Reverse brain drain is the process by which ________.
A) manual laborers migrate from low-income countries to high-income countries
B) former communist nations lure professionals back to their homeland
C) students from Europe choose to enroll themselves in American universities
D) companies in high-income countries hire people from low-income countries to fill
white-collar positions
Which of the following statements is true of local content requirements?
A) It is a strategy mainly used by developed nations.
B) This strategy enforces companies to locate their manufacturing facilities in their
home countries.
C) Local content requirements hurt domestic producers through their effect on prices.
D) It forces companies from other countries to employ local resources in their
production processes.
________ refers to socially learned traits associated with, and expected of, men or
women.
A) Conformity
B) Social mobility
C) Individualism
D) Gender
Developing a market-potential indicator for an emerging market is useful for a company
planning on ________.
A) exporting
B) licensing
C) joint ventures
D) acquisitions
The ________ limited the fluctuations of European Union members’ currencies within a
specified trading range.
A) exchange rate mechanism
B) special drawing right
C) currency board
D) free float system
When developing a market-potential indicator for an emerging market, market growth
rate is typically estimated from the ________.
A) per capita private consumption
B) GDP
C) total population
D) percentage of a market’s population in the middle class
Scenario: The French Government
The French Government has placed many restrictions upon the use of the English
language within their borders. They argue that the inflow of English movies, music, and
literature is responsible for the dilution of their rich culture.
According to Hofstede’s framework, which of the following dimensions describes the
degree to which a culture accepts social inequality among its people?
A) power distance
B) uncertainty avoidance
C) individualism
D) collectivism
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
________ refers to the replacement of one culture’s traditions, folk heroes, and artifacts
with equivalents from another.
A) Cultural imperialism
B) Social stratification
C) Cultural encoding
D) Social conditioning
According to Hofstede’s framework, cultures scoring high on the dimension of
________ generally have more relaxed lifestyles in which people are more concerned
about caring for others as opposed to material gain.
A) feminity
B) ethnocentricity
C) imperialism
D) individualism
Regional economic integration is also referred to as ________.
A) mercantilism
B) nationalism
C) protectionism
D) regionalism
Which of the following is true of the euro?
A) It increases exchange-rate risk for business deals between member nations.
B) It increases transaction costs.
C) It makes prices between markets more transparent.
D) It is not accepted among merchants in France, Germany, and Italy.
Which of the following, if true, demonstrates that Kirawi has an unstable business
environment?
A) Its business laws are inflexible and cannot be intrepreted according to the comfort of
government officials.
B) Its government does not enforce product liability laws or protect individual property
rights.
C) Its activities are bound by several multilateral agreements conducted with
neighboring countries.
D) Its private sector comprises independently owned firms that exist to make profits.
Which of the following is also known as direct marketing?
A) an intensive channel
B) an exclusive channel
C) a zero-level channel
D) a two-level channel