1) A tariff is the price of a currency.
2) Rationalization is the process of specializing in manufacturing according to product
or process.
3) The Washington Consensus promotes democracy, freedom, the rule of man, and
human rights.
4) Governmental agencies and nongovernmental organizations monitor the behavior of
companies and their employees to ensure that laws are being followed.
5) An international management contract is an agreement between a company and a
foreign government on the number of foreign personnel it can employ.
6) There are more cost savings for international branding standardization than for
international product standardization.
7) A turnkey operation is a contract for the construction of an operating facility for a
fee.
8) Studies indicate that employee morale is largely unaffected by a company’s corporate
behavior.
9) Countertrade is an alternative means of structuring an international sale when
________.
A) natural resources are highly desirable
B) an importer is able to obtain a bank loan
C) an importer does not belong to the World Bank
D) conventional forms of payment are difficult, costly, or nonexistent
10) In the global environment, firms use an international strategy, a multidomestic
strategy, a global strategy, or a ________ strategy.
A) regional
B) standardization
C) transnational
D) locational
11) Safe work environments motivate ________; challenges motivate ________.
A) individualists; collectivists
B) collectivists; individualists
C) non-fatalists; fatalists
D) materialists; non-materialists
12) The decision-making process for a company’s reinvestment choices is often
different from those for new investment choices because ________.
A) internal rate of return and other financial measurement criteria are more difficult to
compile and analyze on existing operations, given currency translation distortions
B) failure to support an existing investment may jeopardize the firm’s operations and
competitiveness in that country
C) most of the net value of foreign investment comes from new international capital
transfers rather than from reinvestment of earnings abroad
D) corporate management feels that country managers are best able to make divestment
decisions
13) Assume a U.S. firm plans to expand into Mexico, Germany, or Japan. Its executives
are traveling to each country to meet with local businesspeople in the decision-making
process. Which of the following would be LEAST beneficial when the executives make
a presentation?
A) requesting a translator with technical vocabulary knowledge
B) simplifying vocabulary and terminology for the audience
C) conducting back translations for written work
D) avoiding repetition to prevent boredom
14) The perspective of ________ holds that as a company gains experience, resources,
and confidence, it progressively increases its scope of countries to which it exports.
A) serendipity
B) export management
C) the born-global theory
D) incremental internalization
15) The ________ is a preferential trade agreement that was organized in 1967 and
comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand, and Vietnam.
A) APEC
B) OAU
C) ASEAN
D) CAFTA
16) Diversity of international markets and currency instability have the greatest effect
on ________.
A) promotion
B) R&D
C) branding
D) pricing
17) Creolization refers to ________.
A) government efforts to maintain a distinct cultural identity through legislation and
language
B) the process of mixing elements of an outside culture with those of a national culture
C) the use of stereotypes to describe a culture
D) changes as cultures evolve over time
18) When examining economic and demographic variables to compare countries’ sales
potential for your product, you should also consider all the following EXCEPT which
one?
A) If countries depend heavily on the import of raw materials, what is the price of
elasticity for the demand?
B) Consumers in some countries may more conveniently substitute certain products
than consumers in some other countries
C) Consumers in developing countries may leapfrog technologies by first purchasing
the latest products
D) Trading blocs may enhance sales potential above what is indicated in individual
country figures
19) Expatriate managers located in cultures characterized by ________ have noticed
that local employees are highly motivated by retirement programs.
A) low uncertainty avoidance
B) high future orientation
C) low masculinity
D) high power distance
20) Microsoft has a tendency to hire home-country nationals for jobs outside the United
States. Microsoft’s leadership supports a(n) ________ approach to staffing.
A) geocentric
B) ethnocentric
C) adaptive
D) polycentric
21) In the spot market, the ________ is the difference between the bid and offer rates
and is the trader’s profit margin.
A) bid
B) offer
C) cross rate
D) spread
22) Certain attitudes can link groups, such as managers, from different nations more
closely than managers within a given nation. As a result, international businesspeople
should most likely ________.
A) assume that there are few significant cultural differences among nations
B) examine relevant groups when comparing nations
C) adopt universal operating methods
D) avoid cultural imperialism
23) What problems do managers commonly encounter when repatriated from foreign
assignments? How can HRM improve the repatriation process?
24) How do MNEs benefit from superior international HRM especially when filling
expatriate positions? What costs do MNEs face when expatriate assignments are
unsuccessful?
25) Why are financial risks a key concern of SMEs considering international trade?
26) What motives do businesses have for entering into collaborative arrangements?
What are some of the problems associated with collaborative arrangements?
27) ‘ Why are third-country nationals increasingly being used to fill expatriate
assignments? How do third-country nationals fit into the concept of geocentrism?
28) What are export management companies, and how do they help potential exporters?
29) How have sustainability demands and the Kyoto Protocol affected international
business? Discuss the controversies surrounding each.
30) What is the difference between a monochronic and polychronic culture? How do
such cultural differences affect business practices for international firms?