1) firms use countertrade to trade goods and services for other goods and services when
they cannot be traded for money.
2) there is a strong relationship between economic freedom and economic growth.
3) problems of limited liquidity are strictly restricted to less developed nations, which
tend to have smaller domestic capital markets.
4) the heckscher-ohlin theory emphasizes the interplay between the proportions in
which the factors of production are available in different countries and the proportions
in which they are needed for producing particular goods.
5) the most typical joint venture is a 25/75 venture.
6) which of the following statements is true?
a.firms in consumer goods industries that are trying to sell to a large segment of the
market generally favor a push strategy
b.mass communication has cost advantages for firms in consumer goods industries that
are trying to sell to a large segment of the market
c.direct selling may be the only way to reach consumers in poor nations with low
literacy levels
d.firms that sell industrial products or other complex products favor a pull strategy
7) sources of organizational inertia include all of the following, except:
a.the existing distribution of power within the organization
b.environmental influences
c.the existing culture
d.senior managers’ preconceptions about the appropriate business model
8) in a domestic firm with a product divisional structure, each division is responsible for
a distinct:
a.product line
b.individual product
c.product assortment
d.product design
9) the kantian approach to ethics suggests that:
a.human beings have fundamental rights and privileges that transcend national
boundaries
b.the moral worth of actions or practices is determined by their consequences
c.people should be treated as ends and never purely as means to the ends of others
d.ethics are nothing more than the reflection of culture
10) cultural myopia refers to a firm’s failure to:
a.adapt to certain ethnocentric cultures through the expatriate
b.permanently implement parent-company culture in the host country
c.understand host-country cultural differences that require different approaches to
marketing and management
d.identify countries which are much tougher postings than others because their cultures
are more unfamiliar and uncomfortable
11) identify the incorrect statement pertaining to intellectual property rights.
a.its violation cost personal computer software firms revenues equal to $48 billion in
2007
b.the protection of intellectual property rights is more or less the same in all countries
c.the enforcement of its regulations has often been lax
d.its violation has been very bad in china, where the piracy rate in 2007 ran at 82
percent
12) in 1997, the imf agreed to provide the thai government with $17.2 billion in loans to
help its shattered economy. while doing so, imf imposed all of the following restrictions
except:
a.the government was to increase taxes
b.public spending needed to be cut
c.several state-owned businesses were to be privatized
d.interest rates were to be reduced
13) this is a loan between a parent and its subsidiary channeled through a financial
intermediary, usually a large international bank.
a.international loan
b.fronting loan
c.transfer loan
d.unbundling loan
14) which of the following is true of the international strategy?
a.product development tends to be highly decentralized
b.manufacturing and marketing are typically located in the headquarters location
c.extensive production customization is common
d.the strategy is not viable in the long-run
15) foreign producers typically agree to voluntary export restrictions because:
a.their manufacturing capacity is limited
b.they can divert their exports to other countries and charge more for their products
c.they fear far more damaging punitive tariffs or import quotas might follow if they do
not
d.they are required to by the world trade organization
16) identify the united nations body that establishes a uniform set of rules governing
certain aspects of the making and performance of everyday commercial contracts
between sellers and buyers who have their places of business in different nations.
a.imf
b.gatt
c.wto
d.cigs
17) economic theory suggests that when inflation is expected to be high:
a.interest rates will be low
b.exchange rates will be high
c.the international fisher effect does not hold
d.interest rates will be high
18) what is the foreign credit insurance association?
19) what is an export management company? what are the advantages and
disadvantages associated with it?
20) what are the three main factors that affect the decision of where to locate
production?
21) what is a multinational enterprise (mne)? how does a mini-multinational differ from
an mne?
22) what are first-mover advantages? discuss the advantages associated with them.
23) explain the notion of economic exposure. how can economic exposure be
minimized?
24) should a foreign project be analyzed from the perspective of the parent company?
25) what is the law of one price?
26) discuss the reasons for the growth in fdi over the last 30 years.