An advantage of the geocentric outlook to staffing is ________.
A) encouraging workers to appreciate the unique virtues of a particular country
B) giving people a flexible perspective for fitting operations to different countries
C) removing most behavioral barriers to fully adapting to the chosen local market
D) tapping learning opportunities around the world to generate ideas that enhance core
competencies
In the context of value chain analysis, the support activities of a firm include ________.
A) outbound logistics, human resources, and information systems
B) production, marketing, and operations
C) shipping and customer service
D) research and development
A manager practicing relativism would most likely ________.
A) adapt to local conditions instead of implementing home-country practices
B) enforce home-country laws on host-country employees and suppliers
C) refuse to change company policies and procedures to comply with local norms
D) apply universal laws to each country despite local customs and traditions
According to the PLC theory, what is the most likely reason that companies
manufacture products in locations with high labor rates during the introductory stage of
a product’s life cycle?
A) Doing so allows use of long production runs using capital-intensive methods.
B) Many consumers are willing to pay high costs for the newest products.
C) Transportation costs are reduced by focusing on markets in developed countries.
D) Import restrictions prevent production in countries other than the ones making
product innovations.
Which of the following is a condition that powered the worldwide spread of democracy
from 1970 onward?
A) Totalitarian regimes delivered acceptable economic progress to their populations.
B) Economic advances caused contentment among the working class and minimized the
need to push for democratic reforms.
C) Many groups were able to successfully challenge the legitimacy of democratic
systems.
D) Information and communications technologies broke down the ability of the state to
control access to uncensored information, especially that from foreign sources.
The Human Development Index measures the average achievements in a country on
three basic dimensions of human development, including ________.
A) promotion of cultural values
B) quantity of free time
C) extent of knowledge
D) sustainability
Using the same exchange rate to set the budget and monitor results ________.
A) allows management to focus on operating variances instead of exchange-rate
variances
B) enables management to focus on both operating and exchange-rate variances
C) is an illegal reporting method according to the FASB
D) is the only method that can be used in Europe
________ is the chance that political forces may change a country’s business
environment in ways that lead investors to lose some or all of the value of their
investment or be forced to accept a lower-than-projected rate of return.
A) Governmental risk
B) Operating risk
C) Transaction risk
D) Political risk
The internal financial reports provided by controllers are primarily used by all of the
following EXCEPT ________.
A) customers
B) investors
C) creditors
D) lenders
Ethnocentrism in international business refers to the ________.
A) study of group ethics and approaches to corporate social responsibility
B) comparison of the Protestant ethic with other religious views
C) belief that what works best at home should work best everywhere
D) ethnic segmentation of marketing programs within countries
In computing GNI, the value of a Ford car that is manufactured in Mexico using capital
from the United States would ________.
A) be added to the GNI of the United States as well as to the GNI and GDP of Mexico
B) not be added to the GNI of the United States but would be added to the GNI of
Mexico
C) only affect the computation of GDP and have no bearing on GNI
D) be added to the GNI of the United States but not the GNI of Mexico
If a Big Mac costs $3.41 in the United States and $2.67 in Argentina (the price of a Big
Mac in Argentine pesos converted into dollars at the spot exchange rate), which of the
following is most likely true?
A) The peso is overvalued against the dollar.
B) The dollar is overvalued against the peso.
C) It should be harder for a U.S. tourist to buy a leather coat in Buenos Aires because
the dollar won’t go very far.
D) It will be cheap for Argentine companies to invest in the United States because the
dollar is relatively weak.
Shelly, a sales manager at Best Computers, has recently moved from Dallas to Hong
Kong for an expatriate assignment. Shelly is feeling disoriented, irritable, and stressed
about her new job and living arrangements in Hong Kong, which means that she is most
likely experiencing ________.
A) uncertainty dislocation
B) melancholy
C) culture shock
D) cultural transition
Which of the following is the LEAST likely reason that consumers would prefer
domestically made products over imports?
A) belief that imports are subsidized
B) feelings of national pride and sentiment
C) negative associations with products from certain countries
D) concerns that parts will be difficult to obtain for foreign products
All of the following are generally true about trade-displaced workers EXCEPT that they
________.
A) move abroad to take new jobs
B) earn less in their new jobs than they earned in their old ones
C) spend their unemployment benefits on living rather than retraining
D) have difficulty finding new work because of educational deficiencies
What is a Eurodollar?
A) a euro held by an American
B) a U.S. dollar deposited in a European bank
C) a euro deposited in a U.S. bank.
D) any currency deposited in a country other than the country of issue
The term “cultural distance” refers to the ________.
A) physical space between people during communication
B) time it takes people to adjust to the language, traditions, and norms of a foreign
culture
C) degree to which countries differ on cultural dimensions
D) preferred relationship between superiors and subordinates in a given culture