When a company’s primary strategic orientation is multidomestic, an ethnocentric
orientation is particularly appropriate.
Advertisers have followed glocalization to reduce costs, enabling them to develop a
common strategy for large regions.
CeBIT is a horse-trading-related trade fair.
Small and medium-sized enterprises accounted for nearly one-third of all U.S.
exporters.
Lack of control is one of the strongest arguments against a joint venture.
The government officials who make decisions about import restrictions are particularly
sensitive to their country’s broad population of consumers, who will be hurt by
international competition.
Hofstede’s framework is based on social science theory.
Environmentally sustainable businesses need to consider the economic and ecological
systems in which they function, but not the social.
The complexity of the gold standard was a part of its appeal.
Dynamism means that the leader must be dynamic.
Strategic alliances take many forms, including licensing, mergers, joint ventures, and
joint research and development partnerships.
Religion is not an important aspect of culture in countries that are secular and have split
the church from the state.
Exporters should consider both private and public export financing.
Companies with a transnational strategic orientation follow a global staffing policy,
selecting the best person for each job without considering national origin and generally
having a consistent HRM strategy across all subsidiaries.
Countries put limitations on the convertibility of their currencies when they are
concerned that their foreign reserves could be depleted.
Nontariff barriers that are not quantitative can be divided into two groups, those that are
established by the government participation in trade and those that are administrative.
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.
An analysis of the forces controlled by the firm will include a situational analysis and
control analysis.
Straight bills of lading are negotiable documents.
In a 12-country study conducted by Ernst & Young, 65 percent of U.S. companies were
found to be engaged in a strategic alliance.
As discussed in the chapter, institutions are organizations constructed to create jobs for
government employment initiatives.
In U.S. industry, the proportion of purchased materials in the overall cost of goods sold
has been rising for several decades.
International trade theory shows that nations will attain a higher level of living by
specializing in goods for which they possess a comparative advantage and importing
those for which they have a comparative disadvantage.
Top management of companies generally accepts the fact that, to be effective, strategic
planning processes should permit ideas to surface from anywhere in the organization
and at any time.
Leadership is synonymous with management.
Reverse trade missions try to find import sources in foreign countries for U.S.
producers.
Offshore financial centers operate in low-tax and low-regulation markets such as New
York City and Milan.
If freely floating currencies are allowed to fluctuate against one another, at times the
fluctuations might be quite large.
According to the text, shorter and less predictable product life cycles have placed
reduced emphasis on supply chains and their performance.
One way in which contract manufacturing is used is for a company to contract with a
local manufacturer to produce products for the company, according to the company’s
specifications.
Two prominent features of the strategic plan are sales forecasts and the mission
statement.
With less than 50 percent of the voting stock, or even with no voting stock, an IC can
still have control.
Cluster analysis is a technique for dividing objects into groups based on geographic or
economic similarity.
The experience of suppliers to the youth market indicates that this market is essentially
an international market segment.
Bridging involves seeing the other person’s point of view.
Buyers of consumer goods always act on the same motives the world over.
While indirect production-oriented goods have been the focus of management attention
for many years, the purchasing of goods and services that are part of finished goods—
termed indirect procurement—is also critical.
Exports can help to offset cyclical sales in a firm’s domestic market.
Procedures:
A. all of B, C, and D.
B. prescribe how certain activities will be carried out.
C. are broad guidelines used to assist lower-level managers to handle recurring
problems.
D. ensure that all budgets will be prepared using the same format.
E. two of B, C, and D.
The need to change the color of packages when selling a product in a new market is
generally a result of the influence of:
A. distributive forces.
B. competitive forces.
C. political conflicts.
D. cultural differences.
E. economic forces.
The rapid expansion of world exports since 1980 demonstrates that:
A. businesspeople must be prepared to meet increased competition.
B. domestic business cannot compete with cheap imports.
C. the opportunity to increase sales by exporting is a viable growth strategy.
D. all of the above.
E. two of A, B and C
In more dense populations, international managers can expect:
A. increased political discord.
B. markets that respond well to word-of-mouth promotion.
C. contrasting topographical features.
D. lower marketing and distribution costs.
In the temporal method, fixed assets such as real estate are translated at:
A. their market value.
B. their historic cost.
C. their assessed value.
D. an average of the period’s rates.
In analyzing the corporate controllable variables, management must address the
question:
A. Who are the company’s target customers?
B. What will be the costs that the company will incur in delivering value to its target
customers?
C. How much will the company be able to charge for the value it creates for its target
customers?
