Accounting is an objective, fact-based discipline and is not influenced by culture.
Swap contracts exchange foreign currency debt for another liability in the home
currency.
Spoken language does not demarcate culture, but body language does.
Mapping is figuring out a geographical outline for all team members.
A global strategy tends to be used when a company faces strong pressures for reducing
costs and limited pressure to adapt products for local markets.
Biomass is a category of renewable energy fuels based on their heavy weight.
The rapidly changing business environment caused by increased global competition,
customer preference for custom-made rather than mass-produced products, and faster
technological change is pressuring companies to make greater use of global product
structures.
The UN Convention on the International Sale of Goods (CISG) has established legal
rules and outlined the rights and obligations of the buyer and seller.
Laws on pollution, consumer protection, and operator safety are critical as legal forces.
A management contract is used only by manufacturing companies to earn income by
providing expertise for a fee.
Scenarios are multiple, plausible stories for probable futures.
Research indicates that global leaders are born, not developed through experience or
training.
Historically, firms engaged in FDI have generally preferred wholly owned subsidiaries.
A culture’s aesthetics is the sense of moral behavior taught to the young.
Mountains tend to impede trade, whereas flat areas tend to facilitate trade relationships.
The following is an area in which the UN plays a significant role for international
business: loaning seed money for entrepreneurial start-ups in developed nations.
The United States at times applies antitrust law extraterritorially.
Unanticipated shifts in exchange rates present risk to the international firm.
In a forward market hedge, the firm sells forward its foreign currency receivables for its
home currency, matching the time forward to the foreign currency receivable’s due date.
BOP accounts are recorded in a double-entry bookkeeping method, with each
transaction having debit and credit sides.
Record levels of American outward foreign direct investment from 2000 to 2009,
totaling more than $2 trillion, caused U.S. exports to decline during this time period.
Outsourcing decisions, except for the decision to use global sources of supply, are
extensions of the make-or-buy decisions of earlier eras.
Switzerland, China, and Colombia are nations that present topographic challenges to
marketers because their markets are divided by mountain ranges.
Global leaders confront more complex contexts than do domestic leaders.
The source of international law is mostly the tendency of powerful nations to apply
their laws extraterritorially.
According to the World Health Organization, about one-quarter of all drugs sold
through “questionable” Internet pharmacies are estimated to be counterfeit.
Environmental scanning provides the firm with information about world opportunities
and threats.
Strategic planning processes are something that only the company’s most senior
executives are involved with.
Trend analysis and cluster analysis are used in the third screening phase.
China participates in the management of the international financial environment by
managing its currency.
Global teams are a decreasing form for international work, since transportation cost
reductions have been implemented in many corporations.
That the common interest of all nations in a workable international exchange rate
system transcends their conflicting international interests is the premise of:
A. the International Monetary Fund (IMF).
B. the Bank for International Settlements.
C. the World Central Bank.
D. the World Bank for Reconstruction and Development.
_____________ is used by management during the planning process and provides
information about threats and opportunities.
A. Market screening
B. Environmental scanning
C. Country screening
D. Segment screening
E. None of the above
A turnkey project includes all of the following except:
A. plan design.
B. technology supply.
C. supply of raw material.
D. personnel training.
E. none of the above. (All four are included.)
Leadership traits viewed universally as unacceptable, according to the Project GLOBE
study, are:
A. egocentric, loner, and dictatorial.
B. indecisive, unprincipled, and dishonest.
C. indirect, indecisive, and antisocial.
D. passive, indirect, and unprincipled.
E. indirect, intellectual, and passive.
When a company faces strong pressures for reducing costs and limited pressure to adapt
products for local markets, it should tend to use a:
A. global strategy.
B. multidomestic strategy.
C. transnational strategy.
D. differentiation strategy.
E. home replication strategy.
The purpose of the International Financial Corporation (IFC) is to invest in companies
and financial institutions in developing countries in order to build:
A. infrastructure.
B. trade routes.
C. domestic logistics.
D. domestic capital markets.
Copyrights are protected under:
A. The WIPO Copyright Treaty.
B. the International Convention for the Protection of Industrial Property.
C. The Berne Convention of 1886.
D. the Treaty of Rome.
E. two of the above.
In __________ screening, the important variables for segmentation are commonalities
in needs and wants among consumers across nationalities.
A. country
B. product
C. segment
D. cultural
E. none of the above.
According to the text, which of the following can be outsourced?
A. Product design
B. Human resources
C. Two of A, B, and E
D. All of A, B, and E
E. Logistics
Monochronic cultures tend to be:
A. high context (HC).
B. low context (LC).
C. ethnocentric.
D. hierarchical.
According to the text, value chain analysis focuses primarily on which question?
A. What values are important to our company?
B. What is our strategy?
C. Who are the company’s target customers?
D. What does the customer value and how much is the customer willing to pay for this
value?
