1) New configurations of value activities create coordination and control challenges that
cannot be addressed by the functionality outlined in a formal structure.
2) The term brain drain describes the export of high-technology products in exchange
for low-technology products.
3) Losses to companies from natural disasters are much less risky than losses from
operating in violent areas.
4) The functional structure is ideal when the company faces complex and changing
environments.
5) Inflation occurs because aggregate demand is growing as fast as aggregate supply.
6) In a country’s balance of payments, the current account and the capital account
represent equal values.
7) Inflation in the United States would cause China’s massive dollar reserves to lose
value.
8) Static effects are the overall growth in the market and the impact on a company
caused by expanding production and by the company’s ability to achieve greater
economies of scale.
9) A mixed economy is a system where economic decisions are largely market driven
and ownership is largely private, but the government intervenes in many private
economic decisions.
10) In the aftermath of the recent worldwide credit crisis, there has been a significant
reduction in the level of government involvement in economic affairs.
11) Critics of the view that regionalization will prevail over globalization most likely
base their argument on the belief that ________
A) regionalization is a transition stage toward globalization
B) neighboring countries are more apt to disagree politically than distant countries
C) neighboring countries are too geographically similar to benefit from trade
D) business in non-territorial areas is not regional
12) Which of the following is a reason for an MNE to base its standards for ethical
behavior on a country’s laws?
A) The law embodies many of a country’s moral beliefs but is an inadequate guide for
proper conduct
B) The law contains unenforceable rules that are impossible for society to follow
C) The law represents a consensus derived from significant deliberation
D) The law is based on precisely defined moral concepts
13) Traditionally, expatriates were ________; today, HRM increasingly considers
________.
A) men; women
B) women; men
C) midlevel and midcareer executives; older employees and younger employees
D) older employees and younger employees; midlevel and midcareer executives
14) Eight of the top 10 exporting and importing countries are countries with ________.
A) cheap labor forces
B) small land masses
C) natural advantages
D) developed economies
15) Which of the following is NOT one of the top four locations for trading foreign
exchange?
A) London
B) New York
C) Tokyo
D) Hong Kong
16) In addition to protection, tariffs serve to ________.
A) generate revenue
B) subsidize exports
C) subsidize imports
D) increase consumption
17) Which of the following is NOT an advantage associated with Eurocurrencies?
A) more convenience for users
B) better yield for lenders
C) tighter U.S. regulation
D) cheaper lending rates
18) Which of the following best describes a major difference between supply chain
management and logistics?
A) Supply chain management involves handling suppliers and customers
B) Logistics involves longer distances and international distribution networks
C) Supply chain management focuses on transportation and the storage of goods
D) Logistics only encompasses the outbound flow of products and materials
19) Foreman Enterprises produces and sells a variety of products for the home.
Foreman recently introduced a new detergent at a very low price with the hope that a
high number of consumers will try it out. Foreman is most likely using a ________
strategy.
A) cost-plus
B) skimming
C) penetration
D) diversification
20) For the provider, management contracts offer the advantage of ________.
A) receiving income without making a capital outlay
B) increasing their merchandise exports
C) reducing their global taxes
D) better access to raw materials
21) Trade shifting to countries within a regional trade agreement at the expense of trade
with countries not in the agreement is called ________.
A) a dynamic effect
B) trade creation
C) trade diversion
D) economy of scale