The long-term financing dimension of cash management ________.
A) deals with the selection, issuance, and management of long-term debt and equity
B) is unaffected by currency changes because everyone borrows in U.S. dollars
C) focuses on the analysis of investment opportunities
D) is independent of the capital structure of an MNE
Which of the following is considered a primary activity in a company’s value chain?
A) shipping
B) product design
C) systems and solutions
D) materials and equipment
U.S. companies monopolize much of the international entertainment media, which
largely portrays U.S. products and lifestyles as glamorous and appealing. This situation
would most likely be used as an example of ________.
A) the stronger work ethic typical of developed countries
B) the spread of high-context cultures
C) cultural fragmentation
D) cultural imperialism
Most trade agreements contain countries in the same area of the world. Why is this so?
A) The distances that goods need to travel between such countries are short.
B) Distribution channels are not easily established in adjacent countries.
C) Adjacent countries are reluctant to coordinate policies.
D) Neighboring countries usually lack a common history and interests.
The CFO’s function in a company focuses on ________.
A) improving distributor relationships
B) acquiring financial resources
C) handling accounting issues
D) creating financial statements
Which tool is used by most firms to monitor the data linkages among product planning,
parts purchasing, and inventory maintenance activities?
A) reports
B) clan controls
C) financial metrics
D) information systems
Historically, managers built organizations by focusing on the boxes and lines of a(n)
________ structure.
A) formal
B) innovative
C) collaborative
D) flexible
Although the U.S. film industry depends heavily on revenue in foreign countries,
revenue from international markets is usually low for a sports-themed film. This is most
likely due to ________ factors.
A) political
B) geographic
C) behavioral (cultural)
D) legal
Jeanette Thompson, a native Texan, is being sent by her company, Samsung of South
Korea, to head up a new facility in Hong Kong. Jeanette would be considered a(n)
________.
A) inpatriate
B) host-country citizen
C) third-country national
D) local executive
The ________ view calls for companies to develop low-cost, high-powered,
resource-minimizing innovations that can be marketed to the billions of people living
on less than a few dollars a day.
A) Base of the Pyramid
B) Hierarchy of Needs
C) Happy Planet Index
D) Gini coefficient
What is the primary reason that Anglo American PLC developed its ART program?
A) comply with government standards
B) maintain a healthy workforce
C) abide by union demands
D) reduce employee benefits
Vandelay Designs is a small firm based in Boston that makes and sells scrapbooking
products through its retail store and Web site. Many of Vandelay’s first sales were made
to customers located in Canada, England, and Japan. Vandelay Designs would best be
identified as a(n) ________.
A) incremental exporter
B) occasional exporter
C) born global
D) geo-expo
When analyzing a project’s capital budget, if the ________ is positive, then the project
is considered positive.
A) payback period
B) internal rate of return
C) net present value (NPV)
D) cash flow
Which of the following is characterized by low dependence on an organization and a
desire for personal time, freedom, and challenges?
A) collectivism
B) democracy
C) individualism
D) anarchy
A pull rather than a push strategy is most likely preferable when ________.
A) self-service is not predominant
B) the price of a product is high relative to incomes
C) there are few governmental restrictions on advertising
D) there are a large number of languages and a low literacy rate
Which of the following is NOT one of the top exchanges that trade in foreign currency
futures and options?
A) CME
B) UBS
C) NYSE Liffe
D) NASDAQ OMX
NAFTA was primarily formed because the member nations have ________.
A) static and dynamic liberalization policies
B) similarly sized economies and resources
C) geographic proximity to each other
D) competing interests with the EU
Which of the following hypothetical examples would be a restriction on the import of
services?
A) The United States restricts foreign companies from carrying cargo between two U.S.
cities.
B) Japan restricts North Koreans from visiting Tokyo Disneyland.
C) China does not allow the importation of rice from Thailand.
D) Canada does not allow Air Canada to buy Brazilian aircraft.
The term used by the United Nations as a synonym for multinational enterprise is
________.
A) multinational corporation
B) transnational company
C) international firm
D) born-global
In which of the following transactions is a currency switched with another on one date
and then switched back on a future date?
A) reverse transaction
B) spot transaction
C) FX swap
D) outright forward transaction
Which of the following statements describes an inconsistency of the Foreign Corrupt
Practices Act (FCPA)?
A) Facilitation payments are classified as bribery.
B) Facilitation payments are excluded from the FCPA’s definition of bribery.
C) Payments to officials who are not directly responsible for carrying out the law are
legal.
D) Payments to foreign officials who carry out the law are considered illegal by
provisions of the FCPA.
Which of the following factors increasingly encourages MNEs to install a geographic
division structure?
A) growth of emerging markets
B) diversification of products
C) rise of social networking
D) global recession
The degree to which a firm funds the growth of a business by debt is known as
________.
A) leveraging
B) equity financing
C) hedging
D) after-tax cost of debt
Which of the following statements most accurately describes the relationship between
trading groups and MNEs?
A) Trading groups have no influence on the size of the regional market.
B) Regional trading groups can define the rules under which companies must operate
within that region.
C) Companies never need to change their organizational structure to take advantage of
regional trading groups.
D) Regional trading groups have no influence on an MNE’s strategy since they operate
worldwide.
According to the text, which currency is expected to experience the most change in the
upcoming years?
A) yen
B) yuan
C) euro
D) U.S. dollar
Promotion using direct selling techniques is ________.
A) a pull strategy
B) necessary where inflation is high
C) a standardized advertising technique
D) a push strategy
Which of the following statements about small and medium-sized enterprises (SMEs) is
true?
A) SMEs are steadily reducing their export intensity ratios.
B) SMEs make up the majority of all U.S. exporters.
C) SMEs are the source of more than half of the monetary value of U.S. exports.
D) SMEs that export goods have fewer than 20 employees.
The ________ of compensation determines an expatriate’s compensation on the
prevailing pay scales in the locale of the foreign assignment.
A) headquarters-based method
B) home-based method
C) culturally based method
D) host-based method
A ________ law system is based on a systematic and extensive codification of laws and
puts political officials in charge of specifying accessible, detailed, and written law that
applies to all citizens.
A) customary
B) common
C) civil
D) theocratic
A form of currency control that often applies to tourism because it limits the amount of
currency that someone can get from the bank for foreign travel is known as ________.
A) multiple exchange rates
B) confidence
C) quantity controls
D) hard currency