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1) rights theories recognize that human beings have fundamental rights and privileges
that transcend national boundaries and cultures.
2) licensing increases a firm's ability to realize experience curve and location
economies by producing its product in a centralized location.
3) porter suggests that different nations are characterized by different management
ideologies, which either help them or do not help them to build national competitive
advantage.
4) when a small change in price produces a large change in demand, demand is said to
be inelastic.
5) although a foreign exchange transaction can involve any two currencies, most
transactions involve pounds on one side.
6) _____ occur(s) when a firm exports goods or services to consumers in another
country.
a.international trade
b.foreign direct investment
c.inward investment
d.merger and acquisitions
7) all of the following are seen as stumbling blocks toward the establishment of the free
trade area of the americas except:
a.brazil and argentina want the united states to reduce its subsidies to u.s. agricultural
producers
b.the united states wants its southern neighbors to agree to tougher enforcement of
intellectual property rights
c.brazil and argentina want the united states to scrap tariffs on agricultural imports
d.the united states wants its southern neighbors to increase manufacturing tariffs
8) which of the following nation's world output has declined the least over the last 40
years?
a.france
b.united states
c.united kingdom
d.canada
9) all of the following are true of the euro except:
a.its notes and coins were first issued on january 1, 1999
b.it required participating countries to give up their own currencies
c.countries lost control of monetary policy when it was established
d.it created the second largest currency zone in the world
10) the need for coordination between subunits is highest in firms pursuing a(n)
a.localization strategy
b.international strategy
c.global strategy
d.transnational strategy
11) a greenfield investment:
a.is a form of fdi that involves the establishment of a new operation in a foreign country
b.involves a 7 percent stock in an acquired foreign business entity
c.involves a merger with a foreign business
d.occurs when a firm acquires another company in a foreign country
12) _____ challenged the notion that the way to increase efficiency and drive down unit
costs is to limit product variety and produce a standardized product in large volumes.
a.bartlett and ghoshal's theory of a transnational company
b.minimum efficient scale
c.economies of scale
d.flexible manufacturing technology
13) which among the following combinations of the lessard-lorange model is
considered illogical and unreasonable?
a.translating the budget using the projected rate and actual performance using the initial
rate
b.translating the budget using the initial rate and actual performance using the initial
rate
c.translating the budget and actual performance using the projected rate
d.translating the budget and actual performance using the ending rate
14) _____ means standing in the shoes of a stakeholder and asking how a proposed
decision might impact that stakeholder.
a.veil of ignorance
b.difference principle
c.moral imagination
d.noblesse oblige
15) the price at which goods and services are transferred between entities within the
firm is referred to as:
a.transfer tax
b.service tax
c.service charges
d.transfer price
16) the wto argues that by removing all tariff barriers and subsidies to agriculture, all of
the following would occur except:
a.the overall level of trade would increase
b.there would be overproduction of products that are heavily subsidized
c.prices would fall for consumers
d.global economic growth would rise
17) in a pure market economy:
a.all productive activities are owned by the state
b.all productive activities are privately owned
c.the government plans the goods and services that a country produces
d.resources are allocated for "the good of society"
18) according to levitt, which of the following statements is true?
a.technology drives the world toward a converging commonalty
b.there are accustomed differences in national preferences
c.the multinational corporation operates in a number of countries at low relative costs
d.the global corporation operates with resolute consistency at high relative costs
19) trade diversion occurs when:
a.low-cost producers within the free trade area replace high-cost domestic producers
b.lower-cost suppliers replace higher-cost external suppliers within the free trade area
c.higher-cost external suppliers replace lower-cost domestic producers within the free
trade area
d.higher-cost suppliers replace lower-cost external suppliers within the free trade area
20) in a letter of credit transaction, the exporter ships the product
a.after the letter of credit is issued
b.before the letter of credit is issued
c.upon receipt of payment
d.with the bill of lading
