The UN Environment Programme laid the groundwork for the Climate Change
Convention, which led to the Kyoto Protocol.
Export pricing and sales agreements for foreign representatives are part of the
marketing mix.
In general, when the basic need for a product is absent, no reasonable expenditure of
effort is likely to enable a firm to market its goods or services.
Organizational change refers to the way that an organization formally arranges its
various domestic and international units and activities and the relationships among
these various organizational components.
Management should take the attitude that the stability of government policy is more
important than is the particular form of government of a country.
In the method favored by the majority of American ICs, the salary part of an expatriate
employee’s compensation package will generally be governed by the employee’s level
in the organization and will not be higher because of the foreign assignment.
Sustainable approaches in business usually involve trade-offs such as lower profits
compensated by reduced marketing costs and improved image/reputation.
The increasing pace of change and intensity of competition in many markets of the
world, as well as continued differences across many markets, are causing even large
experienced companies to delegate at least some decision-making authority to
subsidiary managers.
To protect an infant industry, trade restrictions might be effective.
In cases where the product serves the same function but must be adapted to different
conditions, the product may be left unchanged but a different message is required.
For purchases of capital goods such as manufacturing equipment, many U.S. buying
organizations now use “business-cycle costing” to analyze purchasing decisions.
The book value, or the value of the total outstanding stock, of all foreign direct
investment worldwide was $19 trillion at the beginning of 2010.
There are three points at which operating in a foreign currency raises accounting issues:
when transactions are made in foreign currencies, when foreign subsidiaries consolidate
their results to the parent company, and when debt is acquired in foreign currencies.
The proportion of the outstanding stock of foreign direct investment accounted for by
the United States declined by two-thirds between 1980 and 2010.
For a company interested in entering a foreign market, a report analyzing in detail all
five screening forces listed in the book is sufficient information.
With globally networked transportation, location does not matter as a basic factor
condition.
According to the text, any activity in the value chain can be outsourced except for
strategy and management.
Sir Isaac Newton established the price of gold in 1717 and de facto put England on the
gold standard.
To avoid an increase in price because the U.S. dollar has lost value versus the euro, an
American importer should require European exporters to quote their products in euros.
Strategic planning processes are something that only the company’s most senior
executives are involved with.
A disadvantage for companies that insist on less risky transactions, such as a letter of
credit, is that they may be losing business to competitors that sell on open accounts.
Supporters of globalization generally argue that it is the best strategy for advancing the
world’s economic development.
A fronting loan is used when the firm does not have the collateral or reputation to
borrow in a foreign environment.
Sales promotion provides the selling aids for the marketing function and includes
activities such as the preparation of point-of-purchase displays, contests, premiums,
trade show exhibits, money-off offers, and coupons.
The organization of an overseas sales force, the sales presentation, and training methods
are generally very similar to those employed in the home country.
Economic cooperation often begins with a common market, as in the case of the EU.
As humans, it is easier to think of ourselves as market segments that extend across
borders than as discrete country segments.
Scenario analysis can help managers to break away from their existing view of the
world and envision alternatives that might lie outside their traditional frame of
reference.
The United Nations operates with voluntary agreements, so it is essentially an informal
institution.
Through 2035, fossil fuels are expected to remain the world’s dominant energy source.
Quality control in foreign affiliates from the home office is less difficult when:
A. the quality inspectors are trained in the home office.
B. separate standards are used in each plant.
C. production equipment is similar.
D. the quality reports are sent to the home office at the same time.
E. two of the above.
Punitive damages in product liability cases can be awarded in:
A. Japan.
B. Japan and the EU.
C. the UK.
D. the United States
E. all of the above.
Financial forces such as inflation and taxation are considered uncontrollable because:
A. there is nothing a manager can do to adjust to them, so the recommended approach is
to ignore them.
B. they are external forces beyond the influence of the firm, around which a manager
can manage.
C. they are external to the firm and their influence is to be avoided.
D. they are unpredictable.
For expatriate employees, the salary portion of the compensation package is:
A. usually higher than that for employees at the same level in the home company.
B. usually lower than that for employees at the same level in the home company.
C. usually within the range of that for the employees at the same level in the home
company.
D. usually on a separate, expatriate schedule.
E. none of the above.
The main difference between a free trade area (FTA) and a customs union is that in a
customs union, there is:
A. no need for passport controls.
B. a shared border patrol.
C. shared currency.
D. a common external tariff.
The trend for firms in regard to country risk assessment (CRA) is to:
A. avoid it as an added cost in competitive markets.
B. concentrate much more on CRA in making decisions about foreign activities.
C. use CRA in obviously dangerous locations, but only in those situations.
D. all of the above.
E. two of A, B, and C.
An achievement culture is one in which members are:
A. rewarded with social status for who they are in a spiritual sense.
B. rewarded for what they do, what they have accomplished, and so what they are.
C. not rewarded at all because achievement is a doing mentality.
D. rewarded for their lineage.
The idea that WTO members treat all members equally is known as:
A. the transparency principle.
B. the fairness principle.
C. the equity and equality principle
D. the MFN (most-favored-nation) principle.
Balance-of-payments data:
A. reveal a country’s assets.
B. suggest areas of concern in monetary and fiscal policy.
C. reveal demand for a country’s currency.
D. show how the country’s currency arrangement (fixed, pegged, floating) is valued.
Two good places to begin country-level research are the websites of the:
A. CIA and UN.
B. UN and WTO.
C. BIAC and CIA.
D. specific country’s government and OECD.
Market screening is divided into:
A. environmental screening and country screening.
B. region screening and segment screening.
C. segment screening and environmental screening.
D. region screening and environmental screening.
E. country screening and segment screening.
International status is the status of:
A. every expatriate employee.
B. third-country nationals.
C. employees of international organizations.
D. the IC employee who is receiving all applicable allowances and bonuses plus perks.
E. two of the above.
According to the text, which of the following is true?
A. Zara’s competitive advantage comes from its stylish fashion design.
B. Zara’s supply chain management processes are combined with a strategy of limited
availability of its merchandise.
C. Two of A, B, and D.
D. Zara’s approach to the fashion industry enables it to dictate industry standards on
dimensions such as customer satisfaction and order fulfillment.
E. All of A, B, and D.
The final step in the screening process will generally include:
A. a field trip.
B. the use of secondary data.
C. a cost-benefit analysis.
D. a visit to a trade fair.
E. all of the above.
Trade names are protected under:
A. national laws in all UN member countries.
B. the International Convention for the Protection of Industrial Property.
C. many local laws in most countries, so illegal trademark use is a local issue.
D. long-standing convention, but no legal agreements.
E. the UN’s Office of Harmonization.
International business can be a powerful political force, in part because:
A. a recent Supreme Court ruling in the United States allows corporate contributions to
political races.
B. many top management team members are willing to accept roles with national
security agencies.
C. about half the world’s 100 largest economic units are firms.
D. business is all about achieving political goals.
E. two of the above.
Tactical plans:
A. are fairly broad compared to strategic plans.
B. spell out in detail how objectives will be reached.
C. are broad guidelines to assist in handling recurring problems.
D. are less specific than strategic plans.
E. two of the above.
Performance measures are done to:
A. all of B, C, and D.
B. measure the time the company takes to acculturate new employees.
C. determine if the strategy and its implementation are proceeding successfully.
D. assess assumptions about how the strategic lists affect the business.
E. two of B, C, and D.
With regard to the use of women versus men for expat management assignments:
A. few qualified women candidates are available.
B. few women candidates are accepting assignments and enjoying the experience.
C. those women who go into expatriate positions tend to do well. The hurdle is in
getting the assignment.
D. the women expatriates are making more money than their male counterparts.
E. two of the above.
Withholding tax is:
A. an indirect tax paid by employers before employees receive salaries.
B. a direct tax levied on earned income.
C. a 30 percent tax levied on foreign residents.
D. an indirect tax levied on passive income.
According to a 12-country study conducted by Ernst & Young, _____ percent of U.S.
companies are engaged in some form of strategic alliance.
A. 25
B. 50
C. 65
D. 75
E. 90
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 level of technology chosen may be:
A. all of B, C, and D.
B. intermediate technology.
C. capital-intensive.
D. labor-intensive.
E. two of B, C, and D.
The relationships among ecological, social, and economic systems in sustainable
environments need to be:
A. discreet.
B. renewable.
C. positive.
D. interdependent.
The international Fisher effect says that the interest rate differentials in any two
currencies reflect:
A. the ratio of their inflation rates minus COL
B. arbitrary differences in the two economies.
C. PPP differences in the two economies.
D. the expected change in their exchange rates.
The promotional mix includes:
A. personal selling.
B. product design.
C. pricing.
D. all of the above.
E. two of A, B, and C.
It is sensible for an IC to direct or allocate as much profit as reasonably possible to
subsidiaries in countries with:
A. two of B, C, and D.
B. the least currency controls.
C. lower taxes.
D. the highest rate of inflation.
E. all of B, C and D.
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
In order to strengthen the U.S. dollar, the Federal Reserve might sell yen and buy
dollars, in which case the yen functions as:
A. a stronger currency than the dollar.
B. an intervention currency.
C. an arbitrage currency.
D. none of the above.
If people consider the context and relationships when they make decisions about the
application of rules, they are likely to be:
A. universalist.
B. particularist.
C. achievement-oriented.
D. individualist.
Generalizations about TCNs are difficult because:
A. the IC usually does not know enough about their backgrounds.
B. the geocentric staffing policy prohibits these generalizations.
C. two of A, B, and D.
D. people achieve the TCN status in different ways.
E. all of A, B, and D.
International business really began:
A. with the East India Company, chartered in 1600.
B. when Singer Sewing Machine put up a factory in Scotland in 1868.
C. before the time of Christ.
D. when Colt Fire Arms set up a plant in England.
E. when the Ottoman Empire was established.
Coal pollutes heavily:
A. so its use has declined markedly in the past 15 years.
B. yet its consumption has increased and is projected to continue on this trend,
especially in China and India.
C. and contributes to greenhouse gas emissions, especially in China, India, and the
United States.
D. B and C.
Nancy Adler’s research suggests that women:
A. will never get to the top because they take time-out for children.
B. are more likely than men to succeed if they quit the company and start their own
businesses.
C. have been remarkably successful in international assignments, which does not seem
to be related to gender.
D. are less likely than men to succeed in international assignments.
E. two of the above.
Identify and briefly describe the six most commonly used promotional strategies.
Describe approaches to international dispute settlement.
Explain the different reasons for firms to enter foreign markets.
Explain the concept of sustainability as applied to business, using examples.
How are antitrust laws enforced?
Why should international managers study the religion of the country they are planning
to work in even if they are not especially interested in the general area of religion?
Discuss the arguments supporting and opposing globalization of trade and investment.
Discuss the three environments in which an international company operates.
What is the value of government-sponsored trade missions and trade fairs?
Please provide an overview of the major issues a compensation package for expatriates
should address.
What are the reasons that firms, both small and large, may engage in exporting?
How does the notion of sustainable business compare to Milton Friedman’s assertion
that the focus of business should be only on the bottom line?
Discuss the theory of absolute advantage and how it explains the basis for trade
between nations.
Discuss how new directions in the strategic planning process differ from the old
process.
Discuss Hall’s high- and low-context framework, and suggest how it might be useful in
an international business situation.
Discuss some cultural problems and technical difficulties in collecting primary data
abroad.
Describe the global product form, explain why a company might adopt this form, and
identify the disadvantages of this structure.
Why do industrial products or services generally require less modification for
international sales than do consumer products?
What are the options for global electronic procurement, and what are the benefits of
such systems?
Discuss barriers to trade, using examples to illustrate your points.