By lowering production costs, subsidies help domestic producers to:
A.gain export markets.
B.meet import quotas.
C.meet voluntary export restraints.
D.meet the local content requirement.
E.compete in the domestic market against local producers.
Answer:
According to Max Weber, Protestantism encouraged capitalism’s development by:
A.believing that salvation occurred in the next world, rather than this world.
B.encouraging the consumption of accumulated wealth by indulging in worldly
pleasures.
C.adhering to the hierarchical domination of religious and social life that characterized
the Catholic Church.
D.limiting an individual’s religious freedom.
E.emphasizing the importance of hard work and wealth creation for the glory of God
and frugality.
Answer:
How does the Small Business Administration (SBA) help potential exporters?
Answer:
The minimum that a firm has to do to engage in international business is to:
A.export or import products from other countries.
B.invest directly in operations in another country.
C.establish joint ventures or strategic alliances with companies in other countries.
D.export low-wage manufacturing jobs to companies in other countries.
E.develop franchises and subsidiaries in other countries.
Answer:
The Sullivan principles attempted to fight against:
A.globalization.
B.apartheid laws.
C.legalization of facilitating payments.
D.democratic structures.
E.anti-dumping laws.
Answer:
In practical terms, which of the following translates into an advocacy for democratic
ideals and free market economics, which in general creates the most favorable
environment for international businesses to operate in?
A.Collectivism
B.Totalitarianism
C.Individualism
D.Communism
E.Socialism
Answer:
Which of the following is most likely to reduce the pressure on managers to violate
their personal ethics?
A.Making managers work away from their ordinary social context and supporting
culture
B.Keeping managers psychologically and geographically close to the parent company
C.Pressuring managers to meet unrealistic business goals
D.Adopting an organizational culture which emphasizes that all decisions should be
purely economic
E.Pressuring managers to shun the concept of noblesse oblige
Answer:
If a firm prices low worldwide in an attempt to build global sales volume as rapidly as
possible, even if this means taking large losses initially, what kind of strategy is it
pursuing?
A.Experience curve pricing
B.Multipoint pricing
C.Economy pricing
D.Predatory pricing
E.Premium pricing
Answer:
The price that reflects an individual’s assessment of the value of a product is referred to
as:
A.the market price.
B.the customer’s negotiated price.
C.the base value of the product.
D.the customer’s reservation price.
E.the profit growth price.
Answer:
In the context of global economy, which of the following has been widely accepted
since the late 1980s?
A.Centrally planned command economy
B.Mixed economy
C.Nationalization of private property
D.Deregulation of economies
E.Authoritarian regime
Answer:
Which of the following entry modes into a foreign market best serves a high-tech firm?
A.Turnkey projects
B.Franchising
C.Wholly owned subsidiaries
D.Joint ventures
E.Exporting
Answer:
When are source effects damaging for an international business?
A.When promotional messages are used to stress the positive performance attributes of
its product
B.When fewer firms compete for the attention of prospective customers in developing
countries
C.When the firm’s marketing strategy emphasizes personal selling rather than mass
media advertising
D.When potential consumers in a target country have a bias against foreign firms
E.When international businesses deemphasize their foreign origins
Answer:
What do firms now typically use via the Internet to coordinate the flow of materials into
manufacturing, through manufacturing, and out to customers?
A.Flexible manufacturing technology
B.Lean production
C.Computer-aided manufacturing
D.Electronic data interchange
E.Just-in-time inventory systems
Answer:
Three countries enter into an agreement to remove all tariffs and trade barriers between
them. They decide on a common trade policy with regard to nonmembers. Faced with
political backlash, the countries stop short of allowing mobility of factors of production
such as labor and capital. Which of the following levels of economic integration best
describes this arrangement?
A.Political union
B.Customs union
C.Common market
D.Economic union
E.Monetary union
Answer:
Managers at the Blue Dragon Inc., an international company with operations in China
and the United States, are often heard complaining about the difficulties in achieving
synergy and cooperation between the employees of both the countries. On extensive
research it was concluded that the cultural differences between these countries, which
resulted in different work-related values, caused the lack of cooperation. In order to
effectively tackle this problem, Blue Dragon Inc. should:
A.vary its management processes and practices to account for these differences.
B.adopt the host country’s management processes and practices in both countries.
C.opt to exit one of the countries to avoid a conflict.
D.provide incentives to the employees based only on their individual performance.
E.adopt the home country’s management processes and practices in both countries.
Answer:
Which of the following staffing policies is pursued by firms where the lack of
managers’ mobility among national operations implies that the pay for expatriates
should be kept country-specific?
A.Regiocentric
B.Ethnocentric
C.Geocentric
D.Polycentric
E.International
Answer:
Organized labor responds to the increased bargaining power of multinational
corporations by trying to:
A.impose regulations on multinationals through organizations such as GATT.
B.achieve international regulations on multinationals through the United Nations.
C.establish regional boards.
D.lobby multinational corporations to restrict their global reach to three or fewer
foreign countries.
E.develop a local trade forum.
Answer:
West Electronic Corporation sources goods and services for its electronics products
from different locations around the globe in an attempt to take advantage of differences
in the cost and quality of labor and land. This practice demonstrates the:
A.globalization of production.
B.globalization of markets.
C.dislocation of a developing nation’s economy.
D.restriction on foreign direct investment.
E.regulation of the environment.
Answer:
Which of the following is NOT a concern for managers in international businesses?
A.Fundamental differences in culture
B.Perceived distance between home country and operating nations
C.Government restrictions on international trade
D.Cross-border transactions involving currency exchange
E.Ethical adherence to environmental standards
Answer:
Firms engaged in international trade deal with people they may have never seen, who
live in different countries, who speak different languages, and who abide by different
legal systems. These factors result in:
A.easy tracking of the parties involved.
B.a lack of trust between the parties.
C.strict enforcement of contractual obligations.
D.rapid acculturation.
E.better understanding of how transactions should be configured.
Answer:
A lead strategy involves:
A.delaying foreign currency payables when a currency is expected to appreciate.
B.delaying foreign currency payables when a currency is expected to depreciate.
C.attempting to collect foreign currency receivables early when a foreign currency is
expected to appreciate.
D.attempting to collect foreign currency receivables early when a foreign currency is
expected to depreciate.
E.delaying the collection of foreign currency receivables when a foreign currency is
expected to appreciate.
Answer:
Which of the following is an example of a first-mover advantage?
A.The ability to create switching costs that tie customers into one’s products or services
B.The avoidance of pioneering costs that a later entrant into the foreign market has to
bear
C.The increased probability of surviving in a foreign market
D.The opportunity to observe and learn from the mistakes of other entrants
E.The ability to let later entrants ride ahead on the experience curve
Answer: