The international environment is composed of all the uncontrollable forces that
surround and influence the firm’s life and development.
In a DAP (delivered at named place), the seller assumes risk when the goods leave the
seller’s factory or warehouse.
College students may make good interviewers for firms doing market research in
foreign countries.
There are five major kinds of globalization drivers, all based on changes that are
leading international firms to the globalization of their operations.
The three main team leadership activities in any environment are establishing the team,
coaching team members, and setting team norms.
Recruiting salespeople in foreign countries is less difficult than recruiting them in the
home country.
The export marketing plan does not include product characteristics, promotional plans,
and details on arrangements with foreign representatives.
In CIF (cost, insurance, freight, foreign port) the buyer quotes a price that includes the
cost of the goods, insurance, and all transportation and miscellaneous charges to the
named foreign port in the country of final destination.
The GLED model is used to develop management skills.
The basic concept behind strategic planning is to help ensure that managers have a
sound understanding of the business, the strategy, the assumptions behind the strategy,
the external business environment pressures, and the company’s strengths and
weaknesses.
Advantages of the virtual corporation concept include that it allows a company to build
competence from the ground up and to increase management’s control over the
corporation’s activities.
A broad statement that defines the organization’s scope is the mission statement.
A global company is an organization that attempts to standardize and integrate
operations worldwide in most or all functional areas.
On an open account, the buyer assumes all of the payment risk.
Material culture includes all human-made objects.
Incoterms are 11 trade terms that describe the responsibilities of the buyer and seller in
international trade.
Compassion has nothing to do with sustainable business. Business is business.
All decisions are made either at the IC headquarters or at the subsidiary level.
Due to developments such as a rapid rise in the level of uncertainty in many areas of
international business, many firms have moved toward more structured strategic
planning formats and longer planning documents.
In a typical matrix organization based on area and product dimensions, country
managers will be responsible to both the area managers and the product line managers.
The European Patent Organization makes filing for a patent in all 27 EU member-states
more difficult than it was previously.
A global mindset is built on a thorough knowledge of geography.
In a DAP (delivered at named place), the buyer is responsible for paying for all
transportation costs from the seller’s location, including customs clearing, to the buyer’s
location.
A culture’s aesthetics is the sense of moral behavior taught to the young.
A basic cultural decision for the marketer is whether to position the product as foreign
or local, and which way to go seems to depend on the country, the product type, and the
distribution channel.
New types of dumping include tax dumping.
While international business as a discipline is relatively new, international business as a
business practice is not.
The price of one currency stated in terms of another currency is the exchange rate.
When the U.S. military contracts out security details in war zones, it is engaged in
privatization.
Heavy oil is oil weighted down with an extra carbon molecule, and it can be gasified
using the Fischer-Tropsch process.
A central reserve asset is a holding that has value that is held by private banks in case of
a liquidity crisis.
In a customs union, common external tariffs are added to an existing FTA, as found in
the Southern African Customs Union and Mercosur.
Your neighbor’s business is cutting down an acre of first-growth, virgin forest and
planting a lawn and garden beds at its HQ. You are likely to be in an Anglo culture,
where domination of nature seems normal.
Standards are documented agreements containing general guidelines, rules, or
definitions of the characteristics of a product, process, or service.
When we use cultural frameworks to build our understanding of another culture, we use
our own culture as an implicit reference point.
Companies with a transnational strategic orientation follow a global staffing policy,
selecting the best person for each job without considering national origin and generally
having a consistent HRM strategy across all subsidiaries.
If a company feels that it probably will send parent-country nationals abroad, it will
frequently encourage them to study the language and culture of the country to which
they are going.
The extent of the changes in the marketing mix a firm must make when going overseas
depends on the country, the political forces, and the degree of market penetration
desired by management.
A comparison based on hourly wages is a reasonable guide to a need to protect
domestic jobs.
The United States became one of the first countries to prohibit dumping into its own
market, in:
A. 2006.
B. 1856.
C. 1916.
D. 1776.
E. none of the above.
A geocentric staffing policy:
A. enables the practices used at headquarters to be transferred worldwide.
B. tends to be used with a global strategic orientation.
C. selects the best person for each job, without considering national origin.
D. two of the above.
E. all of A, B, and C.
The potential benefits of the virtual corporation concept include that:
A. it permits greater flexibility than is associated with more typical corporate structures.
B. virtual corporations form a network of static relationships that allow them to take
advantage of the competencies of other organizations.
C. this form of organization increases management’s control over the corporation’s
activities.
D. all of the above.
E. two of A, B, and C.
In analyzing the corporate controllable variables, management must address the
question:
A. Who are the company’s target customers?
B. What will be the costs that the company will incur in delivering value to its target
customers?
C. How much will the company be able to charge for the value it creates for its target
customers?
D. All of the above.
E. Two of A, B, and C.
The effectiveness of every organization depends to a great extent on how well its:
A. human resources are utilized.
B. production facilities are operated.
C. financial resources are planned.
D. all of the above.
E. two of A, B, and C.
Global teams are characterized by:
A. their virtuality and use of many media.
B. their geographic dispersion.
C. their diversity.
D. their differing member contexts.
E. all of the above.
A typical company’s supply chain costs can represent more than ____ percent of assets.
A. 20
B. 35
C. 50
D. 60
E. 80
LASH and RO-RO are:
A. innovative material-handling methods.
B. kinds of containerization.
C. Panamax ships.
D. barges used in materials handling.
E. Japanese import requirements.
Among trading blocs, the EU has the largest GDP per capita.
A foreign currency sale is recorded as revenue, using the exchange rate:
A. on the date of the sale.
B. on the date the balance sheet is consolidated to financial reports.
C. on a historical average over the period between the sale and the consolidation.
D. that the company decides to use.
Of the skills required for global leaders, there is:
A. a broad array of competencies.
B. a solid understanding that rests on domestic leadership theory.
C. no understanding of what is needed.
D. limited understanding of the global leader’s activities.
E. wide consensus on what is needed.
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.
Investigation of export and import data shows:
A. there is a strong relationship between global sourcing and ownership of the foreign
sources.
B. there is no relationship between global sourcing and ownership of the foreign
sources.
C. American firms, but not Japanese firms, buy from their U.S. subsidiaries.
D. American firms import twice as much from their overseas subsidiaries as foreign
firms import from their U.S. affiliates.
E. two of the above.
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
country.
C. the licensor is a foreign government which grants the license.
D. the licensor pays to receive assistance from the licensee.
E. two of the above.
What is an export license?
A. Permission from the U.S. government to export
B. An international quality performance rating
C. A shipping qualification
D. Permission from the top management team to export
E. Permission to transfer domestic currency abroad
According to the text, the strategic planning process provides a formal structure in
which managers will:
A. two of B, C, and D.
B. set corporate objectives.
C. implement strategies.
D. manage relationships with government and society.
E. all of B, C, and D.
The cash flow management of a global firm, compared to that of a domestic firm, is:
A. exactly the same: moving money is moving money.
B. less complex, because the sums are larger and the process is centralized.
C. more complex, because currencies vary, as do national-level regulations.
D. more complex, because the number of subsidiaries or branches is larger.
Global companies:
A. none of the following is correct.
B. do not have international divisions.
C. are large companies with numerous overseas manufacturing facilities.
D. are organized on the basis of products and do not have other organizing dimensions
in a pure organization.
The characteristics of Hofstede’s long-term orientation include:
A. social order and hierarchical relationships.
B. perseverance, pragmatism, and hierarchy.
C. the centrality of spending.
D. planning in the medium-short term.
Some methods for the IC to maintain control of less than 50 percent-owned
organizations are:
A. all of B, C, and D.
B. a management contract.
C. control of the finances or technology.
D. putting people from the IC in important executive positions.
E. two of B, C, and D.
Intellectual property:
A. excludes intangibles, which is why it is a difficult area.
B. includes thoughts and ideas, but not tangible products.
C. includes anything that is a result of a creative process that does not have material
qualities.
D. includes anything that is the result of things created using someone’s intellect.
E. excludes things found in nature, such as natural colors, scents, and sounds.
The Chinese concept of guanxi is an example of:
A. an informal, cognitive institution.
B. a regulative, formal institution.
C. a favorite cooking method of Chairman Mao.
D. taken-for-granted approaches to friendship relations.
The dollar value of total world exports in 2010 was greater than the gross national
product of every nation in the world except China.
Which of the following is the most risky for an importer?
A. Open account
B. Irrevocable letter of credit
C. Bank collection time draft
D. Cash in Advance
E. None of the above
Because of their close linkage, sociologists often combine the terms:
A. social and cultural.
B. social and kinship.
C. kinship and monogamy.
D. culture and monogamy.
Most African nations have their main trade relationships:
A. within local FTAs.
B. with other African nations due to transport costs.
C. with developed nations, often built on former colonial ties.
D. with China.
The trend in diverse global teams is to:
A. treat everyone the same.
B. suppress differences and focus on commonalities.
C. focus on differences and suppress commonalities.
D. treat everyone as a unique individual.
E. avoid discussing politics, sex, and religion.
Marketers everywhere need to be able to:
A. price the products or services so they are acceptable.
B. produce products that satisfy customers’ needs.
C. inform potential customers.
D. two of the above.
E. all of A, B, and C.
Which country does not belong to the OECD?
A. Belgium
B. France
C. Japan
D. China
When an IC hires and trains local, host-country people, the IC often:
A. pays them too much and creates inflation.
B. overtrains them to IC culture-based standards.
C. may lose them to local firms or other ICs once they are trained.
D. encourages their transfer, causing brain drain.
E. two of the above.