1) the world bank is responsible for maintaining order in the international monetary
system.
2) empirical studies show that there is a long-run relationship between a country’s
relative inflation rates and changes in exchange rates.
3) if the spot exchange rate is £1 = $1.50 when the market opens, and £1 = $1.48 at the
end of the day, the pound has appreciated, and the dollar has depreciated.
4) consumers in the most developed countries are typically willing to sacrifice their
preferred product attributes for lower prices.
5) products sell well when their attributes match consumer needs.
6) a caste system is a closed system of stratification in which social position is
determined by the family into which the person is born.
7) efficient money management involves minimizing cash balances and reducing
transaction costs.
8) a(n) _____ brings together those who want to invest money and those who want to
borrow money.
a.capital market
b.high net worth investor
c.consumer market
d.retailer
9) in a concentrated retail system:
a.there are many retailers who have a major share of the market
b.there are many retailers, no one of which has a major share of the market
c.a few retailers supply a small segment of the market
d.a few retailers supply most of the market
10) the idea that universal notions of morality transcend different cultures is implicitly
rejected by:
a.the righteous moralist
b.the naive immoralist
c.the friedman doctrine
d.cultural relativism
11) the worldwide product division structure:
a.is weak in local responsiveness
b.inhibits the realization of location economies
c.inhibits the realization of experience curve economies
d.limits the transfer of core competencies between areas
12) when a company’s product has a low value-to-weight ratio, the company should:
a.have a centralized manufacturing location
b.produce the product in multiple locations close to major markets
c.ignore transportation costs
d.produce the product in one optimal location and serve the world from there
13) when a company “exports jobs” overseas, the company is:
a.helping domestic workers by pushing up wage rates
b.increasing the demand of qualified domestic workers
c.taking advantage of lower wages in foreign markets
d.deceiving the supporters of globalization
14) in a free trade area:
a.barriers to the trade of goods and services among member nations are removed
b.a common currency is adopted
c.a single parliament determines political and foreign policy
d.a common external trade policy is adopted
15) which of these terms means the totality of a firm’s organization, including formal
organization structure, control systems and incentives, processes, organizational culture,
and people?
a.organizational ethics
b.organizational architecture
c.organizational norms
d.organizational hierarchy
16) which of the following observations is correct?
a.none of the economic principles established in the koran are pro-free enterprise
b.the koran speaks approvingly of free enterprise
c.the koran speaks disapprovingly of earning legitimate profit through trade and
commerce
d.protection of the right to private property is not embedded within islam
17) according to some researchers, which of the following is a fundamental attribute of
a global manager and is characterized by cognitive complexity and a cosmopolitan
outlook?
a.a global mind-set
b.cultural toughness
c.high self-esteem
d.perceptual ability
18) firms that lack the capital necessary to develop foreign operations may choose
_____ as a means of expanding internationally.
a.turnkey projects
b.licensing
c.greenfield investments
d.acquisitions
19) a country with high car ownership, a large number of households with refrigerators,
and a large number of two income families tend to have:
a.retail division
b.retail dispersion
c.retail concentration
d.retail fragmentation
20) countries might be forced to use countertrade when a currency is:
a.freely convertible
b.externally convertible
c.internally convertible
d.nonconvertible
21) discuss the different types of tariff barriers. consider the beneficiaries of tariff
barriers and the losers.
22) what is economic risk? how does it affect international businesses?
23) what are the three types of training for expatriate managers? why is this type of
training so important to managers and their families?
24) discuss the mercantilist philosophy. what was the theory’s main flaw?
25) recent policies by the imf have drawn a lot of fire. discuss the criticisms of the imf.
do you agree with the critics? why or why not?
26) what happened to gatt during the 1980s and early 1990s?
27) using examples, describe the situations where pressure for cost reduction is
especially intense.
28) discuss confucian dynamism. explore the debate over whether confucian dynamism
is good for an economy.