Book Title
International Business: The Challenge of Global Competition 13th Edition

ECON 65974

February 28, 2019
New types of dumping include concession dumping.
Geographical proximity is rarely a major reason for trade.
Virtual team leadership is similar to co-located team leadership.
Allowances are paid by firms in recognition of the fact that expatriates and their
families undergo hardship and make sacrifices while living abroad.
A low level of literacy in a country makes the use of mail questionnaires more
appropriate for market research.
Expanded international trade is linked with the creation of more and better jobs.
Management contracts can enable the global partner to control many aspects of a joint
venture even when holding only a minority position.
Although strategic planning is not a widely used management tool among global
executives, according to a Bain & Company survey there is a high level of satisfaction
among those executives who do utilize strategic planning.
The World Intellectual Property Organization is a UN agency that administers 24
intellectual property treaties.
In a money market hedge, the firm matches the balance sheet asset with a liability in the
same currency.
Although the international airline segment is competitive, British Air as it is today
could not legally take over Delta or United.
The cultural forces tend to be closely allied to the legal forces, which exert a strong and
pervasive influence on advertising.
We are each born with a unique culture.
Most virtual teams meet at their launch and during crisis.
The UN International Court of Justice hears cases that involve disputes between
national governments.
An advantage of Internet advertising is its ability to reach all of the possible consumer
Trompenaars' dimension of universalism vs. particularism measures whether rules or
rewards regulate behaviors.
The effectiveness of every organization depends, to a great extent, on how well its
human resources are used.
A sales company is part of indirect exporting.
Critics of large global firms compare these firms' sales with nations' total sales to
illustrate the tremendous size of these firms.
There are three main classes of social institutions, based on the conditions of their
formation: family, kinship, and free association.
Spoken language does not demarcate culture, but body language does.
The marketing mix is a set of strategy decisions made in the areas of product,
production, promotion, and pricing in order to satisfy the needs and desires of
customers in a target market.
An example of an informal, cognitive institution would be the celebration of
Production coordination poses difficult problems in many regionalized organizations,
which has led many companies to assign many specialized product managers who have
line authority.
The United States can be considered politically unstable compared to many countries.
Currency devaluation helps a nation avoid losing markets and regain competitiveness in
world markets.
Business makes few costly mistakes in product introductions into foreign markets.
To avoid an increase in price because the U.S. dollar has lost value versus the euro, an
American importer should require European exporters to quote their products in euros.
Transfer pricing is what the company charges for transfers within the company. It is a
bookkeeping cost of goods transferred across national borders.
Globalization increases the complexity of the external but not the internal context of the
Leadership is universal; all people want to be led by a strong leader.
Reflecting their continued economic development, developing countries have
dramatically increased their share of FDI stock, from 1 percent in 1980 to 14 percent in
The "over-the-wall" approach to product design involves an initial step in which the
designers prepare the product's design, followed by sending the newly created design to
the company's manufacturing engineers.
IMF quotas are determined by the relative size of a nation in the global economy and:
A. determine the weight of the nation's voting in the IMF.
B. determine how much a nation can borrow from the IMF.
C. are the nation's "dues" to the IMF.
D. all of the above.
Where litigation in international disputes should occur is:
A. usually evident from the documentation available.
B. at times unclear, in which case the UN International Court of Justice will make a
jurisdictional ruling.
C. often complex, so contracts should include choice-of-law and choice-of-forum
D. dictated by where the problem arose; a problem arising in India is adjudicated in
E. determined by a jury during pretrial discovery.
A company can engage in indirect exporting by using which of the following companies
in its own country?
A. Manufacturers' export agents
B. Export merchants
C. Sales offices
D. All of the above
E. Two of A, B, and C
According to opponents of the globalization of trade and investment:
A. globalization has produced uneven results across nations and people.
B. globalization has had harmful effects on labor and labor standards.
C. globalization has contributed to a decline in environmental and health conditions.
D. all of the above.
Financial statements in Germany and the United States are:
A. vastly different.
B. exactly the same, allowing for comparisons.
C. the same in all areas except for the income statement.
D. the same in only the income statement; they are different in all other areas.
A global mindset involves:
A. a good, fundamental understanding of geography.
B. solid training in foreign languages and geography.
C. an openness to diversity and inclination to synthesize across its borders.
D. early foreign experiences.
E. A and D
Knowledge of foreign languages:
A. requires too much work to be worth the effort.
B. can be of great assistance in making export sales.
C. is useless if you know English.
D. is of academic but not business value.
The U.S. antitrust law contains both civil and criminal penalties:
A. neither of which can be applied outside the United States.
B. and the criminal penalties apply to foreign companies even if the conspiracy took
place outside the United States.
C. but their application to foreign companies is limited to actions that have taken place
within the United States.
