Book Title
International Business: The Challenge of Global Competition 13th Edition

ECO 47828

February 28, 2019
Laws governing transactions of individuals and companies that cross international
borders are:
A. none of B, C, D, or E.
B. private international law.
C. product liability law.
D. public international law.
E. customary law.
According to the text, the dimensions along which management can globalize
(standardize) their company's international activities include:
A. markets.
B. competitive strategy.
C. political exposure.
D. all of the above.
By means of a licensing agreement:
A. an international firm receives permission from a foreign government to set up a
subsidiary in that country.
B. one firm grants to another the right to use stipulated parts of its expertise.
C. a foreign company receives products made for it by another company.
D. one firm grants to another the right to use all of its expertise.
(p. 139)-According to the text, the fastest-growing renewable energy source is:
A. solar PV.
B. nuclear power.
C. wind power.
D. biomass.
Action plans to enable organizations to reach their objectives are known as:
A. strategic plans.
B. competitive strategies.
C. policies.
D. procedures.
E. none of the above.
GLED and Right Stuff are models for:
A. developing global leaders.
B. developing and assessing global assignees.
C. understanding global leadership situations.
D. evaluating global leadership performance.
Benefits of joint ventures may include:
A. the ability to respond to strong nationalistic sentiment in the host nation.
B. access to expertise that the company lacks.
C. differing strategies and cultures of the partners.
D. two of the above.
The use of a global product organization structure:
A. frequently represents a return to pre-export department times.
B. has domestic product divisions responsible for the worldwide operations such as
marketing and production of products under their control.
C. helps to avoid duplication of area experts.
D. all of the above.
"Culture does not affect leadership attributes." This statement is:
A. true, because leadership traits are universal.
B. true, because leadership is a top-down concept.
C. true, because the desire to be led is universal.
D. false, because all cultures understand what leadership is.
E. false, because traits understood as critical for leaders vary some by culture.
Intermediate technology is:
A. technology between the capital-and labor-intensive processes.
B. synonymous with necessary technology.
C. older technology previously used by multinationals.
D. A and C.
With regard to the use of women versus men for expat management assignments:
A. few qualified women candidates are available.
B. few women candidates are accepting assignments and enjoying the experience.
C. those women who go into expatriate positions tend to do well. The hurdle is in
getting the assignment.
D. the women expatriates are making more money than their male counterparts.
E. two of the above.
According to the text, it has been argued that the ultimate goal of effective supply chain
management systems is to:
A. reduce costs.
B. improve quality.
C. reduce inventory.
D. increase sales.
E. increase standardization.
The WTO is the only international organization designed to establish and help
A. efforts at peace between nations.
B. rules of trade among nations.
C. security measures between nations.
D. strategic planning for developing nations.
An advantage of using home-country citizens abroad is:
A. they have expertise in the host-country culture.
B. they expand their experience, enhancing their potential for promotion at home.
C. they have lower-cost salaries and benefits than HCNs or TCNs.
D. two of the above.
The international environment is the interactions between:
A. the domestic environmental forces and the foreign environmental forces.
B. the domestic controllable forces and the domestic uncontrollable forces.
C. the foreign environmental forces of two countries when an affiliate in one country
does business in another country.
D. two of the above.
Trademarks can be:
A. a color.
B. a sound.
C. a design.
D. two of the above.
One difference between the U.S. and EU approaches to antitrust law is that:
A. the United States follows the per se concept, wherein actions are illegal whether they
have done harm.
B. the EU forbids market dominance by cartels, no matter the conditions, whereas the
United States does not.
C. the U.S. focus is on impact on competition, whereas the EU focus is on the
D. the EU avoids competition, whereas the United States seeks it.
E. the EU emphasizes the prevention of price fixing, while the United States does not.
The Triffin paradox suggests that:
A. reserve currencies can never run deficits.
B. eventually, reserve currencies will run deficits, which will lead to lack of confidence
in the currency.
C. the more a currency is held in reserves, the stronger it is.
D. the U.S. dollar could never be a reserve currency.
Europe follows the precautionary principle approach to environmental health and
safety. This means:
A. everyone takes precautions and is always on the watch for environmental issues.
B. once a product is thought to be harmful, it is investigated immediately.
C. manufacturers of new products need to prove the product is safe.
D. consumers regularly review product safety regulations.
Which of the following is the most risky for an exporter?
A. Open account
B. Irrevocable letter of credit
C. Bank collection time draft
D. Cash in advance
E. Revocable letter of credit
One attribute of the U.S. tariff schedule is:
A. that it is printed in both Arabic and Hebrew.
B. how specific it is.
C. that its categories are quite general and easy to apply.
D. that its harmonized version can be accessed via cell phone and iPad.
The inflation rate determines:
A. a currency's strengthening.
B. the real price of borrowing in capital markets.
C. locations for outsourcing.
D. import substitution regimes.
Antitrust law is intended to:
A. challenge successful businesses to allow proper levels of competition.
B. prevent large concentrations of economic power, such as monopolies.
C. create a more trusting business environment.
D. allow socialism to flourish.
E. two of the above.
World interest rates tend to vary across a small range because:
A. the IMF has been successful at promoting responsibility in the monetary sector.
B. world financial markets are integrated, so we see the law of one price at work.
C. bankers have low market appeal, given the financial crisis.
D. the BIS has coordinated monetary policy.
Financial forces such as inflation and taxation are considered uncontrollable because:
A. there is nothing a manager can do to adjust to them, so the recommended approach is
to ignore them.
B. they are external forces beyond the influence of the firm, around which a manager
can manage.
C. they are external to the firm and their influence is to be avoided.
D. they are unpredictable.
According to the text, value chain analysis focuses primarily on which question?
A. What values are important to our company?
B. What is our strategy?
C. Who are the company's target customers?
D. What does the customer value and how much is the customer willing to pay for this
E. How will this customer value be created?
Global team leaders want to set specific team norms because:
A. leaving the norming process to team members will allow the predominant culture to
B. global teams work best with norms of accountability and independence.
C. without norms or with dysfunctional norms, global teams are likely to under
D. norms that support consideration and cooperation lead to good team functioning.
E. only when norms are set can the global team leader go on to the next step in the team
Development of global leadership skills is:
A. a linear and exacting process.
B. well established and can be followed by anyone wanting to become a global leader.
C. a process that is not individualized.
D. A and C.
E. a nonlinear process that involves a set of diverse experiences.
Of the 12 most common mistakes and pitfalls awaiting new exporters, which of the
following is not on the list in the textbook?
A. Failure to develop an international marketing plan
B. Treating international distributors on an equal basis with domestic counterparts
C. Insufficient care in selecting overseas distributors
D. Failure to get good advice
E. None of the above (They are all on the list.)
One example of the effect of topography is:
A. isolated language groups, which require special marketing adjustments.
B. regional metals markets.
C. a unified China.
D. equal distribution of populations.
International strategy:
A. needs to be consistent among the various functions, products, and regional units of
the company.
B. needs to be consistent with the demands of the international competitive
C. is concerned with the way firms make fundamental choices about developing and
deploying scarce resources internationally.
D. has a goal of achieving and maintaining competitive advantage.
When a company faces relatively weak pressures for local responsiveness and cost
reductions, it should tend to use a:
A. global strategy.
B. multidomestic strategy.
C. transnational strategy.
D. differentiation strategy.
E. home replication strategy.
According to Trompenaars, a culture's attitude toward the environment can range from:
A. peaceful to warlike.
B. overwhelmed by aesthetics to dominating the environment.
C. control over the environment to harmony with it.
D. submission to atheism.

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