Expatriate failure, defined in broad terms, refers to the ________.
A) manager’s premature return home due to poor job performance
B) manager’s miscues, which give competitors a market advantage
C) unintentional dilution of the company’s core competency
D) poor expatriate selection procedures of the MNE
If an MNE convinced a popular priest that its vitamin-enriched soft drink would benefit
parishioners’ health, the MNE would be using ________ to help bring about change.
A) participation
B) reward sharing
C) an opinion leader
D) materialistic motivation
A(n) ________ operates on a contractual basis and provides exclusive representation
for an exporter’s goods and services in a foreign market.
A) export management company
B) import broker
C) invoice agent
D) countertrader
The ability to compare production costs among countries in an effort to determine
where to locate production is significantly hampered by all of the following EXCEPT
________.
A) the number of ways the same product can be made
B) restrictions on the international flow of data
C) the ways that laws may be enforced
D) future costs from exchange rate changes
Companies are likely to export products abroad in all of the following situations
EXCEPT ________.
A) when their average cost per unit of home country production declines substantially
by increasing output
B) when they want to use the riskiest but most profitable method to engage
international trade
C) when they aim to increase degree of market diversification
D) when they are new to international business
Harmon Clothing has a production facility located in Venezuela. Recently, Harmon has
been unable to arrange for overseas loans due to the burdensome regulatory policies of
the Venezuelan government. Which type of political risk is Harmon most likely
experiencing?
A) catastrophic
B) distributive
C) procedural
D) systemic
Martin Manufacturing is an MNE that centralizes authority to implement an extensive
set of rules and procedures to govern a broad range of activities. Martin Manufacturing
is most likely applying a system of ________.
A) market control
B) adjustment control
C) bureaucratic control
D) clan control
Fully convertible currencies are also called ________.
A) external currencies
B) hard currencies
C) unlimited currencies
D) soft currencies
According to the concept of green economics, measuring a country’s economic
performance should also take into account ________.
A) market share
B) population size
C) ecological costs
D) cost-of-living increases
Countries with large land areas are generally less dependent on trade than countries
with small land areas because of ________.
A) highly restricted economic scales
B) self-sufficiency with natural resources
C) higher transportation costs related to foreign trade
D) the development of unique products that have a limited demand
Ian, a financial manager, is preparing to transfer to Germany where he will serve as an
expatriate manager of his employer’s European office. Which type of legal system will
Ian most likely have to deal with in Germany?
A) mixed
B) common
C) civil
D) theocratic
Escalation of commitment is best described as the ________.
A) strategy of first entering a country on a small scale
B) process of entering a country because “everyone else is going there”
C) expectation of a higher return in more politically risky environments
D) increased likelihood of investing in a country because of having spent considerable
time and money in examining it
Recently, the Economist Intelligence Unit investigated the status of democracies around
the globe. Relying on 60 indicators that focus on the performance of free elections, civil
liberties, government functioning, political participation, and political culture in a
country, the study found that ________.
A) almost all of the world’s democracies are full democracies
B) nearly half of the world’s democracies qualify as “full” or “flawed” democracies
C) less than a quarter of the countries studied are outright authoritarian regimes
D) most democracies are hybrid political systems that share theocratic and totalitarian
characteristics
________ is a system of shared values about what is important and beliefs about how
the world works among the employees of an organization.
A) Organizational system
B) Organizational structure
C) Organizational culture
D) Organizational vision
Why are offsets considered protectionist measures?
A) Exporters must often find markets for goods outside their lines of expertise.
B) Exports must be sold at a certain percentage price below the price of domestic
producers.
C) Companies must submit samples to government authorities before receiving export
permission.
D) Trading companies must incur additional inventory carrying charges and pay
significantly higher tariffs.
Why can a company more easily pursue a global strategy when it owns 100 percent of
foreign operations?
A) The company is not likely to face overcapacity issues.
B) The company limits foreign-exchange rate fluctuations.
C) The company avoids communication misunderstandings.
D) The company can sub-optimize results in one country in order to optimize results
globally.
Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on
countries with high degrees of economic freedom most likely because the firm is
interested in a country with ________.
A) minimal government intervention
B) standardized minimum wages
C) laws favoring sustainability
D) state-run corporations
Which of the following is the purpose of a company’s value proposition?
A) to exceed customers’ expectations
B) to force competitors into a price war
C) to identify consumers for whom the company creates products
D) to explain why a consumer should buy the company’s products
A bond issued by a Brazilian company in British pounds in London is a ________.
A) Eurobond
B) global bond
C) local bond
D) foreign bond
________ focus on offering banking and other financial services to nonresident
customers.
A) Subsidiary banks
B) Branch banks
C) Affiliated banks
D) Offshore financial centers
Avery Designs is an MNE with a diverse portfolio of products including cookware and
clothing. Both the foreign and domestic operations for the firm’s cookware products
report to the same manager. Which structure is most likely used by Avery?
A) matrix division
B) product division
C) international division
D) geographic division
Which of the following has the greatest amount of foreign-exchange reserves in the
world?
A) China
B) Ireland
C) Russia
D) Taiwan
According to the Integration-Responsiveness (IR) Grid, consumer electronics and
corporate banking are two types of industries with ________ industry pressure for
global integration and ________ industry pressure for local responsiveness.
A) low; low
B) high; high
C) low; high
D) high; low
When GM moved some of its manufacturing operations to Mexico to be closer to the
American market, they were doing what’s known as ________.
A) nearshoring
B) cost-benefit analysis
C) offshoring
D) coordination
Which of the following is a true statement about China?
A) The Chinese government’s shift from communism to capitalism has led to an
increase in FDI.
B) China attracts FDI because the government has eliminated elaborate bureaucracies.
C) The Chinese government manipulates market activities for political purposes.
D) China lacks an educated pool of employees due to slowly developing
industrialization.
Which of the following is NOT one of the three prevalent approaches to coordination?
A) standardization
B) mutual adjustment
C) adaptation
D) planning
The OECD Convention against bribery is an example of a(n) ________.
A) bilateral agreement developed for the EU
B) agreement that targets the demand side of bribery
C) agreement that targets the supply side of bribery
D) UN Convention dominated by developing countries
Federal, state, and local governments that recognize the benefits of international trade,
actively aid the efforts of potential and active exporters and ________.
A) ensure the quality of exported products
B) establish barriers to punish foreign rivals
C) collect a fee for each successful export sale
D) protect the interests of struggling importers
A country’s central bank is responsible for ________.
A) distributing money to foreign countries that are in a debt crisis
B) encouraging disorderly conditions in foreign-exchange markets
C) the policies affecting the value of its country’s currency
D) establishing foreign-exchange markets
Which force in Toyota’s immediate environment would most likely have the greatest
impact on its strategy?
A) interest rate trends
B) technological developments
C) shifts in U.S. political attitudes
D) actions taken by Honda and Mercedes Benz