1) GATT’s contribution to trade liberalization made possible the expansion of world
trade in the second half of the twentieth century.
2) A currency sells at a forward premium when the forward rate is greater than the spot
rate.
3) A payment to a customs official to clear legitimate merchandise is permitted by the
Foreign Corrupt Practices Act.
4) Comparability of economic information among countries is hampered by countries’
use of different definitions for similar terms.
5) The political system of a country refers to the laws that regulate actions, along with
the processes by which those laws are enforced and by which redress for grievances is
acquired.
6) An international joint venture is an agreement between two or more companies for
the use of a trademark.
7) High inflation might cause a company to gain advantages by selling more on credit.
8) The Japanese yen makes up the largest portion of the international bond market.
9) The production of goods by a French company in Italy for sale in Italy is an example
of an Italian merchandise import
10) When a large company and a small company enter a joint venture, the large
company is expected to contribute more to the arrangement.
11) Smithson Pottery is considered a regular exporter because the firm fills unsolicited
orders from foreign buyers and passively investigates international trade options.
12) Which of the following is the LEAST likely reason that consumers would prefer
domestically made products over imports?
A) belief that imports are subsidized
B) feelings of national pride and sentiment
C) negative associations with products from certain countries
D) concerns that parts will be difficult to obtain for foreign products
13) The ________ is the most widely traded currency in the world.
A) pound
B) yen
C) euro
D) U.S. dollar
14) Which of the following is a primary task of international financial managers?
A) raise funds for the firm through product marketing
B) oversee cash-flow of the firm’s value-adding activities
C) manage international joint-venture arrangements
D) determine the salaries of executives and personnel
15) A(n) ________ is a large, liquid financial asset that can be traded anywhere at any
time.
A) international stock
B) global bond
C) global equity
D) Eurodollar
16) Monica, a Brazilian citizen, earned an MBA from Stanford University and has been
working at the New York branch of Goldman Sachs for one year. Monica is being
transferred to Goldman Sachs’ office in Brazil where she will best be characterized as
a(n) ________.
A) local
B) expatriate
C) reverse expatriate
D) third-country national
17) Cost-of-living allowances given to an expatriate during his or her foreign
assignment ________.
A) usually involve a compensation reduction because of lower costs abroad
B) are due to the difficulty of duplicating a particular way of living abroad
C) are usually eliminated over time
D) increase the longer the individual is overseas
18) Encouraging ethical behavior for the purpose of developing competitive advantages
will most likely result in all of the following for a firm EXCEPT ________.
A) strategic accomplishment
B) consumer commitment
C) industry resolutions
D) financial success
19) In which of the following situations is a firm most likely to be able to choose the
foreign operating form it would most like to use?
A) Its main motive is to gain location-specific assets
B) It has a desired and unique resource
C) Its preference for entering foreign markets is via acquisition of foreign facilities
D) It has little concern about appropriability
20) Which of the following countries has the largest market for domestic bonds?
A) the U.K
B) the U.S
C) Japan
D) China
21) The fact that an English word such as blue-jeans has entered the Spanish language,
while a Spanish word such as macho has come into American English illustrates that
________.
A) cultural diffusion is a two-way process
B) cultural trends come from emerging nations
C) existing national borders are shifting
D) material cultures are becoming universal
22) Which of the following is most likely a true statement about using the Internet in
supply chain management?
A) The Internet is universally accessible
B) The Internet slows internal processes in a company
C) The Internet minimizes efficiency gains to a company’s suppliers
D) The Internet prevents a deeper level of collaboration and communication
23) In a market economy, the patterns of resource allocation are most directly
influenced by ________.
A) government administrators who monitor the equilibrium of supply and demand
B) industry coalitions that strive to improve the efficiency of production and service
C) consumer group alliances that negotiate with firms to improve product quality
D) consumers who “vote” by their personal decision to buy or not buy products
24) In comparing international and domestic marketing, it is best to state that ________.
A) similar principles are at work
B) mass-market orientations are most effective
C) principles differ for product and price, but not for advertising
D) the differences between them can be studied through gap analysis
25) Western Union’s role in foreign-exchange trading is best described as ________.
A) setting a fair exchange rate in multiple currencies
B) transferring currency from one country to another
C) transferring Mexican pesos from the United States to Mexico
D) handling all money transfers that occur between North and South America
26) What has been the influence of Japan on supply chain management? In your
answer, discuss the concepts of industrial clustering and quality.
27) What are the major sources of internal funds for MNEs? Why do many MNEs
acquire external funds through the Eurodollar market?
28) List and discuss the main components of an expatriate’s compensation package.
29) What is the difference between a developing country and a developed country?
What significant trends are occurring in each type of market that relate to international
business decisions?
30) Define price escalation in exporting and explain why it occurs.
31) Describe the four major theories discussed in your text that explain why motivation
differs from one country to another.
32) What are the differences between ethnocentric, polycentric, and geocentric
frameworks?
33) What is a born global? How has technology triggered the growth of born globals?
34) How do cultural values such as optimism, conservatism, transparency, and secrecy
affect country differences in accounting systems?
35) What is the difference between a polycentric, ethnocentric, and geocentric approach
to international management? What key factors should a firm consider before adopting
one of these approaches?