1) a push strategy is generally favored by consumer goods firms that are trying to sell to
a large segment of the market.
2) the international trade secretariats have had tremendous success.
3) an export management company is an export specialist who acts as the export
marketing department or international department for their client firms.
4) because a growing number of new products are now introduced simultaneously in the
united states, japan, and the advanced european nations, vernon’s product life-cycle is
limited in explaining world trade patterns.
5) many expatriate managers believe that headquarters management evaluates them
unfairly and does not fully appreciate the value of their skills and experience.
6) an organization’s norms and value systems are known as its corporate culture.
7) an advantage of turnkey projects is that the firm that enters into a turnkey deal will
have no long-term interest in the foreign country.
8) acquisitions are less risky than in greenfield ventures in the sense that there is less
potential for unpleasant surprises.
9) which of the following is not a reason why firms prefer to acquire existing assets
rather than undertake greenfield investments?
a.foreign firms are acquired because those firms have valuable strategic assets
b.firms make acquisitions because they believe they can increase the efficiency of the
acquired unit by transferring capital, technology, or management skills
c.even though greenfield investments are comparatively less risky for a firm,
acquisitions always yield higher profits
d.mergers and acquisitions are quicker to execute than greenfield investments
10) _____ is/are best defined as shared assumptions about how things ought to be.
a.norms
b.values
c.society
d.culture
11) the set of choices the firm offers to its targeted market is known as the
a.marketing mix
b.marketing concept
c.marketing strategy
d.market promotion
12) a _____ is a grouping of various types of machinery, a common materials handler,
and a centralized cell controller.
a.flexible machine cell
b.mass customization policy
c.lean production system
d.minimum efficient scale cluster
13) which of the following statement pertaining to changes in the global economy of
the 21st century is not true?
a.barriers to the free flow of goods, services, and capital have been coming down
b.volume of cross-border trade and investment has been growing more rapidly than
global output
c.national economies are becoming more independent and moving away from the
global economic system
d.as economies advance, more nations are joining the ranks of the developed world
14) _____ refers to the activities an organization carries out to utilize its human
resources effectively.
a.organizational behavior
b.strategic management
c.human resource management
d.labor relations
15) _____ are sold outside of the borrower’s country and are denominated in the
currency of the country in which they are issued.
a.eurobonds
b.convertible bonds
c.foreign bonds
d.regulatory bonds
16) suppose the price of a big mac in new york is $3.00 and the price of a big mac in
paris is $3.75 at the prevailing euro/dollar exchange rate, then according to ppp the euro
is:
a.undervalued by 25 percent against the dollar
b.overvalued by 25 percent against the dollar
c.appreciating relative to the dollar
d.depreciating relative to the dollar
17) the belief in the superiority of one’s own culture is known as:
a.ethnocentrism
b.egocentrism
c.polycentrism
d.theocentricism
18) a firm that adopts a polycentric approach to staffing is likely to suffer from cultural
myopia.
19) import tariffs:
a.reduce the price of foreign goods
b.reduce the overall efficiency of the world economy
c.create efficient utilization of resources
d.are unambiguously pro-consumer and anti-producer
20) this mode of entry is primarily used by service firms.
a.franchising
b.licensing
c.a strategic alliance
d.a turnkey project
21) a firm will prefer to make the component internally rather than contract it out to a
supplier, because of all of the following reasons except:
a.it needs to maintain control over its proprietary technology
b.substantial investments in specialized assets are required to manufacture a component
c.the firm completely trusts the independent supplier to play fair
d.it runs the risk that suppliers will expropriate the technology for their own use
22) according to the _____ view of fdi, mnes extract profits from the host country and
take them to their home country, giving nothing of value to the host country in
exchange.
a.imperialist
b.conservative
c.free market
d.radical