1) money market accounts typically offer a relatively high rate of interest.
2) outsourcing decisions pose plenty of problems for international businesses but even
more problems for purely domestic businesses.
3) the most rigid system of stratification is a class system.
4) commercial banks perform a direct connection function between investors and
borrowers.
5) the worldwide product division structure facilitates local responsiveness.
6) a cad/cam system allows the firm to economize on inventory holding costs by having
materials arrive at a manufacturing plant just in time to enter the production process and
not before.
7) the cost of capital is typically higher in the global capital market, by virtue of its size
and liquidity, than in many domestic capital markets.
8) developed countries are more likely to have a:
a.concentrated retail system
b.fragmented retail system
c.crowded retail system
d.dispersed retail system
9) _____ is most likely to occur when the value of the domestic currency is depreciating
rapidly because of hyperinflation or when a country’s economic prospects are shaky in
other respects.
a.the bandwagon effect
b.the fisher effect
c.the international fisher effect
d.capital flight
10) a _____ is a closed system of stratification in which social position is determined by
the family into which a person is born, and change in that position is usually not
possible during an individual’s lifetime.
a.caste system
b.class system
c.social system
d.culture system
11) through its _____ program, the sba oversees some 850 volunteers with international
trade experience to provide one-on-one counseling to active and new-to-export
businesses.
a.emc
b.score
c.elan
d.international trade administration
12) technological innovations have facilitated all of the following except:
a.globalization of production
b.globalization of markets
c.creation of electronic global marketplaces
d.creation of absolutely homogeneous consumer markets
13) what is the primary advantage of licensing?
a.it helps a firm avoid the development costs associated with opening a foreign market
b.it gives a firm the tight control over manufacturing, marketing, and strategy
c.it helps a firm achieve experience curve and location economies
d.it increases a firm’s ability to utilize a coordinated strategy
14) hofstede’s masculinity vs. femininity dimension examined:
a.the extent to which different cultures socialized their members into accepting
ambiguous situations and tolerating uncertainty
b.the relationship between gender and work roles
c.how a society deals with the fact that people are unequal in physical and intellectual
capabilities
d.the relationship between the individual and his or her fellows
15) in general, firms prefer to hold cash balances at a centralized depository for all of
the following reasons except:
a.by pooling cash reserves centrally, the firm can deposit larger amounts.
b.it enables the firm to invest a larger amount of cash reserves in short-term, highly
liquid financial instruments that earn a lower interest rate.
c.if the centralized depository is located in a major financial center, it has access to
information about good short-term investment opportunities that the typical foreign
subsidiary would lack.
d.the firm can reduce the total size of the cash pool it must hold in highly liquid
accounts.
16) in 1991, argentina, brazil, paraguay, and uruguay implemented an agreement known
as:
a.nafta
b.mercosur
c.apec
d.ftaa
17) internal stakeholders:
a.are individuals or groups who work for or own the business
b.do not have any claim on a firm or its activities
c.typically comprise customers, suppliers, lenders, governments, unions, etc
d.are individuals, except employees, board of directors, and stockholders that have
some claim on the firm
18) in international business, financing decisions are:
a.decisions about what activities to finance.
b.decisions about how to finance a firms activities.
c.decisions about how to manage the firm’s financial resources most efficiently.
d.decisions about the operational activities of a firm.
19) in the 1970s, many japanese firms invested in north america and europe
a.to avoid a highly competitive domestic market
b.to exploit high domestic tariff barriers
c.as a hedge against unfavorable currency movements
d.to take advantage of low labor costs
20) porter explains the united states’ loss of competitiveness in engineering-based
industries where manufacturing processes and product design issues are critical as a
consequence of:
a.differing management ideologies
b.differing factor endowments
c.differing demand conditions
d.chance
21) a foreign debt crisis:
a.is a situation in which consumer spending patterns significantly affect a country’s
balance of payments, thereby affecting its currency
b.is a situation in which a country cannot service its debt obligations
c.refers to a loss of confidence in the banking system that leads to a run on banks, as
individuals withdraw their deposits
d.occurs when a speculative attack on the exchange value of a currency results in a
sharp depreciation in the value of the currency
22) according to smith, countries should specialize in the production of goods for which
they have an absolute advantage and then:
a.retain these goods for strictly domestic sales
b.trade these goods for the goods produced by other countries
c.sell these goods to the highest domestic or international bidder
d.prohibit the import of these goods from other countries
23) firms may prefer acquisitions to greenfield investments for all of the following
reasons except:
a.they allow companies to completely sidestep government regulations on investment
b.they are quick to execute
c.they enable the firm to preempt competitors
d.managers believe acquisitions are less risky
24) which of the following observations is true of the financial accounting system of
countries such as switzerland, germany, and japan?
a.historically, individual investors satisfied most of the capital needs of businesses
b.banks play an insignificant role in satisfying the capital needs of businesses
c.government regulations do not mandate any public disclosure of a firm’s financial
position
d.assets are valued conservatively and liabilities are overvalued
25) the department of commerce has a _____ program, in which department
representatives accompany groups of u.s. businesspeople abroad to meet with qualified
agents, distributors, and customers.
a.best prospects
b.matchmaker
c.trade events
d.comparison shopping
26) the modern successor to tqm is:
a.corporate quality commitment
b.iso 9000
c.quality process realized
d.six sigma
27) explain how the role of foreign factories evolves over time.
28) discuss the naive immoralist’s approach to business ethics. what are the criticisms of
this approach?
29) explain the concept of social stratification.
30) what are the benefits of free trade?
31) what are the five levels of economic integration? briefly describe each form.
32) explain the friedman doctrine. who developed the philosophy? how well does this
approach hold up ethically?
33) what is the relationship between a firm’s staffing policy and its corporate culture?
34) why should a firm choose exporting as a means of foreign market expansion?
discuss the advantages and disadvantages of exporting.
35) what are first-mover advantages? what are late-mover advantages? why are they
important to international businesses?
36) what is strategic trade policy? provide an example.