Company debt normally takes the form of ________.
A) bonds
B) equity
C) stocks
D) bank loans
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
________ is the process of dividing a company’s activities into primary and support
activities and identifying those that create value for customers.
A) Fundamental analysis
B) Technical analysis
C) Structural analysis
D) Value-chain analysis
A restriction on the amount of a good that can enter or leave a country during a certain
period of time is called a(n) ________.
A) administrative delay
B) local content requirement
C) quota
D) tariff
A company can achieve market power through ________.
A) ownership advantages
B) internalization advantages
C) horizontal integration
D) vertical integration
Rockwall Enterprises is planning to expand the firm by establishing operations outside
of the U.S. In which of the following countries would Rockwall most likely be able to
establish operations most quickly?
A) Japan
B) Brazil
C) Germany
D) Australia
Which of the following is considered as a primary activity in an organization?
A) infrastructure
B) marketing and sales
C) procurement
D) human resource management
Which of the following do products designated as dual use require before exports can
take place?
A) currency controls
B) countervailing duties
C) special government approval
D) local content requirements
Scenario: Chong’s analysis of international markets
John Chong is an inexperienced entrepreneur in global business. He wants to sell his
product, Zulu doll, a toy for kids below the age of eight, in every corner of the world.
He wants to examine all potential markets but wants to keep his costs low. John has
asked you to explain a few things about analyzing international markets.
Which of the following stages of the market-screening process would require John to
visit a potential market personally?
A) assessment of the national business environment
B) selection of the market
C) identification of the basic appeal for markets
D) measurement of market potential
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
Scenario: Old World Ltd.
Old World Ltd., a London-based furniture manufacturer, is establishing its global
distribution, pricing, and promotion strategies. Being new to global business, the firm is
seeking your help in making its decisions.
If Old World wants to grant the right to sell its furniture to only a limited number of
resellers, it should consider a(n) ________ channel.
A) intensive
B) exclusive
C) two-level
D) selective
Under a(n) ________ political system, the state reigns supreme over institutions such as
family, religion, business, and labor.
A) pluralistic
B) totalitarian
C) democratic
D) anarchist
In 1951, Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands
signed the Treaty of Paris and created the ________.
A) European Union
B) European Economic Community
C) European Coal and Steel Community
D) European Community
Which of the following phases of human resource planning involves decruitment?
A) developing a plan to recruit and select people to fill vacant and anticipated new
positions
B) estimating the company’s future human resource needs
C) taking an inventory of the company’s current human resources
D) promoting employees to positions of greater responsibility
The smallest portion of the total world trade comprises trade between ________.
A) high-income and middle-income nations
B) low-income and middle-income nations
C) developed countries
D) First World member countries
Which of the following is a support activity that creates value for Beanstalk’s
customers?
A) production
B) marketing and sales
C) customer service
D) technology development
When developing a market-potential indicator for an emerging market, the size of the
market is typically estimated from the nation’s ________.
A) income elasticity
B) GDP
C) total population
D) GDP at purchasing power parity