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1) JIT is the process of sourcing raw materials and parts just as they are needed in the
manufacturing process.
2) An advantage of collaborative agreements is the ability to spread faster
geographically.
3) Mobile Technology is a company that sees the world as a single market, assuming
that consumer preferences and industry conditions do not vary much among countries.
Mobile Technology is likely to adopt a global strategy.
4) Globalization of business has been stimulated by institutional developments that aid
foreign trade and investment
5) Most world trade takes place between raw material exporters and manufacturing
exporters.
6) Purchasing power parity (PPP) is a well-known theory that seeks to define
relationships between currencies.
7) The specific learned norms based on attitudes, values, and beliefs of a group of
people are known as ethnology.
8) Tel-Comm Tek is a company that sees the world as a single market, assuming that
consumer preferences and industry conditions do not vary much among countries.
Tel-Comm Tek is likely to adopt a multidomestic strategy.
9) Under the practice of extraterritoriality, legal and ethical values in a country may
cause its companies to operate abroad according to home country laws rather than host
country laws.
10) When entering foreign countries, many franchisors encounter difficulty in
transferring the domestic success factors of product and service standardization.
11) MNCs can cross-list their common stocks on multiple stock exchanges.
12) Market diversity, government intervention, and currency fluctuations complicate
international pricing decisions.
13) Every time countries enter a new trading agreement, service trade tends to grow
more rapidly than merchandise trade.
14) According to the purchasing power parity theory, a change in relative interest rates
between two countries must cause a change in exchange rates.
15) A free trade agreement is likely to increase efficiency because of ________.
A) decreased competition
B) increased competition
C) decreased trade diversion
D) decreased trade creation
16) A letter of credit that provides an exporter with the guarantee of another bank in
addition to the importer's bank is called ________.
A) a confirmed letter of credit
B) a time draft letter of credit
C) an amendable letter of credit
D) a cash in advance letter of credit
17) Why can a company more easily pursue a global strategy when it owns 100 percent
of foreign operations?
A) The company is not likely to face overcapacity issues
B) The company limits foreign-exchange rate fluctuations
C) The company avoids communication misunderstandings
D) The company can sub-optimize results in one country in order to optimize results
globally
18) During a time of reflation, the government is most likely to ________.
A) lower taxes
B) print money
C) reduce interest rates
D) support infrastructure
19) All of the following are reasons piracy has occurred EXCEPT ________.
A) technology allows copyrighted material to be reproduced cheaply without much loss
of quality
B) some countries offer little protection for certain products
C) in some cultures, people see little morally wrong in buying counterfeit goods
D) the protection of intellectual property rights varies little from country to country
20) U.S. companies generally put earlier and more sales-seeking emphasis on countries
________.
A) with the largest economies
B) with regional trading blocs and high tariffs
C) where governments give operating incentives
D) where operating conditions seem similar to those at home
21) Historically, managers built organizations by focusing on the boxes and lines of a(n)
________ structure.
A) formal
B) innovative
C) collaborative
D) flexible
22) Which of the following is a set of universal standards for a globally accepted
quality assurance system?
A) just-in-time (JIT) inventory management
B) Six Sigma
C) total quality management (TQM)
D) ISO 9000
23) According to purchasing power parity theory, if Brazilian inflation was 6 percent
and inflation in Argentina was 12 percent, the Brazilian real would be expected to
________.
A) rise by the difference in inflation rates
B) fall by the difference in inflation rates
C) rise by 4.5 percent
D) stay the same
24) The balance between centralization and decentralization of authority in a company
is known as ________.
A) systemic differentiation
B) horizontal differentiation
C) schematic differentiation
D) vertical differentiation
