Which of the following allows a firm to educate potential consumers about the features
of a product?
A.Direct selling
B.Mass media advertising
C.Pull strategy
D.Standardized advertising
E.Lag strategy
Answer:
Hindus see mobility between castes as something that can be achieved through:
A.appropriate schooling and occupation.
B.individual economic achievements over the course of one’s lifetime.
C.spiritual progression and reincarnation.
D.hard work that results in gradual upward mobility over generations.
E.offering prayer five times a day, and by refraining from the payment or receipt of
interest.
Answer:
In the context of political economy, the past three decades have seen a general move
toward:
A.autocratic forms of government.
B.command-based economic reforms.
C.adoption of legal systems that better enforce property rights.
D.an environment which is unfavorable for international business.
E.military parties monopolizing political power worldwide.
Answer:
Which of the following refers to a system under which the exchange rate for converting
one currency into another is continuously adjusted depending on the laws of supply and
demand?
A.Fixed exchange rate
B.Floating exchange rate
C.Forward exchange rate
D.Pegged exchange rate
E.Nominal exchange rate
Answer:
Lamboria Republic is facing a high rate of inflation, and the government debt in the
country is also high. As a result, the country’s business environment is beginning to
deteriorate, and the profits of the business enterprises are hurt. According to this
information, Lamboria Republic is facing which of the following type of risk?
A.Legal
B.Ethical
C.Demographic
D.Ethnographic
E.Economic
Answer:
Who among the following should be viewed as part of a firm’s infrastructure?
A.Procurement manager
B.Top management
C.Production manager
D.Research and development scientist
E.Marketing personnel
Answer:
In the absence of a reciprocal tax treaty, an expatriate:
A.may have to pay income tax to both the home- and host-country governments.
B.may not have to pay any tax.
C.may not have to pay income tax only to the host-country government.
D.may not have to pay income tax to the home-country government.
E.may have to pay 50 percent less tax to the host-country government.
Answer:
The concept that as plant output expands, unit costs decrease, is known as:
A.minimum efficient scale.
B.lean production.
C.Six Sigma.
D.economies of scale.
E.total quality management.
Answer:
Which of the following functions of an international business is typically responsible
for international labor relations?
A.Public relations
B.Human resource management
C.Finance and accounting
D.Legal
E.Logistics
Answer:
In the context of property rights, which of the following refers to theft, piracy,
blackmail, and the like by private individuals or groups?
A.Private consumption
B.Private practice
C.Privacy tort
D.Private action
E.Privacy violation
Answer:
Which of the following is a provision of the Uruguay Round Agreement?
A.A wide range of services were to be excluded from GATT fair trade and market
access rules.
B.Tariffs on industrial goods were to be raised by more than one-third, and tariffs were
to be scrapped on more than 50 percent on a wide range of services.
C.The International Monetary Fund (IMF) was to be created to implement the GATT
agreement.
D.Barriers on trade in textiles were to be significantly reduced over 10 years.
E.Average tariff rates imposed by developed nations on manufactured goods were to be
raised by 20 percent of the value, the highest level in modern history.
Answer:
The difference between Ricardo’s theory and the Heckscher-Ohlin theory is that the
Heckscher-Ohlin theory:
A.makes more simplifying assumptions.
B.cannot be subjected to empirical tests.
C.actually predicts trade patterns with greater accuracy.
D.argues that the pattern of international trade is determined by differences in national
factor endowments.
E.suggests that trade is a positive-sum game in which all countries that participate
realize economic gains.
Answer:
Silicon Valley in California is the world center for the computer and semiconductor
industry and has many of the world’s major computer and semiconductor companies
located close to each other, thus offering the location-specific advantage of:
A.a multipoint competition.
B.an oligopoly.
C.a first mover.
D.externalities.
E.free riders.
Answer:
The CEO of United Synergy Inc., a company in its embryonic stage, believes that
unethical behavior will result in premature decline of the company. In order to ensure
that the company starts operating in the most ethical manner, the CEO should:
A.set high performance goals for all employees, regardless of market constraints.
B.shun the concept of noblesse oblige.
C.outsource the majority of the jobs in his company to a developing nation which has
lax business regulations.
D.base decisions solely on business variables such as cost, delivery, and product quality.
E.hire employees with strong personal ethics.
Answer:
Which of the following is true of a product that serves universal needs?
A.It becomes necessary to customize the product to suit small consumer groups.
B.It becomes necessary to accommodate demands for local responsiveness.
C.It increases the attractiveness of concentrating production at an optimal location.
