One of the reasons that Internet advertising is not appealing in an international setting is
that most Internet users are poor and difficult to reach.
Opponents of globalization argue that globalization has contributed to an improvement
in environmental and health conditions.
(p. 206)-Global foreign currency exchange transactions total in the area of $4 trillion
daily.
Laws on pollution, consumer protection, and operator safety are critical as legal forces.
Trade barriers create costs that are paid by the government erecting the barrier.
Because Austria sided with the West in the Cold War, it became a favored location for
offices of international firms servicing eastern European operations.
Employees hired in the host country are sometimes called flexpatriates.
New types of dumping include concession dumping.
The complexity of the gold standard was a part of its appeal.
Planning for an expatriate’s return should begin while the employee is still on the
overseas assignment.
Low-context cultures tend to be polychronic, with a lot going on at one time.
Assessing global leadership skills is a well-understood, basic process.
Expatriate children who lived in a foreign country for a period of time while in their
impressionable adolescent years often have attributes of “third-world kids.”
The standardization of processes and machinery provides a reasonable guarantee that
parts manufactured in the firm’s various plants will be interchangeable.
Team norms are legitimate, shared standards against which the appropriateness of
behavior can be evaluated.
Greater profits may be obtained by either increasing total revenue or decreasing the cost
of goods sold.
Packaging and transportation requirements for a product can significantly influence
logistics costs, and these factors should be addressed during the postdesign steps in a
company’s value chain.
Subsidies that confer a benefit may well evoke countervailing duties.
The trend in the debt financing of foreign subsidiaries is to tap the local markets first, so
Toyota in the United States would tend to tap into U.S. debt markets and Pepsi in Japan
would tend to go to the Japanese debt markets first.
In developing countries, third-country nationals are often preferred by the host country
over nationals of the home country.
With convergence of accounting standards, accounting statements will still need to be
adjusted to be directly comparable due to varying legal requirements.
The matrix overlay organizational form attempts to eliminate some of the problems of
the matrix organization.
Hofstede describes his Confucian dynamism dimension as dealing with Virtue
regardless of Truth.
A compound duty is a combination of specific and variable duties.
The production organization in an overseas subsidiary is commonly a scaled-down
version of that found in the parent company.
Tariff barriers may be used to protect domestic industry from foreign, lower-cost
producers.
The regionalized organization appears to be popular with companies that manufacture
products with a rather low technological content.
A confirmed letter of credit guarantees payment to the seller.
New institutional theory suggests that institutions be understood as collections of rules
and codes of conduct that limit behavior.
Global strategic plans help to ensure that decision makers have a common
understanding of the business and think through the impact of their decisions and
actions firmwide.
Regulations allowing the repatriation of earnings are considered an entry barrier.
Generally mergers and acquisitions are considered alliances.
The Bank for International Settlements is like a central bank for central bankers.
The international environment is the interactions between:
A. the domestic environmental forces and the foreign environmental forces.
B. the domestic controllable forces and the domestic uncontrollable forces.
C. the foreign environmental forces of two countries when an affiliate in one country
does business in another country.
D. two of the above.
E. all of A, B, and C.
Leadership traits viewed universally as unacceptable, according to the Project GLOBE
study, are:
A. egocentric, loner, and dictatorial.
B. indecisive, unprincipled, and dishonest.
C. indirect, indecisive, and antisocial.
D. passive, indirect, and unprincipled.
E. indirect, intellectual, and passive.
This is the cleanest of the nonrenewable fuel sources, and it has become a substitute for
oil as oil prices increase:
A. natural gas.
B. diesel.
C. nuclear.
D. kerosene.
According to the text, value chain analysis focuses primarily on which question?
A. What values are important to our company?
B. What is our strategy?
C. Who are the company’s target customers?
D. What does the customer value and how much is the customer willing to pay for this
value?
E. How will this customer value be created?
Stakeholder theory is an understanding of how business works that:
A. takes into account culture and environmentalism.
B. rejects the importance of the bottom line.
C. emphasizes planning.
D. takes into account all identifiable interest holders.
Regarding the annual outflows of foreign direct investment:
A. the overall volume that came from developing nations in 2009 was nearly five times
the level from those nations in 1990.
B. the proportion that came from the United States and Europe was nearly 50 percent in
2009.
C. much of the recent increase has been associated with mergers, acquisitions, and other
international investments made by companies in industries facing increased competition
and global consolidation.
D. nearly half went to China and its territories from 2007 to 2009.
E. all of the above.
Regardless of the functional currency, retained earnings are translated at:
A. their market value based on recent stock price.
B. the rate in effect when the earnings were posted.
C. the rate in effect the day of consolidation.
D. a reasonable rate of the company’s choice.
According to the Exporter Data Base, small and medium-sized enterprises accounted
for ___________ of all U.S. exporters.
A. under 10 percent
B. 25 percent
C. nearly half
D. 86 percent
E. nearly 98 percent
Kinship and free association are:
A. structures for political action.
B. social structures used to develop marketing programs.
C. social institutions found in all societies and categorized by the conditions of their
formation.
D. levels of the Masons found in Europe but not the United States.
The value-added tax is levied on:
A. luxury items and paid by the consumer.
B. export items only and thus a direct tax.
C. nonessential goods and paid by the consumer.
D. all goods and is indirect, collected from the value adder.
Patent trolls are:
A. a record of all patents, recorded by the UN.
B. the numerical controls issued on patents, standardized by the Paris Convention.
C. the organizing system for patent review that is kept internationally by the OECD.
D. modern highway robbers who exploit loopholes in IP protection.
E. the framework used for filing and referencing patents.
According to the text, a management contract is useful for:
A. joint ventures.
B. earning money by providing know-how.
C. two of A, B, and D.
D. wholly owned subsidiaries.
E. all of A, B, and D.
A shipper’s export declaration (SED) includes:
A. names and addresses of the shipper and consignee.
B. U.S. port of exit and foreign port of unloading.
C. export license number and bill-of-lading number.
D. description and value of the goods.
E. all of the above.
Countries put limitations on the convertibility of their currency when they are
concerned that:
A. there is too much domestic spending.
B. foreigners will hold control of their monetary policy.
C. their foreign reserves could be depleted.
D. there is not enough domestic spending.
Studies conducted by the World Bank indicate that tropical climates allow for:
A. the unimpeded reproduction and growth of weeds, viruses, birds, insects, and
parasites.
B. lack of the need to provide heat and shelter that is present in northern climates.
C. unparalleled trade.
D. cultivation of citrus and four crops per year.
The three main approaches to exchange rate forecasting are:
A. the efficient market approach, the fundamental approach, and the technical approach.
B. the efficient market approach, the random walk hypothesis, and the pragmatic
approach.
C. the random walk hypothesis, the pragmatic approach, and the fundamental approach.
D. none of the above.
The balance part of the BOP is explained by:
A. the accounts being double-entry, so they are always balanced.
B. imbalances showing immediately.
C. actions governments take to achieve the balance.
D. none of the above.
If Ecuador has an absolute advantage in coffee and Argentina in wheat, then, according
to trade theory:
A. Ecuador should focus production on coffee and trade for wheat.
B. Ecuador would do well to produce its own coffee rather than import it from Bolivia.
C. Argentina should focus on producing wheat and trade for coffee.
D. all of the above.
E. two of A, B, and C.
Regarding the way international companies are structured and integrated:
A. no single structure is best for all companies and contexts.
B. managers must consider the nature of their company’s international operating
environment and their competitors’ strategies when deciding when and how to modify
the company’s organizational structure.
C. gains from increased specialization will be nullified by increased costs of
coordination, requiring managers to choose between the two.
D. all of the above
E. two of A, B, and C.
In their measurement and disclosure for accounting systems, less developed countries
tend toward:
A. transparency and conservatism.
B. transparency and optimism.
C. secrecy and optimism.
D. secrecy and conservatism.
Most companies enter a market in stages. Which of the following is not listed in the
textbook as a stage of market entry?
A. Exporting
B. Establishment of a foreign sales company
C. Establishing a website
D. Local assembly
E. Local manufacturing
The Doha Development Agenda is:
A. a WTO conference on trade.
B. an agreement on climate control and greenhouse gases.
C. a decision-making approach to development.
D. a development rules list.
The OECD has encouraged members to:
A. develop trade relationships within the OECD only.
B. eliminate bribery in all commercial transactions.
C. standardize electrical wave signals.
D. extend their tax regulations beyond their borders.
The main transportation artery of Europe is the:
A. Venice canal system.
B. Danube-Dresden waterway.
C. Lake Constantine system.
D. Rhine waterway.
The International Trade Administration (ITA) is a good place for U.S. beginning
exporters to start out.
The international structural stages model suggests that a typical evolutional path for an
international company’s structure would be:
A. from international division to geographic area division to worldwide product
division.
B. from international division to worldwide product division to geographic area
division.
C. from geographic area division to worldwide product division to global matrix.
D. from functional division to horizontal company to virtual corporation.
E. from international division to worldwide product division to global matrix.
(p. 139)-According to the text, the fastest-growing renewable energy source is:
A. solar PV.
B. nuclear power.
C. wind power.
D. biomass.
Accounting controls directly relate to a culture’s assumptions about:
A. the basic nature of people.
B. inventory policy.
C. efficiency.
D. leadership.
The present floating exchange rate system was:
A. designed by the IMF and implemented flawlessly in 1973.
B. established by the major trading nations in 19721 after Nixon closed the gold
window.
C. implemented in tandem with a reintroduction of the gold standard.
D. established after several trials in which central bankers set rates incorrectly and
speculators corrected them in the markets, and it was formalized after the fact in the
IMF’s Jamaica Agreement.
Translation exposure would not occur with firms that:
A. do not have foreign operations.
B. operate in the same currency, their home market currency, everywhere.
C. use their home market language in all foreign operations.
D. A and B.
The national defense argument for trade restrictions has been used in the United States
to argue for restriction on imports of:
A. munitions.
B. uniforms.
C. shoes.
D. all of the above.
E. two of A, B, and C.
International business differs from domestic business in that a firm operating across
borders must deal with:
A. all of C, D, and E.
B. two of C, D, and E.
C. the foreign environment.
D. the international environment.
E. the domestic environment.