1) Although countries are similar in terms of having a mandatory retirement age, they
differ in what that age is.
2) The Eurocurrency market is a retail, rather than wholesale, market.
3) Under mercantilism, colonial powers sought to run trade surpluses with their
colonies by preventing the colonies from manufacturing.
4) When dealing in business with people from another county, it is good to use slang
and tell jokes to put everyone at ease.
5) Inbound logistics is also known as materials management.
6) The marketing approach a company takes internationally should be compatible with
its overall aims and strategies.
7) When a company does business in another country whose official language is the
same as the company’s home country, employees can assume that although some
spellings are different that words will mean the same thing.
8) Innovation is the ability of the production process to make different kinds of products
and to adjust the volume of output.
9) In most cases, if the misery index of a country is high, then consumers and
businesses are less likely to spend and invest.
10) The calculation of GNI per capita takes into account the differences in the cost of
living from one country to another.
11) A car manufactured in the U.S. by Toyota would be included in the calculation of
the GDP for the United States.
12) The past few years have seen fewer females sent on international assignments.
13) NAFTA was primarily formed because the member nations have ________.
A) static and dynamic liberalization policies
B) similarly sized economies and resources
C) geographic proximity to each other
D) competing interests with the EU
14) Which of the following types of agents moves international cargo, facilitates
shipment tracking, and handles product returns for exporters and importers?
A) trade intermediaries
B) third party logistics
C) customs brokers
D) freight forwarders
15) Sarah, a manager at Farley Enterprises, an MNE with operations in Asia, Europe,
and North America, is using past trends in exchange rate movements to spot future
trends. Which type of forecasting approach is Sarah most likely using?
A) fundamental
B) technical
C) application
D) economic
16) It is easier to predict the ________ of a change than the ________ of a change in
exchange rates.
A) altitude; magnitude
B) depth; length
C) timing; depth
D) direction; magnitude
17) Which of the following is LEAST relevant to being designated by Euromoney
magazine as a top foreign-exchange dealer?
A) capability of handling specific currencies
B) capability of assessing cultural risk
C) capability of handling derivatives
D) capability of engaging in analytics
18) Companies using a sales orientation find their greatest ability to sell the same
product in more than one country when ________.
A) promotional programs are identical in each country
B) consumer characteristics are similar
C) the product is a household item
D) the product has a low price relative to incomes
19) The CEO of Coffman Enterprises wants to export products to foreign markets.
However, top executives at Coffman are concerned that the firm will face fierce
competition from foreign rivals because Coffman lacks significant core competencies.
The executives are most likely worried that Coffman lacks ________.
A) capital advantages
B) internalization advantages
C) location advantages
D) ownership advantages
20) A culture in which people prefer to finish one task before starting another is most
accurately characterized as which of the following?
A) low-context
B) monochronic
C) pragmatic
D) high power-distance
21) Which of the following is a reason for global companies to NOT take religious
beliefs into account?
A) Religion has an impact on almost every business function
B) A company could get in trouble with local religious authorities
C) A manager’s religious training should be implemented in the company he/she
manages
D) Religion may influence consumer behavior
22) In a democracy, ________.
A) citizens have the right to participate in the decision-making process
B) the opportunity to truly participate in the political process is restricted to a select few
C) the court system is directly supervised by the political system
D) the rights of the individual are merged with the state
23) If a company’s foreign sales per customer is small compared to those in its domestic
market, it should most likely ________.
A) introduce a larger family of products
B) narrow the product line offered to the market
C) reconfigure the product life cycle marketing strategy
D) shift additional salespeople to the domestic market
24) Darvin Foods is an MNE that is in the process of revising its international business
strategy. Most of the firm’s top executives believe that Darvin should implement a
multidomestic strategy. Which of the following conditions would most likely support
this type of strategy?
A) a high need for local responsiveness and a low need to reduce costs via global
integration
B) a high need for local responsiveness and a high need to create efficiencies via global
integration
C) a low need for local responsiveness and a low need to reduce costs via global
integration
D) a low need for local responsiveness and a high need to create efficiencies via global
integration
25) Assume a firm has operations in Tokyo, where there is a collectivist culture. Which
of the following would most likely motivate the firm’s Japanese employees?
A) “employee-of-the-month” programs
B) extensive vacation time
C) on-the-job challenges
D) good health benefits
26) In a totalitarian political system, ________.
A) political power resides with the citizens of the country
B) governments direct most economic activity but few social ones
C) an individualistic outlook shapes political debate and policy formation
D) one agent monopolizes political power
27) A company’s value chain is best described as the ________.
A) variable sequence of converting product ideas into value for shareholders
B) mixture of activities taken to define product value standards and price points
C) discrete series of steps taken to move a product from conception to end-users
D) blueprint that must be followed to leverage the core capabilities of a global firm
28) Assume a government is considering import restrictions on sugar because sugar
imports are hurting the domestic industry. Which of the following groups is LEAST
likely to speak out on the subject?
A) politicians in areas that grow sugar
B) employees of sugar companies
C) sugar company owners
D) sugar consumers
29) The global financial crisis has pushed China closer to ________.
A) operating independently from the central banks of other countries
B) discontinuing its relationship with the Bank for International Settlements
C) liberalizing its currency
D) controlling its currency