Licensing companies commonly negotiate a “front-end” payment from licensees to
cover ________ transfer costs.
A) employee
B) brand name
C) technology
D) copyright
A ________ is a special outlook, skill, capability, or technology that runs through the
firm’s operations, weaving together all value activities into an integrated value chain.
A) core competency
B) value proposition
C) mission statement
D) learning curve
Which term refers to a tariff or duty assessed as a percentage of an item’s value?
A) specific duty
B) effective tariff
C) ad valorem duty
D) compound tariff
Which of the following was NOT a contributing factor to the turmoil in the global stock
market in the last few years?
A) a decline in oil prices
B) the revaluation of the euro
C) emerging markets lowering interest rates
D) a rise in interest rates in the United States
A company that makes a foreign investment largely to acquire knowledge is most likely
to use ________ as a means of expansion.
A) a greenfield investment
B) internalization
C) an acquisition
D) a licensing agreement
A situation in which several banks pool resources in the Eurocurrency market to extend
credit to a borrower and spread the risk is known as ________.
A) credit collaboration
B) leverage equity financing
C) syndication
D) short-term Eurocurrency financing
________ refers to any one of several different arrangements that business parties
negotiate so that they can trade goods and services with limited or no use of currency.
A) Factoring
B) Offset
C) Countertrade
D) Barter
The more a company engages in international collaborative arrangements as opposed to
wholly owned foreign operations, the more it is likely to ________.
A) decrease its exposure to political risk
B) increase its control over foreign operations
C) learn rapidly about foreign environments
D) protect its core assets
Which term refers to money denominated in the currency of another nation or group of
nations?
A) foreign exchange
B) foreign subsidy
C) export tariff
D) quota
In a brief essay, describe the political and legal systems in China and their effect on
MNEs doing business in China.
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
The attempt to resolve small issues before principles is a characteristic of which of the
following?
A) relativism
B) monochronic behavior
C) pragmatism
D) uncertainty avoidance
Which of the following is an example of cryptocurrency?
A) U.S. dollar
B) Japanese yen
C) Euro
D) Bitcoin
A(n) ________ staffing policy framework assumes that the practices and procedures
that work at headquarters will work in foreign operations; as such, executive slots are
filled by home-country nationals.
A) polycentric
B) intercentric
C) ethnocentric
D) geocentric
When the pressure for global integration is high and the pressure for local
responsiveness is low, a company is most likely to pursue a(n) ________ strategy.
A) global
B) transnational
C) localization
D) international
Fundamentally, countertrade is best described as a(n) ________ transaction.
A) simple
B) common
C) desirable
D) inefficient
In which of the following countries would there be the highest likelihood of
encountering a bribery situation?
A) Germany
B) United States
C) South Korea
D) Russia
Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S.
market. Which of the following is likely the MOST important factor for this increase in
imports?
A) more effective production techniques
B) advances in communication systems
C) advances in transportation and logistics
D) cross-national cooperation
Defense arguments are sometimes used to prevent exports to unfriendly countries. This
runs the risk of the targeted country ________.
A) becoming politically destabilized
B) removing import restrictions
C) finding alternative sources of supply
D) banding with other countries to form a cartel
Anderson Enterprises is a U.S. firm that manufactures light fixtures for commercial and
residential consumers. Anderson is looking to expand internationally, so the firm should
most likely ________.
A) focus on developing new recruitment strategies and selection tests
B) change their organizational structure to fit the norms of the foreign country
C) disregard changes in trading groups because they have little effect on a company
D) look to expand beyond the triad regions currently controlled by the top 500 MNEs
Contact among countries brings about cultural change, which is a process called
________.
A) cultural collision
B) cultural imperialism
C) cultural diffusion
D) polycentrism
Three types of control systems are used in MNEs. These are ________.
A) market control, bureaucratic control, and clan control
B) standardization control, adjustment control, and clan control
C) market control, adjustment control, and clan control
D) planning control, market control, and clan control
International businesspeople need to understand social stratification systems where they
do business because ________.
A) such systems reflect a culture’s willingness to accept new products
B) such systems indicate who people in a given culture will likely respect more
C) the high similarity among countries lets firms effectively use global hiring practices
D) what is an ascribed group membership in one country is an acquired one in another
A Japanese keiretsu is best described as a ________.
A) family business
B) product division
C) network structure
D) centralized control system
Which of the following countries is an important offshore financial center?
A) Turks and Caicos
B) Mexico
C) South Korea
D) Bermuda
Which of the following is a characteristic of most offshore financial centers?
A) political stability
B) services for residents
C) accounting scandals
D) a lack of legal expertise
A manager needs to prepare a grid to compare countries for location of the firm’s
international operations. It would be most useful for the manager to ________.
A) prepare an opportunity analysis in-house, but outsource the risk analysis
B) have agents within each country supply governmental data
C) prepare the risk analysis in-house, but outsource the opportunity analysis
D) use a team made up of people from different functions within the company
Which of the following is one of the primary business objectives for pursuing ethical
behavior?
A) avoiding industrial sanctions
B) developing competitive advantages
C) developing creative advertisements
D) discouraging false commitments to the firm
Generally, HRM does NOT emphasize which of the following characteristics when
evaluating the adaptability of an expatriate candidate?
A) self maintenance
B) technology skills
C) cultural empathy
D) sensitivity to host environments
The accounting principle that relates to more, rather than less, extensive footnotes in
reports is known as ________.
A) secrecy
B) measurement
C) conservatism
D) transparency
Rather than an inspirational statement, a(n) ________ statement is meant to motivate
people to act and specify the objectives that the firm needs to attain.
A) mission
B) vision
C) expectation
D) strategy
A possible drawback to the essential industry argument for import protectionism is
________.
A) that such protection hurts the protecting country’s balance of payments
B) in times of military emergency, almost any product could be considered essential
C) other countries find supplies elsewhere
D) unemployment increases in the protecting country
Ted, a manager at Global Manufacturing, is analyzing trends in economic variables to
predict future exchange rates that might affect the MNE’s international operations.
Which of the following is Ted most likely doing?
A) fundamental forecasting
B) technical forecasting
C) resource forecasting
D) economic forecasting
________ is the most common way of identifying market segments within a country.
A) Psychographics
B) The Internet
C) Gap analysis
D) Demographics
Many economists have predicted that Hong Kong will change its currency system to the
________.
A) U.S. dollar
B) euro
C) yuan
D) won
