When a market is experiencing rapid growth, a company will ________.
A) emphasize on decruitment
B) divest its operations
C) reinvest in its operations
D) implement retrenchment strategies
The international product life cycle theory was put forth for ________.
A) service goods
B) abundant resources
C) manufactured goods
D) natural resources
The sensitivity of demand for a product relative to changes in income is called
________.
A) income elasticity
B) demand shaping
C) income distribution
D) market intensity
A ________ is a set of planned actions taken by managers to help a company meet its
objectives.
A) mission statement
B) vision
C) strategy
D) core competency
________ is the extension of company activities into stages of production that provide a
firm’s inputs or absorb its outputs.
A) Decentralization
B) Vertical integration
C) Market penetration
D) Social stratification
The only Western Hemisphere nation that has been excluded from participating in the
Free Trade Area of the Americas (FTAA) is ________.
A) Argentina
B) Mexico
C) Brazil
D) Cuba
Totalitarian political systems include authoritarian regimes such as ________.
A) democracy and theocracy
B) anarchism and pluralism
C) communism and fascism
D) capitalism and secularism
Which of the following refers to the use of computer networks to purchase, sell, or
exchange products; service customers; and collaborate with partners?
A) e-commerce
B) telecommuting
C) data virtualization
D) virtual hosting
Donna Bader, Globalization opponent
Donna Bader spent her final year at college studying the effect of various economic
factors on the economy of developing nations. Based on the results of her study, she
concluded that globalization does these countries more harm than good.
The global business environment consists of four distinct elements: the forces of
globalization, national business environments, the international business environment,
and ________.
A) domestic investment opportunities
B) technological innovation
C) international firm management
D) multinational corporations
Much production in the world today closely resembles what is predicted by the
________.
A) new trade theory
B) international product life cycle
C) theory of comparative advantage
D) theory of factor proportions
The ________ view states that a company should adopt local ethics wherever it
operates because all belief systems are determined within a cultural context.
A) Friedman
B) cultural relativist
C) righteous moralist
D) utilitarian
A retrenchment strategy is designed to ________.
A) encourage growth through joint ventures
B) reduce the scale or scope of a corporation’s operations
C) focus exclusively on internally generated growth
D) guard against organizational change
Scenario: Sports Stuff Inc.
Herb Graham is vice president of Sports Stuff Inc., a business that develops,
manufactures, and markets sports products. The company is looking to expand its
operations into the European market. Herb believes that if the company expands its
product line to include products reflecting sports that are popular in Europe, the
company will achieve success there.
Which of the following entry modes would Sports Stuff be implementing if it hires a
company to design, construct, and test a production facility on its behalf?
A) joint venture
B) turnkey project
C) wholly owned subsidiary
D) franchising
Which of the following is a source of secondary data for conducting international
market research?
A) surveys
B) interviews
C) focus groups
D) trade associations
________ cannot indicate how individuals feel about a company or its product.
A) Surveys
B) Industry data
C) Consumer panels
D) Interviews
Computer companies buying hardware components from component-makers,
assembling them in their own facilities, and selling completed systems to consumers
and businesses is an example of ________.
A) telecommuting
B) franchising
C) outsourcing
D) licensing
Under the gold standard, if the U.S. dollar was fixed at $30/oz of gold and Japan was
fixed at ¥75/oz of gold, what would be the Yen/dollar exchange rate?
A) ¥2.50/$
B) $2.50/¥
C) ¥0.40/$
D) ¥2250/$
Scenario: Happyland
Happyland is a country characterized by beautiful beaches, vast natural resources, and a
highly skilled labor force. Happyland is now encouraging foreign direct investment
flows. The country has been exporting textiles, computer hardware, and software
programs. The net result of the trade is that Happyland exports far more goods and
services and receives more income from abroad than it imports and pays abroad.
If Happyland advertises its beaches and attracts tourists, the tourism-related income
would be recorded in its ________ account.
A) capital
B) services
C) income payments
D) merchandise
Scenario: Blickinstock at the Crossroads
Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin
America. To that end, Blickinstock is trying to decide whether to purchase an existing
company in a remote region of Argentina or build its own subsidiary. Keith Moon,
Blickinstock’s vice president of global business development, will be making a
presentation to the board outlining the company’s options.
If a Japanese citizen invests in the Australian stock market, the transaction would show
up on the capital account in the balance of payments of ________.
A) Japan
B) Australia
C) both Japan and Australia
D) neither Japan nor Australia