1) nearly all developing nations have substantial regulations governing the emission of
pollutants, the dumping of toxic chemicals, the use of toxic materials in the workplace,
and so on.
2) market makers are the financial service companies that connect investors and
borrowers, either directly or indirectly.
3) the subsidiaries of a multinational company are separate legal entities as well as
separate economic entities.
4) investment decisions, in international business, are decisions about how to finance a
firm’s activities.
5) firms pursuing global standardization or transnational strategies tend to prefer
joint-venture arrangements over wholly owned subsidiaries.
6) decentralization of production is appropriate when the product serves universal
needs.
7) it is more difficult for a leader to create an organizational culture from scratch in a
new venture than it is to change an established one.
8) a common market entails even closer economic integration and cooperation than an
economic union.
9) basic human rights are respected by almost all nations.
10) flexible manufacturing technologies can help a firm improve efficiency, lower
costs, and customize products to small markets.
11) decentralization of production is appropriate when the product’s value-to-weight is
low.
12) the smaller the minimum efficient scale of a plant relative to total global demand,
the greater the argument for centralizing production in a single location or a limited
number of locations.
13) host governments sometimes worry that the subsidiaries of foreign mnes may have
greater economic power than indigenous competitors.
14) the number of intermediaries between the producer and the consumer is known as
the channel length.
15) when a government limits imports via tariffs and quotas, and subsidizes exports in
order to maximize exports and minimize imports, the country is following:
a.a mercantilist philosophy
b.the theory of absolute advantage
c.the theory of comparative advantage
d.the heckscher-ohlin theory
16) the social organization of western society tends to emphasize on:
a.a group orientation
b.the family
c.individual achievement
d.work groups
17) in the u.s., _____ percent of firms that export are small companies employing fewer
than 100 people.
a.90
b.75
c.50
d.30
18) mores are:
a.the norms that are seen as central to the functioning of a society and its social life
b.the routine conventions of everyday life
c.abstract ideas about what a group believes to be right, good, and desirable
d.the social rules and guidelines that prescribe appropriate behavior in particular
situations
19) a tax haven:
a.allows an entity to reduce the taxes paid to the home government and those paid to
foreign governments.
b.directs both the host-country government and the parent company’s home government
not to tax the income of a foreign subsidiary.
c.specifies that parent companies are not taxed on foreign source income until they
actually receive a dividend.
d.is a country with an exceptionally low, or even no, income tax.
20) which of the following statements about price discrimination is true?
a.it exists whenever consumers in a country are charged different prices for the same
product
b.it involves charging whatever the market will bear
c.it is the use of price as a competitive weapon to drive weaker competitors out of a
national market
d.it makes economic sense to charge the same prices across countries
21) according to knickerbocker:
a.the firms that pioneer a product in their home markets undertake fdi to produce a
product for consumption in a foreign market
b.when a firm that is part of an oligopolistic industry expands into a foreign market,
other firms in the industry will be compelled to make similar investments
c.combining location-specific assets or resource endowments and the firm’s own unique
assets often requires fdi
d.impediments to the sale of know-how increase the profitability of fdi relative to
licensing
22) which of the following is a problem that arises due to an international division
structure?
a.the need to get an area and a product division to reach a decision can slow decision
making and produce an inflexible organization unable to respond quickly to innovate
b.it gives limited voice to area or country managers, since it makes them subservient to
product division managers
c.the heads of foreign subsidiaries are not given as much voice in the organization as
the heads of domestic functions or divisions
d.the dual-hierarchy structure can lead to conflict and perpetual power struggles
between the areas and the product divisions, catching many managers in the middle
23) firms structured on this basis may encounter significant problems if local
responsiveness is less critical than reducing costs or transferring core competencies for
establishing a competitive advantage.
a.international division structure
b.worldwide area structure
c.global matrix structure
d.worldwide product division structure
24) _____ activities of the value chain provide inputs that allow the primary activities
to occur.
a.complementary
b.basic
c.support
d.core
25) if a producer sells through an import agent, a wholesaler, and a retailer, then
a.a long channel exists
b.the retail system must be concentrated
c.the internet probably plays a big role in the economy
d.there is no channel
26) the number of intermediaries between the manufacturer and the consumer is
referred to as:
a.channel reach
b.channel concentration
c.channel exclusivity
d.channel length
27) a(n) _____ distribution channel is one that is difficult for outsiders to access.
a.selective
b.intensive
c.exclusive
d.multichannel
28) in practice, the dual-hierarchy structure:
a.lessens all forms of conflict
b.makes it easy to ascertain accountability
c.results in extremely quick decision making
d.can lead to perpetual power struggles
29) which of the following is an example of a support activity in a firm’s value chain?
a.r&d
b.customer service
c.human resources
d.marketing and sales
30) if a high-tech firm sets up operations in a foreign country to profit from a core
competency in technological know-how, which of the following entry strategy is best?
a.joint ventures
b.licensing
c.wholly owned subsidiaries
d.turnkey contacts
31) which of the following statements about the use of spoken language is false?
a.the nature of a language structures the way we perceive the world
b.the language of a society can direct the attention of its members to certain features of
the world rather than others
c.countries with more than one language often have more than one culture
d.most people prefer to converse in english rather than their own language