1) Endaka, the “high yen,” caused financial problems for ________.
A) Japanese foreign-exchange reserves
B) American foreign-exchange reserves
C) Japanese importers
D) Japanese exporters
2) All of the following are ways that Coca-Cola has been attempting to increase its
global sales EXCEPT ________.
A) gaining licenses to use brand names of other companies
B) acquiring companies with complementary products
C) adding alcoholic beverages to its product line
D) distributing soft drinks from other companies
3) An example of a third-country national is a ________.
A) dual citizen (Canadian and U.S. citizenship) working for a Mexican company in
Mexico
B) Canadian citizen working for a U.S. company in Canada
C) U.S. citizen working for a U.S. company in Canada
D) Canadian citizen working for a U.S. company in Mexico
4) A foreign direct investment occurs when ________
A) a company owns at least 25% of a foreign firm
B) a company has a controlling interest in a foreign company
C) foreign ownership is in private rather than government securities
D) a foreign firm agrees to a licensing agreement with a large conglomerate
5) Outright forward transactions involve the exchange of currency on a future date
beyond two business days at a fixed exchange rate, known as the ________.
A) spot rate
B) forward rate
C) option rate
D) reverse transaction rate
6) Advanced communication systems have contributed to growth in international
business by ________
A) enabling better oversight of global operations
B) reducing the effects of global competition
C) decreasing the cost of cargo transportation
D) reducing export regulations
7) Which of the following is LEAST connected to superior HR management at an
MNE?
A) increased productivity
B) competitive advantage
C) foreign regulations
D) value creation
8) The value of the SDR is currently based on the ________.
A) euro
B) U.S. dollar
C) weighted average of four currencies
D) weighted average of six currencies
9) The term ________ refers to a global company that thrives on seeking unique ideas
and insights from locations around the world and then leveraging that knowledge in
international markets.
A) multidomestic
B) domestic
C) metanational
D) cross-cultural
10) In a country with a currency that is not freely floating, the timing of an exchange
rate change is often a ________ decision.
A) cultural
B) consensus
C) political
D) market
11) Matt manages the sales unit at Global Electronics but has no control over input
costs. The primary purpose of the sales division is to sell goods produced by another
division at Global Enterprises. What is the most appropriate performance evaluation
measure for Matt’s division?
A) market share
B) profitability
C) net income as a percentage of sales
D) inventory costs as a percentage of sales
12) Which of the following is one of the benefits of using the balanced scorecard
approach?
A) It helps managers avoid using only one measure of performance
B) It avoids using financial drivers so that it can focus on nonfinancial drivers
C) It avoids using nonfinancial drivers so that it can focus on financial drivers
D) It is separate from the strategic management system so that it can focus on financial
measures
13) How has the Kyoto Protocol affected U.S. companies operating in Europe?
A) U.S. companies are changing the way they do business in order to comply with new
emissions standards in Europe
B) The Kyoto Protocol has not affected U.S. companies with subsidiaries in Europe
because the U.S. has not signed the Kyoto Protocol
C) Before U.S. companies can open any more European subsidiaries, the U.S.
government must sign the Kyoto Protocol
D) Because the United States is not a party to the Kyoto Protocol, U.S. companies may
not operate in European countries that have signed the Kyoto Protocol
14) Communism primarily relies on a system of ________.
A) private business ownership
B) competitive pricing and marketing
C) market-generated supply and demand
D) government controlled economic activity