1) As exemplified in China, the government in a collectivist society is highly connected
to and interdependent with business.
2) An effective tariff is the sum of the ad valorem tariff plus the specific duty.
3) If the forward rate for a foreign currency is less than the spot rate, the foreign
currency is selling at a forward premium.
4) Gap analysis refers to an estimation of sales potential caused by the disparity in
incomes between developed and developing countries.
5) A common feature of neoclassical structures is greater cross-functional collaboration.
6) Preference for a consultative management style is prevalent in a society with low
power distance.
7) The foreign freight forwarder is the largest export intermediary in terms of value and
weight of products managed.
8) Similarity among people is both a cause and effect of national boundaries.
9) In the demand-pull versus supply-push views of the market, which of the following
is best classified as a push dynamic that drives supply in the global market?
A) digitization
B) media access
C) standardization
D) market globalization
10) Which of the following ideas calls for assessing a country’s performance based on
factors such as life expectancy, leisure time, and income equality?
A) microeconomics
B) happynomics
C) macroeconomics
D) green economics
11) A financial manager in an international company would most likely be responsible
for all of the following activities except.
A) managing currency risk
B) assessing foreign market entry
C) learning global tax systems
D) overseeing employee repatriation
12) A ________ law system is based on a systematic and extensive codification of laws
and puts political officials in charge of specifying accessible, detailed, and written law
that applies to all citizens.
A) customary
B) common
C) civil
D) theocratic
13) A flag of convenience is ________
A) the declaration that a product is made in a country that has easier legal access to a
given foreign market
B) a designation for products originating within a particular trading group
C) the registration of a ship by a shipping company in a country that charges low taxes
D) the indication that a shipping organization can sail in international waters
14) What is the LEAST likely reason that MNEs set arbitrary transfer prices?
A) take advantage of tax differences between countries
B) achieve economies of scale on a global level
C) circumvent national controls
D) manipulate profits
15) Which of the following is the largest source of foreign-exchange income in
Mexico?
A) FDI
B) tourism
C) foreign aid
D) remittance income
16) The ________ view calls for companies to develop low-cost, high-powered,
resource-minimizing innovations that can be marketed to the billions of people living
on less than a few dollars a day.
A) Base of the Pyramid
B) Hierarchy of Needs
C) Happy Planet Index
D) Gini coefficient
17) Giga-Mart has an IT system that links the firm’s suppliers, manufacturers,
customers, and intermediaries. Giga-Mart most likely has a(n) ________,
A) TQM (total quality management)
B) JIT (just-in-time)
C) EDI (electronic data interchange)
D) ERP (enterprise resource planning)
18) Which of the following statements best describes a pluralistic society?
A) Multiple segments of society adhere to the same political philosophy
B) Two dominant political parties rule local and federal governments
C) Different ideologies are held by different segments of society
D) Various ethnic groups belong to the official political party
19) A ________ structure is the ideal way to organize work when global integration is
more important than local responsiveness and the industry structure encourages cost
leadership.
A) decentralized
B) matrix
C) divisional
D) functional