An offset agreement differs from a counterpurchase agreement in that an offset
agreement ________.
A) fails to specify the type of product that must be purchased
B) fails to specify the amount that will be spent on the purchase
C) fails to give a business greater freedom in fulfilling its end of a countertrade deal
D) fails to make a hard-currency purchase of any product from that nation in the future
The realization that companies can start production in the most efficient and productive
locations in the world and export to markets worldwide led to a new surge of foreign
direct investment into ________.
A) First World nations
B) low-income nations
C) high-income nations
D) newly industrialized nations
Scenario: Stephanie Wong
Stephanie Wong, a Chinese-American, owns a consultancy that advises clients on
strategies for business expansions into China. Wong is to lead a symposium for small
and mid-sized exporters who are planning on expanding their businesses in China.
Therefore, she is preparing answers in advance for questions that symposium
participants would most likely ask. ________ is the layer of corporate social
responsibility whereby a company develops a code of conduct that it will follow in its
global operations and agrees to operate with greater transparency.
A) Strategic CSR
B) Risk management
C) Traditional philanthropy
D) Task orientation
The most common inducement that companies offer managers to accept international
postings is ________.
A) fringe benefits
B) a financial bonus
C) a vacation
D) free housing
Which of the following is defined as a group of people who share a unique way of life
within a larger, dominant culture?
A) macroculture
B) subculture
C) cultural universal
D) monoculture
A tariff levied by the government of a country that is selling goods abroad is called a(n)
________.
A) export tariff
B) ad valorem tariff
C) compound tariff
D) specific tariff
When a country is not able to produce a good more efficiently than other nations, but
produces the good more efficiently than it does any other good, it is said to have a(n)
________.
A) absolute advantage
B) resource advantage
C) first-mover advantage
D) comparative advantage
Which of the following reasons encourages companies to buy a product rather than
make it?
A) Buying a product gives managers greater control over the production process.
B) Buying a product decreases the company’s total costs significantly compared to
making the product in-house.
C) Buying a product ensures non-flexibility to local market conditions.
D) Buying a product enables a company to gain a great deal of power in their
relationships with suppliers.
Which of the following refers to the exchange of goods or services directly for other
goods or services without the use of money?
A) offset
B) barter
C) counterpurchase
D) switch trading
The closing of TeleToys’ Australian men’s clothing line can best be described as a(n)
________ strategy.
A) organic growth
B) stability
C) retrenchment
D) global
Countries might impose a(n) ________ in response to the threat of an import quota or
total ban on a product by an importing nation.
A) embargo
B) ad valorem tariff
C) compound tariff
D) voluntary export restraint