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1) in the eu, many firms have historically been limited by a low cost structure in their
ability to compete globally with north american and asian firms.
2) the maastricht treaty entails that the ecb take orders from politicians.
3) in a planned economy, the state owns all means of production.
4) porter argues that favorable demand conditions will result in competitive advantage
unless the state of rivalry is sufficient to cause firms to respond to them.
5) european union firms must comply with iso 9000 standards in their manufacturing
processes and products before they will be given access to the european union market.
6) in the early 1960s, the united states was by far the world's dominant industrial power.
however by 2006, it lost its dominant position and now, is no longer the world's largest
industrial power.
7) a society's social structure refers to its basic social organization.
8) the hdi is based on life expectancy at birth, educational attainment, and whether
average incomes are sufficient to meet the basic needs of life in a country.
9) according to critics of globalization, today's interdependent global economy limits a
nation's national sovereignty.
10) costs saving that come from learning by doing are known as economies of scale.
11) the group is the primary unit of organization in western societies.
12) the move toward regional economic integration has been most successful in europe.
13) linking neighboring countries economically and making them interdependent
creates incentives to increase political cooperation as well.
14) double taxation is mitigated to some extent by tax credits, tax treaties, and the
deferral principle.
15) imf loan packages typically include conditions such as cuts in public spending,
higher interest rates, and tight monetary policy.
16) initially, many foreign factories are established where _____ are low.
a.trade barriers
b.inventory turnover
c.marketing costs
d.labor costs
17) specific tariffs are:
a.levied as a proportion of the value of the imported good
b.levied as a fixed charge for each unit of a good imported
c.in the form of manufacturing or production requirements of goods
d.government payment to domestic producers
18) a(n) _____ involves attempting to collect foreign currency receivables early when a
foreign currency is expected to depreciate and paying foreign currency payables before
they are due when a currency is expected to appreciate.
a.follower strategy
b.interim strategy
c.lead strategy
d.lag strategy
19) the _____, adopted by the member nations of the european community in 1987,
committed member countries to work toward the establishment of a single market by
december 31, 1992 .
a.maastricht treaty
b.treaty of rome
c.single european act
d.delores commission
20) the commission fee a firm pays to foreign exchange dealers for changing cash from
one currency into another currency is known as:
a.foreign exchange tax
b.transfer fee
c.transaction cost
d.conversion tax
21) a _____ means the value of the currency is fixed relative to a reference currency.
a.pegged exchange rate
b.dynamic exchange rate
c.floating exchange rate
d.fixed exchange rate
22) this accounting method adjusts all items in a financial statementassets, liabilities,
costs, and revenuesto factor out the effects of inflation.
a.current cost accounting
b.operating profit method
c.historic cost principle
d.economic accounting
23) what is the advantage of using an ethnocentric staffing approach?
a.uses human resources efficiently
b.alleviates cultural myopia
c.inexpensive to implement
d.helps transfer core competencies
24) a firm that needs greater flexibility should choose _____ for its decision-making.
a.vertical differentiation
b.centralization
c.horizontal differentiation
d.decentralization
25) which of the following is not an impediment that makes it difficult for firms to
achieve the optimal dispersion of their productive activities to locations around the
globe?
a.reduced transportation costs
b.government regulations
c.issues associated with economic and political risk
d.barriers to foreign direct investment
26) when a country commits itself to converting its domestic currency on demand into
another currency at a fixed exchange rate, the country has adopted a _____ system of
exchange rates.
a.pegged
b.floating
c.currency board
d.fixed
27) discuss how companies such as exxon, kodak, and ibm helped improve human
rights in south africa.
28) when one party agrees to purchase goods and services with a specified percentage
of the proceeds from the original sale, and it can fulfill the obligation with any firm in
the country to which the sale is being made, it is a(n):
a.barter
b.counterpurchase
c.offset
d.buyback
29) hofstede's dimension of confucian dynamism:
a.captures attitudes toward time, persistence, ordering by status, protection of face,
respect for tradition, and reciprocation of gifts and favors
b.focuses on how a society deals with the fact that people are unequal in physical and
intellectual capabilities
c.explores the relationship between the individual and his/her fellows
d.looks at the relationship between gender and the ability to accept ambiguous
situations
30) the six sigma methodology:
a.is a direct descendant of the total quality management philosophy
b.is a direct descendant of benchmarking
c.was adopted first by british companies and then japanese companies during the 1980s
d.was developed by deming, juran, and feigenbaum
31) which of the following is not important in the acquisition process?
a.firms should strive to limit unwanted management attrition after acquisition
b.an integration plan should quickly be implemented
c.proper screening of the company to be acquired should take place
d.the hubris hypothesis should be maintained
32) explain the difference between a concentrated retail system and a fragmented one.
why is this distinction important to international businesses?
33) identify the main sets of related decisions included within the scope of financial
management in the international business.
34) describe the current cost accounting system.
35) what are the typical problems challenging novice exporters when trying to export?
36) discuss the strategic objectives of the production and logistics functions of an
international firm.
37) define market segmentation. what is its goal?
38) describe justice theories. what is john rawls' position on ethics?
39) explain the new trade theory. what is the role of economies of scale in this theory?
40) what two multinational institutions were established at the bretton woods
agreement? what are their roles in the international monetary system?
41) what is the difference between basic factors and advanced factors in porter's
diamond?
