1) Companies often face problems repatriating executives from foreign assignments to
the home nation due to which of the following?
A) The vacant position cannot be filled overseas
B) The firm must increase compensation substantially
C) Different departments compete excessively to hire the repatriated manager
D) The returning expatriate has less social status and autonomy than when abroad
2) Functional structures for international operations are most likely found among those
companies that ________.
A) have a narrow range of products that rely on economies of scale
B) have multiple products that share few common technologies
C) rely on differentiated marketing methods
D) compete in unstable industries
3) Which of the labor issues identified by the Ethical Trading Initiative (ETI) receives
the most attention?
A) safe and hygienic working conditions
B) reasonable living wages
C) inhumane treatment
D) child labor
4) Which of the following statements would most likely be made by a SUPPORTER of
globalization?
A) Globalization encourages the adoption of uniform and superior standards for
combating environmental problems
B) Economic growth created by globalization is largely in services, which involves the
use of few nonrenewable resources
C) Global competition discourages resource-saving technologies, which are costly
D) Air pollution and toxic runoff problems increase with global economic growth
5) The ________ of compensation determines an expatriate’s compensation on the
prevailing pay scales in the locale of the foreign assignment.
A) headquarters-based method
B) home-based method
C) culturally based method
D) host-based method
6) Which of the following is the LEAST likely result of outward migration?
A) Emigrants remit capital used to start businesses in their home countries
B) Nations receive more foreign aid
C) Nations lose highly educated and productive workers
D) Countries receive remittances from emigrants
7) International businesspeople need to understand social stratification systems where
they do business because ________.
A) such systems reflect a culture’s willingness to accept new products
B) such systems indicate who people in a given culture will likely respect more
C) the high similarity among countries lets firms effectively use global hiring practices
D) what is an ascribed group membership in one country is an acquired one in another
8) Which of the following is unique to foreign project assessment in the capital
budgeting decision?
A) Project cash flows must be determined
B) Parent cash flows and project cash flows are the same
C) Local tax issues affect the determination of free cash flows and the remittance of
earnings
D) Inflation is not an issue, because companies use the same inflation rate in both the
domestic and international setting in order to make the analysis more comparative
9) The term used by the United Nations as a synonym for multinational enterprise is
________
A) multinational corporation
B) transnational company
C) international firm
D) born-global
10) Foreign trade zones (FTZs) can be divided into ________ and ________.
A) domestic zones; global zones
B) import zones; export zones
C) general-purpose zones; subzones
D) foreign-goods zones; domestic-materials zones
11) Countries sometimes fear that foreign producers are pricing their exports artificially
low. This fear is most likely based on the assumption that ________.
A) foreign companies will lack the earnings to repay their foreign debt
B) insufficient earnings will be available to improve product technology
C) foreign producers will charge exorbitant prices after putting competitors out of
business
D) developing countries will be unable to maintain critical industries needed in times of
war
12) According to the AT Kearny/Foreign Policy Globalization Index, countries
________
A) tend to be ranked similarly on all four dimensions
B) are more globalized on the political dimension than on personal contact
C) that are large in land mass and population are less globalized than small countries
D) sometimes rank high on one dimension and low on another