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 Right Stuff model of global leadership development:
A. focuses on the needs of the firm and develops managers who bring some of the right
stuff with them.
B. suggests that global leaders are born, not made.
C. looks to universities to train in global leadership.
D. relies on in-house candidates for global leadership positions.
E. assumes that the firm can provide what the global leadership candidate requires.
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.
E. all of A, B, and C.
Which of the following elements are included in Porter’s Diamond Model of national
advantage?
A. Competitive conditions
B. Export conditions
C. Social conditions
D. Supply conditions
E. None of the above
Withholding tax is:
A. an indirect tax paid by employers before employees receive salaries.
B. a direct tax levied on earned income.
C. a 30 percent tax levied on foreign residents.
D. an indirect tax levied on passive income.
The international Fisher effect says that the interest rate differentials in any two
currencies reflect:
A. the ratio of their inflation rates minus COL
B. arbitrary differences in the two economies.
C. PPP differences in the two economies.
D. the expected change in their exchange rates.
At the beginning of 2010, the value of the outstanding stock of foreign direct
investment of all nations totaled more than:
A. $500 billion.
B. $3 trillion.
C. $12 trillion
D. $19 trillion.
E. $21 trillion.
The level of services exports in 2010, worldwide, was:
A. $3.7 trillion.
B. $8.5 trillion.
C. $15.2 trillion.
D. $18.9 trillion.
E. $23.4 trillion.
According to the text, the cost of importing a foreign-sourced product, including
freight, insurance, and packing:
A. is insignificant.
B. may range from 26 to 110 percent of the cost of the product.
C. may range from 10 to 12 percent of the cost of the product.
D. may not be charged if the terms of sale are CIF, port of entry.
E. none of the above.
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.
_______________ occurs primarily because of relative price differentials among
nations.
A. Foreign direct investment
B. International trade
C. Portfolio investment
D. All of the above
E. Two of A, B, and C
Collection documents vary from country to country. The most common types of
collection documents that the seller provides to the buyer include all of the following
except:
A. commercial invoices.
B. consular invoices.
C. income statements.
D. certificates of origin.
Generally, producers of _______ experience little difficulty in assessing their basic need
potential.
A. textiles
B. air conditioners
C. specialized industrial materials
D. frequently purchased consumer goods
E. chocolate
When there is strong pressure for a company to adapt its products or services for local
markets, it should tend to use a:
A. global strategy.
B. multidomestic strategy.
C. regional strategy.
D. differentiation strategy.
E. home replication strategy.
Historically, more aspects of ______________ have been standardized and coordinated
worldwide by companies than has been the case for other value chain activities such as
__________.
A. research and development; manufacturing
B. marketing; manufacturing
C. manufacturing; marketing
D. marketing; research and development
E. none of the above
If you already have a job, you can enhance your opportunities for international
experience by:
A. making your boss and the human resource management department personnel aware
of your interest.
B. meeting people in the home office who work with the company’s foreign
subsidiaries.
C. taking additional international business courses and making sure that people in your
company know what you are doing.
D. all of the above.
E. two of A, B, and C.
This is the only industrialized country that has not ratified the Kyoto Protocol, a UN
convention on climate change:
A. China.
B. France.
C. Russia.
D. the United States.
The following arrangement can provide a firm with foreign products:
A. domestic subsidiary.
B. independent overseas manufacturer.
C. two of A, B, and D.
D. in-bond plant contractor.
E. all of A, B, and D.
The geographical area that receives the most International Development Association
(IDA) credits and grants is:
A. East Asia.
B. Latin America and the Caribbean.
C. Africa.
D. Middle East.
According to the text, about ____ percent of medium and large-sized companies have
employees working abroad.
A. 23
B. 47
C. 55
D. 76
E. 80
The main difference between a free trade area (FTA) and a customs union is that in a
customs union, there is:
A. no need for passport controls.
B. a shared border patrol.
C. shared currency.
D. a common external tariff.
The end result of legal trade obstacles is often:
A. limited trade, with the recipient of the obstacles withdrawing.
B. political negotiations between the two countries, to smooth relations and reduce
costs.
C. higher costs to consumers.
D. lower taxes to citizens due to tariff revenues.
E. none of the above.