The product global corporate form eliminates the duplication of product and area
specialists.
The local manufacturing organization is usually integrated vertically to a greater extent
than the parent company is.
Allowances are paid by firms in recognition of the fact that expatriates and their
families undergo hardship and make sacrifices while living abroad.
Parent-company nationals commonly encounter difficulty overcoming the biases of
their own cultural experience and being able to understand and perform effectively
within a new operating context.
Trade restrictions violate the spirit of the WTO.
Companies pursuing a home replication strategy typically centralize product
development functions in their home country and then transfer innovations to foreign
markets in order to capture additional value.
In a money market hedge, the firm matches the balance sheet asset with a liability in the
same currency.
Export merchants are exporters that sell for the manufacturer but do not take ownership
of the product.
Arbitration is less popular than legal proceedings, largely because arbitration is more
expensive.
Recruiting salespeople in foreign countries is less difficult than recruiting them in the
home country.
An expatriate is a person living outside his or her country of birth.
Because large multinationals generate an average of nearly two-thirds of their revenues
within their home region, some researchers have suggested that a regional strategy
perspective is more appropriate than a global perspective.
Trademarks can include a shape, a color, or a sound.
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.
Expatriate assignments have been reported to lead to faster promotions.
Direct investment refers to overseas purchases of stocks and bonds to gain a return on
the funds invested.
The marketing of services, sometimes called intangibles, is similar to the marketing of
consumer products in that these products are generally harder to market globally than
industrial products.
International freight, insurance, and packing can add as much as 8 to 10 percent to the
quoted price, depending on the sales term used.
Producing a factory ready to operate is similar to producing a turnkey project.
No worldwide court has the power to enforce its decrees.
The disadvantages of using employees from the home or host countries can sometimes
be avoided by sending third-country nationals to fill management posts.
Multiplicity and interdependence are among the four dimensions of complexity
identified by scholars.
Opponents of globalization argue that globalization has contributed to an improvement
in environmental and health conditions.
Worldwide, nearly 50 percent of expatriate positions are held by women.
The number of FX markets, along with floating exchange rates, varying country
inflation rates, advances in technology for the management of cash, and the growth of
the derivatives market are among the conditions that have led to the growth of
international finance centers.
The physical product includes the total product, brand name, accessories, after-sales
service, warranty and instructions for use, company image, and package.
Product standards ostensibly set to protect a nation’s citizens can be effective in
protecting local industry from foreign competitors.
Perks are symbols of rank in the corporate hierarchy and are used to compensate
executives while minimizing taxes.
Compassion has nothing to do with sustainable business. Business is business.
New exporters often fail to provide local language translation of service, sales, and
warrantee information.
New types of dumping include concession dumping.
In high-context cultures, relationships tend to be:
A. short term.
B. medium term, except for family.
C. long term.
D. pragmatic.
A global company is:
A. a business whose activities involve crossing national borders.
B. the domestic operations within a foreign country.
C. an organization with multicountry affiliates.
D. an organization that attempts to standardize operations worldwide.
E. two of the above.
The main transportation artery of Europe is the:
A. Venice canal system.
B. Danube-Dresden waterway.
C. Lake Constantine system.
D. Rhine waterway.
The area with the greatest capacities in renewables as of 2010 is:
A. the United States.
B. European Union.
C. India.
D. Japan.
Regarding the volume of international trade, exports of goods and services
___________ in 2010.
A. were nearly $4.0 trillion
B. reached $5.8 trillion
C. were $10.4 trillion
D. were nearly $19.0 trillion
E. exceeded $24.5 trillion
GLED and Right Stuff are models for:
A. developing global leaders.
B. developing and assessing global assignees.
C. understanding global leadership situations.
D. evaluating global leadership performance.
E. understanding global leadership deficits.
Reengineering is:
A. the redesign of the company’s products to improve the quality.
B. the significant reduction of middle management.
C. the empowerment of employees.
D. two of the above.
E. all of A, B, and C.
Some methods for the IC to maintain control of less than 50 percent-owned
organizations are:
A. all of B, C, and D.
B. a management contract.
C. control of the finances or technology.
D. putting people from the IC in important executive positions.
E. two of B, C, and D.
Evidence suggests that:
A. the Internet can be an effective tool in personal selling, when used to build trust.
B. the Internet is more effective in personal selling than is face-to-face communication.
C. the Internet is an inappropriate choice for personal selling when trust building is
important.
D. all of the above.
E. two of A, B, and C.
What is appealing about the gold standard is:
A. everyone loves gold.
B. its simplicity.
C. its transportability.
D. its carrying costs.
Which of the following is(are) true about the spouses of expatriates?
A. Many are unable to legally work in the host nation.
B. Nearly one-quarter were employed during the course of the expat assignment.
C. Many experience stages of grief, similar to the loss of a loved one, due to career
effects of the assignment.
D. Two of the above.
E. All of A, B, and C.
By means of a licensing agreement:
A. an international firm receives permission from a foreign government to set up a
subsidiary in that country.
B. one firm grants to another the right to use stipulated parts of its expertise.
C. a foreign company receives products made for it by another company.
D. one firm grants to another the right to use all of its expertise.
E. two of the above.
The major argument against 3BL is that:
A. companies don’t want the public to know what they are doing.
B. social and environmental impacts cannot be measured as well as can economic
results.
C. measurement won’t get us closer to the desired state.
D. A and B.
Dumping is:
A. selling a product abroad for less than its production cost in the importing nation.
B. selling a product abroad for less than the market price in the export nation.
C. exporting a product to a third country without correct documentation.
D. two of the above.
E. all of A, B, and C.
This is the cleanest of the nonrenewable fuel sources, and it has become a substitute for
oil as oil prices increase:
A. natural gas.
B. diesel.
C. nuclear.
D. kerosene.
Which of the following is(are) true about assistance provided to the spouses of
expatriates?
A. Over half of companies provide education or training assistance to spouses.
B. Nearly 70 percent of companies provide language training to spouses.
C. About one-quarter of companies sponsor work permits.
D. Two of the above.
E. All of A, B, and C.
In a forward market hedge for transaction exposure, the firm sells forward:
A. foreign currency receivables for the home currency, matched to the due date of the
receivables.
B. domestic currency receivables for the foreign currency, matched to the due date of
the receivable.
C. its anticipated sales in the foreign currency.
D. its projected earnings in the foreign currency, which will be repatriated.
The International Trade Administration (ITA) is a good place for U.S. beginning
exporters to start out.
Financial statements in Germany and the United States are:
A. vastly different.
B. exactly the same, allowing for comparisons.
C. the same in all areas except for the income statement.
D. the same in only the income statement; they are different in all other areas.
Market size, market growth rate, and e-commerce indexes are all part of:
A. market factors.
B. trend analysis.
C. cluster analysis.
D. market indicators.
E. none of the above.
Opponents of globalization argue that globalization has produced:
A. more and better jobs.
B. deleterious effects on labor and labor standards.
C. uneven results across nations and people.
D. all of the above.
E. two of A, B, and C.
Climate influences:
A. intelligence and energy levels, per the North-South divide.
B. what people can do, physically and economically.
C. levels of emotional well-being.
D. adjustment and motivation.
An organization in which top-level divisions are required to heed input from a staff
composed of experts of another organizational dimension in an attempt to avoid the
double-reporting difficulty of a matrix organization but still mesh two or more
dimensions is known as a:
A. hybrid organization.
B. matrix organization.
C. matrix overlay.
D. network corporation.
E. virtual corporation.
Intermediate technology is:
A. technology between the capital-and labor-intensive processes.
B. synonymous with necessary technology.
C. older technology previously used by multinationals.
D. A and C.
In the process of bridging, team members:
A. discuss their similarities.
B. relate their personal histories.
C. decenter.
D. discuss their task-relevant skills.
E. A and E.
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.
In debt markets, the corporate trend is to:
A. raise debt-based capital in the home country first.
B. raise debt capital in the local markets first.
C. raise equity capital first.
D. rely first on retained earnings before debt is incurred.
The FCPA includes:
A. wording consistent with the United Kingdom Bribery Act to facilitate application
globally.
B. specific explicit rules with clear definitions of terms that U.S. companies must
follow in their foreign operations.
C. all accounting processes, including the accounting of transfer payments.
D. foreign tax liabilities and other adjustments specific to business outside the home
country.
E. uncertainties that make its application problematic.
Which of the following are not identified in the text as being elements of the
competitive forces that an analyst uses to examine markets?
A. Competitors’ market shares
B. Competitors’ marketing strategies
C. Competitors’ staffing levels
D. Competitors’ levels of after-sales service
E. None of the above (All are identified as elements of the competitive forces used by
analysts.)
If people belong to strong, cohesive in-groups that look after them in exchange for
loyalty, the culture is likely to be:
A. low context.
B. collectivist.
C. economically underdeveloped.
D. democratic.
Economic integration often progresses:
A. in stages, from free trade area to customs union to common market.
B. in stages, totally dependent on the members’ national economic strength.
C. as a result of cultural beliefs and economic strength.
D. in unpredictable ways due to unintended consequences.
The most common form of direct government participation in trade is:
A. the subsidy.
B. shipping on national vessels.
C. import duties.
D. a combination of the above.
E. none of the above.
