Hall’s high and low context is based upon communication styles and specifically on the
role of:
A. the speakers.
B. nonverbal behavior.
C. the medium.
D. context.
Reliance on subsidiary management can depend on items such as:
A. two of B, C, and E.
B. how well the executives know one another.
C. IC management understanding host-country conditions.
D. all of B, C, and E.
E. the financial condition of the parent company.
The kinds of forces in the foreign environment are __________ those in the domestic
environment except that they occur in foreign nations.
A. different from
B. the same as
C. less than
D. more stringent than
E. none of the above
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.
Arbitration is a private solution that is:
A. often preferred by foreign litigants because it is perceived as fairer, faster, cheaper,
and more confidential than are the courts.
B. favored by international unions.
C. recommended by the UN for international companies facing litigation in developing
countries.
D. two of the above.
E. all of A, B, and C.
The use of third-country nationals as IC executives in LDCs is a growing practice
because:
A. they tend to prefer working in LDCs.
B. there is frequently a shortage of skilled host-country nationals.
C. all of A, B, and D.
D. they often already have host-country work permits and knowledge of the host
country’s language and culture.
E. two of A, B, and D.
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.
Environmental scanning is mostly used:
A. during the planning process.
B. to gather information on market weaknesses.
C. to obtain information on opportunities and threats.
D. all of the above.
E. A and C.
Plans for the best-or worst-case scenarios or for critical events that could have a severe
impact on the firm are known as:
A. scenario plans.
B. strategic plans.
C. contingency plans.
D. emergency plans.
E. none of the above.
The balance-of-payments account is a record of:
A. the total tangible trade flows of a country over a five-year period.
B. a country’s transactions with the rest of the world.
C. a country’s total debt service payments during a one-year period.
D. the outstanding balance of a country’s debt payments for the fiscal year.
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.
Currency exchange controls are found most frequently in:
A. developing countries.
B. developed countries.
C. countries with pegged exchange rates.
D. nondemocratic countries.
Firms from __________ had the largest total outstanding stock of direct overseas
investment at the beginning of 2010.
A. Germany
B. the United States
C. the United Kingdom
D. Japan
E. China
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.
ASEAN began as a:
A. free trade pact.
B. cooperative marketing alliance among Southeast Asian nations.
C. security and military alliance among Southeast Asian nations.
D. response to the EU.
Geographical proximity contributes to:
A. knowledge of the country by its neighbors.
B. lower freight costs.
C. the likelihood of trade relationships.
D. all of the above.
Tactical plans:
A. are operational plans.
B. are broad, operational plans on which strategic plans are based.
C. are specific and short-term compared to strategic plans.
D. all of the above.
E. two of A, B, and C.
The primary motivation of tariffs is to:
A. raise government revenue at the cost of importers.
B. raise the price of imports, to protect domestic goods.
C. punish countries over political issues.
D. encourage foreign consumption.
E. none of the above.
