Company debt normally takes the form of ________.
A) bonds
B) equity
C) stocks
D) bank loans
Answer:
While ________ encourages free trade among Canada, Mexico and the United States,
manufacturers and distributors must abide by local content requirements and rules of
origin.
A) NAFTA
B) LAFTA
C) CAN
D) CAFTA-DR
Answer:
Mr. Yoshimura’s daughters are extremely unhappy and have been complaining every
night about their lifestyle in the United States. They insist on returning to Japan. If Mr.
Yoshimura gives in to his family members’ pleas and decides to return home, which of
the following will most likely be true about his experience?
A) He and his family will experience reverse culture shock.
B) He will leave his company within one year of returning home.
C) His case will represent an instance of expatriate failure.
D) He will be terminated from employment for failing to complete his assignment.
Answer:
Chuck believes that his business has grown because of his personal involvement in
every step of the way. What advice do you offer Chuck as he continues to expand his
business in new Asian markets?
A) Contact distributors directly to avoid misunderstandings that can arise when using
third-party contacts.
B) Always stick to corporate settings when doing business to avoid misunderstandings
that can arise in less formal environments.
C) Protect your interests by insisting on detailed contracts from the start.
D) Use proper intermediaries as required in Pacific Rim nations.
Answer:
Managers who are asked to go into a particularly unstable country or one with a very
low standard of living often receive a bonus called ________.
A) hardship pay
B) performance-related pay
C) stock options
D) fringe benefits
Answer:
________ is the process by which a nation changes its fundamental economic
organization and creates new free-market institutions.
A) Central planning
B) Economic transition
C) Industrialization
D) Economic liberalism
Answer:
________ is the value of goods and services that can be purchased with one unit of a
country’s currency.
A) Potential output
B) Gross national product
C) Purchasing power
D) Gross domestic product
Answer:
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
Answer:
When developing a market-potential indicator for an emerging market, market growth
rate is typically estimated from the ________.
A) per capita private consumption
B) GDP
C) total population
D) percentage of a market’s population in the middle class
Answer:
________ take ownership of the merchandise when it enters their country and accept all
the risks associated with generating local sales.
A) Agents
B) Distributors
C) Sales representatives
D) Freight forwarders
Answer:
According to Hofstede’s framework, which of the following dimensions describes the
degree to which a culture accepts social inequality among its people?
A) power distance
B) uncertainty avoidance
C) individualism
D) collectivism
Answer:
Who proposed the theory of absolute advantage?
A) David Ricardo
B) Adam Smith
C) Bertil Ohlin
D) Raymond Vernon
Answer:
The practice by which managers and other employees find jobs within their own
companies for relatives is known as ________.
A) ethnocentricism
B) enculturation
C) nepotism
D) stratification
Answer:
The lines of authority in an organization that run from top management to individual
employees and specify internal reporting relationships is called ________.
A) grapevine communication
B) symbolic interactionism
C) value chain
D) chains of command
Answer:
The main drawback of a multinational strategy is that it does not allow a company to
________.
A) exploit scale economies in product development or marketing
B) closely monitor buyer preferences in each local market
C) modify its products except for the most superficial features
D) respond quickly and effectively to emerging buyer preferences
Answer:
Ureshi Toys selling its products to Topsy Turvey Toys is an example of ________.
A) outsourcing
B) insourcing
C) exporting
D) importing
Answer:
Development that meets the needs of the present without compromising the ability of
future generations to meet their own needs indicates ________.
A) egalitarianism
B) denationalization
C) generalizability
D) sustainability
Answer:
Which of the following approaches to cultural training gets a trainee “under the skin” of
the local people?
A) language training
B) cultural narcissism
C) sensitivity training
D) cultural orientation
Answer:
According to value-chain analysis, inbound and outbound logistics are considered as
________.
A) tertiary activities
B) primary activities
C) support activities
D) core competencies
Answer:
________ is a major component of a promotion mix.
A) Distribution
B) Market segmentation
C) Pricing
D) Public relations
Answer:
When developing a market-potential indicator for an emerging market, the ________
factor attempts to assess channels of distribution and communication.
A) market size
B) market intensity
C) commercial infrastructure
D) economic freedom
Answer:
Which of the following statements is true about international promotions?
A) Most companies standardize all aspects of their international promotions to cut
costs.
B) Firms that standardize advertising often control campaigns from the home office.
C) Companies that adapt their advertising to different markets project a consistent brand
image.
D) Companies discourage blending product and promotional strategies in a
communication process.
Answer:
The first question that Stephanie expects participants to ask is: “Which is more
important for the Chinese, contacts or contracts?” Which of the following is the most
effective response Stephanie could give for this question?
A) Contracts are critical because of their extreme importance in Chinese business.
B) Face-to-face communications and personal relationships take priority over written
contracts.
C) Non-Chinese businesspeople should take time to agree on a legal contract before
developing personal relationships.
D) Business relationships are established only after successful legal dealings are
concluded.
Answer:
The main purpose of the ________ is to debate and amend legislation proposed by the
European Commission of the EU.
A) European Parliament
B) Council of the European Union
C) Court of Auditors
D) Court of Justice
Answer:
Which of the following steps of the market screening process involves examining the
cost of transporting goods?
A) identification of basic appeal of a market
B) assessment of the national business environment
C) measurement of market or site potential
D) selection of the market or site
Answer:
Had the government taken over the assets of Global Trading without compensation, and
not taken over the assets of any other company, the government’s actions would be an
example of ________.
A) expropriation
B) nationalization
C) confiscation
D) communism
Answer:
________ is the chance that political forces may change a country’s business
environment in ways that lead investors to lose some or all of the value of their
investment or be forced to accept a lower-than-projected rate of return.
A) Governmental risk
B) Operating risk
C) Transaction risk
D) Political risk
Answer:
One challenge facing Hudson Foods as it expands into Europe is getting through all the
bureaucratic and legal regulations surrounding the food industry. Erica plans to hire a
manager to ensure that this challenge is overcome. Who among the following will Erica
most likely recruit for this position?
A) a local manager with strong government contacts
B) an experienced manager from the Hudson Foods U.S. headquarters
C) a native of the target market who is a recent U.S. college graduate
D) a candidate from the U.S. with extensive management experience in the frozen food
industry
Answer:
Which of the following communication strategies expands the same product into new
target markets but alters its marketing promotion?
A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation
Answer:
Which of the following challenges is Cleanshot most likely to face in Russia?
A) organized crime
B) too many competitors
C) low demand for the products of non-Russian companies
D) fading underground economy
Answer:
The purpose of ________ is to force companies from other nations to use local
resources in their production processes, particularly labor.
A) administrative delays
B) currency controls
C) local content requirements
D) voluntary export restraints
Answer:
The customary means by which a company fills up vacancies in its offices is called
________.
A) a staffing policy
B) an employment policy
C) onboarding
D) outsourcing
Answer:
A(n) ________ tariff is levied as a particular fee for each unit of an imported product.
A) specific
B) compound
C) ad valorem
D) transit
Answer: