1) the matrix structure is designed to facilitate maximum integration among subunits.
2) a lack of information about the fundamental quality of foreign investments may
encourage speculative flows in the global capital market.
3) the entry of large discount superstores such as tesco and carrefour have shortened
channel length in some countries.
4) one of the un central mandates is the promotion of higher standards of living, full
employment, and conditions of economic and social progress and development.
5) to maximize the learning benefits of an alliance, partners should try to learn from
each other and then disperse the knowledge within their own organizations.
6) the protection of the right to private property is embedded within islam.
7) since the 1980s, the political economy of many nations has seen a shift away from
centrally planned and mixed economies toward more free market economic models.
8) in a customs union, trade barriers are eliminated among member countries, and each
country maintains its own external trade polices with nonmember countries.
9) as demonstrated by japan, the primacy of the group is always beneficial.
10) price discrimination involves charging whatever the market will bear.
11) the values and norms of a culture are evolutionary.
12) if lots of people want euros and euros are in short supply, and a few people want
japanese yen and yen are in plentiful supply, the euro is likely to _____ against the yen.
a.depreciate
b.appreciate
c.devalue
d.stabilize
13) which strategy makes most sense when there are strong pressures for cost
reductions and minimal demands for local responsiveness?
a.global standardization strategy
b.transnational strategy
c.localization strategy
d.international strategy
14) according to a study by bruno solnik:
a.a fully diversified portfolio of international stocks is only about 75 percent as risky as
a typical individual stock
b.a fully diversified portfolio of u.s. stocks is about 2 percent as risky as a typical
individual stock
c.a fully diversified portfolio that contains stocks from many countries is less than half
as risky as a fully diversified portfolio that contains only u.s. stocks
d.there is no relationship between international diversification and risk
15) if a company recruits host-country nationals to manage subsidiaries while
parent-country nationals occupy key positions at corporate headquarters, the firm is
following a(n):
a.ethnocentric staffing policy
b.regiocentric staffing policy
c.polycentric staffing policy
d.geocentric staffing policy
16) _____ can help financial managers in an international business to quantify the
various benefits, costs, and risks that are likely to flow from an investment in a given
location.
a.operational techniques
b.capital budgeting techniques
c.socio-economic techniques
d.production techniques
17) which of the following is not an argument that supports making a product in-house?
a.vertical integration may be associated with higher costs
b.vertical integration may protect proprietary product technology
c.vertical integration may facilitate investment in highly specialized assets
d.vertical integration may ease the scheduling of adjacent processes
18) the short-term movement of funds from one currency to another in the hopes of
profiting from shifts in exchange rates is known as:
a.currency arbitrage
b.currency speculation
c.currency supposition
d.short selling
19) in a licensing arrangement, the _____ bears the risk and cost of opening a foreign
market.
a.licensee
b.licensor
c.acquiring firm
d.greenfield investor
20) which of the following statements regarding cross-border trade and investment is
not true?
a.”protection” from foreign competitors has been, at times, demanded by the united
states
b.forecasts indicate a return to the restrictive trade policies of the 1920s and 30s
c.if trade barriers decline no further they will put a brake upon the globalization of both
markets and production
d.it is not clear whether the political majority in the industrialized world favors further
reductions in trade barriers
21) which of the following observations about subsidies is false?
a.government subsidies must be paid for, typically by taxing individuals and
corporations
b.they mainly benefit domestic producers, whose international competitiveness is
increased
c.whether they generate national benefits that exceed their national costs is debatable
d.they help foreign producers gain a competitive advantage over domestic producers
22) in a _____ retail system, a few retailers supply most of the market.
a.fragmented
b.dispersed
c.focused
d.concentrated
23) all of the following are reasons that would account for the spread of democracy
except:
a.totalitarian regimes failing to deliver economic progress to the vast bulk of their
populations
b.the unchallenged pressure of entrepreneurs and other business leaders for less
accountable and closed governments
c.the economic advances of the past quarter century leading to the emergence of
increasingly prosperous middle and working classes pushing for democratic reforms
d.new information and communication technologies reducing the state’s ability to
control access to uncensored information
24) mechanisms to maintain culture include all of the following except:
a.the hiring and promotional practices of the organization
b.reward strategies
c.socialization processes
d.ongoing cultural assessments
25) the relatively low correlation between the movements of stock markets in different
countries reflects all of the following basic factors except:
a.countries pursue different macroeconomic policies and face different economic
conditions, so their stock markets respond to different forces and can move in different
ways
b.different stock markets are still somewhat segmented from each other by capital
controls
c.restrictions on cross-border capital flows still separate different stock markets
d.barriers to cross-border capital flows drastically increase the ability of capital to roam
the world freely in search of the highest risk-adjusted return
26) which theory predicts that countries will export those goods that make intensive use
of factors that are locally abundant, while importing goods that make intensive use of
factors that are locally scarce?
a.comparative advantage
b.absolute advantage
c.heckscher-ohlin
d.samuelson
27) a _____ is the most costly method of serving a foreign market from a capital
investment standpoint.
a.wholly owned subsidiary
b.franchising agreement
c.turnkey project
d.joint venture
28) the _____ is responsible for proposing eu legislation, implementing it, and
monitoring compliance with eu laws by member states.
a.european parliament
b.european commission
c.council of the european union
d.court of justice
29) what does six sigma refer to?
30) why might a firm avoid countertrade?
31) explain organizational structure.
32) consider the incidence of countertrade. where is it most common?
33) consider whether the shift toward a more integrated and interdependent global
economy is a good thing. discuss the shift from the eyes of the consumer, the worker,
the company, and the environmentalist.
34) why should a firm centralize its decision-making?
35) what is the role of investment, financing, and money management decisions in an
international business?
36) what is the simplest form of countertrade? why are firms reluctant to engage in this
type of arrangement?
37) discuss what occurred in seattle in 1999 at the meeting of the wto and why the
events were important to the future of global trade.
38) how do political and economic ties with other countries influence the development
of a country’s accounting system?