1) one of the problems of licensing is that it may result in a firm’s giving away valuable
technological know-how to a potential foreign competitor.
2) the mission of the eximbank is to provide financing aid that will facilitate exports,
imports, and the exchange of commodities between the u.s. and other countries.
3) a statistically based philosophy that aims to reduce defects, boost productivity,
eliminate waste, and cut costs throughout a company is known as iso 9000 .
4) the most important determinant of channel length is the degree to which the retail
system is concentrated.
5) today global communication networks and global media are creating a worldwide
culture.
6) the plaza accord, signed in 1985, suggested that it would be desirable for most major
currencies to fall relative to the u.s. dollar.
7) the emphasis on individualism in the united states may raise the costs of doing
business due to its adverse impact on managerial stability and cooperation.
8) when one company acquires another in a takeover, the value of the goodwill is
calculated as the amount paid for a firm above its book value.
9) efficiency gains associated with containerization have caused transportation costs to
fall dramatically.
10) the managers of an international business must decide whether it is ethical to adhere
to the lower labor and environmental standards found in many less developed nations.
11) _____ strategy is most appropriate when there are substantial differences across
nations with regard to consumer tastes and preferences.
a.localization
b.transnational
c.global standardization
d.international
12) which of the following represents the remuneration paid to the owners of
technology, patents, or trade names for the use of that technology or the right to
manufacture and/or sell products under those patents or trade names?
a.trademarks
b.royalties
c.copyrights
d.transfer fees
13) which of the following are rules for preparing financial statements and define what
useful accounting information is?
a.financial standards
b.auditing standards
c.accounting standards
d.operating standards
14) according to the _____ model, when a rich country enters into a free trade
agreement with a poor country that rapidly experiences dynamic gains, the rich country
is likely to not have net gains.
a.absolute advantage
b.mercantilist
c.heckscher-ohlin
d.samuelson
15) by lowering production costs, _____ help domestic producers compete against
foreign imports.
a.tariffs
b.duties
c.quotas
d.subsidies
16) when a country pegs its currencies to gold and guarantees convertibility, the country
is following the:
a.gold standard.
b.bretton woods system.
c.fixed exchange system.
d.floating exchange rate system.
17) _____ are the routine conventions of everyday life.
a.folkways
b.mores
c.rites
d.beliefs
18) the simple comparative advantage model assumes that trade does not change a
country’s stock of resources or their utilization efficiency. if we relax this assumption to
make allowances for dynamic changes, all of the following become apparent except:
a.opening the economy to trade would be likely to generate dynamic gains
b.free trade may increase the country’s stock of resources
c.free trade might increase the efficiency with which the country uses its resources
d.dynamic gains will cause the country’s ppf to shift inward
19) organizational structure means all of the following, except:
a.the establishment of integrating mechanisms to coordinate the activities of subunits
b.the location of decision-making responsibilities with a structure
c.the manner in which decisions are made and work is performed by individuals
d.the formal division of the organization into subunits such as product divisions and
functions
20) the concentration of production makes most sense when:
a.volatility in important exchange rates is expected
b.the product’s value-to-weight ratio is high
c.location externalities are not important
d.trade barriers are high
21) a firm will face intense pressure for cost:
a.when competitors are based in low-cost locations
b.where there is persistent excess capacity
c.where industries produce commodity-type products
d.where consumers have low switching costs
22) these are international bonds, normally underwritten by an international syndicate
of banks and placed in countries other than the one in whose currency the bond is
denominated.
a.eurobonds
b.convertible bonds
c.foreign bonds
d.regulatory bonds
23) a theocratic law system is:
a.one in which the law is based on religious teachings
b.based on tradition, precedent, and custom
c.based on a detailed set of laws organized into codes
d.the body of law that governs contract enforcement
24) which of the following is true of exporting?
a.it helps firm achieve economies of scale
b.it creates diseconomies of scale
c.it increases unit costs
d.it creates diseconomies of scope
25) which of the following provides exclusive legal rights to authors, composers,
playwrights, artists, and publishers to publish and disperse their work as they see fit?
a.patents
b.copyrights
c.trademarks
d.licenses
26) an arrangement whereby a firm grants the right of intangible property to another
entity for a specified time period in exchange for royalties is a(n) _____ agreement.
a.wholly owned subsidiary
b.turnkey
c.licensing
d.exporting
27) the _____ tracks the export and import of goods and services.
a.current account
b.debit account
c.surplus account
d.capital account
28) a banker’s acceptance:
a.is payable immediately on presentation to the drawee
b.allows a buyer possession of the merchandise without signing a formal document
c.is a time draft that has been drawn on and accepted by a bank
d.is the same as a sight draft
29) the _____ was established to remove barriers to the free flow of goods, services,
and capital between nations.
a.un
b.imf
c.gatt
d.ida
30) the share of the total fdi stock accounted for by which of the following countries
increased markedly from 1980 to 2005?
a.united states
b.france
c.united kingdom
d.netherlands
31) explain why a firm might adopt the just-in-time system. why might a firm choose a
different inventory system?
32) what are business ethics? what is the relationship between business ethics and an
ethical strategy?
33) discuss the economic case for economic integration. how does it relate to trade
theory?
34) discuss the trends in fdi over the last 30 years. be sure to differentiate between the
stock of fdi and the flow of fdi.
35) consider the allowance component of a typical expatriate compensation package.
what types of allowance are included in this component?
36) compare and contrast the four forms of totalitarianism.