Formal institutions operate through laws and regulations. They require members to
make a written commitment.
The national defense argument for trade restrictions is based on the development level
of the country.
To achieve global objectives, the selection and training of IC managers are the same
whether the candidate is from the home country, the host country, or a third country.
Religion is not an important aspect of culture in countries that are secular and have split
the church from the state.
In collectivist cultures such as Thailand, accountability is assumed at the group level.
The benefits from standardization of the marketing mix are lower costs, easier control,
and reduction of time in preparing the marketing plan.
The first formulation of international trade theory, by Adam Smith, was motivated by
political considerations.
According to Heenan and Perlmutter, the nationality of a company determines whether
the organization’s approach to international human resource management should be
ethnocentric, polycentric, regiocentric, or geocentric.
According to the text, a concurrent engineering approach to design promotes
cross-functional participation in the design process and thereby helps to identify and
avoid many of the potential sourcing, manufacturing, and other difficulties that can be
associated with a particular design.
According to the text, an organization that coordinates economic activity to deliver
value to customers using resources outside its traditional boundaries is an integrated
corporation.
The sales agreement should specify as simply as possible the duties of the
representative and the firm.
Businesses favor unstable governments because they present more profit opportunities.
If freely floating currencies are allowed to fluctuate against one another, at times the
fluctuations might be quite large.
Paying ransom makes sense because a life is saved and the payments can be traced.
Michael Porter claims that demand conditions, factor conditions, related and supporting
industries, and firm strategy, structure, and rivalry, rather than government and chance,
are factors that affect national competitiveness.
Because large multinationals generate an average of nearly two-thirds of their revenues
within their home region, some researchers have suggested that a regional strategy
perspective is more appropriate than a global perspective.
Computer-integrated manufacturing reduces the economic batch quantity to one and
facilitates the potential for mass customizaton.
As a result of Bretton Woods and the dollar’s use as a proxy for gold, the United States
ran up a balance-of-payments deficit of around $56 billion, which led to the United
States going off the gold exchange standard in 1971.
Environmental scanning provides the firm with information about world opportunities
and threats.
The Big Mac index is an example of purchasing power parity, an international measure
of junk-food consumption.
The only export support available in the United States at the federal level is through
trade. gov.
Former British prime minister Tony Blair led the privatization movement.
There are many outstanding international career opportunities for people with desirable
interpersonal and language skills that are not in mainstream business but may require
basic business expertise.
The current rate translation method translates current assets at the rate in effect when
they were acquired.
Private brands are responsible for a shift in power from manufacturers to retailers.
Global firms that organize by function at the top level have functional managers that
report directly to the area heads.
Human resources are influenced by cultural values because values are the foundation of
motivation and evaluation.
If assembly or manufacturing is done in an FTZ using imported components, no duties
need to be paid when the finished product is imported.
Environmentally sustainable businesses need to consider the economic and ecological
systems in which they function, but not the social.
Every coast between 20 and 30 degrees of the equator (north or south) is dry.
Dissimilar cultural patterns generally necessitate changes in marketing of food and
other consumer goods.
In a joint venture, a management contract is often used as a control mechanism by
firms, even if they hold only a minority position in the venture.
The United States avoids trade barriers on imports in support of free trade principles.
Finance is best left decentralized in international firms so that local efficiencies and
opportunities can be accessed.
Companies wishing to export must first choose between:
A. exporting directly and using sales companies.
B. exporting indirectly and using joint ventures.
C. exporting directly and exporting indirectly.
D. exporting directly and licensing.
E. none of the above.
Which country controls the export market of rare earths?
A. Brazil
B. Russia
C. the United States
D. China
Credit information is available for new exporters through all of the following except:
A. Dun & Bradstreet.
B. the FCIB (Finance, Credit, and International Business Association).
C. the exporter’s bank.
D. the SBA (Small Business Administration).
E. all of the above.
Virtual communication:
A. is more efficient than face-to-face communication.
B. allows a focus on tasks and less on social needs.
C. lacks the richness of face-to-face communication.
D. supports higher levels of trust than face-to-face communication.
E. allows for integrated global team development.
Locating activities in another nation is:
A. outsourcing.
B. offshoring.
C. foreign direct investment.
D. all of the above.
E. two of A, B, and C.
Many of the Asian countries that are major exporters to the United States are also
significant importers of American goods because:
A. their rising standards of living enable their people to afford more imported products.
B. they are purchasing large amounts of capital goods to further their industrial
expansion.
C. they are importing raw materials and components that will be assembled and
subsequently be exported, often to the United States.
D. all of the above.
E. two of A, B, and C.
Hofstede’s masculinity-femininity dimension suggests that, as an international manager,
you might well:
A. avoid feminine cultures because their production levels will lag.
B. avoid very masculine cultures because they violate EEOC standards.
C. find men and women equally ready to assume leadership roles in a feminine culture.
D. find women too competitive in a feminine culture.
Mail surveys can be a difficult foreign market research tool because:
A. mail deliveries can take weeks.
B. sometimes mail is not delivered at all.
C. response rates for mail surveys may be low.
D. all of the above.
E. two of A, B, and C.
Financial dumping is:
A. sending excess financial resources to other nations.
B. a government’s decision to subsidize low interest rates for purchases of its exports.
C. allowing a bank to have a low level of capital to total assets.
D. all of the above.
E. two of A, B, and C.
Environmental forces can be classified as:
A. all of B, C, and D.
B. external.
C. uncontrollable.
D. internal.
E. two of B, C, and D.
The WTO has made progress on trade-related intellectual property rights (TRIPS). An
example of this progress is:
A. an agreement that property rights should not take precedence over public health.
B. an agreement that copyrights are inviolate.
C. a shared recognition that private property is a basic human right.
D. an agreement that governments should hold all pharmaceutical trade secrets.
Exchange rate forecasting is:
A. important because exchange rates influence all aspects of business.
B. important because markets depend on solid information.
C. unimportant because exchange rate forecasting does not have a theoretical model.
D. unimportant because exchange rate movements do not impact international
transactions.
