The _________________ argument says that two countries cannot engage in trade
if one country has a(an) ___________________ over the other country. Note: the
phrase will fit in both blanks.
a. absolute advantage
b. regional advantage
c. supply chain advantage
d. comparative advantage
e. global advantage
As a type of outsourcing, _____________________ is when a company
buys major components from independent suppliers at home.
a. domestic in-house sourcing
b. offshore subsidiary sourcing
c. a domestic purchasing arrangement
d. offshore outsourcing (offshore sourcing)
e. export management company
________________ is often described as the most important element that sets
human beings apart from animals.
a. Materialism
b. Destruction
c. Life styles
d. Language
e. Computer skills
All of the following are methods that can be fruitfully employed to assess the size of
the market for any given product EXCEPT:
a. analogy method.
b. Latin square.
c. trade audit.
d. chain ratio method.
e. cross-sectional regression analysis.
______________________ are country-based political trade controls.
a. Embargoes and sanctions
b. Nontariff barriers
c. Taxing imports
d. Taxing exports
e. Tariffs
Which of the following countries has followed the rule of ‘first-to-invent’ with respect to
patent awards?
a. United States
b. Japan
c. Britain
d. Germany
e. Canada
The adoption rate for a new product in countries with a homogeneous population
is usually faster than in countries with a highly diverse culture. Which of the
following countries would probably have the fastest adoption based on the
information provided above?
a. Ireland.
b. United States.
c. Japan.
d. United Kingdom.
e. France.
If a company were to follow a strategy of product extension-communications
adaptation in a foreign market, an example of a product category that would
fit this strategy would be __________________.
a. soft drinks
b. gum
c. shampoo
d. clothing
e. hand-powered washing machines
With respect to product design strategies, the ___________________ approach is
very popular with the French carmaker Renault. They use common core-products
but customize them in each market (such as making stronger heaters for the Nordic
market).
a. core-product
b. uniform commercial code
c. die-casting
d. modular
e. PRIZM
Probably the most critical expression of social interactions is the concept of:
a. silent language.
b. gestures.
c. kinship.
d. reference groups.
e. cultural homogeneity.
In the process of global brand management, if a company decides against a formal
structure, it might still find it worthwhile to have an informal mechanism. This
usually takes the form of a(n) ______________ branding meeting.
a. ad-hoc
b. temporary
c. longitudinal
d. outside
e. domestic
BMW of Germany and Volvo of Sweden are examples of companies using
a(n) ______________ strategy to achieve success.
a. product differentiation
b. cost leader
c. price leader
d. innovator
e. niche
A(n) _______________________ is a payment form where a cash payment occurs
when the order is placed.
a. cash with order
b. confirmed irrevocable letter of credit
c. sight draft
d. time draft
e. consignment
NAFTA is the free trade area among the United States, Mexico, and
______________.
a. Canada
b. Argentina
c. Panama
d. Columbia
e. Brazil
The country with the highest penetration rate of Internet users is:
a. United States
b. Japan
c. South Korea
d. United Kingdom
e. Canada
Today, the global economy is increasingly dominated by three major currency
blocs. They are:
a. the U.S. dollar, the French franc, and the Japanese yen.
b. the U.S. dollar, the Spanish peso, and the Japanese yen.
c. the U.S. dollar, the British pound, and the Japanese yen.
d. the U.S. dollar, the British pound, and the German mark.
e. the U.S. dollar, the Japanese yen, and the euro.
3PL stands for:
a. third-party logistics.
b. third-power logistics.
c. third-peer logistics.
d. third-production logistics.
e. none of the above.
Package design in emerging markets can largely ignore the feature of ________.
a. sturdiness
b. heat resistance
c. freshness
d. sustainability
e. none of the above
To promote the Xbox video program, Microsoft gave away two million DVDs with an
interactive commercial. This is an example of which of the following trends?
a. growing commercialization and deregulation of mass media.
b. shift from radio and print to TV advertising.
c. rise of global and regional media.
d. growing spread of interactive marketing.
e. improved monitoring.
Accuracy of data in foreign markets may be suspect. This is especially true if it
neglects to record significant commercial and non-commercial activity. One example
of data that is often not recorded (though it might be significant) is:
a. trade across national borders.
b. trade by mail.
c. smuggling activities.
d. trade carried by package shippers such as FedEx or UPS.
e. trade with foreign banks.