1) with regard to political factors, a company may have to pay off politically powerful
entities in a country before the government allows it to do business there.
2) debt continues to be a major burden for poorer nations as they strive to get ahead.
3) unlike joint ventures, strategic alliances require the firm to bear all the costs and risks
of foreign expansion.
4) in developing countries, about one-third of fdi is in the form of mergers and
acquisitions.
5) members of high uncertainty avoidance cultures were characterized by a greater
readiness to take risks and less emotional resistance to change.
6) new-product development has a high failure rate.
7) antidumping polices are designed to punish firms that are engaged in dumping.
8) according to political scientist samuel huntington’s thesis, global terrorism is a
product of the tension between civilizations and the clash of value systems and
ideology.
9) today, the risks involved in doing business in countries such as russia are low, but so
are the returns.
10) the set of choices the firm offers to its targeted markets is known as the marketing
mix.
11) an increase in car ownership, the number of two-income households, and the
number of households with a refrigerator have all contributed to the more fragmented
retail system found in developed countries.
12) the exchange rates of all currencies are determined by the free play of market
forces.
13) the rate at which one currency is converted into another is the:
a.replacement percentage
b.resale rate
c.exchange rate
d.interchange ratio
14) which of the following refers to the values and norms that the employees of an
organization share?
a.vision statement
b.cultural relativism
c.organization culture
d.power orientation
15) interdependent political, economic, and legal systems of a country make up its:
a.administrative agenda
b.socioeconomic fabric
c.economic environment
d.political economy
16) when a firm faces significant transportation costs, _____ can be uneconomical.
a.joint ventures
b.greenfield investments
c.licensing agreements
d.exporting
17) identify the theory that suggests that it is in the best interest of business for a firm to
invest in upgrading advanced factors of production.
a.theory of competitive advantage
b.product life-cycle theory
c.new trade theory
d.national competitive advantage theory
18) which system of government generally permits some individual economic freedom
but restricts individual political freedom, frequently on the grounds that it would lead to
the rise of communism?
a.tribal totalitarianism
b.right-wing totalitarianism
c.left wing totalitarianism
d.theocratic totalitarianism
19) on january 1, 1993, _____ moved toward a single market with 340 million
consumers.
a.the european union
b.mercosur
c.the andean community
d.nafta
20) the ______ is primarily responsible for policing the world trading system and
making sure nation-states adhere to the rules laid down in trade treaties signed by
member states.
a.international development association
b.world bank
c.international court of justice
d.world trade organization
21) a condition where people tend to perceive themselves in terms of their class
background and this shapes their relationships with members of other classes is known
as:
a.economic classification
b.social mobility
c.class mobility
d.class consciousness
22) what is the basic message of the theory of comparative advantage?
a.countries are similar in their ability to produce goods efficiently
b.international trade is rarely beneficial to a country
c.potential world production is greater with unrestricted free trade than it is with
restricted trade
d.trade is a zero-sum game
23) many companies are keeping their eyes on china. why is china so important to
international business?
24) managers should use the ending rate to translate the budget and the initial rate to
translate actual performance data.
25) which of the following refers to the extent to which individuals can move out of the
strata into which they are born?
a.caste stratification
b.class system
c.social mobility
d.individual potential
26) historically, many governments have expanded their domestic money supply in
misguided attempts to stimulate economic activity. the result has often been:
a.price inflation.
b.low interest rates.
c.a strong local currency.
d.private sector growth.
27) currency fluctuations can make seemingly profitable trade and investment deals
unprofitable and vice versa.
28) which of the following statements is true regarding management development?
a.management development programs attempt to increase skill levels by focusing
mainly on providing management education
b.management development programs help build a unifying corporate culture by
socializing new managers into the norms and value systems of the firm
c.rotating managers through different jobs in several countries as a part of management
development programs leads to adaptation problems
d.management development programs can be used to foster esprit de corps but is rarely
used for developing technical competencies
29) due to the high level of interdependence, the costs of controlling _____ firms are
higher than the costs of controlling firms that pursue other strategies.
a.localized
b.transnational
c.international
d.global
30) the institution, created in 1944 at bretton woods, responsible for maintaining order
in the international monetary system is the
a.imf
b.wto
c.un
d.unesco
31) _____ means that the units of resources required to produce a good are assumed to
remain unvarying no matter where one is on a country’s production possibility frontier.
a.economies of scale
b.law of diminishing returns
c.constant returns to specialization
d.zero-sum game
32) which dimension of mendenhall and oddou’s study suggests that an expatriate with
high self-esteem, self-confidence, and mental well-being is likely to succeed in a
foreign job posing?
a.self-orientation
b.others-orientation
c.cultural toughness
d.perceptual ability
33) discuss the free trade area of the americas. what is hindering its progress? what is
the position of the u.s. on the agreement? how does brazil feel about the ftaa?
34) compare and contrast time drafts and sight drafts.
35) what type of firms favor the worldwide area structure and why? what are the
disadvantages of this type of structure?
36) consider the global economy of the 21st century. what important changes are taking
place? what do these changes mean for international companies?
37) discuss the concerns of organized labor.
38) describe the european union’s efforts to raise product quality. in your opinion, does
the effort represent a trade barrier?
39) what is the main attraction of countertrade?
40) what are royalties and fees?
41) define globalization and discuss it has changed the business environment?