According to the text, among the appealing factors of online advertising in the
international sphere is the following:
A. the Internet provides access to a broad, low-income market.
B. Internet communications are unregulated.
C. for some groups, the Internet may be among the best media choices.
D. all of A, B, and C.
E. two of A, B, and C.
In HC cultures, time tends to be:
A. loosely conceived.
B. tightly planned.
C. monochronic.
D. polychronic.
The FCPA includes:
A. wording consistent with the United Kingdom Bribery Act to facilitate application
globally.
B. specific explicit rules with clear definitions of terms that U.S. companies must
follow in their foreign operations.
C. all accounting processes, including the accounting of transfer payments.
D. foreign tax liabilities and other adjustments specific to business outside the home
country.
E. uncertainties that make its application problematic.
According to the text, a company that wishes to own a foreign subsidiary outright may:
A. make a greenfield investment.
B. purchase its distributor.
C. acquire part of a going concern.
D. all of the above.
E. two of A, B, and C.
A decision to move production factors from one country to another would be:
A. affected by currency and political stability.
B. made cooperatively by subsidiary managers.
C. based on tax, labor supply, and market conditions.
D. all of the above.
E. two of A, B, and C.
Of all the promotional mix elements, __________ is the one with the greatest
similarities worldwide.
A. public relations
B. personal selling
C. advertising
D. sales promotion
E. none of the above
Decision making in the international environment is __________ it is in a purely
domestic environment.
A. less complex than
B. less demanding than
C. more complex than
D. about the same as
E. two of the above
Generally, consumer products require __________ adaptation than (as) industrial
products to meet the demands of the world market.
A. greater
B. less
C. the same amount of
D. about the same
E. none of the above
Entry barriers, profit remittance barriers, and policy stability are all part of the:
A. first screening.
B. second screening.
C. third screening.
D. fourth screening.
E. fifth screening.
Elkington suggests that the drivers for triple-bottom-line accounting can be:
A. corporate profits and growth.
B. markets, values, transparency, life-cycle technology, partnerships, time, and
corporate governance.
C. CSR.
D. the SEC.
The Treaty of Rome, signed in 1957, established a common market for coal and steel
for:
A. West Germany, Belgium, the Netherlands, France, Luxembourg, and Italy.
B. England, Ireland, Northern Ireland, Scotland, Wales, and France.
C. Finland, Sweden, Norway, West Germany, Denmark, and Switzerland.
D. Austria, Hungary, Slovakia, Poland, Romania, and Bulgaria.
IDA’s purpose is to loan to:
A. the poorest nations.
B. middle-level-income nations needing infrastructure.
C. developed nations for use in trade stimulus efforts.
D. any nation with collateral.
International firms employ contract manufacturing:
A. as a means of entering a foreign market without investing in plant facilities.
B. to subcontract assembly work or the production of parts to independent companies
overseas.
C. A and B.
D. as a means of direct foreign investment.
The specific-diffuse dimension looks at:
A. work behaviors.
B. organizational loyalty.
C. attitudes toward public and private life.
D. attitudes toward paternalism.
According to the text, among the appealing factors of online advertising in the
international sphere is the following:
A. the Internet provides access to an affluent, reachable audience.
B. Internet communications can be interactive.
C. the Internet can be particularly important for reaching teenagers.
D. all of A, B, and C.
E. two of A, B, and C.
The oldest orderly marketing arrangement, which was disbanded through the WTO, is
the:
A. Multi-Fiber Agreement (MFA).
B. Jamaica Agreement.
C. Textile Co-operation Treaty (CTC).
D. Japanese truck export quota.
E. Paris Convention.
As their overseas operations have increased in importance, companies have felt the
need to:
A. eliminate the international division.
B. establish worldwide organizations based on product, function, region, or customer
classes at the top level.
C. lower production costs by setting up in-bond plants.
D. two of the above.
E. all of A, B, and C.
The EU began as a common market for:
A. all imported goods from beyond Europe.
B. the textile and dairy industries.
C. the transportation industries.
D. the coal and steel industries.
This type of institution operates through laws and regulations, with coercion as the
regulative mechanism.
A. formal
B. informal
C. normative
D. cognitive
A reason that outsourcing has become an increasingly common option for companies is:
A. the cost of communications is plummeting.
B. more automation of a company’s operational activities.
C. more companies are competing for outsourcing business.
D. two of the above.
E. all of A, B, and C.
(p. 139)-Renewable energy sources:
A. will replace fossil fuels, due to price, depletion, or carbon emissions.
B. are growing at greater rates than the nonrenewables in the United States and Europe.
C. A and B.
D. are all available everywhere.
The proportion of world commercial services exports accounted for by ___________
has evidenced an overall decline since 1980.
A. the European Union
B. Africa
C. the United States
D. all of the above
E. two of A, B, and C
Most firms begin their involvement in overseas business by:
A. exporting.
B. licensing.
C. joint ventures.
D. wholly owned subsidiaries.
E. none of the above.