Knowing the number of imports to a specific country provides a firm with a complete
measure of market potential.
In high-context cultures, people tend to form long-lasting relationships that endure over
time.
The World Bank is made up of one large institution, IBRD.
Uncontrollable forces are external forces over which management cannot exert any
influence.
Mountain barriers found in the area of the Pakistan-Afghanistan border impede travel
and separate populations.
Trend analysis assumes that past conditions will remain constant.
Licensing and joint venture agreements cannot be useful business forms for new
exporters.
The International Finance Corporation (IFC) acts as an investment banker, arranging
private risk ventures in developing countries.
When government-owned companies compete with private companies, the private
companies have the advantage.
The EU is administered by the European Commission, a group composed of 27
commissioners elected at the EU level.
Historically, approximately two-thirds of the value of corporate investments made in the
United States from abroad has been spent to acquire going companies rather than to
establish new ones.
Advertising is generally more effective than the other promotional mix elements.
Approximately 70 percent of the exports from developed countries go to developed
countries.
Changes in an international company’s strategy may require changes in the
organization’s design, but not the reverse.
Research shows that surviving pioneers hold a smaller average market share when their
industries reach maturity than firms that were either fast followers or late entrants in the
product category.
A choice-of-law clause specifies where a dispute will be settled.
Some firms do not grant licenses to other firms because of the fear of having a strong
competitor upon the expiration of the license.
Family adjustment is not critical in the job performance of expats.
External forces in the international business environment are commonly called
uncontrollable forces.
Public relations includes the various methods of communicating with the firm’s publics,
including the governments where it operates, in order to secure a favorable impression.
Voluntary export restraints are imposed by the importing nation to avoid violating WTO
rules.
The proportion of merchandise exports coming from Asia increased by over 90 percent
between 1980 and 2010, with China accounting for nearly two-thirds of that increase.
Internalization theory suggests that what an organization is good at should not be
outsourced without very careful consideration.
The WTO supports trade with discrimination as a basic right of trading nations.
Climate differences explain differences in human and economic development because
the less temperate climates limit mental powers.
As global financial markets become more integrated, we can expect countries’ inflation
rates to vary over a small range.
The effectiveness of every organization depends, to a great extent, on how well its
human resources are used.
Leadership involves organizing a group of people in order to achieve a common
purpose or goal.
Transfer pricing is what the company charges for transfers within the company. It is a
bookkeeping cost of goods transferred across national borders.
Intellectual property includes patents and trademarks but not copyrights.
Direct investment refers to overseas purchases of stocks and bonds to gain a return on
the funds invested.
CeBIT is a horse-trading-related trade fair.
___________ is(are) economic data that serve as yardsticks for measuring the relative
market strengths of various geographic areas.
A. Market factors
B. Trend analysis
C. Cluster analysis
D. Market indicators
E. None of the above
Patagonia recognizes that doing business following the traditional approach, focusing
on quarterly earnings, is not complete because this does not focus on:
A. the negative impact of the business.
B. the cost of environmental sustainability.
C. consumer needs for green merchandise.
D. triple-bottom-line (3BL) accounting.
An assessment conducted on the chain of interlinked activities of an organization or set
of interconnected organizations and intended to determine where and to what extent
value is added to the final product or service is known as:
A. economic value added.
B. internal analysis.
C. value chain analysis.
D. SWOT analysis.
E. none of the above.
Credit availability, paying habits of customers, and rates of return are considered in the:
A. first screening.
B. second screening.
C. third screening.
D. fourth screening.
E. none of the above.
The segment approach requires that markets should be which of the following?
A. Accessible
B. Actionable
C. Profitable
D. All of the above
E. A and B
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.
Monochronic time is best illustrated by:
A. university scheduling patterns.
B. a rock concert.
C. high-context cultures, such as Arab and Asian cultures.
D. all of the above.
Of the 12 most common mistakes and pitfalls awaiting new exporters, which of the
following is not on the list in the textbook?
A. Failure to develop an international marketing plan
B. Treating international distributors on an equal basis with domestic counterparts
C. Insufficient care in selecting overseas distributors
D. Failure to get good advice
E. None of the above (They are all on the list.)
According to the text, recruitment of salespeople in foreign countries is at times more
difficult than recruiting them at home because:
A. of the stigma attached to selling that exists in some areas.
B. the salaries and benefits are more expensive.
C. of the need to hire people who are culturally acceptable to customers and channel
members.
D. all of the above.
E. two of A, B, and C.
At the beginning of 2010, the value of the outstanding stock of foreign direct
investment of all nations totaled more than:
A. $500 billion.
B. $3 trillion.
C. $12 trillion
D. $19 trillion.
E. $21 trillion.
According to the text, a large exhibition, generally held at the same place and same time
periodically, at which companies maintain booths to promote the sale of their products
is known as:
A. a trade mission.
B. a product introduction.
C. a trade show.
D. a trade fair.
E. none of the above.
In many cases, a firm entering international markets becomes a follower because:
A. barriers are high for new entrants.
B. strong patent protection exists.
C. quicker competition beats it.
D. all of the above.
E. two of A, B and C.
The WTO exists to:
A. establish and help implement rules of trade among nations in order to increase trade
flows.
B. monitor and reduce the amount of trade from developing nations to developed
nations.
C. ensure that the industrial revolution continues to support the economies of developed
nations.
