1) by diversifying a portfolio internationally, an investor’s level of risk is increased even
further because the movements of stock market prices across countries are not perfectly
correlated.
2) when a company emphasizes personal selling, the company is probably using a push
strategy.
3) it typically is fairly easy to measure the benefits, costs, and risks of a course of
action.
4) the foreign exchange market is a global network of banks, brokers, and foreign
exchange dealers connected by electronic communications systems.
5) in international business, money management decisions are decisions about how to
manage the firm’s financial resources most efficiently.
6) expatriate managers who lack this dimension of predicting success in a foreign
posting tend to treat foreign nationals as if they were home-country nationals.
a.others-orientation
b.self-orientation
c.perceptual ability
d.cultural toughness
7) a quota rent is:
a.a quota on trade imposed by the exporting country
b.levied as a fixed charge for each unit of a good imported
c.levied as a proportion of the value of the imported good
d.the extra profit producers make when supply is artificially limited by an import quota
8) these strata are typically defined on the basis of characteristics such as family
background, occupation, and income.
a.demographic strata
b.economic strata
c.social strata
d.cultural strata
9) a firm that depends more on mass media advertising to communicate the marketing
message to potential consumers is using a:
a.pull strategy
b.push strategy
c.standardized strategy
d.localized strategy
10) in practice, the global matrix structure:
a.works as well as the theory predicts
b.is often clumsy and bureaucratic
c.makes it easy to ascertain accountability
d.results in quick decision making
11) good financial management can help a firm in all of the following ways, except:
a.reduce the costs of creating value.
b.add value by improving customer service.
c.reduce the firm’s cost of capital.
d.totally eliminate the firm’s tax burden.
12) which of the following statements about franchising is true?
a.it guarantees consistent product quality
b.it tends to involve more short-term commitments than licensing
c.it is a specialized form of licensing
d.it is employed primarily by manufacturing firms
13) the growing integration of the world economy is:
a.increasing the intensity of competition in a wide range of manufacturing and service
industries
b.decreasing the intensity of competition in manufacturing industries, and increasing
the intensity of competition in services
c.increasing the intensity of competition in manufacturing industries, and decreasing the
intensity of competition in services
d.narrowing the scope of competition in a wide range of service, commodity, and
manufacturing industries
14) labor unions generally try to get better pay, greater job security, and better working
conditions for their members through _____ with management.
a.collective bargaining
b.arbitration
c.conciliation
d.expert determination
15) which component of a typical expatriate compensation package compensates the
expatriate for having to live in an unfamiliar country isolated from family and friends,
deal with a new culture and language, and adapt to new work habits and practices?
a.benefit
b.cost-of-living allowance
c.base salary
d.foreign service premium
16) the _____ suggests that a firm will establish production facilities where foreign
assets or resource endowments that are important to the firm are located.
a.product life cycle
b.strategic behavior theory
c.multipoint competition theory
d.eclectic paradigm
17) which islamic banking method is the most widely used among the world’s islamic
banks, primarily because it is the easiest to implement?
a.mudarib
b.murabaha
c.maysir
d.mudarabah
18) most cross-border investment is:
a.in the form of greenfield investments
b.made via mergers and acquisitions
c.between american and japanese companies
d.involved in building new facilities
19) it has been observed that a product’s production costs decline by some quantity
about each time, cumulative output:
a.increases by twenty five percent
b.quadruples
c.doubles
d.triples
20) discuss the link between trade and economic growth.
21) what is an international strategy? when is this type of strategy appropriate?
22) what is the historic cost principle?
23) discuss the trade-offs associated with large-scale entry versus small-scale entry.
24) discuss the spoken language. which is the most spoken language in the world? what
language is used in business? is it important to learn a foreign language?