1) american exporters can minimize their risk by purchasing insurance from the foreign
credit insurance association.
2) ricardo noted the importance of country factors such as domestic demand and
domestic rivalry in explaining a nation’s dominance in the production and export of
particular products.
3) the “customization versus standardization” debate is an all or nothing issue.
4) as exporting has become easier, the volume of export activity in the world economy
has been rising.
5) in many cases, firms fail to plan for an expatriate’s repatriation.
6) _____ states that for any two countries, the spot exchange rate should change in an
equal amount but in the opposite direction to the difference in nominal interest rates
between the two countries.
a.the fisher effect
b.the international fisher effect
c.the efficient market theory
d.the inefficient market theory
7) in which of the following industries are turnkey projects the most common?
a.fresh fruit, grain, and meat products
b.chemical, pharmaceutical, and metal refining
c.consumer durables, computer peripherals, and automotive parts
d.apparel, shoes, and leather products
8) according to world bank numbers,
a.developing nations currently account for more than 60 percent of world economic
activity
b.rich nations currently account for more than 70 percent of world economic activity
c.today’s rich nations may account for 55 percent of world economic activity by 2020
d.today’s developing nations may account for more than 60 percent of world economic
activity by 2020
9) justice theories of business ethics focus on:
a.the moral worth of actions or practices
b.minimum levels of morally acceptable behavior
c.fundamental rights and privileges that transcend national boundaries
d.the attainment of a just distribution of economic goods and services
10) a _____ is payable on presentation to the drawee.
a.time draft
b.bill of lading
c.sight draft
d.trade acceptance
11) _____ is the activity that controls the transportation of physical materials through
the value chain, from procurement through production and into distribution.
a.outsourcing
b.production
c.logistics
d.distribution
12) which of the following is true of a common market?
a.all barriers to the trade of goods and services among member countries are removed
and each country maintains its own policy toward nonmember countries
b.it involves the free flow of products and factors of production between member
countries and adoption of individual external trade policies
c.it has no barriers to trade between member countries, includes a common external
trade policy, and allows factors of production to move freely between members
d.it eliminates trade barriers between member countries and adopts a common external
trade policy and a common currency
13) in international business, decisions about what activities to finance are best known
as:
a.investment decisions.
b.financing decisions.
c.money management decisions.
d.economic decisions.
14) which of the following is also referred to as a “bill of exchange”?
a.a letter of credit
b.a bill of lading
c.a draft
d.a promissory note
15) behavioral scientists have long argued that people are willing to give more to their
jobs when they have a greater degree of individual freedom and control over their work.
this suggests that:
a.motivational research favors decentralization
b.centralization can facilitate coordination
c.centralization can ensure that decisions are consistent with organizational objectives
d.decentralization permits total flexibility with no control
16) hofstede’s uncertainty avoidance dimension considered:
a.the extent to which different cultures socialized their members into accepting
ambiguous situations and tolerating uncertainty
b.the relationship between gender and work roles
c.how a society deals with the fact that people are unequal in physical and intellectual
capabilities
d.the relationship between the individual and his or her fellows
17) all of the following are the major efficiency benefits of flexible manufacturing
technologies except:
a.it enables companies to customize products to the demands of small consumer groups
b.it helps a company achieve mass customization, which increases its customer
responsiveness
c.it requires firms to establish manufacturing facilities in each major market to provide
products that satisfy specific consumer tastes and preferences
d.it improves capacity utilization and reductions in work in progress and waste
18) which of the following statements concerning a voluntary export restraint is false?
a.it benefits domestic producers by limiting import competition
b.in most cases, it benefits consumers
c.it raises the domestic price of an imported good
d.it is a variant of the import quota
19) the european community was established by:
a.the treaty of rome signed in 1957
b.the maastricht treaty signed in 1991
c.the maastricht treaty of 1994
d.the single european act of 1987
20) _____ involves granting a foreign entity the right to produce and sell the firm’s
product in return for a royalty fee on every unit sold.
a.horizontal fdi
b.licensing
c.vertical fdi
d.greenfield investment
21) the gold standard had its origin in the use of _____ as a medium of exchange, unit
of account, and store of value.
a.the u.s. dollar
b.the british pound
c.paper currency
d.gold coins
22) identify the incorrect statement regarding individualism.
a.it advocates for a socialist political system
b.it promotes free market economics
c.it creates a pro-business environment
d.it translates into an advocacy for democratic political systems
23) a _____ retail system is one in which there are many retailers, no one of which has
a major share of the market.
a.concentrated
b.consolidated
c.focused
d.fragmented
24) describe translation exposure. how can translation exposure be minimized?
25) why is it advantageous for firms to organize themselves as a set of separate legal
entities? how do consolidated financial statements benefit these firms?
26) what is dumping? how do governments respond to charges of dumping?
27) some economists have expressed concerns that the benefits of regional integration
have been touted while the costs have been ignored. explain the view of these
economists.
28) consider a transnational strategy. why would a firm choose this strategic
alternative? what are the disadvantages of this strategy?
29) should international businesses conform to local capital structure norms?
30) identify a key accounting problem that international businesses are confronted with
but that does not confront purely domestic businesses. substantiate with a suitable
example.