D. All of the above.
E. Two of A, B, and C.
The total number of Incoterms as of 2011 is:
A. 11.
B. 25.
C. 15.
D. variable. (They vary as need dictates.)
E. 45.
The following arrangement can provide a firm with foreign products:
A. domestic subsidiary.
B. wholly owned subsidiary.
C. foreign sales office.
D. two of the above.
E. all of A, B, and C.
China’s vast and mountainous terrain leads to:
A. many languages and dialects.
B. political unity, as in Switzerland.
C. economic disparities.
D. population disparities.
Offshore financial centers are appealing to the international firm because they:
A. outsource all of the administrative details.
B. are in Switzerland, the Cayman Islands, the Bahamas.
C. offer reduced regulations and lower taxes than in the home country.
D. have lower labor costs.
Patent treatment is standardized thanks to:
A. the WTO.
B. the UN Commission on Patents.
C. domestic laws in various nations.
D. the Paris Union.
E. the ACTA.
The United States became one of the first countries to prohibit dumping into its own
market, in:
A. 2006.
B. 1856.
C. 1916.
D. 1776.
E. none of the above.
Brake’s leadership triad includes:
A. culture knowledge, foreign languages, and business acumen.
B. business, culture, and geographic acumen.
C. business knowledge, relationship skills, and personal effectiveness skills
D. self-discipline, motivational skills, and business skills.
E. personal, business, and motivational skills.
Natural resources are:
A. anything that is alive in the natural world.
B. anything provided by nature on which people depend.
C. any raw material that becomes a component in a manufactured good.
D. anything that is used for food or fuel.
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 existence of the rule of law in a foreign market suggests that:
A. lawyers will be necessary in any substantive business transaction.
B. personal relationships will be less effective than in a country governed outside the
rule-of-law system.
C. none of A, B, D, or E.
D. legal rulings will be the basis of any dispute resolution.
E. foreign investors can assume that their interests will be protected.
The trend for firms in regard to country risk assessment (CRA) is to:
A. avoid it as an added cost in competitive markets.
B. concentrate much more on CRA in making decisions about foreign activities.
C. use CRA in obviously dangerous locations, but only in those situations.
D. all of the above.
E. two of A, B, 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.
An international company is:
A. a global company.
B. amultidomestic company.
C. an affiliated company.
D. all of the above.
E. two of A, B, and C.
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.
Supporters of mercantilism:
A. viewed accumulation of precious metals as an activity essential to a nation’s welfare.
B. viewed industrial development as the primary source of a nation’s wealth.
C. promoted trade policies that generally benefited consumers and emerging
industrialists.
D. all of the above.
E. two of A, B, and C.
Disadvantages of the regionalized organization structure include:
A. the increased complexity of directing worldwide operations.
B. its inappropriateness for use in global companies.
C. its duplication of area and product specialists.
D. none of the above.
E. all of A, B, and C.
“Women are inappropriate for global leadership positions.” This statement is:
A. true, because of cultural differences.
B. true, because of experience gaps.
C. false, because women have characteristics aligned with global leadership traits.
D. false, because women understand oppression and victimization.
E. true, because if women could do the job, they would be doing it.
The international Fisher effect says that interest rate differentials:
A. predict exchange rate movement.
B. can be used to determine purchasing power parity.
C. are an example of the law of one price.
D. illustrate Pareto optimality.
The capital structure of the firm can be raised externally through:
A. leveraging and bonds.
B. debt and equity.
C. debt and retained earnings.
D. retained earnings and bonds.
Whether the functional currency is local or the parent company’s currency, owner’s
equity is always translated at:
A. the rate in effect when the stock was issued.
B. the rate in effect the day of the consolidation.
C. the rate in effect the day of the journal entry.
D. the method of the company’s choice, but consistency is required.
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.
Team coaching is critically important in global teams because:
A. with high levels of diversity, team members who don’t know each other are likely to
expect poor performance.
B. team members need coaching to cross cultural barriers.
C. global teams are challenged with diversity, which leads to innovation.
D. without coaching, each separately located member is likely to work independently.
A term Hofstede uses to describe long-term orientation is:
A. Herculian commitment.
B. Confucian dynamism.
C. big-picture focus.
D. strategic commitment.
To fully understand why, how, and where they intend to do business, now and over
time, managers must have:
A. a clear understanding of the company’s mission.
B. a vision for how they intend to achieve the company’s mission.
C. an understanding of how the company plans to compete with other companies.
D. all of the above.
E. two of A, B, and C.
According to the text, recruitment of salespeople in foreign countries is at times more
difficult than recruiting them at home because:
A. of the stigma attached to selling that exists in some areas.
B. the salaries and benefits are more expensive.
C. of the need to hire people who are culturally acceptable to customers and channel
members.
D. all of the above.
E. two of A, B, and C.
Ex-Works is a short way to say:
A. cash in advance.
B. an open account.
C. consignment.
D. letters of credit.
E. shipment transferred to seller at factory.
Mass customization:
A. is enhanced by a company’s use of computer-aided manufacturing systems to
produce and deliver products and services in a batch size of one.
B. is usually appropriate in situations where there is the potential for differentiating a
product for a particular customer.
C. typically requires the company to reconceptualize the design of its products as well
as the design and integration of the processes used for producing and delivering the
product to customers.
D. all of the above
E. two of A, B, and C
Manufacturing rationalization is:
A. the allocation of scarce resources.
B. the division of production among several subsidiaries so that each produces only a
limited number of components for all subsidiaries.
C. the concentration of production at one site to get economies of scale.
D. the production by a subsidiary for its own national market.
Market Access and Compliance (MAC) specialists seek to open foreign markets to
American products. MAC specialists do not do the following:
A. develop strategies to overcome obstacles faced by U.S. business in foreign countries
and regions.
B. monitor foreign country compliance with trade agreements.
C. monitor exchange rate movement.
D. all of the above.
E. A and B.