a nation by making a
hard-currency purchase of an unspecified product from that nation in the future
C) the sale of goods or services to a country by a company that promises to make a
future purchase of a specific product from that country
D) the exchange of goods or services for a certain amount of money
Answer:
________ is the belief that both private and public groups play important roles in a
nation’s political activities.
A) Totalitarianism
B) Capitalism
C) Anarchism
D) Pluralism
Answer:
Sam’s mentor at the firm told him that the ________ stipulates that an identical product
must have an identical price in all countries when the price is expressed in a common
currency.
A) exchange price
B) law of one price
C) fixed exchange-rate system
D) floating exchange-rate system
Answer:
When a company exports a product at a price that is lower than the price normally
charged in its domestic market or lower than the cost of production, it is said to be
________.
A) dumping
B) ringfencing
C) hoarding
D) cost-shifting
Answer:
Which of the following is the first phase of human resource planning?
A) developing a plan to recruit and select people to fill vacant and anticipated new
positions
B) estimating the company’s future human resource needs
C) taking an inventory of the company’s current human resources
D) promoting employees to positions of greater responsibility
Answer:
Which of the following theories states that firms undertake foreign direct investment,
when the features of a particular location combine with ownership and internalization
advantages, to make the location appealing for investment?
A) market power theory
B) international product life cycle theory
C) market imperfections theory
D) eclectic theory
Answer:
According to the Porter diamond, which of the following is an example of an advanced
factor?
A) labor forces in the nation
B) technological infrastructure in the nation
C) climate in the nation
D) natural resources in the nation
Answer:
A ________ strategy often means designing products and promotions aimed at
consumers who are either dissatisfied with existing choices or who want something
distinctive.
A) global
B) stability
C) low-cost leadership
D) focus
Answer:
A government buys its own securities on the open market when the ________.
A) inflation rate in the country is high
B) inflation rate in the country is low
C) interest rates in the country are high
D) interest rates in the country are low
Answer:
Governments in developing countries impose fewer consumer protection laws in order
to ________.
A) hold down production costs and consumer prices
B) enable companies to focus on profit-making exclusively
C) decrease the flow of foreign direct investment into the country
D) decrease the complexity of the legal procedures for foreign direct investment
Answer:
A(n) ________ channel places a single intermediary between the producer and the
buyer.
A) intensive
B) exclusive
C) one-level
D) two-level
Answer:
________ is the financing obtained from investors who believe the borrower will
experience rapid growth and who receive equity in return for their investment.
A) Internal funding
B) Venture capital
C) Credit derivative
D) Mortgage loan
Answer:
The Free Trade Area of the Americas (FTAA) is a trade agreement ________.
A) between Mexico, Canada, and the U.S.
B) among the South American nations
C) that has been proposed to create the largest free trade area on the planet
D) that includes the United States and the European Union
Answer:
Which of the following is a characteristic based on which products are typically
differentiated?
A) brand loyalty
B) brand equity
C) product design
D) product cost
Answer:
A(n) ________ tariff is levied as a percentage of the stated price of an imported
product.
A) specific
B) compound
C) ad valorem
D) transit
Answer:
________ political systems include democracies, constitutional monarchies, and some
aristocracies.
A) Totalitarian
B) Anarchist
C) Fascist
D) Pluralistic
Answer:
Upon what assumption does Donna’s conclusion rest?
Donne assumes that ________.
A) there are no factors other than globalization which influence the economic
conditions of a country
B) the welfare of individuals matters less than the economic prosperity of a nation
C) globalization does not affect the employment rate of developed and developing
countries
D) the wages paid to all individuals within developed countries are equal
Answer:
The term ________ refers to a company’s efforts to reach distribution channels and
target customers through communications such as personal selling, advertising, public
relations, and direct marketing.
A) social marketing
B) viral marketing
C) promotion mix
D) positioning
Answer:
Which of the following would companies do in markets that require long payback
periods?
A) divest operations
B) implement retrenchment strategies
C) emphasize on decruitment
D) reinvest profits
Answer:
________ refers to the concentration of production facilities in one location.
A) Lean production
B) Continuous production
C) Centralized production
D) Horizontal integration
Answer:
Laws designed to prevent companies from fixing prices, sharing markets, and gaining
unfair monopoly advantages are called ________.
A) antitrust laws
B) theocratic laws
C) anarchist laws
D) bilateral laws
Answer:
Bonds sold outside the borrower’s country and denominated in the currency of the
country in which they are sold are called ________.
A) municipal bonds
B) foreign bonds
C) Eurobonds
D) domestic bonds
Answer:
Christopher Electronics plans to expand into foreign markets. Top executives want the
firm to focus only on locations where the rule of law prevails. Which of the following
should most likely be considered by Christopher?
A) wealthier, westernized countries
B) developing, non-Western countries
C) emerging economies experiencing rapid growth
D) countries inclined toward totalitarian-style government
Answer:
When a country is not able to produce a good more efficiently than other nations, but
produces the good more efficiently than it does any other good, it is said to have a(n)
________.
A) absolute advantage
B) resource advantage
C) first-mover advantage
D) comparative advantage
Answer:
Some nations encourage ________ because of recent resistance to worldwide trade
agreements.
A) regional pacts
B) homogeneous markets
C) product standardization
D) domestic manufacturing
Answer:
Which of the following philosophies asserts that ownership of the means of production
belongs in the hands of individuals and private businesses?
A) capitalism
B) communism
C) tribalism
D) socialism
Answer:
Which of the following was an advantage of the gold standard?
A) It retained trade imbalances.
B) It abolished monetary policies on all countries.
C) It reduced the risk in exchange rates.
D) It increased exchange-rate fluctuations.
Answer: