1) Anderson Enterprises is a U.S. firm that manufactures light fixtures for commercial
and residential consumers. Anderson is looking to expand internationally, so the firm
should most likely ________.
A) focus on developing new recruitment strategies and selection tests
B) change their organizational structure to fit the norms of the foreign country
C) disregard changes in trading groups because they have little effect on a company
D) look to expand beyond the triad regions currently controlled by the top 500 MNEs
2) Which term refers to how companies value assets such as inventory?
A) measurement
B) conservatism
C) disclosure
D) optimism
3) Assume Company A receives a proposal from Company B to be a joint venture
partner abroad. Company A is most likely to make its decision based on ________.
A) an opportunity-risk matrix
B) a go/no-go basis
C) a global matrix comparison
D) an oligopolistic reaction
4) Which of the following statements is most likely true about secrecy and transparency
in accounting?
A) Japanese firms are usually as transparent as U.S. firms
B) German companies tend to be less transparent than British companies
C) Secrecy and transparency refer to the degree of caution companies display in valuing
assets
D) Companies that list on stock exchanges are highly transparent because of
stockholder audits
5) A bond issued by a Brazilian company in British pounds in London is a ________.
A) Eurobond
B) global bond
C) local bond
D) foreign bond
6) Market-share increase and turnover ratios are examples of ________.
A) nonfinancial evaluation metrics
B) financial evaluation metrics
C) cost and accounting metrics
D) enterprise resource planning (ERP)
7) Opal Computers is considering international production expansion. After scanning to
decide on a few countries to consider more closely, Opal managers will most likely
need to ________.
A) identify firms with which to form joint ventures
B) add some more countries for closer consideration
C) travel to the locations to analyze and collect specific data
D) make final decisions by expanding in locations near their rivals
8) Country X has a significant amount of external debt. Which of the following is the
most likely cause?
A) The government of Country X borrowed money from local banks
B) The government of Country X borrowed money from other governments
C) The government of Country X spent more than it collected in revenues
D) The government of Country X received short-term credits from selling bonds
9) Assume an enterprise is considering establishment of a foreign production facility
Which of the following best supports this decision?
A) Its foreign competitors have higher production costs than it has
B) Its main competitor successfully opened a foreign plant
C) Its suppliers follow an agglomeration strategy
D) None of its competitors have foreign production facilities
10) Assume a U.S. company sells merchandise to a French customer for $200,000 when
the exchange rate is $1.5 per euro. At the end of the month, the euro is trading at 1.47,
and in the middle of the next month when payment is received, the exchange rate is
1.53. If the U.S. company receives payment in dollars, what is the value of the sale at
the end of the month for the U.S. company?
A) $200,000
B) $294,000
C) $300,000
D) $306,000
11) A manager has the task of collecting and analyzing data that will help the firm
decide where to locate its international operations. Which of the following best
describes how the manager should handle this task?
A) conduct extensive research, regardless of the expense, in order to avoid costly
mistakes
B) compare the costs of data collection with the probable payoff for the firm in order to
budget and schedule the collection
C) continue data gathering until all data have been collected, regardless of how long
this takes
D) focus all data collection on governmental resources because they have the highest
reliability
12) Which of the following would be an example of a customer orientation in
international marketing?
A) A cosmetics company bans animal testing of its products to gain goodwill
B) A fruit company brands the bananas it sells in foreign and domestic markets
C) A beer company makes non-alcoholic beer for a country that bans the sale of alcohol
D) A plastics manufacturer makes some components to the specifications of a foreign
company
13) What is the most likely reason that consumers rarely protest import restrictions that
raise the prices they pay for a specific product?
A) They reason that if the import restrictions are removed, the foreign producers will
raise their prices to those of the domestic producers anyway
B) Many countries prohibit consumers to band together to influence political actions
C) Typically, although the added costs to consumers for a given product are high in
aggregate, they are fairly trivial for most individual consumers
D) They reason that if they do something to hurt domestic employment for one product,
the displaced workers will then do something that will hurt their own employment