Most of the world merchandise trade is composed of trade in ________.
A) minerals
B) services
C) manufactured goods
D) agricultural products
Answer:
Economic integration whereby countries remove all barriers to trade among themselves,
but set a common trade policy against nonmembers is called a(n) ________.
A) preferential trade area
B) customs union
C) economic nationalism
D) free trade area
Answer:
A(n) ________ advantage is the advantage of conducting a particular economic activity
in a specific area because of the characteristics of that area.
A) internalization
B) ownership
C) comparative
D) location
Answer:
Which of the following strategies is designed to increase the scale or scope of a
corporation’s operations?
A) differentiation strategy
B) growth strategy
C) stability strategy
D) retrenchment strategy
Answer:
Which of the following would the government of Zucoland most likely experience as a
benefit of joining the trading bloc?
A) trade diversion
B) increased national sovereignty
C) greater consensus
D) production shifts to low-wage nations
Answer:
Government trade promotion agencies ________.
A) enable imports at discounts
B) set up foreign trade zones across the country
C) advertise in other countries to promote the nation’s exports
D) place voluntary export restraints on companies that fail to export adequately
Answer:
Which of the following terms is used to refer to the exchange of goods and services for
other goods and services instead of money?
A) fiat money
B) letter of credit
C) barter
D) guanxi
Answer:
Decentralized decision making is beneficial when ________.
A) all subsidiaries use the same inputs in production
B) fast-changing national business environments put a premium on local responsiveness
C) one subsidiary’s output is another’s input
D) it aims to create a single global organizational culture
Answer:
Which of the following most likely supports the argument of Echo managers to
outsource some of the firm’s manufacturing activities?
A) Echo managers could reduce the wages of U.S. based employees and
sub-contractors.
B) Echo could save money by reducing the costs incurred in manufacturing the
component parts.
C) Echo managers could implement a marketing campaign for foreign markets that is
identical to the outsourced firm’s marketing campaign.
D) Echo could merge with one of its U.S.-based competitors to gain a larger market
share.
Answer:
A(n)________ policy would give the foreign units of a company a degree of autonomy
in decision-making.
A) centralized production
B) vertical integration
C) mass customization
D) polycentric staffing
Answer:
In ________, operations outside the home country are managed by individuals from the
host country.
A) vertical integration
B) horizontal integration
C) ethnocentric staffing
D) polycentric staffing
Answer:
Predictable exchange rates reduce the need for ________.
A) currency conversion
B) currency swap
C) currency depreciation
D) currency hedging
Answer:
A distribution channel in which a manufacturer grants the right to sell its products to
only one or a limited number of resellers is called a(n) ________.
A) intensive channel
B) exclusive channel
C) zero-level channel
D) two-level channel
Answer:
The process of collecting and analyzing original data and applying the results to current
research needs is called ________.
A) primary market research
B) secondary market research
C) data harvesting
D) data mining
Answer:
The sale of Hollywood movies in Konesia has doubled in the last five years while those
of locally-produced movies has fallen. In addition to this, sociologists have noted that
currently, the teenagers of Konesia are less inclined to don their traditional costumes,
preferring to adopt Western clothes instead. These changing trends illustrate ________.
A) cultural imperialism
B) cultural universal
C) cultural retention
D) cultural elitism
Answer:
If Matt wants to estimate an emerging market’s spending capacity, he should focus on
the ________.
A) population in the middle class
B) need for consumer products
C) demand for consumer and industrial products
D) volume of imports
Answer:
Which of the following is the type of production illustrated in the automobile industry?
A) customized production
B) rationalized production
C) job production
D) craft production
Answer:
Which of the following was a disadvantage of using gold as a medium of exchange in
international trade?
A) The weight of gold made transporting it expensive.
B) Gold was not in high demand.
C) The gold standard imposed lenient monetary policies on countries that participated
in the system.
D) The gold standard increased the risk in exchange rates as it maintained highly
flexible exchange rates between currencies.
Answer:
An offset agreement differs from a counterpurchase agreement in that an offset
agreement ________.
A) fails to specify the type of product that must be purchased
B) fails to specify the amount that will be spent on the purchase
C) fails to give a business greater freedom in fulfilling its end of a countertrade deal
D) fails to make a hard-currency purchase of any product from that nation in the future
Answer:
Storage facilities, retail outlets, and production equipment are examples of ________.
A) liquid assets
B) current assets
C) fixed assets
D) intangible assets
Answer:
The decentralization of production facilities is a typical policy for companies that
pursue ________.
A) a multinational strategy
B) a global strategy
C) mass customization
D) vertical integration
Answer:
Which of the following statements, if true, weakens their argument?
A) Hollywood movies star French actors very often.
B) English novels are more expensive than French novels.
C) Contemporary French artists have failed to come up with original songs.
D) A larger number of children are being given English names than traditional French
names.
Answer:
A typical industry analysis includes the ________.
A) experience and qualifications of the researcher
B) structure of the wholesale and retail distribution networks
C) accurate forecast of unforeseen political changes in the country
D) history of currency fluctuations
Answer:
Which of the following is experienced by a company that outsources its product
development?
A) reduced investments in research and development
B) reduced market flexibility
C) less market influence with suppliers
D) lower product costs due to the elimination of intermediaries
Answer:
Which of the following normally takes the form of a wire transfer of money from the
bank account of the importer directly to that of the exporter prior to shipment of
merchandise?
A) documentary collection
B) letter of credit
C) advance payment
D) open account
Answer:
The regional trading bloc that Zucoland will be joining is most likely a(n) ________.
A) economic union
B) free trade area
C) customs union
D) political union
Answer:
The KOF Index measures the ________.
A) distribution of the global workforce
B) extent of globalization
C) gross regional product of an area
D) extent of technological innovation in a nation
Answer:
________ has one of the highest levels of macropolitical risk.
A) Saudi Arabia
B) Chile
C) Venezuela
D) Afghanistan
Answer:
Which of the following motives illustrates Freeland’s efforts to protect local jobs?
A) political motive
B) economic motive
C) cultural motive
D) social motive
Answer:
The rise of a new international entity called the ________ suggests that any company,
regardless of age, experience, and resources, can engage in international business.
A) transnational corporation
B) multinational corporation
C) born global firm
D) global firm
Answer:
A manager could most likely gain information on a local area’s housing, health care,
transportation, schools, and climate by participating in ________.
A) language training
B) environmental briefings
C) field experience
D) sensitivity training
Answer:
Horizon Ltd. is a software company that, over the last year, incorporated social
responsibility into its core operations to create value and build competitive advantage.
Which layer of corporate social responsibility does Horizon Ltd. function at?
A) risk management
B) traditional philanthropy
C) strategic CSR
D) political CSR
Answer:
The senior manager argues that Hafstrom could reduce its costs significantly by
purchasing parts from companies located overseas rather than producing its own parts.
Which of the following is the senior manager advocating?
A) outsourcing
B) a greenfield investment
C) lean production
D) vertical integration
Answer:
Which of the following strategies should TeleToys follow if it wants buyers to perceive
its products as unique?
A) retrenchment strategy
B) global strategy
C) differentiation strategy
D) low-cost leadership strategy
Answer:
Which of the following is an example of a trademark infringement?
A) manufacturers who sell different versions of their own products in different
countries
B) manufacturers who sell counterfeit products under the names and logos of more
famous brands
C) a company which exports factory rejects to developing countries
D) a company which sells products at half the price of their competitors
Answer: