1) The requirement by the U.S. government that its subsidiaries abroad comply with
trade restrictions with Cuba is an example of externalities.
2) A company with limited resources is more likely to achieve national distribution
within a small country than within a large country
3) When recording the value of a purchase denominated in a foreign currency, the
company is required to use the spot rate when payment is made, as long as it is made 30
days or more in the future.
4) An export trading company (ETC) works with many manufacturers rather than
representing a single manufacturer.
5) The long-term financing dimension of cash management deals with the selection,
issuance, and management of long-term debt and equity.
6) Taxation is an important cash flow issue, but it typically does not have a strong
impact on the choice of organizational form (such as branch or subsidiary) or the
location of an investment.
7) Companies are usually willing to accept a lower rate of return on their investments in
countries where they can more easily sell those investments and convert the proceeds at
a favorable rate.
8) The best way of conducting business domestically is also typically the best way to
conduct business internationally
9) A hardship allowance nullifies the risk that an expatriate will suffer a decline in his or
her standard of living due to the exorbitant expense of a particular city.
10) The temporary arrangement of independent companies, suppliers, and free agents
for the purpose of completing a task or project is best known as a(n) ________
organization.
A) virtual
B) independent
C) decentralized
D) international
11) A disadvantage of the ________ strategy is that firms that adopt this strategy can
decentralize too much autonomy to national subsidiaries.
A) multidomestic
B) continental
C) international
D) transnational
12) Which of the following is NOT one of the main priorities for most corporate
universities?
A) complying with labor regulations in local markets
B) facilitating strategic understanding among executives
C) strengthening employee commitment to organization goals
D) improving the influence of the organization’s culture
13) Which of the following is permitted by the Foreign Corrupt Practices Act?
A) a bribe paid by foreign firms operating in U.S. territories
B) a bribe paid by U.S. firms operating in a foreign country that permits bribes to be
paid
C) a payment to a foreign government official to influence a customs official
D) a payment to a customs official to clear legitimate merchandise
14) Reebok pays a royalty to the German Soccer League to use the team’s logo on
t-shirts that it sells Reebok and the German Soccer League most likely have a ________
A) turnkey operation contract
B) licensing agreement
C) portfolio investment
D) joint venture
15) Which of the following languages has the most NATIVE speakers?
A) English
B) Mandarin
C) Spanish
D) Hindi
16) The inability of a company to gain foreign production factors to use in its domestic
operations most likely ________.
A) entices the company to export its own production factors
B) stimulates the company to adopt efficient substitute methods of production
C) stimulates foreign companies to invest in that domestic market
D) causes the company’s products to move more rapidly through their life cycles
17) Recently, the Economist Intelligence Unit investigated the status of democracies
around the globe. Relying on 60 indicators that focus on the performance of free
elections, civil liberties, government functioning, political participation, and political
culture in a country, the study found that ________.
A) almost all of the world’s democracies are full democracies
B) nearly half of the world’s democracies qualify as “full” or “flawed” democracies
C) less than a quarter of the countries studied are outright authoritarian regimes
D) most democracies are hybrid political systems that share theocratic and totalitarian
characteristics
18) As a result of the global economic crisis, the potential for profitability in all sorts of
industries has ________.
A) decreased
B) increased
C) become less predictable
D) become more projectable
19) A problem of using the nation as a reference point for culture is that ________.
A) nations fail to mediate the different interests within their boundaries
B) self-stereotypes tend to fall along national lines
C) such an approach tends to be polycentric
D) variations tend to be great within a country (state)
20) A technical forecaster is also known as a ________.
A) CFO
B) de facto economist
C) chartist
D) monetary administrator
21) Visible exports and imports are ________
A) merchandise imports and exports
B) the sum total of goods and services traded
C) international transactions paid for in money rather than barter
D) typically a country’s least common international economic transactions