Olive oil prepared in a small Italian oil press factory and sold by large supermarkets in
the United States is an example of a ________.
A) net national product
B) U.S. export
C) U.S. import
D) gross domestic product
Answer:
The senior manager recommends that Hafstrom obtain auto parts from a country where
production activities would generate more value than it would generate elsewhere. He
wants to take advantage of ________.
A) just-in-time manufacturing
B) facilities layout planning
C) process planning
D) location economies
Answer:
Which of the following is a special ability of a company that competitors find
extremely difficult to equal?
A) comparative advantage
B) absolute advantage
C) core competency
D) economy of scale
Answer:
Which of the following is an investment entry mode?
A) licensing
B) franchising
C) joint venture
D) turnkey project
Answer:
The single greatest advantage of ________ is the ability to collect vast amounts of data
in a single sweep.
A) survey research
B) focus groups
C) consumer panels
D) interviews
Answer:
Rice imports to a nation under a quota limit of 8,500 tons are charged a tariff of 15
percent. Imports of rice above the quota limit are charged a tariff of 60 percent. This is
an example of a(n) ________.
A) export quota
B) voluntary export restraint
C) ad valorem tariff
D) tariff-quota
Answer:
________ cultures value hard work and promote entrepreneurial risk taking.
A) Short-term oriented
B) High uncertainty avoidance
C) Individualist
D) Collectivist
Answer:
Globalization is characterized by ________.
A) the demise of democracy within a nation
B) national boundaries becoming less relevant
C) the fortification of trade barriers
D) rigid foreign relations policies
Answer:
Detailed knowledge about a culture that enables people to work happily and effectively
within it is called ________.
A) cultural literacy
B) cultural imperialism
C) cultural diffusion
D) cultural divergence
Answer:
Which of the following is true about a quote of ¥117.87/$?
A) It is equal to $.008484/¥.
B) The quote is in U.S. dollars.
C) This is an indirect quote on the yen.
D) It costs a little more than a dollar to buy one yen.
Answer:
Selling goods or services that are paid for, in whole or part, with other goods or services
is called ________.
A) indirect exporting
B) countertrade
C) licensing
D) a joint venture
Answer:
The board will also examine new production techniques the company could use to
create its product. This examination is a part of ________.
A) capacity planning
B) process planning
C) facilities location planning
D) centralized production
Answer:
The value of all goods and services produced by a country’s domestic and international
activities over a one-year period is the country’s ________.
A) gross domestic product (GDP)
B) gross world product (GWP)
C) gross national product (GNP)
D) gross state product (GSP)
Answer:
Suppose Sam then noticed that the actual euro/dollar exchange rate on currency markets
is €1.2/$, and that a kilogram of wheat still costs $1 in the U.S. and €1.5 in France. Sam
then knows that ________.
A) the expected exchange rate between the euro and the dollar is €1.5/$
B) wheat is priced higher in France
C) wheat is priced lower in France
D) an arbitrage opportunity does not exist in the international wheat market
Answer:
________ is a political system in which political leaders rely on military and
bureaucratic power to support their rule.
A) Secular totalitarianism
B) Secular anarchism
C) Theocratic totalitarianism
D) Theocratic pluralism
Answer:
When one company is hired to design, construct, and test a production facility for a
client, the arrangement is called ________.
A) a turnkey project
B) licensing
C) a joint venture
D) franchising
Answer:
Which of the following political ideologies states that every aspect of people’s lives
must be controlled for a nation’s political system to be effective?
A) totalitarianism
B) capitalism
C) anarchism
D) pluralism
Answer:
________ tend to occupy the highest social layer in industrialized countries.
A) Teachers
B) Scientists
C) Medical doctors
D) Business leaders
Answer:
As a first stage of cooperation, the countries agree to remove all barriers to trade among
themselves. Each country also maintains policies it sees fit against nonmembers. At this
stage, Moonland Union can be described as a ________.
A) free trade area
B) political union
C) common market
D) customs union
Answer:
The ________ is the currency that dominates the foreign exchange market.
A) Japanese yen
B) British pound
C) U.S. dollar
D) Australian dollar
Answer:
________ is the layer of corporate social responsibility whereby a company develops a
code of conduct that it will follow in its global operations and agrees to operate with
greater transparency.
A) Strategic CSR
B) Risk management
C) Traditional philanthropy
D) Task orientation
Answer:
The ________ view says that a company should maintain its home-country ethics
wherever it operates because the home-country’s view of ethics and responsibility is
superior to others’ views.
A) Friedman
B) righteous moralist
C) cultural relativist
D) utilitarian
Answer:
The realization that companies can start production in the most efficient and productive
locations in the world and export to markets worldwide led to a new surge of foreign
direct investment into ________.
A) First World nations
B) low-income nations
C) high-income nations
D) newly industrialized nations
Answer:
A loan in which the borrower promises to repay the borrowed amount plus a
predetermined rate of interest is called a(n) ________.
A) equity
B) exchange rate
C) stock
D) debt
Answer:
Advance payment is commonly used for export/import financing when ________.
A) two parties are unfamiliar with each other
B) the buyer has obtained credit for the transaction
C) the transaction is for a relatively high amount
D) the buyer has good credit rating at banks
Answer:
Alec is an American working for a software company in Texas. He has been assigned to
work on a project in China for a year. He would be considered as a(n) ________ in
China.
A) domicile resident
B) expatriate
C) host-country national
D) third-country national
Answer:
Companies typically recruit ________ to train individuals placed in more demanding
nonmanagerial positions at foreign branches.
A) workers from the local market
B) recent college graduates from the host country
C) qualified third-party nationals
D) specialists from the home country
Answer:
Which of the following terms refers to the forced transfer of assets from a company to
the government without compensation?
A) expropriation
B) nationalism
C) nationalization
D) confiscation
Answer:
In the ________ product stage of the international product life cycle theory, increased
competition pressurizes a company to build production facilities in low-cost developing
nations.
A) new
B) maturing
C) standardized
D) declining
Answer: