1) Which of the following is NOT a major reason that companies adopt IT systems?
A) maintaining effective arms’ length relationships with customers
B) producing high-quality products quickly and efficiently
C) communicating effectively with suppliers
D) managing inventory levels proficiently
2) The balanced scorecard is ________.
A) an average of foreign-exchange rates
B) an approach to performance measurement
C) used widely by U.S. firms but not European firms
D) not very successful at linking financial and nonfinancial performance
3) The process of shifting production from a domestic to a foreign location is best
known as ________
A) offshoring
B) outsourcing
C) licensing
D) joint venturing
4) Which of the following links together the central banks of the world and acts as a
central banker’s bank?
A) the IMF
B) the World Bank
C) the BIS
D) the EMU
5) What is the primary concern regarding anti-corruption measures in the EU?
A) resistance to an official anti-fraud commission
B) inability to adopt a corruption definition
C) lack of uniform laws across nations
D) failure to conduct internal auditing
6) ________ is the measuring of performance so that companies can respond
appropriately to changing conditions.
A) Coordination
B) Configuration
C) Control
D) Compatibility
7) What is the most likely reason that governments cooperate with each other through
treaties, agreements, and consultations?
A) to gain an advantageous division of labor
B) to be in compliance with United Nations’ requirements
C) to attack problems jointly that one country acting alone cannot solve
D) to assure that all countries get an equitable share of taxes from multinational
enterprises
8) Coca-Cola collaborates extensively abroad, but it refuses collaboration that might
imperil control of its core competency. As a result, which of the following is NOT one
of its international collaborative forms?
A) sharing ownership in the production of its secret formula concentrate
B) using franchisers to bottle, sell, and deliver Coke beverages
C) licensing Coke’s trademark for use on products in which it lacks skills
D) forming joint ventures with companies that provide supplies for Coke products
9) We now have technology to allow people to communicate globally without traveling
as much. Leading researchers on urbanization and planning suggest that the most likely
consequence of this is ________.
A) a decrease in international airline travel
B) a decreased need for immigration restrictions
C) a smaller number of retirees living in urban areas
D) a greater number of self-motivated workers e-mailing and teleconferencing with
colleagues
10) A company that decides to “localize” expatriate assignments will offer an expatriate
the option of ________.
A) serving a shorter assignment in the host country
B) becoming a naturalized citizen of the host country
C) moving to an emerging market closer to the home country
D) retaining a foreign assignment provided he or she accepts the status of a local hire
11) A ________ law system is based on tradition, judge-made precedent, and usage and
assigns a preeminent position to existing case law as a guide to dispute resolution.
A) theocratic
B) common
C) customary
D) civil
12) Which of the following is usually NOT a factor that triggers companies to look to
exports to boost total sales?
A) maturity of the domestic market
B) potential to leverage core competencies in foreign markets
C) social needs in developing countries
D) response to the market entry of a foreign rival
13) Devon, an accounts manager at a large electronics firm, does not have any direct
international responsibilities; however, Devon would most likely benefit from studying
international business issues so that he can ________
A) conduct better job interviews
B) better understand how foreign operations affect the company’s competitive position
C) supervise and evaluate subordinates who have global assignments
D) understand the legalities of importing and exporting products overseas