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

ECON 89272

February 28, 2019
Manufacturing rationalization is:
A. the allocation of scarce resources.
B. the division of production among several subsidiaries so that each produces only a
limited number of components for all subsidiaries.
C. the concentration of production at one site to get economies of scale.
D. the production by a subsidiary for its own national market.
What is a controlled foreign corporation?
A. A foreign company with one major stockholder in a foreign country
B. A subsidiary with the parent company having at least 50 percent ownership and
C. An FDI in which foreign owners own the corporation fully
D. A centralized structure for foreign ownership
The presence of tattoos suggests social outcasts universally, based on:
A. their use in Japan by the Yakuza.
B. a primitive human desire to change and thus control the body.
C. a universal aesthetic.
D. nothing, because this statement is not accurate.
According to the text, a company that wishes to own a foreign subsidiary outright may:
A. make a greenfield investment.
B. purchase its distributor.
C. acquire part of a going concern.
D. all of the above.
According to the text, the type of information a firm will need to judge country risks:
A. none of B, C, and D.
B. varies according to the nature of its business.
C. varies according to its size.
D. varies according to the length of time required to yield a satisfactory return.
E. two of B, C, and D.
Documented agreements containing technical specifications or other precise criteria that
will be used consistently as guidelines, rules, or definitions of the characteristics of a
product, process, or service are referred to as:
A. standards.
B. processes.
C. logistics.
D. value chains.
E. none of the above.
Hilton and Delta provide assistance to other international companies. That is an
example of:
A. a joint venture.
B. a management contract.
C. a strategic alliance.
D. contract manufacturing.
E. licensing.
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.
The attractions of using the Internet as an international advertising medium include:
A. a high number of users of the Internet read English or other common languages well.
B. Internet communications are two-way, rather than one-way like newspaper ads.
C. it is possible to tailor messages to the customer, based on answers to prior questions.
D. all of the above.
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.
The international marketing manager's task is more complex than that of the domestic
marketing manager because:
A. marketing strategies must be developed by assessing potential markets and analyzing
alternate marketing mixes.
B. it is usually not possible to have a single, standardized worldwide strategy for the
overall marketing mix.
C. the uncontrollable environmental forces vary widely among markets.
D. two of the above.
Instead of declining, this nonrenewable energy source, because of its lack of pollution
and the rising price of oil, has seen significant growth:
A. wind power.
B. nuclear power.
C. geothermal power.
D. petroleum.
The following arrangement can provide a firm with foreign products:
A. overseas joint venture.
B. overseas independent contractor.
C. foreign sales office.
D. two of the above.
According to the text, market screening is a valuable method to:
A. assess the nearly 200 countries to pinpoint the most attractive prospects.
B. help domestic firms expand within their home markets.
C. help multinational companies avoid missing potential new markets.
D. all of the above.
The relationships among ecological, social, and economic systems in sustainable
environments need to be:
A. discreet.
B. renewable.
C. positive.
D. interdependent.
According to the text, the proportion of expatriates who are women has increased to
_____ percent.
A. 15
B. 21
C. 29
D. 35
E. over 50
According to the text, including such items as maintenance, repair, operating supplies,
office equipment, and other services and supplies, indirect procurement can account for
as much as what percent of the total purchasing expenditures in companies?
A. 15 percent
B. 30 percent
C. 50 percent
D. 70 percent
E. 80 percent
Although there are many forms of strategic alliances or competitive alliances, the
alliances are often between:
A. customers.
B. competitors.
C. suppliers.
D. all of the above.
According to the text, a management contract is useful for:
A. joint ventures.
B. earning money by providing know-how.
C. two of A, B, and D.
D. wholly owned subsidiaries.
E. all of A, B, and D.
A shipper's export declaration (SED) includes:
A. names and addresses of the shipper and consignee.
B. U.S. port of exit and foreign port of unloading.
C. export license number and bill-of-lading number.
D. description and value of the goods.
E. all of the above.
If Ecuador has an absolute advantage in coffee and Argentina in wheat, then, according
to trade theory:
A. Ecuador should focus production on coffee and trade for wheat.
B. Ecuador would do well to produce its own coffee rather than import it from Bolivia.
C. Argentina should focus on producing wheat and trade for coffee.
D. all of the above.
The only cultural framework described in the text that is based on communication styles
A. Trompenaars' dimensions.
B. the Globe study.
C. Hall's high and low context.
D. Hofstede's dimensions.
Many of the Asian countries that are major exporters to the United States are also
significant importers of American goods because:
A. their rising standards of living enable their people to afford more imported products.
B. they are purchasing large amounts of capital goods to further their industrial
C. they are importing raw materials and components that will be assembled and
subsequently be exported, often to the United States.
D. all of the above.
The idea that WTO members treat all members equally is known as:
A. the transparency principle.
B. the fairness principle.
C. the equity and equality principle
D. the MFN (most-favored-nation) principle.
The following country is not a member of ASEAN:
A. Indonesia.
B. Vietnam.
C. Cambodia.
D. China.
The World Bank's two major institutions are the International Development Association
and the:
A. Collateral-Based Lending Agency.
B. International Bank for Reconstruction and Development (IBRD).
C. International Microloan Bank.
D. International Bank for Development.
The balance-of-payments account is divided into the following three major
A. trade, capital, and debt.
B. cash flow, assets, and reserves.
C. services, cash flow, and debt.
D. current, capital, and reserves.
Home-country nationals may be used in host-country management because:
A. all of B, C, and D.
B. host-country nationals are unavailable.
C. home-country nationals are being groomed for IC headquarters.
D. IC headquarters wants one of its nationals in the host country.
E. two of B, C, and D.
The promotional mix includes:
A. advertising.
B. sales promotion.
C. publicity.
D. all of the above.
Balance-of-payments data:
A. reveal a country's assets.
B. suggest areas of concern in monetary and fiscal policy.
C. reveal demand for a country's currency.
D. show how the country's currency arrangement (fixed, pegged, floating) is valued.