In stating that all human beings are born free and equal in dignity and rights and that
they are endowed with reason and conscience and should act toward one another in a
spirit of brotherhood, Article 1 of the Universal Declaration of Human Rights echoes:
A.the Friedman doctrine.
B.naive immoralism.
C.cultural relativism.
D.Kantian ethics.
E.teleological theory.
Answer:
The liberalization of the world trade and investment environment in recent decades, by
facilitating greater international competition, has generally:
A.increased cost pressures.
B.decreased the demand for local responsiveness.
C.decreased pressures for cost reduction.
D.increased consumer surplus.
E.reduced the production of conventional commodity products.
Answer:
Mudarabah and the murabaha are:
A.Islamic banking methods.
B.Arabic words for interest and profit, respectively.
C.banking practices that are prohibited by Islam.
D.laws governing international trade and commerce in Islamic countries.
E.laws limiting the right to private property.
Answer:
A person who believes in public ownership of the means of production for the common
good of society is a(n):
A.socialist.
B.capitalist.
C.individualist.
D.monarchist.
E.feudalist.
Answer:
Which of the following types of entry into a foreign market allows a firm to learn about
the foreign market while limiting the firm’s exposure to that market?
A.Early entry
B.Small-scale entry
C.Large-scale entry
D.Late entry
E.Rapid entry
Answer:
Modern socialism traces its intellectual roots to:
A.Aristotle.
B.David Hume.
C.Karl Marx.
D.Adam Smith.
E.Milton Friedman.
Answer:
The probability of survival for an international business increases if it:
A.enters a national market after several other foreign firms have already done so.
B.avoids the use of countertrade agreements.
C.enters a national market early.
D.enters a foreign market via turnkey projects.
E.avoids engaging in joint ventures.
Answer:
To be able to accommodate demands for local responsiveness, a firm should:
A.ignore national differences in consumer tastes and preferences.
B.decentralize production activities to the major national or regional markets.
C.ensure that the manufacturing processes in all units are identical.
D.standardize the product coming out of all manufacturing units.
E.refrain from hiring host country managers.
Answer:
The influential economist Jeffrey Sachs argues that throughout history, which of the
following, with their long engagements in international trade, have been the most
supportive of market institutions.
A.Mountainous states
B.Tropical regions
C.Military societies
D.Landlocked states
E.Coastal states
Answer:
Which of the following steps is true of bias in performance evaluations?
A.More weight should be given to an off-site manager’s appraisal than an on-site
manager’s appraisal.
B.Cultural bias increases when the on-site manager is of the same nationality as the
expatriate.
C.Home-office managers should write performance evaluations without consulting
on-site managers to avoid bias.
D.Due to proximity, an on-site manager is more likely to evaluate the soft variables that
are important aspects of an expatriate’s performance.
E.A performance appraisal is invalid when the on-site manager is of the same
nationality as the expatriate manager.
Answer:
Which of the following is a disadvantage of wholly owned subsidiaries as a mode of
entry into foreign markets?
A.Lack of control over quality
B.High costs and risks
C.Problems with local marketing agents
D.Inability to engage in global strategic coordination
E.Lack of control over technology
Answer:
In a Confucian culture, loyalty of the subordinates to their superiors should be:
A.blind in nature.
B.reciprocated by the superiors by bestowing blessings on them.
C.free of expectations of reward and personal gain.
D.aimed at attaining spiritual perfection.
E.based on the superiors’ spiritual achievements.
Answer:
Which of the following is necessary for a firm to ensure profitable price discrimination?
A.The firm must sell a standardized product.
B.The firm must be able to keep its national markets separate.
C.The firm must encourage other firms and competitors to engage in arbitration.
D.Products sold by the firm must have same price elasticities of demand in different
countries.
E.Products must be sold in countries where a small change in prices produces a large
change in demand.
Answer:
Which of the following is most likely to be implemented by a country as a part of
deregulation?
A.Prohibition of private enterprises from operating in certain sectors
B.Commitment toward communism
C.Removal of price controls
D.Centrally planned economic system
E.Increased restrictions on foreign direct investment
Answer:
Firms that do not export often:
A.face problems of currency conversion.
B.lose out on significant opportunities for cost reduction.
C.are able to reduce their unit costs.
D.are not intimidated by the business practices of foreign countries.
E.explore foreign markets to see where they can leverage their technology.
Answer:
Which of the following has increased in the United States as a result of globalization?
A.Unemployment rate
B.Price of goods and services
C.Demand for unskilled workers
D.Standard of living
E.Income equality between workers in skilled and unskilled sectors
Answer:
In the early twentieth century, the socialist ideology split into two broad camps and the
people who believed that socialism could be achieved only through violent revolution
and totalitarian dictatorship were referred to as:
A.communists.
B.capitalists.
C.democrats.
D.individualists.
E.anarchists.
Answer:
Why do acquisitions fail sometimes?
A.There is a clash between the cultures of the acquiring and acquired firm.
B.Acquisitions take a long time to execute.
C.Acquisitions are easily preempted by making greenfield investments.
D.The revenue and profit stream generated by an acquisition’s resources is usually
unknown.
E.Losses produced by intangible assets outweigh profits from acquired tangible assets.
Answer:
Which of the following best illustrates the globalization of production?
A.Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for
the cutting process.
B.Evan Swan, a U.S.-based fashion designer, is planning to open a flagship store in
China to serve the Asian market.
C.Uncle Crab, a U.K. fast food chain, has been serving customers worldwide through
its franchises.
D.Silver Unicorn Inc. uses sales personnel from the respective host country to sell its
products and services.
E.Pizza Gallery, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes
of its American and Australian customers.
Answer:
Which of the following is a factor that determines the optimal distribution strategy?
A.Communication strategy
B.Country of origin effects
C.Channel quality
D.Noise levels
E.Source effects
Answer:
Myra is a firm producing premium handbags for women. These bags are manufactured
and patented in the country of Ceria. Manufacturers in the country of Argonia create
counterfeit Myra bags and sell them in the local markets of Argonia. These bags are
sold at almost similar prices to the original in other countries. Which of the following is
likely to happen?
A.Expansion of world market for Cerian products
B.Reduction in the export opportunities for Myra’s hand bags in Argonia
C.Reduction in import of all Argonian goods
D.Increase in the prices of handbags produced by Myra in Argonia
E.Reduction in opportunities of export from Argonia to other countries
Answer:
How does possessing a core competence help a firm?
A.It helps a firm to create value in such a way that premium pricing is impossible.
B.It reduces a firm’s dependence on its logistics function.
C.It enables a firm to reduce the costs of value creation.
D.It reduces the scope of transfer of skills to foreign markets.
E.It reduces the need to replicate a business model in a foreign market.
Answer:
Which of the following strategies is a firm most likely to pursue when it simultaneously
faces both strong cost pressures and strong pressures for local responsiveness?
A.Global standardization strategy
B.Localization strategy
C.International strategy
D.Transnational strategy
E.Nationalization strategy
Answer:
Under the U.S. macroeconomic policy package of 1965-1968, President Lyndon
Johnson backed an increase in U.S. government spending that was financed by an
increase in the money supply, resulting in:
A.increased exports.
B.a rise in price inflation.
C.increased taxes.
D.a positive trade balance.
E.an increase in the worth of currency.
Answer:
In the context of common law, which of the following terms refers to the ways in which
laws are applied in specific situations?
A.Tradition
B.Precedent
C.Custom
D.Interpretation
E.Culture
Answer:
In mixed economies, governments sometimes tend to take into state ownership troubled
firms whose continued operation is thought to be vital to national interests. Once a
government takes into state ownership such troubled firms, they are said to be:
A.privatized.
B.decentralized.
C.liberalized.
D.nationalized.
E.deregulated.
Answer:
According to the author Francis Fukuyama, the world is most likely witnessing the end
of:
A.free market economies.
B.capitalism.
C.liberal democracies.
D.privatization.
E.humanity’s ideological evolution.
Answer:
Who, along with representatives from the European Union and the European Central
Bank, represent the 19 largest economies in the world on the G20?
A.Finance ministers and central bank governors
B.Presidents and defense ministers
C.Prime ministers and army chiefs
D.International trade ministers
E.Ministers of foreign affairs
Answer:
Which of the following is based on three measures: life expectancy at birth, educational
attainment, and average incomes based on PPP estimates?
A.Human Development Index
B.Gross National Income
C.Gross Domestic Product
D.Cost of Living Index
E.Cash Reserve Ratio
Answer:
Processes are the:
A.manner in which decisions are made and work is performed within the organization.
B.metrics used to measure the performance of subunits.
C.devices used to reward appropriate managerial behavior.
D.metrics used to make judgments about how well managers are running the subunits.
E.norms and value systems that are shared among the employees of an organization.
Answer:
Neon Synergy Inc. operates in three different countries, and is headed by a CEO who
believes that the best approach to ethics is cultural relativism. In this context, which of
the following statements is most likely to be true regarding Neon Synergy?
A.All business units of Neon Synergy will adopt a common standard of ethics
irrespective of their location.
B.Business decisions made by managers of Neon Synergy will be solely based on the
goal of maximization of societal good.
C.The business units of Neon Synergy will be empowered to adopt the standards of
ethics followed in their respective host nations.
D.Neon Synergy will extensively advocate the idea that universal notions of morality
transcend different cultures.
E.Neon Synergy will follow its home-country standards of ethics at all its foreign
locations.
Answer: