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
Scenario: ABC Software
ABC Software is a producer of educational software for children below the age of
twelve. The company has operations in Switzerland and would like to expand its
foreign operations with a new facility in China.
If ABC Software simultaneously purchases and sells foreign exchange for two different
dates, the company is said to be involved in ________.
A) increasing its foreign exchange rate risk
B) conducting a currency swap
C) entering an arbitrage situation
D) buying and selling at the spot rate
Which of the following statements is true of objectives?
A) Objectives of individual business units in a company tend to be stated in the most
general terms.
B) Objectives become more precise at the level of individual departments.
C) Objectives at the highest level in an organization tend to be more specific.
D) Objectives at the highest level in an organization are more concrete as they contain
numerical targets.
Scenario: The French Government
The French Government has placed many restrictions upon the use of the English
language within their borders. They argue that the inflow of English movies, music, and
literature is responsible for the dilution of their rich culture.
Surveys conducted by a group of sociologists show that French children display more
familiarity with the superheroes of Hollywood movies than with the heroes of their
traditional folklore. The French Government can use this fact to prove the effect of
________ within their country.
A) cultural imperialism
B) social stratification
C) ethnocentricism
D) racism
The ________ replaced the institution of GATT while retaining all of the former GATT
agreements.
A) World Trade Organization
B) Federation of International Trade Association
C) Commonwealth of Nations
D) International Monetary Fund
Which of the following types of money adds to the volatility of emerging markets
because it can be quickly withdrawn from its investment?
A) hot money
B) patient money
C) key money
D) fiat money
Had the government taken over (with compensation) the assets of Global Trading but
not those of any other company, the government’s actions would be an example of
________.
A) expropriation
B) nationalization
C) confiscation
D) communism
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
Subcultures contribute very little to national culture and can be safely ignored when
making marketing and production decisions.
Scenario: Mr. Yoshimura goes to Tennessee
Mr. Yoshimura, vice president of quality control at Oshimura Yarn, has recently been
assigned to a three-year project at the company’s Tennessee plant. Mr. Yoshimura has
brought his wife and his three daughters with him from Yokohama to Tennessee.
Mr. Yoshimura and his family were initially very excited to see Tennessee but soon
started missing their home, relatives and friends in Japan. They are facing ________.
A) culture shock
B) reverse culture shock
C) expatriate failure
D) cultural cringe
Scenario: Sally goes to Japan
Sally Johnson has identified a market for her company’s products in Japan. She is
excited about expanding her company, but knows that she needs to learn how the
foreign exchange market works before she can successfully sell her products abroad.
If Sally sees a quote of ¥117.87/$, she should know that ________.
A) the yen is the base currency here
B) this is a direct quote on the dollar
C) this is a direct quote on the yen
D) the quote is in U.S. dollars
________ is a prominent operational center.
A) Dubai
B) London
C) Singapore
D) Mexico
A(n) ________ is guaranteed by both the exporter’s bank in the country of export and
the importer’s bank in the country of import.
A) confirmed letter of credit
B) transferrable letter of credit
C) revocable letter of credit
D) irrevocable letter of credit
Which of the following statements is true about the political risks in a global marketing
environment?
A) The political risk of low-income countries is lesser than high-income countries.
B) The more a country is developed, the greater is the political risk.
C) Political risk is a major deterrent for companies that want to invest abroad.
D) A country with high political risks attracts more investors.
Sam’s mentor is excited about the wheat prices in France and the U.S. because he sees
an opportunity to buy wheat in the U.S. and sell it in France, which is known as a(n)
________.
A) exchange rate profit
B) arbitrage opportunity
C) violation of purchasing power parity
D) violation of the law of one price