1) The term collectivism refers to a system that stresses the primacy of societal goals
over individual goals.
2) Decentralization has the key advantage of letting decisions be made by those who
directly deal with customers, competitors, and markets.
3) The framework that managers use to make decisions that maximize their companies’
value creation performance is referred to as a strategy.
4) A strategic trade policy is one that develops industries to lessen dependence on
foreign military goods.
5) The open source model is a hyperarchy that involves giving source code to
volunteers who fix software bugs.
6) Between 2000 and 2008, China’s economy grew at a faster rate than Japan’s
economy.
7) One of the reasons that neighboring countries tend to ally is similar consumer tastes.
8) Meeting the needs of the present without compromising the ability of future
generations to meet their own needs is known as sustainability.
9) Businesspeople seeking to understand more about another culture in order to
successfully conduct business within that culture would be best advised to do which of
the following?
A) observe the behavior of people who have gained respect within that cultural
environment
B) rely on stereotypes, which are based on averages, to gain an understanding of the
culture
C) avoid cultural research studies because they perpetuate unjustified stereotypes and
behaviors
D) memorize the cultural variations that are typically encountered in a specific cultural
environment
10) Baldani Manufacturing, an Italian firm, plans to expand into Asia. In order to take
advantage of regional trading groups, Baldani will most likely need to change its
________.
A) operating strategies
B) selection test methods
C) bilateral trade agreements
D) economic integration methods
11) Which of the following is most likely a basis for a Jamaican natural advantage in
international trade?
A) product technology developed by a Jamaican company
B) high literacy rates among Jamaican citizens
C) the use of English as the primary language
D) beautiful beaches and climate
12) Which of the following firms would most likely be involved in a turnkey operation?
A) American Airlines
B) Bechtel Construction
C) Burger King
D) Microsoft
13) According to 2010 data, which of the following statements about the mix of debt
and equity to fund operations is true?
A) The debt/asset ratio has risen in Japan since 2007
B) A growing number of Russian firms are relying more on debt
C) The equity/asset ratio fell for firms in France and Germany since 2007
D) In most emerging markets, shares of stock are broadly held, like in the U.S.
14) Which of the following is NOT a reason a company would deal in foreign
exchange?
A) to pay or receive dividends in a foreign currency
B) to speculate on possible future movements in a currency
C) to buy and sell merchandise denominated in a foreign currency
D) to import merchandise denominated in its currency rather than the currency of the
exporter
15) Terrell, a manager with Qualsys Technologies, has been on an expatriate assignment
in Russia for the last three years. Terrell’s foreign assignment has ended, and he is
working with HR to return to the U.S. and begin a new job at the firm’s headquarters in
Philadelphia. In which activity is Terrell most likely involved?
A) expatriation
B) repatriation
C) demotion
D) promotion
16) Assume a firm plans to expand internationally. If its managers wish to avoid pitfalls
caused by differences in ‘silent language,” they should consider differences in
________.
A) normal proximity during conversations
B) degree of detail expected in written contract
C) the meaning of slang words during presentations
D) importance of adherence to schedules
17) Which of the following countries is the best example of a mixed economic model?
A) United States
B) France
C) United Kingdom
D) Australia
18) Depositary receipts traded outside the United States are called ________ depositary
receipts.
A) Euro
B) Global
C) American
D) None of the above
19) Decision making in a functional structure tends to be ________.
A) decentralized
B) centralized
C) horizontal
D) collaborative
20) A problem that can arise in using trade protectionism to develop international
competitiveness for a domestic industry is that ________.
A) it is difficult to identify industries that have a high probability of reaching
competitiveness
B) assistance should be given only if entry barriers to new firms are very low
C) the protecting countries lose too much revenue from import duties
D) a short product life cycle makes the industry quickly noncompetitive
21) What is the most likely reason that companies such as Gillette (razor blades) and
3M (scouring pads) sell products in smaller package sizes in some developing
countries?
A) Family size is small in those countries
B) Some governments require the smaller sizes
C) In those countries, many consumers lack sufficient cash to buy larger quantities
D) These are products for which the cost of altering package size is negligible
22) Which of the following is the best example of a product disruption driving industry
change?
A) redesign of Toyota’s Prius
B) introduction of Apple’s iPad
C) AT&T’s purchase of T-Mobile
D) merger of United and Continental
23) Export-led development refers to ________.
A) a country’s efforts to promote its exports in order to reduce its trade deficits
B) a policy to promote domestic production of goods that would otherwise be imported
C) a program to promote industries with export potential
D) decreases in infrastructure development due to the loss of revenue from export
tariffs
24) An economic system is the set of structures and processes that ________ in a
country.
A) guides the allocation of resources and shapes the conduct of business activities
B) directs the movement of specific products to specific consumers
C) sets the standards of competitive success for companies in the economy
D) stipulates the roles and responsibilities of consumers
25) The ________ clause embodied the fundamental principle of GATTtrade without
discrimination.
A) most-favored-nation
B) nontariff barriers
C) free rider
D) normal trade relations