1) Limitation of logging in the Amazon region is generally viewed as environmentally
beneficial for the planet as a whole; however, unemployed Brazilian workers have felt
that job creation inside Brazil is more important than climate protection outside Brazil
This example best illustrates which of the following?
A) why smaller countries are concerned that large international companies are powerful
enough to dictate operating terms
B) why globalization is needed to foster uniform standards for combating
environmental problems
C) how cultural homogeneity threatens the cultural foundation of smaller nations
D) how global interests can conflict with a country’s local interests
2) Translation of foreign currency financial statements is best described as ________.
A) the process of restating foreign currency financial statements from one currency into
another
B) the process of combining financial statements of different subsidiaries into one
statement
C) the conversion of foreign currencies into the U.S. dollar
D) easier when the foreign currency is the euro
3) Which of the following has the greatest potential to transform an industry’s structure?
A) a change in a competitor’s management
B) a change in a competitor’s pricing structure
C) the expansion of a distribution channel
D) the exit of a competitor from the industry
4) ________ refers to a political system in which government is organized by and
accountable to the people.
A) Totalitarianism
B) Fascism
C) Socialism
D) Democracy
5) Which of the following is a problem with the infant-industry argument for
protection?
A) Most developed countries increasingly have a larger portion of retirees than youth
B) Consumer groups become very active in protesting the higher prices that result
during infancy
C) Other countries retaliate by limiting exports of technology needed by the infant
industry producers
D) If the industry does not lower costs sufficiently to be competitive, it becomes a
formidable pressure group for continued protection
6) What is the most likely reason that firms avoid aggressively seeking export
opportunities?
A) Exporting is an activity best left to large, resource rich firms
B) Firms are unaware of opportunities in foreign markets
C) Foreign customers cannot easily communicate their needs
D) Firms are reluctant to adjust their established business practices
7) Which stakeholder group is most interested in trustworthy behavior by corporate
executives and increased corporate taxes?
A) shareholders
B) society
C) employees
D) customers
8) Each ADR represents ________ of the shares of the underlying foreign stock.
A) a multiple
B) 100
C) 1
D) ADRs have nothing to do with foreign stocks.
9) The MNE that applies a global strategy aims to ________.
A) compete essentially the same way wherever the company does business
B) empower local operations to make decisions about value activities
C) adapt activities to the industry standards in critical markets
D) customize its business practices to consumer expectations
10) Whereas executives specify roles and relationships in a functional structure in terms
of ________, they use the divisional structure format to specify them according to
________.
A) inputs; outputs
B) buyers; suppliers
C) markets; countries
D) politics; economics
11) If the real interest rate is 5%, the rate of inflation in the United States is 6%, and the
rate of inflation in the United Kingdom is 3%, which of the following statements would
NOT be true?
A) The nominal rate of interest in the U.S. would be greater than the nominal interest
rate in the U.K
B) The difference between the U.K. and U.S. interest rates is a function of the
difference between their inflation rates
C) The nominal rate of interest in the United States and the United Kingdom would be
the same because of purchasing power parity
D) Investors would get a higher return on their money in the United States
12) Which of the following best explains why SpinCent decided to export?
A) growth opportunities in Asia
B) labor demands in the U.S
C) declining tariffs in the EU
D) promising market locations in South America
13) The concept of organization includes how a company does all of the following
EXCEPT ________.
A) specifies the framework for work
B) develops systems that coordinate and control tasks
C) cultivates a common workplace culture among employees
D) plans leadership and training programs to develop the managerial staff
14) Which of the following is one of the main purposes of FTZs?
A) discouraging companies to locate in the host country
B) forcing countries to pay extra duties
C) discouraging companies from using JIT
D) allowing countries to defer duties