1) Which of the following is most likely a true statement about organization culture?
A) Many organizations use a robust organization culture to create consistently high
performance
B) Fewer and fewer companies allow an organization’s culture to emerge naturally
C) Typically, managers from different countries have values similar to those endorsed
by the company
D) Divergent values among managers and employees ease the exchange of ideas
between people from different countries
2) The accounting value that relates to issues such as how to present financial
information and discuss financial results is known as ________.
A) measurement
B) conservatism
C) disclosure
D) optimism
3) Given the daily volume of foreign-exchange transactions, it is most accurate to say
which of the following?
A) It is impossible for a government’s interventions in the foreign-exchange market to
affect market psychology
B) A government’s intervention in the foreign-exchange market can reverse a currency’s
slide for the long term
C) A government’s intervention cannot force the foreign-exchange market to move in a
determined direction
D) A government should focus more on intervening in foreign-exchange markets than
on correcting economic fundamentals
4) ________ manufacturing is any manufacturing that takes place in a country different
from the home country.
A) Offshore
B) Multidomestic
C) Cost-minimization
D) Outsourcing
5) A voluntary export restriction (VER) refers to ________.
A) an agreement between two countries to reciprocally restrict exports to one another
B) requests by governments for companies to limit exports of militarily useful
technology
C) limiting companies’ exports to increase domestic supplies
D) limits placed on exports by a government of an exporting country at the request of
the government of an importing country
6) The ________ is the currency most widely used as a reserve asset.
A) euro
B) Japanese yen
C) U.S. dollar
D) British pound
7) International managers most likely need to understand how to evaluate international
geographic alternatives because ________.
A) they usually have a surplus of resources and need to take advantage of all
opportunities
B) many regional trading groups prohibit companies from outside of the trading group
from manufacturing in more than one member country
C) the commitment of resources to one locale may require forgoing projects in other
locales
D) decreased worldwide transportation costs and increased trade liberalization now
allow companies to serve worldwide markets from a single production location
8) Most trade groups contain countries in the same area of the world. Why is this so?
A) The distances that goods need to travel between such countries are short
B) Distribution channels are not easily established in adjacent countries
C) Adjacent countries are reluctant to coordinate policies
D) Neighboring countries usually lack a common history and interests
9) Which of the following best explains Nike’s quick response to criticism of unfair
employment practices in developing countries?
A) retaining employees
B) improving public relations
C) addressing product safety concerns
D) cutting costs in order to improve profits
10) In which of the following transactions is one currency swapped for another on one
date and then swapped back on a future date?
A) reverse transaction
B) spot transaction
C) FX swap
D) outright forward transaction
11) In Country X, all dimensions of economic activity, including pricing and production
decisions, are determined by the central government. Which term best describes
Country X?
A) market economy
B) mixed economy
C) command economy
D) democratic economy
12) ________ consists of specific learned norms based on attitudes, values, and beliefs
of a group of people.
A) Ethnology
B) Civilization
C) Culture
D) Doctrine
13) ________ strategies and the drive for global efficiencies force MNEs to establish
economies of scale in manufacturing.
A) Cost
B) Quality control
C) Cost-minimization
D) Flexibility
14) ________ integration is the political and economic agreements among countries
that give preference to member countries to the agreement.
A) Global
B) Economic
C) Bilateral
D) Regional
15) Which of the following accurately explains how producers are affected by exchange
rate changes?
A) To save money, a manufacturer may decide to relocate production to a country with
a stronger currency
B) A manufacturing firm relocating to a country with a weak currency can make a
cheap initial investment
C) Goods manufactured in a country with a weak currency may be relatively expensive
in world markets
D) A manufacturer with high operating expenses would likely relocate production to a
country with a currency that is gaining value
16) Which of the following is NOT a key stakeholder group that a company must work
to satisfy in order to survive in a global environment?
A) employees
B) competitors
C) shareholders
D) customers