Which of the following factors is likely to make a country a more attractive location for
international business?
A. Totalitarian regimes
B. Planned economies
C. Government ownership of production methods
D. Market-based economic policies
If a marketer asks “Is the demand for the product among customers in the international
market segments targeted similar to domestic demands?,” what element of the
marketing mix is being addressed?
A. Product strategy
B. Pricing strategy
C. Distribution strategy
D. Communication strategy
Early outsourcing efforts were primarily confined to _____.
A. health care
B. service activities
C. technological research
D. manufacturing activities
A common hybrid of a quota and a tariff is known as a(n):
A. import tariff quota.
B. voluntary export restraint.
C. ad valorem tariff.
D. tariff rate quota.
Which of the following is a technological factor that affects international business?
A. Exchange rates that govern the business
B. Relative factors costs in the locality
C. Availability of a skilled labor pool
D. Fixed costs of setting up a production plant
The utilitarian approach to business ethics suggests that:
A. people should be treated as ends and never purely as means to the ends of others.
B. the moral worth of actions or practices is determined by their consequences.
C. people have dignity and need to be treated as such.
D. human beings have fundamental rights and privileges that transcend national
cultures.
Contracting out manufacturing allows companies to reduce economic exposure
because:
A. having multiple suppliers attracts subsidies from government.
B. it reduces the pressure on them to maintain a trade surplus.
C. it allows companies to shift suppliers from country to country.
D. quality issues are insignificant when manufacturing is contracted to others.
A European subsidiary of a U.S. firm will usually prepare its budgets in _____.
A. U.S. dollars
B. Euro
C. a third party currency
D. Eurocurrency
An advantage of exporting products to another country is that it:
A. minimizes exchange rate risks.
B. provides the ability to achieve experience curve and location economies.
C. faces less trade barriers.
D. gives firms access to local knowledge.
Culture is ________.
A. static
B. not static
C. unchanging
D. abstract
Which of the following statements is true of market makers?
A. Commercial banks are not allowed to function as market makers.
B. Market makers are large investors who drive an economy.
C. Market makers facilitate only equity based loans.
D. Market makers connect investors and borrowers in a capital market.
Expatriate managers who have _____ tend to treat foreign nationals as if they were
home-country nationals.
A. self-orientation
B. cultural toughness
C. others-orientation
D. perceptual ability
Deming, the proponent of total quality management, argued that:
A. work standards should be defined only as quotas and numbers.
B. supervision is not essential for quality improvements.
C. management should train employees in new skills.
D. products should be certified with standards such as ISO 9000.
Which of the following theories stress the role of luck, entrepreneurship, and innovation
in the production and export of a good or service by the firms in a country?
A. Product life-cycle theory
B. Ricardo’s theory
C. Theory of comparative advantage
D. New trade theory
Which of the following statements is true about Small Business Administration (SBA)?
A. It is the most comprehensive source of export opportunities information.
B. SBA is a private organization managed by leaders of large corporate.
C. The SBA employs trade officers throughout the United States.
D. SBA offers help exclusively to small businesses that sell products within U.S.
A production process would create just 1 defect per six thousand products at Six Sigma.
Which of the following is a disadvantage of comparing managers in different countries
only on the basis of return on investment?
A. The managers are not responsible for increasing the ROI of an organization.
B. Managerial actions do not have a significant impact on firms’ profitability.
C. Return on investment is not a valid indicator of organizational profitability.
D. Environmental factors also contribute to ROI of firms and these factors differ.
Several of the fastest-growing Asian economies adopted more _____ governments
during the past three decades, including South Korea and Taiwan.
A. totalitarian
B. democratic
C. dictatorial
D. socialists
A country with high car ownership, a large number of households with refrigerators,
and a large number of two-income families tend to have _____.
A. retail division
B. retail dispersion
C. retail concentration
D. retail fragmentation
Which of the following refers to the extent to which individuals can move out of the
strata into which they are born?
A. Caste stratification
B. Class system
C. Social mobility
D. Individual potential