If Verandas International chooses to pursue equity financing, but wants to avoid the
time and money required to comply with stock exchange regulations, the company
would most likely issue ________.
A) American Depository Receipts
B) bills of lading
C) equity shares
D) irrevocable letters of credit
Answer:
Upper or lower limits placed on the prices of products sold within a country are known
as ________.
A) price controls
B) transfer prices
C) price escalators
D) arm’s length prices
Answer:
The ________ called for banking in a single common currency, setting up of monetary
and fiscal targets, and political union of the European Union members.
A) Maastricht Treaty
B) European monetary union
C) Single European Act
D) Copenhagen Criteria
Answer:
A ________ team is one composed of employees who work at similar levels in different
operative departments in an organization.
A) self-managed
B) global
C) virtual
D) cross-functional
Answer:
An exchange rate calculated using two other exchange rates is called a(n) ________.
A) interest arbitrage
B) forward contract
C) forward rate
D) cross rate
Answer:
The ________ is an IMF asset whose value is based on a weighted basket of four
currencies, including the U.S. dollar, European Union euro, Japanese yen, and British
pound.
A) special drawing right
B) gold standard
C) Eurobond
D) currency board
Answer:
Which of the following does the secondary footprint measure?
A) the burning of fossil fuels
B) direct energy consumption
C) indirect carbon dioxide emissions
D) emissions caused by natural forces
Answer:
________ is relatively inexpensive because it has already been collected, analyzed, and
summarized by another party.
A) Primary data
B) Secondary data
C) Raw data
D) Transaction data
Answer:
Financial assistance given to domestic producers in the form of cash payments is an
example of a(n) ________.
A) ad valorem tariff
B) quota
C) subsidy
D) export tariff
Answer:
A system in which currencies float against one another, with governments intervening
to stabilize their currencies at particular target exchange rates is called a ________.
A) managed float system
B) linked exchange rate system
C) free float system
D) fixed exchange-rate system
Answer:
Which of the following features did Bretton Woods Agreement incorporate in the
international monetary system based on the U.S. dollar?
A) floating exchange rates
B) trade imbalance corrections
C) an enforcement mechanism
D) a strict ban on devaluation
Answer:
________ refers to governmental action to dispossess a company or investor.
A) Equity dilution
B) Deracination
C) Expropriation
D) Earnings stripping
Answer:
A ________ strategy can be implemented successfully for communicating promotional
messages only if a sufficiently large and profitable market segment exists.
A) dual extension method
B) product extension/communications adaptation method
C) product adaptation/communications extension method
D) dual adaptation method
Answer:
A(n) ________ becomes a negotiable instrument that can be traded among financial
institutions when inscribed “accepted” by an importer.
A) sight draft
B) ocean bill of lading
C) time draft
D) inland bill of lading
Answer:
The board plans to examine Wilson’s ability to produce enough bags to satisfy their
customers’ demands. This evaluation is known as ________.
A) capacity planning
B) process planning
C) lean production
D) product structure modeling
Answer:
An expatriate manager who returns after a few years from an overseas assignment to
find that there is no position for him in his home country office experiences a(n)
________.
A) reverse culture shock
B) expatriate failure
C) cognitive dissonance
D) assimilation effect
Answer:
Which of the following is a major drawback of ethnocentric staffing?
A) high costs of relocating managers
B) loss of control over host-country operations
C) loss of control over home-country operations
D) difficulty in the transfer of special know-how between branches
Answer:
Which of the following is considered as a support activity in an organization?
A) inbound logistics
B) marketing and sales
C) procurement
D) customer service
Answer:
________ refers to the replacement of one culture’s traditions, folk heroes, and artifacts
with equivalents from another.
A) Cultural imperialism
B) Social stratification
C) Cultural encoding
D) Social conditioning
Answer:
Which of the following would be most appropriate for conducting primary market
research on attitudes, behaviors, and purchasing habits in Country B?
A) Internet-based research
B) focus groups
C) consumer panels
D) data from trade agencies
Answer:
The biggest advantage of an export management company is usually its ________.
A) knowledge of the target market’s cultural, political, legal, and economic conditions
B) well-developed and extensive distribution channels and storage facilities
C) well-rounded experience in countertrade-related activities
D) financial understanding of investment projects and its manufacturing expertise
Answer:
Which of the following terms is used to refer to the departure of highly educated people
from one profession, geographic region, or nation to another?
A) social mobility
B) repatriation
C) stratification
D) brain drain
Answer:
The most common inducement that companies offer managers to accept international
postings is ________.
A) fringe benefits
B) a financial bonus
C) a vacation
D) free housing
Answer:
The centralization of production facilities is a typical policy for companies that pursue
________.
A) horizontal integration
B) product differentiation
C) a global strategy
D) a multinational strategy
Answer:
Adam Smith believed that ________.
A) governments should determine trade flows
B) market forces should determine trade flows
C) international trade should be restricted by tariffs and quotas
D) countries should produce most goods themselves and trade as little as possible
Answer:
TeleToys recently opened eighteen new toy stores in Brazil. This move can best be
described as a ________ strategy.
A) growth
B) stability
C) retrenchment
D) differentiation
Answer:
________ is the process of staffing a company and ensuring that employees are as
productive as possible.
A) Business process reengineering
B) Human resource management
C) Organizational diagnostics
D) Industrial relations
Answer:
________ are words or symbols that distinguish a product and its manufacturer from
competitors.
A) Patents
B) Trademarks
C) Watermarks
D) Copyrights
Answer:
Which of the following methods would Gro-Tru be implementing if it exchanges its
products directly for other goods or services without the use of money?
A) barter
B) offset
C) switch trading
D) buyback
Answer:
The primary purpose of the Gulf Cooperation Council at its formation was to
________.
A) cooperate with the increasingly powerful trading blocs in Europe at the time
B) create the largest free trade area on the planet
C) increase members’ tariff rates from an average of 7.5 percent to 15 percent
D) introduce barriers to trade and investment
Answer: