When going global with an Internet presence, it is highly beneficial for a business to
localize its Web site.
Answer:
Increased regulation of national capital markets has been instrumental in the expansion
of the international capital market.
Answer:
The lower a product’s value density, the more localized is the distribution system for
that product.
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A global matrix structure is an organizational structure that divides worldwide
operations according to a company’s product areas.
Answer:
Pluralistic political systems include authoritarian regimes such as communism and
fascism.
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Reverse culture shock is the trouble expatriates face while adjusting to a new
environment in which they find themselves.
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Debt appeals to companies because it lowers the amount of taxes the companies must
pay.
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Technical analysis employs charts of past trends in currency prices and other factors to
forecast exchange rates.
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The automobile industry is typically protected for national security reasons.
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A political union makes it mandatory for nations to accept a common stance on all
economic and political policies within their territories.
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Companies can achieve economies of scale by expanding into international markets.
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The cultural relativist view says that a company’s sole responsibility is to maximize
profits for its owners while operating within the law.
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The process of recruitment involves screening and hiring the best-qualified applicants
with the greatest performance potential.
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Portfolio investment is the purchase of physical assets of a company in another country
to gain a degree of management control.
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A characteristic of the world’s least-global nations is low levels of corruption.
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Counterfeiting is common among highly visible brand-name consumer goods.
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Under a turnkey project, one company supplies another with managerial expertise for a
specific period of time.
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Factor proportions theory states that factors in great supply relative to demand will be
more costly than factors in short supply relative to demand.
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Managers who take an active approach to political risk management are likely to rely
on statistical modeling to quantify the precise degree of political risk.
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Businesspeople measure material culture to determine whether a market can support
production activities.
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Managers who take an active approach to political risk management are likely to rely
on statistical modeling to quantify the precise degree of political risk.
Answer:
The process of identifying and attracting a qualified pool of applicants for vacant
positions is called selection.
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Emerging markets typically have fewer forms of mass media for use in implementing a
pull strategy.
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A culture with small power distance tends to be characterized by considerable
inequality between superiors and subordinates.
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Economic socialism won the battle over communist totalitarianism and capitalism.
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Religion is confined to national political boundaries.
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Codetermination allows labor representatives to participate in high-level company
meetings.
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The intentional lowering of the value of a currency by a nation’s government is called
revaluation.
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According to Fisher effect, real interest rate is the sum of the nominal interest rate and
the expected rate of inflation over a specific period.
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Anarchism is the belief that every aspect of people’s lives must be controlled in order
for a nation’s political system to be effective.
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When a country’s religious leaders are also its political leaders, its political system is
called a theocracy.
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A result of trade creation is that buyers pay higher prices for imported goods and
services after trade barriers are removed.
Answer:
A common market area is the greatest extent of national integration.
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Low unemployment rates can lead to higher inflation.
Answer:
The single greatest disadvantage of survey research is that it provides access to only a
small amount of data in a single sweep.
Answer:
In the maturing product stage of the international product life cycle theory, increased
competition creates pressures to reduce production costs.
Answer:
Foreign properties expropriated by a government cannot be reclaimed.
Answer:
Which of the following is the greatest extent of regional economic integration?
A) free trade area
B) political union
C) common market
D) customs union
Answer:
Which of the following statements is true of countertrade?
A) Countertrade is practiced by countries when there is a lack of hard currency.
B) Countertrade involves products whose prices on world markets tend to remain
steady.
C) Countertrade usually involves industrial products and computer softwares.
D) Hedging risk in countertrade is prohibited.
Answer:
The ease with which bondholders and shareholders may convert their investments into
cash is called ________.
A) barter
B) clearing
C) countertrade
D) liquidity
Answer:
A company is conducting a research on new markets by comparing countries in terms
of their human development index (HDI) scores. The company wishes to expand into a
market where individuals experience a very high level of total well-being. Which of the
following countries would the company most likely choose?
A) Russia
B) Mexico
C) China
D) Japan
Answer:
Topsy Turvey Toys buying its merchandise from Ureshi Toys is an example of
________.
A) importing
B) exporting
C) outsourcing
D) insourcing
Answer:
During which stage of the international product life cycle theory does demand rise and
remain sustained for a fairly lengthy period of time?
A) product decline stage
B) new product stage
C) maturing product stage
D) standardized product stage
Answer:
The sensitivity of demand for a product relative to changes in income is called
________.
A) income elasticity
B) demand shaping
C) income distribution
D) market intensity
Answer:
If Blickinstock’s home government tries to stop the company from investing in Latin
America, the government is most likely trying to ________.
A) protect its balance of payments
B) prevent a monopoly situation from occurring
C) discourage the entry of a ‘sunset” company
D) protect the ‘sunset” companies in Latin America
Answer:
Under ________ the government endorses private ownership of property and a
market-based economy but grants little or no political freedom.
A) left-wing totalitarianism
B) theocratic totalitarianism
C) secular totalitarianism
D) right-wing totalitarianism
Answer:
Which step of the market-screening process involves determining the income elasticity
of the Zulu doll?
A) selection of the market
B) assessment of the national business environment
C) identification of the basic appeal for markets
D) measurement of market potential
Answer:
Investors use the foreign exchange market for ________.
A) stock dilution
B) currency speculation
C) market capitalization
D) mean reversion
Answer:
If Happyland is successful in attracting foreign direct investment, transactions involving
those investments would appear in the country’s ________ account.
A) capital
B) services
C) income payments
D) merchandise
Answer:
Which of the following is true of foreign direct investment?
A) The contributions of entrepreneurs and small businesses to foreign direct investment
is insignificant.
B) Globalization has led emerging markets to undertake less foreign direct investment
and industrialized nations to undertake more foreign direct investment.
C) The desire to increase a firm’s global competitiveness drives many cross-border
mergers and acquisitions.
D) Foreign direct investment does not involve obtaining a degree of control in a
company.
Answer:
Governments impose currency restrictions in their countries to ________.
A) encourage future investment outflows
B) indirectly reduce imports and exports
C) protect currencies from speculators
D) exhaust their reserve of hard currencies
Answer:
A team of top managers from both headquarters and international subsidiaries who meet
to develop solutions to company-wide problems is referred to as a ________ team.
A) virtual
B) global team
C) cross-functional team
D) self-managed team
Answer:
A group of fifty-three nations on the African continent joined forces in 2002 to create
the ________.
A) Economic Community of West African States
B) African Union
C) African Unification Front
D) Organisation of the African Unity
Answer:
The Court of Justice is the ________ of the European Union.
A) court of honor
B) court of appeals
C) small-claims court
D) arbitral tribunal
Answer:
Which of the following countries would a watchmaker most prefer to manufacture its
watches in, in order to capitalize on buyer perceptions of high quality?
A) China
B) Thailand
C) Mexico
D) Switzerland
Answer:
Which of the following methods will Happyland use to encourage foreign direct
investment inflows?
A) tax incentives
B) sanctions
C) ownership restrictions
D) performance demands
Answer:
Critics of globalization say that global consumer-goods companies destroy ________.
A) the homogenization of markets
B) societal conformity
C) free trade areas
D) cultural diversity
Answer:
Economic integration whereby countries remove all barriers to trade among themselves,
but each country determines its own barriers against nonmembers, is called a(n)
________.
A) economic union
B) customs union
C) common market
D) free trade area
Answer:
Which of the following is a political motive behind a government’s intervention in
trade?
A) promoting a strategic trade policy
B) gaining influence over other nations
C) protecting a country from unwanted cultural influence
D) protecting young industries from competition
Answer:
Which of the following is a push strategy that companies use to promote their products?
A) mass media advertising
B) direct marketing techniques
C) free trial packages
D) retail product stocking
Answer:
Jeans Unlimited manufactures its clothing at facilities located in two Southeast Asian
countries. The dispersal of manufacturing activities by the company indicates
________.
A) customization of products
B) niche marketing
C) globalization of markets
D) globalization of production
Answer:
Which of the following factors has the least effect on facilities layout planning?
A) supply of land in a nation
B) cost of land in a nation
C) a firm’s production process
D) age of the company
Answer:
________ refers to a situation in which facilities are spread over several locations, with
one facility for each national business environment in which the company markets its
products.
A) Continuous production
B) Decentralized production
C) Vertical integration
D) Lean production
Answer:
________ are usually located on small island nations or territories with favorable tax
and/or secrecy laws.
A) Cybermarkets
B) Over-the-counter markets
C) Booking centers
D) Operational centers
Answer:
Globalization is criticized because it ________.
A) does not generate labor market flexibility in developing nations
B) prevents developed countries from outsourcing work to developing nations
C) creates fewer manufacturing jobs in developing nations
D) exploits workers in low-wage nations
Answer:
Reverse brain drain is the process by which ________.
A) manual laborers migrate from low-income countries to high-income countries
B) former communist nations lure professionals back to their homeland
C) students from Europe choose to enroll themselves in American universities
D) companies in high-income countries hire people from low-income countries to fill
white-collar positions
Answer:
________ is often used to measure the technological advancement of a nation’s markets
or industries.
A) Material culture
B) Popular culture
C) Trash culture
D) Vernacular culture
Answer:
The likelihood that a society will undergo governmental changes that negatively affect
local business activity is known as ________.
A) volatility risk
B) systemic risk
C) political risk
D) credit risk
Answer:
Which of the following statements is true of objectives?
A) Objectives of individual business units in a company tend to be stated in the most
general terms.
B) Objectives become more precise at the level of individual departments.
C) Objectives at the highest level in an organization tend to be more specific.
D) Objectives at the highest level in an organization are more concrete as they contain
numerical targets.
Answer:
What are the advantages of American Depository Receipts (ADRs)?
Answer:
Discuss the factors that contributed to the collapse of centrally planned economies.
Answer:
Explain the purpose of antitrust laws. How would the Friedman philosophy of corporate
social responsibility most likely support a decision by a company to expand
internationally into a country with weak antitrust laws? Include a description of the
Friedman philosophy in your answer.
Answer:
Describe some of the cultural challenges of doing business with countries of Central
and Eastern Europe. How do these challenges compare with the challenges of doing
business with ASEAN countries?
Answer:
Explain why companies consider exporting. Describe the four-step model of developing
a successful export strategy.
Answer:
What are the different financing methods available to exporters and importers?
Answer:
Describe the most important features of the international monetary system created by
the Bretton Woods Agreement.
Answer:
How does economic development in countries affect international business?
Answer:
What are the differences between a turnkey project and a strategic alliance?
Answer:
Explain how a global strategy complements a corporate growth strategy.
Answer:
What are the factors managers consider when analyzing industrialized markets? Discuss
why the comparability of data is a major challenge while conducting international
research.
Answer:
Globalization’s impact on jobs and wages is an important topic for debate. Discuss the
major points for globalization in the jobs and wages debate, and describe how the
actions of large multinational corporations affect the issues in the jobs and wages
debate.
Answer:
How can companies use internal funding to finance ongoing international business
activities?
Answer:
Describe the production managers’ decision regarding whether to centralize or
decentralize production facilities, and explain the benefits of vertical integration.
Answer:
Describe any five variables commonly included in creating a market-potential analysis
for an emerging market.
Answer:
Explain each of the following terms, giving examples of each: patent, trademark, and
copyright.
Answer:
Briefly describe the three main institutions of the foreign exchange market.
Answer:
Explain why a person’s ability to bridge cultural differences must be considered during
‘selection” for international assignments. How can eTraining help in bridging cultural
differences?
Answer: