1) there are two main trading blocs in europe, the european union and the european free
trade association.
2) the world bank’s initial mission was to lend money to third world nations.
3) building an organization culture that places a high value on ethical behavior requires
incentive and reward systems.
4) capital budgeting quantifies the benefits, costs, and risks of an investment.
5) many governments have long had regulations to protect consumers from unsafe
products.
6) tariff barriers lower the costs of exporting products to a country.
7) to minimize the risk of an unanticipated change in exchange rates, a company can
protect itself by entering into a forward exchange contract.
8) with the exception of great britain, most of the world’s major trading nations,
including the united states, germany, and japan had adopted the gold standard by 1880 .
9) a localization strategy makes most sense when demands for local responsiveness are
high, but cost pressures are moderate or low.
10) _____ imply that when a firm already has significant value built into its product
offering, increasing value by a relatively small amount requires significant additional
costs.
a.efficiency matrixes
b.diminishing returns
c.cost plus curves
d.strategy convex curves
11) the cold war was essentially a war between _____, championed by the now-defunct
soviet union, and _____, championed by the united states.
a.collectivism; individualism
b.democracy; socialism
c.totalitarianism; socialism
d.individualism; collectivism
12) to increase the potential for a successful acquisition, a firm should:
a.always bid low to allow for partial failure
b.try to acquire a firm with a very different corporate culture so there is no forced
“overlap”
c.seek companies only from similar national cultures
d.screen the foreign enterprise to be acquired
13) the probability of effective communications is reduced by:
a.noise effects
b.location effects
c.country of origin effects
d.source effects
14) which of the following statements about the financial services industry is not true?
a.it is an information-intensive industry
b.it has been revolutionized more than any other industry by advances in information
technology since the 1970s
c.it is now technologically possible for financial services companies to engage in
24-hour-a-day trading
d.it saw the real cost of recording, transmitting, and processing information increase by
25 percent between 1964 and 1990
15) which of the following helps explain why exporters still account for only a tiny
percentage of u.s. firms?
a.lack of export opportunities; buoyant demand within u.s.
b.tariffs; fdi restrictions
c.unfamiliarity; intimidation by the complexities
d.regulatory burden; barriers to free trade
16) incentives are:
a.the metrics used to measure the performance of subunits and make judgments about
how well managers are running those subunits
b.the devices used to reward appropriate managerial behavior
c.the manner in which decisions are made and work is performed within the
organization
d.the norms and value systems that are shared among the employees of an organization
17) guanxi is an important mechanism for building long-term business relationships and
getting business done in china.
18) unlike their german and japanese competitors, u.s. firms are _____ when they see
export opportunities.
a.information-disadvantaged
b.money-strapped
c.regulation-bound
d.much better prepared
19) tight cross-functional integration between r&d, production, and marketing can help
a company to ensure that all of the following take place except:
a.time to market is minimized
b.development costs are kept in check
c.new products are designed for ease of manufacture
d.product development projects are driven by internal needs
20) saving time by not producing poor-quality products that cannot be sold, lowering
rework costs, lowering scrap costs, and lowering warranty costs are the intended results
of:
a.total feature management
b.reengineering
c.logistics
d.total quality management
21) _____ draws on economic theory to construct sophisticated econometric models for
predicting exchange rate movements.
a.efficient market theory
b.inefficient market theory
c.fundamental analysis
d.technical analysis
22) the movement toward regional economic integration has been most successful in:
a.latin america
b.north america
c.europe
d.asia
23) what is the most important advantage of using a geocentric staffing policy?
a.it enables the firm to build a cadre of international executives who feel at home
working in a number of cultures
b.it may be less expensive to implement than other policies, reducing the costs of value
creation
c.the higher pay managers on an international fast track enjoy is a source of inspiration
within a firm
d.it involves no costs of training and relocation when transferring managers from
country to country
24) one method of analyzing a foreign investment opportunity is to treat all risk as a
single problem by adjusting the discount rate applicable. for countries with significant
political and economic risks, the:
a.discount rates are revised upward.
b.discount rates are revised downward.
c.early cash flows are not adjusted.
d.distant cash flows are heavily penalized.