D.It is difficult to serve national differences in consumer taste and preference.
E.It is always attractive to globally disperse production to all major markets.
Answer:
Which of the following is true of the criteria to qualify for membership to the European
Union?
A.The applicants were not required to privatize state assets.
B.The applicants were not required to adopt EU laws.
C.The applicants were required to tame inflation.
D.The applicants were required to refrain from restructuring industries.
E.The applicants were required to prevent deregulation of markets.
Answer:
A government should use subsidies to support promising firms that are active in newly
emerging industries, according to:
A.strategic trade policy.
B.public policy.
C.absolute advantage.
D.product life-cycle.
E.industrialization.
Answer:
Which of the following institutions has a monopoly in proposing European Union
legislation?
A.Council of the European Union
B.Court of Justice
C.European Commission
D.European Parliament
E.European Community
Answer:
Which of the following holds true for a pegged exchange rate system?
A.Adopting a pegged exchange rate regime increases inflationary pressures in a
country.
B.It is necessary for a country whose currency is chosen for the peg to pursue a sound
monetary policy.
C.Pegged exchange rates are popular among many of the world’s largest and developed
nations.
D.The value of a pegged currency falls when the reference currency rises in value.
E.It is similar to a floating exchange rate system rather than a fixed system.
Answer:
According to Mendenhall and Oddou, what is the major problem in the selection of
appropriate candidates for overseas assignments in many firms?
A.Lack of technical abilities
B.Equating domestic performance with overseas performance potential
C.Lack of communication between line managers and HRM managers
D.A geocentric staffing policy
E.A polycentric staffing policy
Answer:
Which of the following refers to a pact that originated in 1988 to establish a free trade
area now including Argentina, Brazil, Paraguay, and Uruguay?
A.ASEAN
B.NAFTA
C.Mercosur
D.CARICOM
E.CAFTA
Answer:
The United Nation of Zorwaya has strict restrictions on direct investment by foreign
enterprises, and it opposes the establishment and operation of private enterprises. The
highest authority in the country enforces tight control over prices and production
output. According to this information, the United Nation of Zorwaya most likely
opposes:
A.nationalization of private assets.
B.deregulation.
C.socialism.
D.totalitarian ideologies.
E.command economies.
Answer:
Which of the following has 754 members as of 2014, and is directly elected by the
populations of the member-states?
A.Court of Justice
B.European Council
C.European Commission
D.European Parliament
E.European Community
Answer:
Ten years after he proposed what came to be known as Sullivan’s principles, Leon
Sullivan concluded that following his principles:
A.was the most ethical way of doing business in South Africa.
B.was not sufficient to ethically justify the existence of Western businesses in South
Africa.
C.would be effective only when companies opposed democracy in South Africa.
D.had led international companies to successfully combat the apartheid regime in South
Africa.
E.would safeguard the citizens and businesses in South Africa from Western businesses.
Answer:
Which of the following occurs when high-cost domestic producers are replaced by
low-cost producers within a free trade area?
A.Value creation
B.Strategic pricing
C.Trade creation
D.Trade diversion
E.Economic exposure
Answer:
Which of the following is detrimental to an ethical business setting?
A.Keeping in mind that each decision has a moral dimension
B.Encouraging leaders to demonstrate strong personal ethics
C.Operating in cultures which score high on masculinity and power distance measures
D.Setting realistic, achievable performance goals for employees
E.Frequently auditing the activities of expatriate managers
Answer:
A firm’s ability to increase its profitability and profit growth by expanding globally is
constrained:
A.by the imperative of localization.
B.by the economies of scale.
C.due to customer surplus.
D.due to the leveraging of skills developed in foreign operations.
E.due to the dispersion of individual value creation activities.
Answer:
Mr. X follows a religion that does not propagate the caste system. Also, his religion
emphasizes right seeing, thinking, speech, action, living, effort, mindfulness, and
meditation as a route for spiritual transformation. According to this information, Mr. X
can be considered a:
A.Hindu.
B.Buddhist.
C.Confucian.
D.Sikh.
E.Muslim.
Answer:
Which of the following includes a grouping of various types of machinery, a common
materials handler, and a computer to control the production of a family of parts or
products?
A.Specialized asset
B.Dynamic capability
C.Turnkey project
D.Flexible machine cell
E.Just-in-time inventory
Answer:
In terms of communication strategy, in highly developed countries such as the United
States:
A.noise is extremely high.
B.source effects are always positive.
C.country of origin effects are not applicable.
D.cultural barriers do not exist.
E.pull strategies are more important than push strategies.
Answer: