________ is the layer of corporate social responsibility in which a business builds
social responsibility into its core operations to create value and build competitive
advantage.
A) Risk management
B) Traditional philanthropy
C) Strategic CSR
D) Political polity
Answer:
Which of the following is used by governments for the convertibility of currencies in
their countries?
A) multiple exchange rates
B) countertrade
C) import deposit requirements
D) OTC market
Answer:
An organizational structure that splits the chain of command between product and area
divisions is referred to as a(n) ________ structure.
A) international area
B) international division
C) global matrix
D) global product
Answer:
Which of the following is a psychological process affecting employees living abroad
and is characterized by homesickness, irritability, confusion, aggravation, and
depression?
A) social loafing
B) groupthink
C) culture shock
D) halo effect
Answer:
Restrictions on the convertibility of a currency into other currencies are referred to as
________.
A) administrative delays
B) currency crisis
C) local content requirements
D) currency controls
Answer:
________ are all goods and services sold abroad and sent out of a country.
A) Net national products
B) Exports
C) Gross domestic products
D) Imports
Answer:
According to Hofstede’s framework, a culture with ________ values security and places
its faith in strong systems of rules and procedures in society.
A) large uncertainty avoidance
B) low power distance
C) short-term orientation
D) high individualism
Answer:
The difference between the balances of the current and capital accounts of a country’s
balance of payments caused by errors in recording methods is called a(n) ________.
A) round-off error
B) type I error
C) currency crisis
D) statistical discrepancy
Answer:
Global products are most commonly seen in industries where there is ________.
A) little convergence of buyer preference across national borders
B) low pressure to contain costs
C) high demand for customized products
D) significant price competition
Answer:
Upon what assumption does their argument rest?
They argument assumes that ________.
A) the people of France prefer English music and movies to French music and movies
B) the people of France no longer speak French
C) the people of other countries aren’t open to French cultural elements
D) Hollywood movies don’t have French subtitles
Answer:
An investor wants to invest in a country that has a high gross national income (GNI).
Which of the following countries would most likely qualify as a prospect?
A) Nepal
B) India
C) Japan
D) Vietnam
Answer:
A home country encourages outflows of foreign direct investment because it ________.
A) helps in replacing jobs at home
B) sends resources out of the home country
C) tends to increase the long-term competitiveness of firms
D) takes the place of all the exports and imports in the country
Answer:
The new subsidiary’s production facilities will employ approximately 100 full-time
nonmanagerial workers. Who among the following will Erica most likely recruit to fill
these positions?
A) highly productive workers relocated from developing nations
B) bilingual U.S. citizens who speak the language of the host country
C) qualified workers from the local market
D) workers from the American headquarters who are interested in gaining international
experience
Answer:
Which of the following is an example of globalization of production?
A) Canadian consumers who import food products from Australia
B) A German company which sells car components to British car makers
C) A U.S. company that builds a computer hardware manufacturing facility in India
D) A Swiss watch manufacturer that builds a manufacturing facility in Switzerland
Answer:
The segment of the economic environment comprising independently owned firms that
seek to earn profits is called the ________.
A) political sector
B) private sector
C) democratic sector
D) public sector
Answer:
Through his research, Owen learns that the first step in developing a successful export
strategy is ________.
A) initiation of meetings with intermediaries
B) identification of a potential market
C) commitment of resources
D) matching of market needs to company abilities
Answer:
The population of a(n) ________ market is mostly rural and is characterized by poor
infrastructure with little credit or collateral.
A) emerging
B) traditional
C) developed
D) virtual
Answer:
Country A produces a ton of coffee using one unit of resources. Country B produces
two tons of coffee using one unit of resources. Which of the following is true regarding
Country A and Country B?
A) Country A has an absolute advantage in producing coffee.
B) Country B has an absolute advantage in producing coffee.
C) Neither Country A nor Country B has an absolute advantage in producing coffee.
D) Both Country A and Country B have an absolute advantage in producing coffee.
Answer:
Which of the following occurs when the price of a good is lower in export markets than
it is in the domestic market?
A) skimming
B) dumping
C) transfer pricing
D) price escalation
Answer:
Susan is worried that San Tarino’s demand that she must use locally available raw
material and employ local workers might interfere with the quality and efficiency of her
business. San Tarino, on the other hand, views this as a way to foster local business
activity and lessen regional unemployment. What are these laws called?
A) local content requirements
B) antitrust laws
C) nationalization laws
D) internalization policies
Answer:
________ is a countertrade whereby one company sells to another its obligation to
make a purchase in a given country.
A) Franchising
B) Joint venture
C) Switch trading
D) Barter
Answer:
A system of production in which each of a product’s components is produced in the
location where the cost of producing that component is lowest is called ________
production.
A) rationalized
B) craft
C) job
D) customized
Answer:
Which of the following is an important factor in forming successful business ventures
in China?
A) following the strategies of western countries for establishing business relationships
B) focusing on establishing tight formal contracts
C) giving high importance to written contracts
D) establishing a trusting relationship before proceeding with business
Answer:
Susan also decides not to set up production facilities in Margazo, a country which
functions by a strict set of religious tenets, because some of them contradict her
company’s work policy. Expecting potential employees to break away from these
traditions is not an option since religion plays an important role in the functioning of the
nation. What kind of political system prevails in Margazo?
A) pluralistic
B) theocracy
C) tribal totalitarian
D) democracy
Answer:
Both absolute and comparative advantage theories assume that ________ is the only
resource used in the production process.
A) land
B) labor
C) capital
D) equipment
Answer:
According to the ________ argument, as an industry grows and matures, it gains the
knowledge it needs to become more innovative, efficient, and competitive.
A) maturing industry
B) infant industry
C) standardized product
D) developing economy
Answer:
Export/import financing in which a bank acts as an intermediary without accepting
financial risk is called ________.
A) documentary collection
B) counterpurchase
C) buyback
D) open account
Answer:
Which of the following countries is seen as a threat to national cultures around the
world?
A) United States
B) India
C) Russia
D) France
Answer:
An exhibition at which members of an industry showcase their latest products, study
activities of rivals, and examine recent trends and opportunities is called a(n) ________.
A) focus group
B) trade show
C) environmental survey
D) field research
Answer:
________ are imitation products passed off as legitimate trademarks, patents, or
copyrighted works.
A) Giffen goods
B) Counterfeit goods
C) Inferior goods
D) Intangible goods
Answer:
The major disadvantage of a geocentric staffing policy is its potential for ________.
A) creating barriers for the host-country office
B) being costly due to high salaries and moving costs of managers
C) creating legal problems for the home-country office
D) losing control of host-country operations
Answer:
________ facilitate(s) the process of cultural imperialism.
A) Strict product liability laws
B) Relaxed trade and investment barriers
C) Technological stagnation
D) Social media censorship
Answer:
Once an audience receives a message, they interpret the meaning of the message by
________ it.
A) preprocessing
B) decoding
C) parsing
D) compiling
Answer:
An important advantage of polycentric staffing is that it ________.
A) re-creates local operations in the image of home-country operations
B) eliminates the high cost of relocating expatriate managers and their families
C) helps a company develop global managers who can adjust easily to any business
environment
D) employs managers from home who will look out for the company’s interests
Answer:
Which of the following refers to the ability of a nation to produce a good more
efficiently than any other nation?
A) mercantilism
B) comparative advantage
C) absolute advantage
D) neomercantilism
Answer: