The norms and values systems that are shared among the employees of a company are
referred to as _____.
A. processes
B. control systems
C. incentives
D. organizational culture
The state can expropriate the profits from innovation through legal means, such as
_____.
A. bureaucratic kickbacks
B. excessive taxation
C. black market transactions
D. privatization
The state can expropriate the profits from innovation through legal means, such as
excessive taxation, or through illegal means, such as demands from state bureaucrats
for kickbacks in return for granting an individual or firm a license to do business in a
certain area (i.e., corruption).
The process of planning, implementing, and controlling the efficient, cost-effective flow
of raw materials, in-process inventory, finished goods, and related information from the
point of consumption to the point of origin for the purpose of recapturing value or
proper disposal.
A. Transportation
B. Distribution
C. Reverse logistics
D. Global sourcing
Which of the following is the exchange rate policy where the government intervenes in
the exchange rate system only in a limited way?
A. Managed-float
B. Fixed peg
C. Free-float
D. Currency board
A Japanese executive’s ritual of presenting a business card to a foreign business
executive is an example of _____.
A. mores
B. values
C. attitudes
D. folkways
The manner in which decisions are made and work is performed within the organization
is known as the firm’s _____.
A. organizational culture
B. incentives
C. control systems
D. processes
The _____ raised tariff barriers in the hope of protecting jobs and diverting consumer
demand away from foreign products.
A. Smoot-Hawley Act
B. Helms-Burton Act
C. General Agreement on Tariffs and Trade
D. Buy America Act
Hedge funds position themselves to make:
A. “long bets” on assets that they think will weather a volatile market.
B. “long bets” on assets that they think will increase in value.
C. “short bets” on assets that they think will weather a volatile market.
D. “short bets” on assets that they think will increase in value.
_____ refers to the location of decision-making responsibilities within a structure.
A. Vertical differentiation
B. Integrating mechanisms
C. Horizontal integration
D. Horizontal differentiation
A _____ allows an entity to reduce the taxes paid to the home government by the
amount of taxes paid to the foreign government.
A. tax amnesty
B. tax credit
C. waiver
D. tax treaty
How has the adoption of just-in-time inventory systems impacted firms’ associations
with suppliers?
A. The bargaining power of the firms over their suppliers has increased enormously.
B. It has reduced the level of data sharing between firms and their suppliers.
C. Firms are capable of switching suppliers often due to such technologies.
D. It has increased pressures to establish long-term relationships with suppliers.
Hofstede’s _____ dimension measured the extent to which different cultures socialized
their members into accepting ambiguous situations and tolerating uncertainty.
A. power distance
B. long-term versus short-term orientation
C. uncertainty avoidance
D. indulgence versus restraint
Regardless of a firm’s domestic structure, its international division tends to be:
A. organized on economy.
B. decentralized.
C. organized on geography.
D. centralized.
Which of the following statements is true about a class system?
A. A class system is a more rigid form of social stratification, compared to a caste
system.
B. A class system is a closed form of stratification.
C. Social mobility within a class system varies from society to society.
D. In a class system, social position is determined at birth and cannot be changed during
an individual’s lifetime.
Firms engaging in a _____ with a local company can benefit from a local partner’s
knowledge of the host country’s competitive conditions, culture, language, political
systems, and business systems.
A. turnkey project
B. joint venture
C. greenfield investment
D. licensing arrangement
According to Amartya Sen, development should be:
A. seen as a process of expanding the real freedoms that people experience.
B. seen as a non-political concept that focuses on the net income of a country.
C. viewed as a purely economic process.
D. assessed by material output measures such as GNI per capita.
The righteous moralist suggests that:
A. ethics are nothing more than the reflection of culture.
B. a multinational’s home-country standards of ethics are the appropriate ones for
companies to follow in foreign countries.
C. the social responsibility of business is to increase profits, so long as the company
stays within the rules of law.
D. if a manager of a multinational sees that firms from other nations are not following
ethical norms in a host nation, that manager should not either.
Which of the following is a major benefit of engaging in free trade?
A. It helps to reduce the financial volatility in global markets.
B. It helps the countries protect the jobs that are available to their citizens.
C. It gives countries access to products that they cannot produce.
D. It allows the governments to exert more control on businesses.
Hindus believe:
A. that there is but the one true omnipotent God.
B. in reincarnation, or rebirth into a different body, after death.
C. in the importance of individual religious freedom.
D. that material quest is more important than spiritual quest.
_____ makes it difficult to evaluate the performance of expatriate managers objectively.
A. Unintentional bias
B. Lack of proximity
C. Intentional bias
D. Inadequate hard data
Many observers credit NAFTA with helping create the background for increased
political stability in _____.
A. Argentina
B. Brazil
C. Panama
D. Mexico
Many American firms that sold oil-refining technology to firms in the Gulf now find
themselves competing with these firms in the world oil market. This is an example of:
A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating
a competitor.
B. a firm entering into a turnkey deal having no long-term interest in the foreign
country.
C. a country subsequently proving to be a major market for the output of the process
that has been exported.
D. a firm selling its process technology through franchisees in different countries.
Since the 1980s, there has been a transformation from _____ economies to _____
economies.
A. mixed; market-based
B. centrally planned command; market-based
C. centrally planned command; mixed
D. market-based; centrally planned command
Which of the following is a closed system of stratification in which social position is
determined by the family into which a person is born, and change in that position is
usually not possible during an individual’s lifetime?
A. Caste system
B. Class system
C. Social system
D. Cultural system
The lowering of barriers to trade and investment between countries is likely to lead to
_____ throughout the EU.
A. higher costs of borrowing
B. increase prices
C. increase in hedging costs
D. increased price competition
In many countries, political considerations make _____ the only feasible entry mode.
A. joint ventures
B. franchises
C. licensing agreements
D. wholly owned subsidiaries
The need for coordination between subunits is lowest in firms pursuing a(n) _____.
A. localization strategy
B. international strategy
C. global strategy
D. transnational strategy
Political scientist _____ predicts that there will be a world that is split into different
civilizations, each of which has its own value systems and ideology.
A. Samuel Huntington
B. Amartya Sen
C. Francis Fukuyama
D. Hernando de Soto
A dirty float refers to a situation in which:
A. a set of currencies are fixed against each other at some mutually agreed on exchange
rate.
B. many countries join hands to form a monetary system and an exchange rate.
C. more than one foreign currency is used as the formal reference for a country’s
currency.
D. a country tries to hold its currency against an important reference currency without a
formal pegged rate.
Other things being equal, the rate of new-product development seems to be greater in
countries where:
A. less money is spent on basic and applied R&D.
B. consumers are affluent.
C. underlying demand is weak.
D. competition is mild.