1) the naive immoralist claims that a multinational’s home country standards of ethics
are the appropriate ones for companies to follow in foreign countries.
2) most international businesses require all budgets and performance data within the
firm to be expressed in the “corporate currency,” which is normally the home currency.
3) free trade in agriculture could jump-start economic growth among the world’s poorer
nations and alleviate global poverty.
4) a key goal of the 1986 uruguay round was to extend gatt to cover trade in services.
5) differences in technical standards can prevent a firm from standardizing products
across markets.
6) a company can create value by leveraging the skills created at the subsidiary level
and applying them to other operations with the organization.
7) a german firm raising capital by selling stock through the london stock exchange is
an example of:
a.transnational financing
b.transnational development
c.transnational sale
d.transnational investment
8) which of the following statements about the legal systems of countries is false?
a.they can affect the attractiveness of a country as an investment site or market
b.they are influenced by the prevailing political system of the country
c.they are almost the same for all countries
d.they are of immense importance to international business
9) in a pure command economy:
a.all productive activities are owned by the state
b.all productive activities are privately owned
c.the goods and services that a country produces are not planned by anyone
d.production is determined by the interaction of supply and demand
10) which of the following statements about barrier to international communication is
true?
a.source effects occur when the receiver of the message evaluates the message on the
basis of the location of the sender
b.the best way for a firm to overcome cultural barriers is to use local input
c.source effects and country of origin effects are always negative
d.noise is extremely high in highly developed countries such as the united states
11) the u.s. has been an attractive target for fdi because of all of the following reasons
except:
a.its small and wealthy domestic markets
b.its dynamic and stable economy
c.its favorable political environment
d.its openness to fdi
12) a bill of lading:
a.is the same as a letter of credit
b.is received from the importer prior to product shipment
c.is a financial note issued by a bank
d.gives title to the goods
13) when local agents carry the products of competing firms and have divided loyalties,
_____ is not appropriate.
a.franchising
b.licensing
c.exporting
d.greenfield investment
14) political risk assessment:
a.is without value.
b.is more science than art.
c.tries to predict a future that can only be guessed.
d.usually makes correct future predictions.
15) a eurocurrency
a.can be created anywhere in the world
b.should be created and banked in europe
c.can be created only in its country of origin
d.refers to any former national currency of eu members
16) according to _____, international production should be distributed among countries
according to the theory of comparative advantage.
a.the radical view
b.the eclectic view
c.pragmatic nationalism
d.the free market view
17) which of the following is a disadvantage of licensing?
a.it does not help firms that lack capital to develop operations overseas
b.it does not give a firm the tight control over strategy that is required for realizing
experience curve and location economies
c.it cannot be used when a firm possesses some intangible property that might have
business applications
d.the firm has to bear the development costs and risks associated with opening a foreign
market
18) which of the following is not a key difference between distribution systems in
different countries?
a.channel speed
b.channel length
c.channel exclusivity
d.channel quality
19) the basic strategy paradigm suggests that to maximize its profitability, a firm should
do all of the following, except:
a.choose, according to strategy, any position on the efficiency frontier as all positions
are viable
b.pick a position on the efficiency frontier that is viable in the sense that there is enough
demand to support that choice
c.configure its internal operations so that they support the position on the efficiency
frontier
d.make sure that the right organization structure is in place to execute the strategy
20) a _____ allows for a delay in payment.
a.bill of lading
b.time draft
c.banker’s acceptance
d.sight draft
21) integration mechanisms are:
a.the formal division of the organization into subunits
b.the mechanisms that enable each subunit to operate independently
c.the mechanisms for coordinating subunits
d.the location of decision making responsibilities within a structure
22) according to alexander yeats:
a.the trade diversion effects of mercosur outweigh its trade creation effects
b.the fastest growing items in intra-mercosur trade were capital-intensive goods
produced efficiently in the member countries
c.mercosur countries will be able to compete globally once the group’s external trade
barriers come down
d.countries with more efficient manufacturing enterprises are getting a level playing
field because of mercosur’s reduction in trade barriers