E. How will this customer value be created?
McDonald’s, Kentucky Fried Chicken, and Subway are examples of:
A. joint ventures.
B. licensing.
C. franchising.
D. strategic alliances.
E. none of the above.
Europe follows the precautionary principle approach to environmental health and
safety. This means:
A. everyone takes precautions and is always on the watch for environmental issues.
B. once a product is thought to be harmful, it is investigated immediately.
C. manufacturers of new products need to prove the product is safe.
D. consumers regularly review product safety regulations.
Environmental forces can be classified as:
A. all of B, C, and D.
B. external.
C. uncontrollable.
D. internal.
E. two of B, C, and D.
The three major taxes governments use to generate revenue are:
A. VAT, income tax, and withholding tax.
B. sales tax, VAT, and income tax.
C. property tax, VAT, and sales tax.
D. income tax, property tax, and sales tax.
The regionalized organization:
A. has the advantage that it avoids duplication of product and functional specialists.
B. seems to be popular with companies that have diverse products, each with different
product requirements, competitive environments, and political risks.
C. often encounters problems with global product planning.
D. two of the above.
E. all of A, B, and C.
Musical tastes vary across cultures:
A. and are built on the solid foundation of the octave.
B. which is why they need to be understood by marketers who use music in
commercials.
C. and come together in the Silk Road.
D. A and D.
Proponents of the horizontal corporation:
A. claim that lateral relationships inhibit innovation and new-product development.
B. state that this approach to organizing helps to place more decision-making
responsibility in the hands of middle managers and other skilled professionals.
C. claim that it enhances increased control and supervision by upper management.
D. all of the above.
E. two of A, B, and C.
Lack of folklore knowledge is illustrated by:
A. Smirnoff’s use of a Che Guevara image in Cuba, because Che is a national hero
there.
B. Apple’s use of an image of the Dalai Lama, because it offended China, where the
government sees the Dalai Lama as a political dissident.
C. the U.S. NFL playing U.S. football in the UK.
D. A and B
Licensing provides income for:
A. fashion designers.
B. computer manufacturers.
C. magazine publishers.
D. all of the above.
E. two of A, B, and C.
The top four countries in proven reserves are:
A. China, Japan, Singapore, and Malaysia.
B. Kuwait, Saudi Arabia, the United States, and Mexico.
C. Qatar, Libya, Nigeria, and Venezuela.
D. Saudi Arabia, Canada, Iran, and Iraq.
In low-context cultures:
A. there is subtlety and innuendo.
B. what you say tends to be what you mean, in that communication tends to be explicit.
C. indirection is prized because it recognizes the ability of the other.
D. leadership is mostly from behind, allowing the work group to self-direct.
Dunning’s eclectic theory of international production states that if a firm is going to
invest in production facilities abroad, it must have the following kinds of advantages:
A. ownership specific, location specific, and internationalization.
B. strategic, organizational, and technological.
C. political, technological, and human resource.
D. technological, financial, and human resource.
E. none of the above.
On a consignment sale, the payment risk is:
A. assumed by the buyer.
B. assumed to be equally shared.
C. carried by the seller.
D. covered by insurance.
E. covered by the bank issuing the L/C.
Employee compensation payments added to base salaries because of higher expenses
encountered when living abroad are considered:
A. bonuses.
B. allowances.
C. perks.
D. tax exempt.
E. two of the above.
Government stability is a characteristic of a government that:
A. makes sudden radical policy changes.
B. readily shifts alliances to maintain power.
C. maintains predictability in fiscal, monetary and political policies.
D. two of the above.
E. all of A, B, and C.
Cultural dumping is found in:
A. Japan’s past refusal to import American skis because Japanese snow is different, so
the skis should meet different standards.
B. Saudi Arabia’s refusal to import Playboy magazine.
C. The small town of Orleans, Massachusetts, decision to prohibit franchised stores
from operating in the town.
D. two of the above.
E. all of A, B, and C.
Efforts to improve the efficiency and effectiveness of a firm’s international operations
are often referred to as:
A. offshoring.
B. outsourcing.
C. supply chain management.
D. subcontracting.
E. all of the above.
The promotional mix includes:
A. personal selling.
B. product design.
C. pricing.
D. all of the above.
E. two of A, B, and C.
The centerpiece of Cognizant Technology Solution’s operations is the company’s
innovative ________________ business model.
A. global-local
B. foreign-domestic
C. offshore-onshore
D. insource-outsource
E. none of the above
Regarding foreign investment:
A. it can be divided into three components: international trade, portfolio investment,
and direct investment.
B. portfolio investment involves investors who participate in the management of the
firm in addition to receiving a return on their money.
C. deals that result in the foreign investor’s obtaining at least 10 percent of the
shareholdings are classified as portfolio investments.
D. two of A, B, and C.
E. none of A, B, and C.