D. and they can be administered by foreign courts.
E. and they are enforced through the United Nations
An itemized projection of revenues and expenses for a future time period is a:
A. sales forecast.
B. budget.
C. marketing plan.
D. strategic plan.
E. none of the above.
In a code law country, a brand name belongs to the:
A. person registering it first.
B. person who uses it first.
C. company that uses it first.
D. person who registers it first under the Berlin Convention.
E. none of the above.
The EU began as a common market for:
A. all imported goods from beyond Europe.
B. the textile and dairy industries.
C. the transportation industries.
D. the coal and steel industries.
Climate, topography, and natural resources are all considered part of the _________
stage of the country screening process.
A. basic needs
B. sociocultural
C. economic/financial
D. political
E. competitive
This type of institution operates through laws and regulations, with coercion as the
regulative mechanism.
A. formal
B. informal
C. normative
D. cognitive
International business really began:
A. with the East India Company, chartered in 1600.
B. when Singer Sewing Machine put up a factory in Scotland in 1868.
C. before the time of Christ.
D. when Colt Fire Arms set up a plant in England.
E. when the Ottoman Empire was established.
When formulating product strategies, international marketing managers must remember
that they are selling:
A. a new product.
B. an expensive product to poor people.
C. a total product.
D. hope.
Assumptions that underlie a country's legal, political, and economic systems:
A. do not influence accounting because it is a quantified discipline, objective and
B. influence accounting, both its practice and the commonly shared understanding of its
C. influence accountants but not the science of accounting.
D. do not influence accounting because value is measured in currency, an objective and
comparable measure.
Regarding the structure of international companies:
A. managers have to consider the nature of their company's international operating
environment, both currently and how it is expected to change in the future.
B. managers have to consider the nature of their competitors' international strategies,
both currently and how they are expected to change in the future.
C. gains from increased specialization of labor may at times be nullified by the
increased cost of coordination.
D. all of the above.
The segment approach requires that markets should be which of the following?
A. Accessible
B. Actionable
C. Profitable
D. All of the above
E. A and B
International institutions offer graduating international business majors:
A. interesting career development and internship opportunities.
B. funded study-abroad programs.
C. language training in major languages used in trade.
D. export-import process training.
WIPO is a:
A. UN agency that administers intellectual property treaties and advises countries on
intellectual property-related administrative issues.
B. WTO group opposed to patent extension and pro-generic.
C. part of the Club of Rome that lobbies for longer patent periods.
D. a research arm of the fuel cartel that has been advocating longer patent protection for
biofuel processing systems.
E. creation of the Paris Union.
Regarding annual inflows of FDI:
A. industrialized nations primarily invest in one another.
B. an average of nearly 70 percent of annual FDI investments has been going into
developed countries in recent years.
C. developed countries obtained a 70 percent increase in the level of FDI between 2000
and 2009.
D. all of the above.
The proportion of world commercial services exports accounted for by ____________
has evidenced an overall decline since 1980.
A. Asia
B. the Middle East
C. Latin America
D. all of the above
E. two of A, B, and C
The reasons a government may nationalize a firm include:
A. to get government contracts.
B. to promote the ideology of capitalism.
C. to preserve jobs.
D. all of the above.
When you assert that a certain aspect of your own culture is superior, you are probably
A. objective observation.
B. ethnocentric behavior.
C. your understanding of truth.
D. your hunches.
In HC cultures, time tends to be:
A. loosely conceived.
B. tightly planned.
C. monochronic.
D. polychronic.
When a licensing agreement is made:
A. the licensee receives expertise from another company.
B. the licensee obtains permission from the government to do business in a foreign
C. the licensor is a foreign government which grants the license.
D. the licensor pays to receive assistance from the licensee.
Generally, management prefers global product standardization because:
A. there can be longer production runs, which lowers costs.
B. a standardized corporate visual identity can help project a consistent image.
C. the creative work needed for promotion doesn't need to be done for each market.
D. two of the above.
The top four countries in proven reserves are:
A. China, Japan, Singapore, and Malaysia.
B. Kuwait, Saudi Arabia, the United States, and Mexico.
C. Qatar, Libya, Nigeria, and Venezuela.
D. Saudi Arabia, Canada, Iran, and Iraq.
Whether to position a product as foreign or local is a basic cultural decision for the
marketer, and it seems to depend on:
A. the distribution channel being used.
B. the product type.
C. the target market.
D. all of the above.
Entry barriers are part of the ___________ stage of market screening.
A. economic and financial
B. political and legal
C. sociocultural
D. market entry
E. none of the above
Tax liability on foreign earnings is controlled by:
A. the tax treaties in place between the two relevant countries.
B. the tax rates in the local jurisdictions.
C. how the foreign operations of a company are organized.
D. negotiations between the company and the host country.