________ is an effective alternative to traditional distribution channels for firms that
sell digitized products.
A) Dual licensing
B) Electronic distribution
C) Visual merchandising
D) Digital switchover
Answer:
Compare and contrast the business environments in China and Russia.
Answer:
Which of the following occurs in a country’s balance of payments when a country
exports more goods and services and receives more income from abroad than it imports
and pays abroad?
A) current account deficit
B) capital account surplus
C) current account surplus
D) capital account deficit
Answer:
The condition that results when the value of a country’s imports is greater than the value
of its exports is called ________.
A) a trade deficit
B) economies of scale
C) a break-even point
D) absolute advantage
Answer:
If board members ask about the maquiladora industry, Keith would explain that it refers
to ________.
A) Mexico’s low-cost labor union
B) the cross-border drug trafficking problem that threatens to limit legitimate
production in Mexico
C) the low-wage, 130-mile-wide strip along the U.S.-Mexico border that comprises a
special economic region
D) Latin America’s new model for business that restricts foreign investors to take
advantage of government incentives
Answer:
Which of the following terms refers to a stock market with no central geographic
location?
A) cybermarket
B) foreign exchange market
C) capital market
D) international bond market
Answer:
A(n) ________ is a system that allocates financial resources in the form of debt and
equity according to their most efficient uses.
A) international equity market
B) forward market
C) capital market
D) eurocurrency market
Answer:
Shimmer and Sparkle is an American jewelry store which discovers that several shops
in developing countries are selling counterfeited necklaces under their name and label.
Which of the following problems are they facing?
A) patent expiration
B) trademark infringement
C) copyright expiration
D) monopolization
Answer:
A company that sells differentiated products may maintain the ability to respond
quickly to changing buyer preferences by utilizing ________.
A) vertical integration
B) decentralized production
C) lean production
D) continuous production
Answer:
Under ________ law, the justice system decides cases by interpreting the law on the
basis of tradition, precedent, and usage.
A) civil
B) international
C) common
D) theocratic
Answer:
A(n) ________ exports products on behalf of an indirect exporter.
A) local distributor
B) subsidiary
C) sales representative
D) export management company
Answer:
Which of the following government regulations or actions would indicate that a
government is quite receptive to international trade and investment?
A) creating investment barriers to ensure domestic control of an industry
B) requiring companies to divulge proprietary secrets
C) allowing companies to remove profits earned in the domestic market
D) barring companies entirely from certain sectors of the domestic economy
Answer:
A ________ joint venture is formed when each partner requires the same component in
its production process.
A) backward
B) multistage
C) forward
D) buyback
Answer:
Konesia is a country with a number of offshore islands. Its landscape is characterized
by deep valleys, rocky plains, and impassable mountains. Which of the following
statements about the country is true, keeping its topography in mind?
A) Konesia is the ideal place to set up production facilities for multinational companies.
B) Konesia experiences a slow rate of cultural change.
C) Konesia is a receptive market for foreign automobile companies.
D) Konesia is greatly susceptible to cultural imperialism.
Answer:
Which of the following is a disadvantage of strategic alliances?
A) They are the most expensive among the investment entry modes.
B) They increase the likelihood that one partner will try to take advantage of the other.
C) They create future competitors.
D) They fail to tap into their competitors’ specific strengths.
Answer:
Which of the following offers insight into a host country’s political, legal, economic,
and social institutions as a way of enhancing environmental briefings?
A) language training
B) field experience
C) sensitivity training
D) cultural orientation
Answer:
A ________ is a set of planned actions taken by managers to help a company meet its
objectives.
A) mission statement
B) vision
C) strategy
D) core competency
Answer:
________ refers to the takeover of an entire industry by the government.
A) Decentralization
B) Globalization
C) Nationalization
D) Automatization
Answer:
Which of the following is true of trade diversion?
A) It increases the purchasing power of consumers.
B) It increases the level of trade between nonmember nations.
C) It generally increases the prices of products in a nation.
D) It guarantees consumers a wider selection of goods.
Answer:
Which of the following steps of the strategy development process for exports involves
performing market research and interpreting results obtained from the research?
A) identification of a potential market
B) match needs of the market to the company’s abilities
C) initiation of meetings
D) commitment of resources
Answer:
A ________ strategy is one in which a company emphasizes on serving the needs of a
narrowly defined market segment by being the low-cost leader, differentiating its
product, or both.
A) global
B) focus
C) stability
D) retrenchment
Answer:
The world’s three most important financial centers are ________.
A) Zurich, Paris, and Washington
B) China, Brazil, and Mexico
C) Tokyo, London, and New York
D) Dubai, Beijing, and Germany
Answer:
To complete his business bookkeeping work each month, a business owner spends
about 20 hours and in the process, has to give up $900 in income. If he hired a
bookkeeper to do the work, the job would be completed in 15 hours and would cost him
$600. Should the owner hire the bookkeeper or continue to do the work himself?
A) He should hire the bookkeeper because the bookkeeper has an absolute advantage in
completing the books.
B) He should do the bookkeeping himself because he has an absolute advantage in
completing the books.
C) He should hire the bookkeeper only if the bookkeeper agrees to give him a discount
on the service price.
D) He should hire the bookkeeper only if the bookkeeper is willing to complete the
work in 12 hours.
Answer:
One of the major forces responsible for the rapid growth rate of the international capital
market is ________.
A) economic nationalism
B) information technology
C) currency control
D) extensive regulation
Answer:
Which of the following is a cultural component that implies gauging the beauty and
appeal of artwork?
A) customs
B) mores
C) folkways
D) aesthetics
Answer:
Exports and imports of tangible goods are included in the ________ account of a
country’s balance of payments.
A) savings
B) capital
C) merchandise
D) services
Answer:
Scooters Inc. has traditionally sold its products at one price in the domestic market and
at another price in export markets, which is called a(n) ________ pricing strategy.
A) target
B) value
C) dual
D) arm’s length
Answer:
An unstructured but in-depth interview of a small group of individuals by a moderator
to learn the group’s attitudes about a company or its products is called a ________.
A) focus group
B) literature review
C) consumer panel
D) brainstorming session
Answer:
During which stage of the product life cycle are companies looking for low-cost
production bases in developing nations to supply a growing worldwide market?
A) product decline stage
B) new product stage
C) maturing product stage
D) standardized product stage
Answer:
Ureshi Toys is an example of a(n) ________.
A) domestic company
B) multinational company
C) direct importer
D) shell corporation
Answer:
Which of the following terms is used to refer to the positive or negative evaluations,
feelings, and tendencies that individuals harbor toward objects or concepts?
A) customs
B) attitudes
C) traditions
D) values
Answer:
During which of the following stages of the international product life cycle theory does
high purchasing power and buyer demand in an industrialized nation encourage a
company to design and introduce a product concept?
A) product decline stage
B) new product stage
C) maturing product stage
D) standardized product stage
Answer:
An established consumer market that primarily comprises the middle class and
possesses efficient infrastructure is characteristic of ________ markets.
A) emerging
B) frontier
C) traditional
D) developed
Answer:
An organizational structure that organizes a company’s entire global operations into
countries or geographic regions is referred to as a(n) ________ structure.
A) international area
B) international division
C) global matrix
D) global product
Answer: