The United States avoids extraterritorial application of its laws.
The law of one price states that in an efficient market, like products will never have like
prices.
Companies with a primarily international strategic orientation may adopt an
ethnocentric staffing policy.
A structure organized by more than one dimension at the top level is a matrix
organization.
The Fisher effect describes interest rate parity; it’s the law of one price applied to
interest rates. Interest rates vary to take into account anticipated differences in inflation
levels.
Companies that adopted the global organizational form felt that this organization
would:
A. permit them to obtain cheaper labor.
B. be more capable of developing strategies to confront new global competition.
C. enable them to get lower interest rates to finance expansion.
D. all of the above.
E. two of A, B, and C.
The North-South divide uses climatic differences to explain:
A. population differences.
B. trade patterns.
C. differences in human development.
D. cultural differences.
The international product life cycle:
A. explains how international trade in manufactured goods will be linked to gross
national income.
B. states that a nation will trade goods that can be produced with the production factor
that is most abundant.
C. is concerned with the role of innovation in trade patterns.
D. two of the above.
E. none of A, B, or C.
According to the text, a large exhibition, generally held at the same place and same time
periodically, at which companies maintain booths to promote the sale of their products
is known as:
A. a trade mission.
B. a product introduction.
C. a trade show.
D. a trade fair.
E. none of the above.
Translation exposure would not occur with firms that:
A. do not have foreign operations.
B. operate in the same currency, their home market currency, everywhere.
C. use their home market language in all foreign operations.
D. A and B.
When a company faces strong pressures for both reducing costs and adapting products
for local markets, it should tend to use a:
A. global strategy.
B. multidomestic strategy.
C. transnational strategy.
D. differentiation strategy.
E. home replication strategy.
Performance measures are done to:
A. all of B, C, and D.
B. measure the time the company takes to acculturate new employees.
C. determine if the strategy and its implementation are proceeding successfully.
D. assess assumptions about how the strategic lists affect the business.
E. two of B, C, and D.
This material, when heated to 500C, will yield 25 liters or more per ton of input:
A. shale.
B. biomass.
C. natural gas.
D. light petroleum.
Stakeholder theory is an understanding of how business works that:
A. takes into account culture and environmentalism.
B. rejects the importance of the bottom line.
C. emphasizes planning.
D. takes into account all identifiable interest holders.
If two English multinational companies had a dispute arising in New York City, and
there were no choice-of-law or choice-of-forum clauses in their contract, it is likely
that:
A. a New York court would hear their complaint.
B. they would bring their dispute to an English court.
C. the dispute would get heard not in court but, rather, in the boardrooms.
D. they would reach an agreement informally and develop an off-the-books settlement.
E. they would bring their dispute to the World Court for adjudication.
According to supporters of the globalization of trade and investment, free trade:
A. creates more and better jobs.
B. benefits all nations and workers.
C. does not cause the loss of high-paying jobs.
D. all of the above.
E. two of A, B, and C.
Scenarios:
A. all of B, C, and D.
B. have an objective of envisioning possible futures that might lie outside their
traditional frame of reference.
C. are based on stories about possible futures that are presented to line managers by the
strategic planners.
D. extrapolate from past data to make predictions.
E. two of B, C, and D.
Nancy Adler’s research suggests that women:
A. will never get to the top because they take time-out for children.
B. are more likely than men to succeed if they quit the company and start their own
businesses.
C. have been remarkably successful in international assignments, which does not seem
to be related to gender.
D. are less likely than men to succeed in international assignments.
E. two of the above.
The Doha Development Agenda is:
A. a WTO plan to establish free trade among the emirates in the Persian Gulf.
B. the government seat of Qatar and source of significant WTO funding through Sheik
Kalifa al-Thani.
C. a UN plan to develop the Arab Emirates to ensure their independence.
D. an extended conference of the WTO initially convened in Doha.
Kidnapping:
A. two of B, C, and D.
B. is a weapon used by some terrorists to extract ransom.
C. can result in counterproductive results if ransom is paid for hostages.
D. can be insured against by obtaining kidnapping, ransom, and extraction (KRE)
insurance.
E. all of B, C, and D.
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.
E. two of A, B and C.
Companies controlled by other companies through ownership of enough voting stock to
elect board-of-director majorities are known as:
A. affiliates.
B. joint ventures.
C. subsidiaries.
D. strategic alliances.
E. two of the above.
Investigations of large multinationals in manufacturing and service sectors reveal that:
A. a majority of them use a global strategy.
B. a majority of these firms generate an average of about 65 percent of their worldwide
revenues within their home region.
C. most of these firms have achieved broad and deep penetration of international
markets as a whole.
D. none of the above.
E. two of A, B, and C.
An important development in the level of worldwide FDI is the emergence of what has
been called the “bamboo network” of ethnic Chinese family businesses based outside
China.
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.
For cost-of-living allowances, the U.S. State Department index:
A. is suitable for all locations.
B. is adjusted frequently.
C. neither A, B, nor D.
D. accounts adequately for inflation and currency value changes.
E. two of A, B, and D.
Incoterms include:
A. FAS and DAF.
B. CFR and COD.
C. INSAP and ECO.
D. SAE and EBI.
E. DOA and EDP
According to the text:
A. design is an important factor in the structure of a company’s global supply chain.
B. design determines the extent to which a company’s strategy will be standardized
across nations.
C. common approaches to design are concurrent engineering and “over the top.”
D. all of the above.
E. two of A, B, and C.
Foreign environmental forces often operate differently than domestic environmental
forces because:
A. they are uncontrollable.
B. force values are different.
C. changes are difficult to assess.
D. two of the above.
E. all of A, B, and C.
Relocating some or all of a business’s activities or processes to a foreign location is:
A. offshoring.
B. outsourcing.
C. supply chain management.
D. subcontracting.
E. all of the above.
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.
E. two of A, B, and C.
The product is:
A. the central focus of the marketing mix.
B. more than a physical object.
C. the result of economies of scale.
D. A and B.
E. all of A, B, and C.
The use of a global product organization structure:
A. frequently represents a return to pre-export department times.
B. has domestic product divisions responsible for the worldwide operations such as
marketing and production of products under their control.
C. helps to avoid duplication of area experts.
D. all of the above.
E. two of A, B, and C.
Patent trolling is the process of:
A. looking for loopholes in patent protection and exploiting them.
B. recording and registering patents in foreign countries to protect the firm’s IP.
C. searching out patents that have expired and negotiating their replacements.
D. legal research that uncovers obscure, deceased patent holders and liberates their
inventions.
E. none of the above.
The promotional mix includes:
A. advertising.
B. sales promotion.
C. publicity.
D. all of the above.
E. two of A, B, and C.
With patents:
A. there is standardization, to some degree, through the Paris Union.
B. there is no standardization, so often companies such as Nestl file many patent
applications in different countries.
C. total harmonization has been reached through UN accords and the EPO.
D. an inventor is automatically granted rights to her invention as long as she completes
a patent filing.
E. the first person to file is the one who receives patent protection.