1) the so-called group of five major industrial countries includes great britain, the
united states, japan, switzerland, and germany.
2) a firm can lower costs by dispersing production to locations around the globe where
each activity can be performed most efficiently.
3) to conform to local content regulations, a firm may have to locate more production
activities in a given market than it would otherwise.
4) hofstede’s power distance dimension focused on how a society deals with the fact
that people are unequal in physical and intellectual capabilities.
5) the term people refers to not just the employees of the organization, but also the
strategy used to recruit, compensate, and retain those individuals and the type of people
that they are in terms of their skills, values, and orientation.
6) an aspect of pragmatic nationalism is the tendency to aggressively court fdi believed
to be in the national interest by, for example, offering subsidies to foreign mnes in the
form of tax breaks or grants.
7) cultural change is unidirectional, with national cultures converging toward some
homogenous global entity.
8) supporters of debt relief argue that new democratic governments in poor nations
should not be forced to honor debts that their corrupt and dictatorial predecessors
incurred and mismanaged long ago.
9) propagated in the 16th and 17th centuries, _____ advocated that countries should
simultaneously encourage exports and discourage imports.
a.ethnocentrism
b.capitalism
c.collectivism
d.mercantilism
10) with _____, suppliers, shippers, and the purchasing firm can communicate with
each other with no time delay.
a.a cad system
b.a jit system
c.a cam system
d.an edi system
11) “protection of technology and the ability to engage in global strategic coordination”
are advantages of which of the following?
a.franchising
b.turnkey contracts
c.joint ventures
d.wholly owned subsidiaries
12) responding to pressure for _____ requires that a firm differentiate its product
offering and marketing strategy from country to country.
a.cost reductions
b.experience effects
c.lowering the costs of value creation
d.being locally responsive
13) a study by the oecd, whose members include the 20 richest economies in the world,
noted all of the following except:
a.the gap between the poorest and richest segments of society in some oecd countries
widened
b.in almost all countries real income levels rose over the 20-year period studied
c.falling unemployment rates brought gains to low-wage workers and fairly
broad-based wage growth
d.the gap between rich and poor had narrowed in all oecd countries
14) identify the incorrect statement regarding debt loans.
a.they are made when a corporation sells stock to investors and gives its holders a claim
to the firm’s profit stream
b.management has no discretion as to the amount it will pay investors
c.they include cash loans from banks and funds raised from the sale of corporate bonds
to investors
d.they require the corporation to repay a predetermined portion of the loan amount at
regular intervals regardless of how much profit it is making
15) a central value of japanese culture is the importance attached to:
a.the individual
b.group membership
c.individual achievement
d.personal accomplishments
16) the great strength claimed for the gold standard was that it contained a powerful
mechanism for achieving _____ by all countries.
a.balance-of-trade equilibrium
b.economic stability
c.interest rate parity
d.equal tariff levels
17) which of the following statements about political systems and their interrelated
dimensions is false?
a.systems that emphasize collectivism tend toward totalitarianism.
b.systems that place a high value on individualism tend to be democratic.
c.democratic societies can emphasize a mix of collectivism and individualism.
d.it is impossible to have totalitarian societies that are not collectivist.
18) a(n) _____ strategy is favored by firms that sell industrial products or other
complex products.
a.localized
b.indirect
c.push
d.pull
19) ethical systems are:
a.a set of moral principles, or values, that are used to guide and shape behavior
b.shared beliefs and rituals that are concerned with the realm of the sacred
c.routine conventions of everyday life
d.social rules that govern peoples’ actions toward each other
20) global expansion allows firms to achieve all of the following, except:
a.standardize their product offering, marketing strategy, and business strategy for all
national conditions
b.realize location economies by dispersing value creation activities to the optimal
location
c.realize cost economies from experience effects generated by serving a larger market
from a central location
d.expand the market for their domestic product offerings by selling those products in
international markets
21) which of these statements pertaining to cross-border fdi flows is true?
a.the growth of fdi resumed in 2004 and continued through 2006
b.a surge in fdi from 1995 to 1997 was followed by a slump from 1998 to 2000
c.among developing nations, the largest recipient of fdi has been russia
d.the dramatic increase in fdi reflects the decreasing internationalization of business
corporations
22) how can firms successfully leverage the skills developed at the subsidiary level?
23) what are the arguments for standardized advertising across international markets?
24) what are the four strategies pursued by international companies, and what is the role
of hrm in these?
25) what are the two methods of entering foreign marketing using a wholly owned
subsidiary?
26) what is a capital market? define market makers.
27) discuss the ideas of max weber. what is the protestant work ethic? why is it
important to the world economy?
28) what are the two basic factors reflected by the relatively low correlation between
the movements of stock markets in different countries?
29) how does the type of technology a firm uses affect its decision of where to locate
production?