Which of the following requires an importer to pay for the imported goods when they
are delivered?
A) sight draft
B) inland bill of lading
C) air way bill of lading
D) time draft
Answer:
Which of the following philosophies maintains that a company should maximize
“good” outcomes and minimize “bad” outcomes wherever it operates?
A) Friedman view
B) righteous moralist view
C) cultural relativist view
D) utilitarian view
Answer:
________ measures the indirect carbon dioxide emissions from the whole life cycle of
products”from their manufacture to eventual breakdown.
A) Primary footprint
B) Secondary footprint
C) Tertiary footprint
D) Internalized footprint
Answer:
Which of the following financing methods entails the greatest risk for importers?
A) documentary collection
B) advance payment
C) letter of credit
D) open account
Answer:
The importance of trade for a nation can be measured by ________.
A) examining the amount of wealth acquired by the national government through
restrictive trade policies
B) the living standards of people involved in only trade activities
C) the number of acquired territories the nation has that serves as sources of
inexpensive raw materials
D) examining the volume of its trade relative to its total output
Answer:
The main objectives of the Andean Community include ________.
A) introduction of tariffs for trade among member countries
B) separate policies in both transportation and certain industries
C) a common external tariff
D) a common currency
Answer:
If Sally sees a quote of ¥117.87/$, she should know that ________.
A) the yen is the base currency here
B) this is a direct quote on the dollar
C) this is a direct quote on the yen
D) the quote is in U.S. dollars
Answer:
Kireki is a small country with a corrupt government. Its population is rural for most part
and citizens have few or no legal rights. Which of the following is the type of market
featured in Kireki?
A) developed market
B) traditional market
C) emerging market
D) virtual market
Answer:
When a market is experiencing rapid growth, a company will ________.
A) emphasize on decruitment
B) divest its operations
C) reinvest in its operations
D) implement retrenchment strategies
Answer:
________ is traded freely in the foreign exchange market, with its price determined by
the forces of demand and supply.
A) Representative money
B) Private currency
C) Hard currency
D) Fiat money
Answer:
The possibility that a company will create a future competitor by charging another
company for access to its knowledge is a(n) ________ that can encourage FDI.
A) ownership advantage
B) internalization advantage
C) market imperfection
D) trade barrier
Answer:
Which of the following statements is true regarding the ISO 9000 standards?
A) They specify details on how companies should develop its quality processes.
B) The standards are applicable to Asia exclusively.
C) ISO 9000 is a certification that companies get for their environment-friendly
initiatives.
D) The standards require each company to define and document its own quality
processes.
Answer:
A bond issued by a Venezuelan company, denominated in U.S. dollars, and sold in
Britain, France, and Germany is an example of a ________.
A) dragon bond
B) yankee bond
C) Eurobond
D) samurai bond
Answer:
Which of the following steps of the market screening process examines the effects of
country image on market-entry decisions?
A) identification of basic appeal of a market
B) measurement of market or site potential
C) assessment of the national business environment
D) selection of the market or site
Answer:
Some countries in Moonland Union are interested not just in free trade among
themselves and a common trade policy against nonmembers, but also in removing all
barriers to the movement of labor and capital among themselves. This type of
integration is best described as a ________.
A) free trade area
B) preferential trading area
C) customs union
D) common market
Answer:
________ is the forced transfer of assets from a company to the government with
compensation.
A) Expropriation
B) Nationalization
C) Confiscation
D) Localization
Answer:
Which of the following factors should the legal experts of Wayne’s consider while
evaluating the legal systems of Paribo and Kirawi?
A) the profits made by local companies in the countries
B) the prevalence of crime in the two countries
C) the resolution of contractual dispute with local vendors
D) the profits made by international companies in other countries
Answer:
If these two countries were to gain from trading with each other, this would support the
notion that trade is a ________.
A) zero-sum game
B) negative experience
C) positive-sum game
D) form of economic nationalism
Answer:
A ________ strategy can create cost savings due to product and marketing
standardization.
A) retrenchment
B) multidomestic
C) blue ocean
D) global
Answer:
Against Betty’s judgment, her boss decides to market Frankfurter’s beef sausages in the
town of Xunagshi, believing that it would rake in a huge profit. Which of the following,
if true, would prove that her boss’s decision is a bad one?
A) There are very few vegetarians in Xunagshi.
B) Due to their exposure to the Western culture, the youth of Xunagshi is more open to
fast food than the town elders.
C) The traditional dishes of Xunagshi are more expensive than the beef sausages.
D) Xunagshi has a large Hindu population, all of whom are forbidden from eating beef.
Answer:
If Susan wants to obtain information in the least expensive way, she should use
________.
A) secondary market research
B) consumer panels
C) structured interviews
D) large focus groups followed by surveys
Answer:
________ refers to socially learned traits associated with, and expected of, men or
women.
A) Conformity
B) Social mobility
C) Individualism
D) Gender
Answer:
Which of the following is true of employee compensation in international companies?
A) The most common inducement that companies offer managers to accept
international postings is free accommodation.
B) Companies need not cover the costs incurred by expatriate managers if the cost of
living abroad is lower than that at home.
C) The greater mobility of labor affects the wages of nonmanagerial workers today.
D) Managers recruited from within the host country generally receive a much higher
pay and lower perks than managers who work for local companies.
Answer:
Which of the following is the intentional lowering of a currency’s value by its
government?
A) revaluation
B) devaluation
C) currency hedging
D) currency arbitrage
Answer:
________ is the trend toward greater economic, cultural, political, and technological
interdependence among national institutions and economies.
A) Privatization
B) Heterogenization
C) Globalization
D) Decentralization
Answer:
________ is the layer of corporate social responsibility whereby a corporation donates
money and, perhaps, employee time toward a specific social cause.
A) Risk management
B) Strategic CSR
C) Socialist CSR
D) Traditional philanthropy
Answer:
Factor proportions theory was developed by ________.
A) Smith and Ricardo
B) Ricardo and Ohlin
C) Heckscher and Ohlin
D) Heckscher and Smith
Answer:
Which of the following terms is also used to refer to communism?
A) tribal totalitarianism
B) right-wing totalitarianism
C) left-wing totalitarianism
D) civil totalitarianism
Answer:
To help speed up the process of getting approvals for local operations, a firm would
most likely benefit from hiring ________.
A) home-country managers from the company’s headquarters
B) managerial talent from the host country
C) recent college graduates trained in the home country
D) third-country expatriates with extensive experience in the field
Answer:
When screening a potential market, which of the following would you advise John to do
first?
A) assess the national business environment
B) select the market
C) identify basic appeal for markets
D) measure market potential
Answer:
Another term for neomercantilism is ________.
A) new trade
B) free trade
C) economic nationalism
D) political nationalism
Answer:
Which of the following stages of the market or site screening process involves an
assessment of potential threat from substitute products?
A) identification of basic appeal of a product
B) measurement of market or site potential
C) assessment of the national business environment
D) selection of the market or site
Answer: