1) smith’s theory of international trade suggests that when one country has an absolute
advantage in the production of all goods, the country might not derive any benefit from
international trade.
2) a geocentric staffing policy seeks the best people for key jobs throughout the
organization, regardless of nationality.
3) foreign subsidiaries of multinational firms normally keep their accounting records
and prepare their financial statements in us dollars.
4) when the growth in a country’s money supply is faster than output increases, inflation
is fueled.
5) there is a one-to-one correspondence between culture and the nation-state.
6) the practice of unbundling refers solely to the use of royalty payments and fees to
transfer liquid funds across borders.
7) a country’s legal system can affect the attractiveness of a country as an investment
site and/or market.
8) the need for coordination between subunits is highest in firms pursuing a localization
strategy.
9) a geocentric approach tends to reduce local responsiveness.
10) foreign subsidiaries operate in uniform environments.
11) source effects occur when the receiver of the message evaluates the message based
on the status or image of the sender.
12) the convention on combating bribery of foreign public officials in international
business transactions obliges member states to make the bribery of foreign public
officials a criminal offense.
13) a situation where a government does not attempt to influence, through quotas or
duties, what its citizens can buy from another country or what they can produce and sell
to another country is known as free trade.
14) for u.s. firms, the most comprehensive source of export opportunities information is
the:
a.small business administration
b.u.s. department of commerce
c.federal trade commission
d.foreign embassy
15) an investor based in japan buying general motors stock through the nyse would be
an example of:
a.transnational financing
b.transnational development
c.transnational sale
d.transnational investment
16) three costs of fdi concerns of host countries arise from all of the following except:
a.adverse effects on competition within the host nation
b.adverse effects on the balance of payments
c.the perceived loss of national sovereignty and autonomy
d.debit on the current account of the home country’s balance of payments
17) the 1995 mexican currency crisis and the 1997 asian financial crisis were the result
of all of the following except:
a.excessive foreign borrowings
b.a weak or poorly regulated banking system
c.high inflation rates
d.high balance-of-trade surplus
18) which of the following is not true of asean?
a.cambodia, laos, myanmar, and singapore are among its members
b.its basic objective is to foster freer trade between member countries and to achieve
cooperation in their industrial polices
c.it has been highly successful in achieving cooperation in its industrial policies
d.it is pushing for free trade agreements with china, japan, and south korea
19) the _____ was created in 1944 by 44 nations that met in breton woods, new
hampshire to promote economic development.
a.world bank
b.international trade center
c.world trade organization
d.united nations
20) if the demand for dollars outstrips its supply and if the supply of japanese yen is
greater than the demand for it, what will happen?
a.the dollar will appreciate against the yen
b.the dollar will depreciate against the yen
c.the exchange rates will remain the same
d.the yen will appreciate against the dollar
21) which of the following is the most common approach to expatriate pay?
a.balance sheet approach
b.net-to-net approach
c.host-country approach
d.higher of host or home
22) this structure encourages fragmentation of the organization into highly autonomous
entities.
a.worldwide area structure
b.global matrix structure
c.worldwide product structure
d.global network structure
23) when evaluating expatriates, home-country managers usually rely on:
a.the manager’s ability to develop cross-cultural awareness
b.hard data such as market share
c.the ability of the expatriate to work with local managers
d.their own international experience
24) establishing _____ involves a business’ resolve to place moral concerns ahead of
other concerns in cases where either the fundamental rights of stakeholders or key
moral principles have been violated.
a.a veil of ignorance
b.a difference principle
c.moral imagination
d.moral intent
25) identify the incorrect statement about trade barriers.
a.they raise the costs of exporting products to a country
b.they may put a firm at a competitive advantage to indigenous competitors
c.they may limit a firm’s ability to serve a country from locations outside of that country
d.to conform to local content regulations, a firm may have to locate more production
activities in a given market than it would otherwise
26) child labor is permitted and widely employed in country x. a multinational company
entering country x decides to employ minors in its subsidiary, even though it is against
the multinational’s home-country ethics. which of the following approaches to business
ethics would justify the actions of the multinational company?
a.righteous moralist
b.cultural relativism
c.the justice theory
d.the rights theory
27) raymond vernon argued that new products were developed by u.s. firms and first
sold in the u.s. market because:
a.european competitors were not active in product r&d
b.american firms were able to take advantage of tax credits for product r&d
c.the wealth and size of the u.s. market gave the firms an incentive to develop new
products
d.the low cost of u.s. labor gave u.s. firms an incentive to develop costly process
innovations
28) other things being equal, the benefit-cost-risk trade-off is likely to be most
favorable in:
a.politically unstable developing nations that operate with a mixed or command
economy
b.nations where there is a dramatic upsurge in either inflation rates or private-sector
debt
c.politically stable developed and developing nations that have free market systems
d.developing nations where speculative financial bubbles have led to excess borrowing
29) steve is a manager at a multinational technology firm and is being sent to japan to
head the company’s operations there. as a part of training, a familiarization trip to japan
has been planned for him before his formal transfer. what type of training is steve
receiving?
a.language training
b.cultural training
c.practical training
d.transfer training
30) economist martin feldstein argues that the lack of patient money is due to the
a.relative paucity of information that investors have about foreign investments
b.relative abundance of hot money
c.restrictions on international capital movements
d.increasing trend of excessive intra-day volatility in global capital markets
31) according to the _____ approach, the best decisions are those that produce the
greatest good for the greatest number of people.
a.naive immoralist
b.friedman doctrine
c.utilitarian
d.kantian
32) what are the three factors that contribute to the trend toward greater retail
concentration in developed countries? how have these factors promoted retail
concentration?
33) why are companies now listing their stock in the equity markets of other nations?
34) what are the two conditions with regard to firm architecture and strategy that are
necessary for a firm to succeed?
35) what are the central issues facing the wto at the present time?
36) what is the temporal method used to translate the accounts of a foreign subsidiary?
explain with the help of an example.
37) discuss the jamaica agreement. what relevance does the agreement have on today’s
exchange rate system?
38) what are the two forms of foreign direct investment?
39) discuss the complexities of human resource management in an international firm.
what are the key issues facing firms in this area?
40) write a short note on the international accounting standards board (iasb)?