1) when the firm simultaneously faces both strong cost pressures and strong pressures
for local responsiveness, the ideal strategy to follow is the transnational strategy.
2) as a plant output expands, unit costs decrease.
3) the sullivan principles mandated that gm could operate in south africa as long as the
company complied with the apartheid laws.
4) the heckscher-ohlin theory has proven to be a powerful explanation of world trade
patterns.
5) an executive who performs well in a domestic setting will be able to adapt to
managing in a different cultural setting.
6) a country’s political economy and culture are independent of each other.
7) according to ricardo, there may be cases when it makes sense for a country to buy
goods from another country that it can make more efficiently itself.
8) performance ambiguity raises the cost of control.
9) an antagonistic relationship between management and labor classes may result in
higher costs of production.
10) the number of command economies has fallen dramatically since the demise of
communism in the late 1980s.
11) under a currency board system, a country commits itself to converting its currency
on demand into another currency at a fixed exchange rate.
12) the bow that is given by a japanese business executive to another business executive
is an example of symbolic behavior.
13) _____ is a management philosophy according to which mistakes, defects, and
poor-quality materials are not acceptable and should be eliminated.
a.scientific management
b.total quality management
c.iso 9000
d.lean manufacturing
14) according to heckscher and ohlin, _____ meant the extent to which a country is
provided with such resources as land, labor, and capital.
a.factors of production
b.economic facilitators
c.factor endowments
d.manufacturing factors
15) a measure of the responsiveness of demand for a product to change in price is
referred to as:
a.arbitrage demand
b.predatory pricing
c.price elasticity of demand
d.experience curve pricing
16) for international businesses, regional economic integration such as the eu:
a.raises the costs of doing business in the region
b.eliminates differences in culture, allowing companies to standardize marketing
activities
c.opens markets that had formerly been protected
d.standardizes competitive practices, enabling companies to realize substantial cost
economies
17) a _____ keeps track of a country’s payments to and its receipts from other countries.
a.federal payments ledger
b.current accounting system
c.checks-and-balances account
d.balance-of-payments account
18) which mode of entry is pursued primarily by manufacturing firms?
a.franchising
b.turnkey
c.licensing
d.strategic alliance
19) regardless of a firm’s domestic structure, its international division tends to be
organized on:
a.product
b.geography
c.people
d.economy
20) an ethnocentric approach to staffing is appropriate for firms that are pursuing a(n):
a.international strategy
b.localization strategy
c.global standardization strategy
d.transnational strategy
21) a firm can increase the probability of exporting successfully by taking which of
these steps?
a.avoiding hiring emcs to lower head counts
b.hiring only home country personnel to build commitment
c.entering on a small scale
d.waiting for the export opportunities to come
22) according to harvard economist martin feldstein, “patient money”
a.is relatively abundant
b.implies short-term capital
c.is another term for “hot money”
d.is still relatively rare
23) how does a floating exchange rate regime differ from a dirty float system? why
would a country choose a dirty float system over a free float?
24) discuss why the stratification of a society is important to business.
25) what is the difference between a caste system and a class system?
26) how do product factors affect the decision of where to locate production? suppose
your firm produces refined sugar. where should your firm locate production?
27) which is the most enduring free trade area in the world? briefly describe the same.
28) how can the marketing and sales functions of a firm create value?
29) discuss the maastricht treaty. what did it accomplish?
30) consider the opportunities arising from the creation of the eu for international
businesses.