The most popular budgeting rule is the objective-and-task method.
Any start-up firm becoming global at its first inception is called as ‘˜born again firm’.
Asea Brown Boveri is a prime example of networking.
Pirated products tend to be of high quality.
The Coordinating Committee for Multilateral Controls (COCOM) was founded after
the Cold War in the 1990s.
Local brands do not enjoy a pioneering advantage by the fact of being the first one
in the market.
In a cooperative joint venture, the partners agree to raise capital in proportion to the
equity stakes agreed upon.
The number one brand in the world in market value is IBM.
The U.S. Department of Commerce prepares the balance of payments statement in the
United States.
Web sites enable companies to manage perishability.
The Uruguay Round set up an international body called the World Trade Organization
(WTO).
As of March 2, 2013, the World Trade Organization (WTO) had 159 member
countries.
Idioms that use slang from one country to another may inadvertently lead to
embarrassing meanings in the host country.
Preliminary screening is an accepted method of reducing the number of candidates
for market entry.
Export license requirements are supply-based trade controls.
Local autonomy should always be granted to distributors because they know the market
better than the MNC.
Focus groups normally include 30-40 people.
An example of an emerging country (with respect to market attractiveness) is
the Philippines.
Iran is one of the BRIC nations.
According to the textbook, the process of globalization does not suffocate
_________________, but rather liberates them from the ideological conformity of
nationalism.
a. glocal cultures
b. regional cultures
c. Asian cultures
d. dynamic cultures
e. local cultures
Which of the following is NOT a driver in a company’s sustainability strategy
a. Nature of the industry
b. Company values
c. Host country environment
d. Home country environment
e. Company mission
Once brand loyalty has been established, price will play less of a role as a
purchase criterion, and the firm may be able to institute a ________________
strategy.
a. demand-based
b. premium pricing
c. elastic pricing
d. promotion-related pricing
e. sensitivity-based
The acronym CRM stands for:
a. customer relationship mapping.
b. customer reliance management.
c. computer relationship management.
d. criteria relationship management
e. customer relationship management.
Balance of payments between nations is based on which of the following principles
of accounting?
a. Debit only.
b. Credit only.
c. Factor analysis.
d. First in, last out.
e. Double entry accounting.
______________ is part of a formal scoring model in screening new products.
a. New Prod
b. ExProd
c. YProd
d. ZProd
e. none of the above
In 2008, the following non-US multinational had to pay a multi-billion dollar fine for
violating the Foreign Corrupt Practices Act:
a. Siemens
b. Shell
c. BP
d. Sanofi
e. Novartis
One of the biggest advantages the United States has in importing is that U.S.
companies can:
a. order unlimited amounts of goods.
b. always sell what they order abroad.
c. be assured that the government will support their trade efforts.
d. pay in U.S. dollars–a currency accepted everywhere.
e. always turn a profit with the goods they buy because of market demand.
With respect to currency quotation when preparing for buying and selling
transactions, buyers and sellers generally prefer to quote in:
a. a world currency.
b. the seller’s currency.
c. the buyer’s currency.
d. their own currency.
e. the dollar.
Mexico permits _______ percent foreign ownership of the maquiladora plants in the
designated maquiladora zone.
a. 25
b. 50
c. 75
d. 90
e. 100
A _________________ occurs when we group people (from what might appear
to us as very similar cultures) together in perhaps an inappropriate manner because
those people consider themselves to be different.
a. cultural assimilation
b. cultural harmony
c. cultural generalization
d. cultural syncopation
e. cultural similarity
PPP is an acronym for:
a. people power parity.
b. purchasing power parity.
c. planning power parity.
d. purpose power parity.
e. positioning power parity.
___________________ are home country personnel sent overseas to manage local
operations in the foreign market.
a. Managers
b. International personnel
c. Group managers
d. Expatriates
e. Foreign managers
Because of differences in preferences in flavors and government regulations
regarding the marketing of diet products, Slim-Fast normally uses which of the
following strategies?
a. product and communication extension–dual extension
b. product invention
c. product extension–communications adaptation
d. product adaptation–communications extension
e. product and communications adaptation–dual adaptation
Which of the following brands has NOT been bought by firms in emerging markets?
a. Miller beer
b. Jaguar
c. IBM PC
d. Ferrari
e. Budweiser
To shape a shared vision, cultural values primarily demand which of the following
properties?
a. easy to understand in only one way and written in English.
b. have clarity, continuity, and consistency.
c. have symbolism, sex-appeal, and sensitivity.
d. be dynamic, demanding, and declarative.
e. be global, gifted, and guiding.
An example of a product-based trade control would be the:
a. quota.
b. countervailing duty.
c. export license requirement.
d. ownership control.
e. asset freezing.
When the exporter quotes a price for the goods, including charges for delivery
of the goods alongside a vessel at a port (the seller covers all costs of unloading and
wharfage at the shipment port and the buyer covers all other charges to get the goods
to the buyer), this form of terms of shipment is called:
a. ex-works.
b. free alongside ship (FAS).
c. free on board (FOB).
d. cost and freight (CFR).
e. Cost, Insurance, and Freight (CIF).
_______________________ refers to the complex of nonverbal communication
mechanisms that people use to get a message across.
a. Spoken language
b. Slang language
c. Silent language
d. Harmonious language
e. Electronic language
The Maastricht Treaty is a(n):
a. economic union.
b. development union.
c. transnational union.
d. political union.
e. national union.
A major strength of global service firms is that their _________________.
a. local know-how
b. global know-how
c. regional know-how
d. high-tech know-how
e. political know-how
A large domestic market such as in the United States makes it possible for U.S.
companies to enjoy _________________ in mass production and mass marketing,
enabling them to become lower cost producers than their competition in foreign
countries.
a. monopoly power
b. preference similarity
c. economies of scale
d. competitive advantage
e. duopoly power
___________________ developed a highly useful cultural classification scheme.
a. Gary Hamel
b. Peter Drucker
c. Michael Porter
d. Geert Hofstede
e. Charles Handy
LCPS stands for:
Some of the greatest challenges in trade in the next century will come in the areas of
information technology and intellectual property. Describe these challenges, the
mechanisms that are in place to protect one’s intellectual property, and how trade in
general will be affected.
A __________________ is a loosely structured free-flowing discussion among a
small group of target customers facilitated by a professional moderator.
Although global e-commerce is expected to increase, it has encountered obstacles and
structural barriers. Discuss these structural barriers.
What is transfer pricing? Comment on the stakeholders and key drivers that impact the
decision maker faced with transfer pricing.
Explain the differences between international trade and international business.
How does the United States typically participate in international business?
There are some commonly held beliefs about marketing mix strategy that have been
proven to be less than optimal. Identify some of these.