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1) If a brand name becomes generic in one country, it becomes generic in other
countries as well.
2) A company would most likely outsource abroad in order to gain access to more
domestic products.
3) Good scanning helps managers avoid the need to make a detailed analysis of
countries when deciding where to operate.
4) A democracy grants the voting citizenry the power to alter the laws and structures of
government.
5) Sourcing in the home country enables a company to avoid numerous problems
associated with global sourcing.
6) According to the product life cycle theory, production and sales are primarily
domestic in the introductory stage because ________.
A) businesses need quick market feedback
B) tariff reductions remain under negotiation
C) international transport costs are too high
D) international patents have not been approved
7) What is the primary reason that Anglo American PLC developed its ART program?
A) comply with government standards
B) maintain a healthy workforce
C) abide by union demands
D) reduce employee benefits
8) Contrary to the product life cycle theory, there has been an increased tendency for
companies to ________.
A) sell products only in their home markets throughout the cycle
B) produce and sell products in countries where counterfeiting is low
C) introduce new products simultaneously in domestic and foreign markets
D) sell new products in developing countries before expanding into developed countries
9) Apex Enterprises, an MNE based in the U.S., is spending too much money on
expatriate assignments. Which of the following methods would LEAST likely help
Apex reduce expatriate costs?
A) offering cross-border commuter assignments
B) designing more short-term projects
C) establishing a localization policy
D) expanding core competencies
10) Turnkey projects generally differ from other forms of international business in that
________.
A) they tend to be smaller
B) customers are more likely private companies
C) they are more often located in remote areas
D) they depend almost entirely on acquisitions rather than greenfield operations
11) Stella, who works and lives in San Diego, wants to send money to her mother who
lives in a small village south of Puerto Vallarta, Mexico. Stella typically uses Western
Union to handle the transaction. Which of the following is the most likely reason that
Stella uses Western Union?
A) no fees
B) convenience
C) low exchange rates
D) cross rate capability
12) In terms of political risk, it is most accurate to state that high risk ________.
A) affects all geographic regions of a country equally
B) affects all foreign companies in the same manner
C) if avoided, may lead to higher competitive risk
D) triggers government turnovers
13) ION Software is the registered owner of a program designed to help sort and
organize incoming and outgoing e-mail. Which of the following legal conventions does
ION most likely have?
A) intellectual property right
B) trademark credential
C) patent certificate
D) TRIPS permit
14) Although there are different views about the purpose of a political system, most
analysts agree that an essential task of a political system is to ________.
A) integrate the different elements of a society into a functioning unit
B) allocate scarce resources among competing users
C) develop reasonable attitudes and outlooks within the population
D) protect individuals within the country from foreign threats
15) As a leading exporter of luxury automobiles, Germany has built a strong reputation
in engineering. Germany's trade most likely relies on a(n) ________.
A) outward immigration restriction
B) natural advantage
C) acquired advantage
D) neomercantilist policy
16) Which of the following is NOT affected by the Foreign Corrupt Practices Act?
A) companies registered in the U.S
B) foreign firms operating in U.S. territory
C) foreign firms quoted on a U.S. stock exchange
D) foreign companies managed by U.S. expatriates
17) Which of the following is true of export trading companies in the United States?
A) They are like independent distributors that match buyers with buyers
B) They are prohibited from working with a firm's competitors due to antitrust laws
C) They must be established independently of the company in order to avoid a conflict
of interest
D) They have been a successful form of export intermediation in recent years
18) Which of the following best explains why migrant workers in Dubai send money
back home?
A) Non-citizens cannot purchase property
B) Non-citizens have temporary visas
C) Western Union offers low rates
D) Labor demand is flexible