D. B and C.
Action plans to enable organizations to reach their objectives are known as:
A. strategic plans.
B. competitive strategies.
C. policies.
D. procedures.
E. none of the above.
Disadvantages of the regionalized organization structure include:
A. the increased complexity of directing worldwide operations.
B. its inappropriateness for use in global companies.
C. its duplication of area and product specialists.
D. none of the above.
E. all of A, B, and C.
The various methods of communicating with the firm’s publics to secure a favorable
impression are:
A. advertising.
B. promotion.
C. public relations.
D. marketing.
E. none of the above.
World interest rates tend to vary across a small range because:
A. the IMF has been successful at promoting responsibility in the monetary sector.
B. world financial markets are integrated, so we see the law of one price at work.
C. bankers have low market appeal, given the financial crisis.
D. the BIS has coordinated monetary policy.
In some countries people are relatively loosely connected and tend to focus on
themselves and their immediate family. Hofstede would describe these countries as:
A. myopic.
B. xenophobic.
C. self-referential.
D. individualistic.
According to the text, the strategic planning process provides a formal structure in
which managers will:
A. analyze the company’s external and internal environments.
B. define the company’s business and mission.
C. formulate scenarios.
D. all of the above.
E. two of A, B, and C.
According to the text, personnel working in a foreign subsidiary are working in the
international environment:
A. if they work and live in the foreign subsidiary’s country.
B. if they are responsible for the subsidiary’s exports.
C. if they are also responsible for the management of another foreign subsidiary.
D. all of the above.
E. two of A, B, and C.
The only cultural framework described in the text that is based on communication styles
is:
A. Trompenaars’ dimensions.
B. the Globe study.
C. Hall’s high and low context.
D. Hofstede’s dimensions.
In order to really understand another culture:
A. living in it is important, but you don’t need to know the spoken language.
B. both the spoken and unspoken languages are important to understand.
C. the unspoken language is enough because it allows you access to the culture.
D. A and C.
The CE mark in the EU:
A. shows that an export license has been issued.
B. indicates the electric current, DC or AC.
C. shows that the product conforms to health and safety standards.
D. A and C.
When you assert that a certain aspect of your own culture is superior, you are probably
exhibiting:
A. objective observation.
B. ethnocentric behavior.
C. your understanding of truth.
D. your hunches.
Managerial functions associated with the movement of materials such as raw materials,
work in progress, or finished goods are referred to as:
A. standards.
B. processes.
C. logistics.
D. value chains.
E. none of the above.
Porter’s diamond is a model that offers an explanation of:
A. differing levels of success among the national players in world markets.
B. endowment factor differentials.
C. the impact of climate on development.
D. macro-level FDI.
Rare earths are a group of elements used in:
A. jewelry.
B. technology applications.
C. farming.
D. solar applications.
The Foreign Corrupt Practices Act has:
A. carried the discussion of transparency and corruption out into the open.
B. impaired American competitiveness abroad.
C. jailed legions of corrupt foreign executives in the United States.
D. introduced clear, concise terminology into the discussion of corruption.
E. been based on the United Kingdom Bribery Act.
A good example of the relationship between water supply and population concentration
is:
A. eastern Europe
B. China
C. Australia
D. Japan
If you already have a job, you can enhance your opportunities for international
experience by:
A. making your boss and the human resource management department personnel aware
of your interest.
B. meeting people in the home office who work with the company’s foreign
subsidiaries.
C. taking additional international business courses and making sure that people in your
company know what you are doing.
D. all of the above.
E. two of A, B, and C.
High levels of motivation in teams are likely when:
A. the rewards are substantial.
B. the team has low levels of diversity.
C. team members see one another as each member sees himself or herself.
D. the task is challenging.
E. A and B.
The inflation rate determines:
A. a currency’s strengthening.
B. the real price of borrowing in capital markets.
C. locations for outsourcing.
D. import substitution regimes.
Swiss exports are concentrated, high-density products that minimize the need for
importing bulky materials because:
A. mountain ranges increase transport costs into and out of Switzerland and limit local
resources.
B. the Swiss love of chocolate and watches influenced the export patterns.
C. high-density exports encounter lower tariffs.
D. B and C.
The present floating exchange rate system is not a totally free float because:
A. there is an exchange fee of 1.5 to 1.75 percent.
B. some governments refuse to allow foreign traders to trade their currency.
C. some central banks from time to time intervene in the market to buy or sell large
amounts of currency to affect the supply and demand of a particular currency.
D. A and B.
Discuss cluster analysis as a method of estimating market demand.
Explain the purpose of a mission statement, a vision statement, values statements, and
objectives.
What are the drawbacks of indirect exporting?
Briefly review the appeal of the gold standard, and comment on why it is not presently
in use.
Discuss the requirements of viable markets under the segment approach.
How do U.S. nonexporting firms often explain their avoidance of foreign markets?
One of the first issues the chapter addresses is the rule of law. Explain this concept’s
importance to an international manager.
What is supply chain management, and why is it an important issue for a company’s
international competitiveness?
Is triple-bottom-line accounting a reasonable approach to encourage businesses to take
responsibility for the impact of their actions on social and environmental systems, or
does it place an unrealistic burden on businesses to measure what may not be
measurable?
Select a country and show a relationship between its physical forces and its economy.
What are currency exchange controls, why are they used, and how might they influence
the international manager located in an exchange-controlled environment?
What are the disadvantages of joint ventures?
(p. 287)-What are the differences between traditional and global teams?
Discuss the advantages in focusing attention on a nation that is already a sizable
purchaser of goods coming from the exporter’s home country.
Identify and discuss the five major kinds of drivers that are leading international firms
to the globalization of their operations.
Describe the impact of the EU on a non-EU firm.
Explain the logic of mercantilism and why it is generally viewed as a deficient theory.
How could an IC benefit from leading and lagging?
