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1) Collaborative agreements allow companies to specialize more in those activities that
best fit their competencies.
2) The more partners in a joint venture, the more complex the management of the
arrangement will be.
3) The most common type of tariff is the export tariff.
4) The probability of a company being an exporter is independent of the size of the
company.
5) According to the text, technological advances such as e-mail and VoIP have increased
the appeal of international trade because it is now easy and inexpensive to manage
customer needs and communicate with customers frequently.
6) Wholly owned operations abroad inhibit a company's ability to pursue a global
strategy.
7) The more a company needs to alter its products and ways of doing business to be
successful abroad, the more it should rely on a diversification strategy for entering
foreign markets.
8) MNEs use different report formats and schedules for foreign operations according to
local customs.
9) Advocates of exporting e-waste assert that the activity helps entrepreneurs in
developing countries create value by recovering and recycling scarce resources such as
copper.
10) The pound-dollar forward rate for pounds is $1.9068, and the spot rate is $1.9059.
Pounds are selling at a ________.
A) discounted premium
B) backward discount
C) forward premium
D) forward discount
11) Neoclassical structures attempt to minimize boundaries between all of the following
EXCEPT ________.
A) vertical ranks and functions
B) horizontal units in different areas
C) the firm and its suppliers
D) the firm and its competitors
12) Neoclassical structures aim to support organizations ________.
A) in which the location of control in a network alliance is evident
B) that centralize decision-making authority to those who can make informed decisions
C) that dismantle horizontal, vertical, or external boundaries that block ideas and
relationships
D) that create predictable workplaces with minimal collaboration among subsidiaries
13) Which of the following has extensive banking activities involving short-term
financial transactions?
A) booking center
B) operational center
C) foreign-exchange market
D) international regulatory market
14) Which legislation triggered many foreign MNEs to exit the New York Stock
Exchange?
A) Davis-Bacon Act
B) Sarbanes-Oxley Act
C) Norris-LaGuardia Act
D) McCarran-Ferguson Act
15) Of the following possibilities, the European Union is best described as a ________.
A) customs union
B) domestic organization
C) global bargaining unit
D) common language agreement
16) In the Economic Freedom Index, ________ exhibit high economic freedom
whereas ________ exhibit little to no economic freedom.
A) mixed economies; market economies
B) command economies; market economies
C) market economies; command economies
D) centrally planned economies; command economies
17) Which of the following is NOT an area in which expatriates experience repatriation
frustration?
A) change in personal finances and compensation
B) readjustment to home country corporate structure
C) change in technical competence
D) readjustment to life at home
18) All of the following are levels of moral development EXCEPT the ________.
A) preconventional level
B) autonomous level
C) internalized level
D) conventional level
19) A global strategy tends to be more successful when ________.
A) buyers are looking for customized products at bargain prices
B) the industry's product is a commodity
C) entry barriers are low for new firms
D) suppliers have little bargaining power
20) ________ are the two basic strategies for creating value and attaining a competitive
advantage in an industry.
A) Diversification and niche marketing
B) Industry leadership and market dominance
C) Customer satisfaction and product innovation
D) Cost leadership and differentiation
21) What is the primary concern about offshore financial centers?
A) engaging in illegal activities
B) enabling firms to avoid taxation
C) allowing the transfer of large funds
D) existing in politically risky environments
22) HRM refers to the range of activities that a company, whether solely domestic or
thoroughly global, undertakes to ________.
A) direct its strategy
B) staff its operations
C) improve its responsiveness
D) integrate business functions
23) Which of the following is the LEAST likely characteristic of neoclassical
structures?
A) few barriers between people
B) extensive collaborative efforts
C) higher capacity for change and learning
D) centralized decision making
24) Growing demand for expatriates stems from which of the following trends?
A) the emergence of developing countries as high-growth markets
B) the resurgence of developed countries as high-growth markets
C) the reduced need for localized expatriate assignments
D) the longer-term assignments created in response to the global credit crisis
25) Quality is defined as ________.
A) meeting or exceeding the expectations of the customer
B) meeting the everyday low price expected by the customer
C) meeting international quality standards, such as ISO 9000
D) meeting internal quality standards
26) Which of the following is a characteristic of the Eurocurrency market?
A) The Eurocurrency market is both short and medium term
B) Private borrowers are the major players in the Eurocurrency market
C) The Eurocurrency market is a retail, rather than wholesale, market
D) The interest rates in the Eurocurrency market are about the same as in domestic
markets
27) In a short essay, describe the various reasons for product alteration.
28) What is the difference between a free trade agreement and a customs union?
Provide examples of each in your answer.
29) Describe the two basic ways that companies can create value. What role does the
value chain play in these methods?
30) In a short essay, discuss the international application of five common marketing
orientations.
31) In regards to accounting, what is the impact of the SEC and Sarbanes-Oxley Act on
international business?
32) What is the theory of country size? How is country size determined? How does
country size affect national trade patterns?
33) What is coordination? Describe the factors that influence value chain coordination.
34) Discuss the characteristics of international, multidomestic, global, and transnational
strategies. Include situations and a specific example in which each strategy would be
most appropriate.
35) In a short essay, compare push and pull promotional strategies.
