1) The ethnocentric and polycentric staffing policies, unlike the geocentric staffing
policy, rely on extensive use of expatriate managers.
2) A polycentric staffing policy is well matched with a transnational strategy.
3) The IMF’s primary role is to identify exchange rate regimes.
4) Trade occurs more between culturally dissimilar countries than between culturally
similar countries.
5) Most foreign exchange is handled through voice brokers.
6) Fewer and fewer companies are using third-party intermediaries to store and
transport goods.
7) The major objective of the European Central Bank is to control taxes as a means of
deficit spending.
8) MNEs typically use reporting systems for foreign operations that are similar to the
ones they use domestically ________.
A) primarily in the early stages of operating abroad
B) because common systems allow comparative evaluations
C) until the subsidiary demonstrates mastery of the form
D) only in those countries with extremely similar systems of information technology
9) General Electric has focused on being more “green” in recent years most likely
because ________.
A) the industry has always looked to GE as a trend setter in green technology
B) GE executives believe the firm can strategically align investor and environmental
interests
C) GE executives realize that the firm can save significant money through the use of
solar technology
D) the U.S. government has decided to use GE as a test case to see if the adoption of the
Kyoto Protocol can actually work for a U.S. firm
10) Home-country nationals are ________.
A) used a great deal abroad by polycentric companies
B) citizens of the countries in which they are working
C) citizens of the country where the company is headquartered
D) noncitizens of the countries in which they are working
11) The interbank market in foreign exchange is where ________.
A) electronic brokerage systems are required
B) banks trade currency with each other
C) reporting dealers set exchange terms
D) remittance payments are made
12) The crowding of a foreign market to prevent competitors’ advantages is known as
________.
A) oligopolistic reaction
B) concentration strategy
C) liability of foreignness
D) a harvesting strategy
13) In foreign-exchange markets, reporting dealers ________.
A) work extensively with nonfinancial institutions, such as the regional banks
B) trade more foreign exchange with other financial institutions than with any other
category of users
C) trade more currency with governments and corporations than with other reporting
dealers
D) are prohibited from trading currencies with other reporting dealers
14) Proponents of ________ argue that individual interests are not as important as the
welfare of the group.
A) pluralism
B) capitalism
C) collectivism
D) individualism
15) ________ is an approach to performance measurement that closely links the
strategic and financial perspectives of a business.
A) Transfer pricing
B) Budget to actual
C) The balanced scorecard
D) Return on investment
16) Which of the following recently threatened the future of the EU’s common
currency?
A) refusal of the UK to use the euro
B) failed mergers and acquisitions
C) debt crisis in Greece
D) human rights issues
17) A Japanese keiretsu is best described as a ________.
A) family business
B) product division
C) network structure
D) centralized control system
18) In a short essay, compare the strategies of diversification versus concentration and
provide examples of situations in which each would be used.
19) What is a futures contract? What institutions handle futures contracts?
20) How do foreign government regulations affect pricing and promotion for
international businesses?
21) In a short essay, discuss how transportation, trade restrictions, domestic capacity,
and country-of-origin affect companies’ decisions about modes of operating
internationally.
22) What are the characteristics of individualist and collectivist cultures?