The international product life cycle theory was developed by ________.
A) Milton Friedman
B) Karl Marx
C) Michael Porter
D) Raymond Vernon
An offshore financial center is usually characterized by ________.
A) extensive regulations
B) economic and political instability
C) excellent telecommunications
D) high taxes
The positive or negative condition of relations between employers and their workers is
referred to as ________.
A) international relations
B) labor-management relations
C) corporatism
D) organizational hierarchy
The process of obtaining information that already exists within the company or that can
be obtained from outside sources is called ________.
A) secondary market research
B) data mining
C) data harvesting
D) scientific data archiving
Which of the following is an example of a greenfield investment?
A) an agricultural business acquisition in South-east Asia’s former agricultural region
B) the construction of an entirely new steel manufacturing subsidiary overseas
C) a merger between a U.S. and a non-U.S. company
D) the purchase of an existing business that is still in its infancy
Which of the following terms is used to refer to the exchange of goods and services for
other goods and services instead of money?
A) fiat money
B) letter of credit
C) barter
D) guanxi
According to Hofstede’s framework, a culture that scores low on ________ is
characterized by individual stability and reputation, fulfilling social obligations, and
reciprocation of greetings and gifts.
A) collectivism
B) uncertainty avoidance
C) long-term orientation
D) feminity
If the board discusses the spatial arrangement of production processes within Wilson’s
production facilities, they will be engaging in ________.
A) capacity planning
B) facilities location planning
C) process planning
D) facilities layout planning
Scenario: Blickinstock at the Crossroads
Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin
America. To that end, Blickinstock is trying to decide whether to purchase an existing
company in a remote region of Argentina or build its own subsidiary. Keith Moon,
Blickinstock’s vice president of global business development, will be making a
presentation to the board outlining the company’s options. The merchandise account
includes exports and imports of tangible goods.
The bid-ask spread in the foreign exchange market is the ________.
A) price at which a bank will buy a currency
B) price of currency in the foreign exchange market
C) difference between the bid and ask quotes for a currency
D) the time lapsed between a bid quote and an ask quote
The principle that nominal interest rate is the sum of the real interest rate and the
expected rate of inflation over a specific period of time is called ________.
A) the law of one price
B) purchasing power parity
C) the comparative advantage theory
D) the Fisher effect
Which staffing policy should Swingset consider if it wants its foreign operations to be
managed by the best-qualified individuals regardless of nationality?
A) nepotism
B) ethnocentric staffing
C) geocentric staffing
D) employee referrals
The process of sending messages about products to target markets is called ________.
A) customer relations
B) customer service
C) market segmentation
D) marketing communication