1) If inflation in the United States is relatively higher than inflation in Japan, and the
Japanese government wants to keep the exchange rate fixed between the yen and the
dollar, it should most likely ________.
A) allow its currency to rise against the dollar
B) allow its currency to fall against the dollar
C) increase the supply of yen in the market
D) decrease the supply of yen in the market
2) From the perspective of the classification of accounting systems, German and
Japanese companies tend to be ________.
A) micro-based countries
B) strong equity market countries
C) weak equity market countries
D) pragmatic business countries
3) The ________ is the European Union’s ultimate decision-making body and is
composed of the different ministers of the member countries.
A) European Commission
B) Council of the European Union
C) European Parliament
D) European Court of Justice
4) Martin Manufacturing is an MNE that centralizes authority to implement an
extensive set of rules and procedures to govern a broad range of activities. Martin
Manufacturing is most likely applying a system of ________.
A) market control
B) adjustment control
C) bureaucratic control
D) clan control
5) Tommy Hilfiger has encountered some European resistance to the sale of its products
because ________.
A) many European consumers associate France and Italy, rather than the U.S., with
upscale fashions
B) its customary prices, especially for the German market, have been out of reach for its
target market
C) it has refused to adjust products to fit the tastes and needs of local consumers
D) it has depended on self-service in its company-owned stores
6) The industrialization argument for trade protection in developing countries is based
on the assumption that ________.
A) the protected industry will become competitive over time with economies of scale
B) unemployment and underemployment exist in rural areas, so little agricultural output
is lost as people move into industrial jobs
C) subsidizing production is a better means of protection than limiting imports
D) it is better to depend on buying agricultural surpluses from developed countries than
to produce these agricultural goods
7) Which of the following primarily triggered Toyota’s investment in the European
Union?
A) Europeans demanded affordable, high quality cars from Japan
B) A common currency gave Europeans more buying power
C) The EU lowered trade barriers on foreign auto imports
D) Japan and the EU formed a free trade agreement
8) A major problem with the Doha Round is that ________.
A) developing countries want developed countries to better protect their intellectual
property
B) developing countries want a reduction in agricultural subsidies maintained by the
developed countries
C) the WTO does not want the developing countries to liberalize their investment rules
D) because of security issues, not all countries were able to attend the meetings, so it
was impossible to get a consensus vote
9) The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS) ________.
A) allows rich countries to produce generic versions of patented drugs without having
to pay royalties to the patent holder
B) permits developing countries to import generic products from other countries if they
don’t have the capacity to produce generic drugs
C) requires pharmaceutical companies to provide low-cost vaccines and HIV/AIDS
medications to developing countries
D) requires tiered pricing for most essential drugs
10) All of the following are reasons a country might institute import restrictions to
improve its balance of trade position with other countries EXCEPT to ________.
A) maintain essential industries
B) reduce imports and encourage exports
C) get comparable access for its companies
D) bargain away restrictions by other countries
11) A useful way to understanding the purpose of strategy is to think of the firm as a(n)
________, composed of a series of distinct activities, including production, marketing,
materials management, R&D, human resources, information systems, and the firm
infrastructure.
A) activity network
B) value constellation
C) task succession
D) value chain
12) Today, which of the following circumstances is LEAST likely to cause expatriate
failure?
A) inability of the expatriate’s family to adjust
B) resistance from the expatriate’s partner
C) inadequate technical expertise
D) inability to adjust
13) Carrefour expanded internationally by first ________.
A) entering adjacent countries
B) licensing its name to other companies
C) buying companies in foreign countries
D) entering many countries simultaneously with small commitments in each
14) Which of the following is true about projected demographic changes up to the year
2050 that could affect future production and sales locations?
A) The share of the working population should rise in developed countries and fall in
developing countries
B) The growth in per capita GDP should be higher in today’s developing economies
than in today’s developed economies
C) The percentage of the world population living in today’s developed countries is
expected to increase
D) The population should fall in sub-Saharan Africa