in a classic matrix structure, individual managers belong to two hierarchies (a divisional
hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area
boss).
an importer obtains a letter of credit from a bank in the exporter’s country in a typical
international transaction.
according to the cultural relativism point-of-view, a firm should adopt the ethics of the
culture in which it is operating.
the export-import bank is an independent agency of the world trade organization.
first-mover advantages are the advantages associated with entering a market early.
the international fisher effect has proven to have substantial power at predicting
short-run changes in spot exchange rates.
The World Bank has focused on policing the world trading system and making sure
nation-states adhere to the rules laid down in trade treaties.
when a business sells an item and collects a state sales tax on it, a current liability
arises.
host country citizens that are employed by an mne following an fdi are an example of
an indirect effect of fdi.
class consciousness refers to a condition where people tend to perceive themselves in
terms of their class background.
which of the following was designed to allow gm to operate ethically in south africa as
long as the company did not obey the apartheid laws in its own south african
operations?
a.sullivan principles
b.the righteous moral system
c.noblesse oblige
d.cultural relativism
centralization:
a.gives top management time to focus on critical issues by delegating more routine
issues to lower-level managers
b.can give top-level managers the means to bring about needed major organizational
changes by concentrating power and authority in one individual or a management team
c.permits greater flexibility because decisions do not have to be “referred up the
hierarchy” unless they are exceptional in nature
d.can be used to establish relatively autonomous, self-contained subunits within an
organization
which of the following is a distinct advantage of exporting?
a.it avoids the threat of tariff barriers by the host-country government
b.firms benefit from a local partner’s knowledge of the host country’s competitive
conditions
c.it avoids the often substantial costs of establishing manufacturing operations in the
host country
d.it is appropriate if lower cost locations for manufacturing the product can be found
abroad
The World Trade Organization promotes ____.
A.lowering of barriers to cross-border trade and investment
B.infrastructural development in poor nations through low-interest loans
C.state ownership of major enterprises
D.regulation of national economies
which of the following is a major drawback of engaging in countertrade?
a.countertrade is not useful when trading with developing nations
b.financing is difficult when engaging in a countertrade
c.it is not attractive to small organizations
d.countertrade may involve the exchange of unusable goods
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.turnkey
b.licensing
c.greenfield
d.acquisition
a firm facing low pressures for cost reductions and low pressures for local
responsiveness, is most likely to follow a(n) _____ strategy.
a.global standardization
b.localization
c.international
d.transnational
which of the following factors, according to porter’s national diamond, is most likely to
give a country competitive advantage over another country?
a.natural resources
b.climate
c.skilled labor
d.demographics
which of the following is true of the international strategy?
a.product development tends to be highly decentralized
b.manufacturing and marketing are typically located in the headquarters location
c.extensive production customization is common
d.the strategy is not viable in the long-run
fdi occurs when a firm:
a.ships its products from one country to another
b.invests directly in facilities to produce a product in a foreign country
c.invests in the shares of another company operating in the same country
d.grants permission to another company in a different country to use its brand name
write a brief note on foreign exchange risks and the cost of capital.
discuss the sources of inertia in organizations. is it easy to make organizational
changes?
what are learning effects? when are learning effects most significant?
discuss the trends in fdi over the last 30 years. be sure to differentiate between the stock
of fdi and the flow if fdi.
explain how equity loans and debt loans differ in terms of attractiveness to businesses.
what is an export management company? what are its advantages and disadvantages?
What is international monetary system? What are the major trading currencies?
what are the five levels of economic integration? briefly describe each form.