The EU does not apply its competition policy beyond the EU.
Michael Porter claims that demand conditions, factor conditions, related and supporting
industries, and firm strategy, structure, and rivalry, rather than government and chance,
are factors that affect national competitiveness.
The basic functions of domestic and international marketing are the same.
Manufacturing rationalization is a division of production among a number of
production units, thus enabling each to produce only a limited number of components
for all of a firm’s assembly plants.
The OECD and the U.S. Internal Revenue Service have issued guidelines on transfer
pricing because it has such critical tax implications.
Generally, it is easier for international firms to standardize the concepts of total quality
management and synchronous manufacturing in their foreign plants than it is to
standardize the actual production facilities.
Material culture includes all human-made objects.
The World Bank funds infrastructure projects in developed countries.
When operating in other cultures, if we realize that, underneath it all, we are all the
same, we will be fine.
Imports to a country can be a good indicator of the potential demand for a new product.
The goal of international strategy is to achieve and maintain a unique and valuable
competitive position both within a nation and globally, a position that has been termed
comparative advantage.
Market indicators and market factors measure market demand.
Companies decide to export to increase their sales and profits or to protect them from
being eroded.
Recently, regional trade agreements have grown, a trend that may be seen to strengthen
the WTO, according to the text.
After setting corporate objectives, the company management must define the company’s
vision and mission.
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.
With globally networked transportation, location does not matter as a basic factor
condition.
The specific-diffuse dimension has to do with social patterns for child rearing.
Sanctions against nations are not a form of trade restriction because the motivation is
political.
Retaliatory trade restrictions are not made for dumping because price competition is
protected by the WTO.
On an open account, the buyer assumes all of the payment risk.
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.
Out of all the pricing methods mentioned, the preferred one for sellers is
Ex-Works/factory door.
Trade missions consist of a group of people in search of business opportunities.
Stakeholder theory suggests that balancing competing tensions in a business is
impossible and that recognizing this early in the process is helpful.
In a typical matrix organization based on area and product dimensions, country
managers will be responsible to both the area managers and the product line managers.
Backward vertical integration establishes facilities to manufacture inputs used in the
production of a firm’s final product.
Strategic business units are an organizational form in which geographic divisions have
been defined as though they were distinct, independent businesses.
When a country imports more than it exports, the currency might be expected to
weaken.
Objectives direct the firm’s course of action, maintain it within the boundaries of the
stated mission, and ensure its continuing existence.
In two-career families, when one spouse accepts a foreign assignment and the other
spouse goes along, that other spouse is referred to as a trailing spouse.
In human resources, laws administered by the Equal Employment Opportunity
Commission, (EEOC) allow an American company to be successful on the cultural
front in all foreign labor markets.
If you are a Westerner and become victim of a miscellaneous law in a foreign country,
all you have to do is call your embassy and you’ll be released to your government.
A matrix organization involves two or more dimensions, such as area and product, in
which managers are at the same level but do not have overlapping responsibilities.
Zimbabwe is an example of:
A. a richly endowed country that has suffered because of government instability.
B. a government that expropriated private property, that is, nationalized it, and then
redistributed it.
C. a country whose leadership stole the 2008 election.
D. all of the above.
E. two of A, B, and C.
Export marketing plans should be specific about:
A. the markets to be developed.
B. the marketing strategy for servicing them.
C. the tactics required to make the strategy operational.
D. cash flow projections.
E. A, B, and C.
A regiocentric staffing policy:
A. involves human resource policies that are created at the local level for the specific
context in which the local operations operate.
B. may send TCNs to fill management posts, to avoid problems from using PCNs or
HCNs.
C. selects the best person for each job, without considering national origin.
D. two of the above.
E. all 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.
In examining the volume of international trade:
A. the proportion of manufacturing value added generated by South and East Asia has
quadrupled since 1980.
B. the proportion of manufacturing value added generated by Latin America has
doubled since 1980.
C. the proportion of world exports and imports accounted for by the 10 largest
exporting and importing nations exceeded 70 percent in 2010.
D. all of the above.
E. two of A, B, and C.
One way to avoid transaction exposure is to:
A. issue all bonds in the home currency.
B. use home-country currency for all transactions.
C. hedge the risk by a forward money market contract.
D. A and C.
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 have allowed the company to eliminate
inventory.
C. Two of A, B, and D.
D. Zara removes its product lines, including ones that have been selling well, every two
weeks or so.
E. All of A, B, and D.
The major function of the World Bank is to serve as a:
A. nonprofit banking cooperative for its members to meet development needs.
B. central bank for the world’s central bankers.
C. nonprofit cooperative to finance the educational needs of its members.
D. investor of funds in global businesses in order to create value for its shareholders.
Trade obstacles are considered to be legal forces because:
A. they often are based on legislation.
B. their compliance is costly to the firm and the consumer.
C. they are imposed by a formal institution and noncompliance can carry punishment.
D. two of the above.
E. all of A, B, and C.
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’ number, size, and financial strength
B. Competitors’ marketing strategies
C. Competitors’ product portfolios
D. Competitors’ coverage of the market
E. None of the above (All are identified as elements of the competitive forces used by
analysts.)
Foreign subsidiaries must obey the local laws. If they don’t, according to the text they
are subject to:
A. legal action by the host country.
B. two of A, C, and D.
C. seizure by the host government.
D. cancellation by the parent company of its right to do business in the host country.
E. all of A, C and D.
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.
The proportion of world commercial services exports accounted for by ____________
has evidenced an overall decline since 1980.
A. Asia
B. the Middle East
C. Latin America
D. all of the above
E. two of A, B, and C
The process of transferring value across borders is complex because it involves:
A. currency exchange rates.
B. restrictions on the movement of funds.
C. differing tax systems.
D. A, B, and C.
Incoterms attempt to standardize shipping agreements, and they include:
A. FAS and CIF.
B. CED and COD.
C. descriptions of portside processes.
D. insurance arrangements for international shipments.
E. performance guarantees.
A pioneering firm stands the best chance for long-term success in market-share
leadership and profitability when:
A. there are high entry barriers for competitors.
B. it has strong patent protection.
C. there are substantial investment requirements.
D. all of the above.
E. two of A, B, and C.
Qualifications for a good manager of an overseas operation should include:
A. all of B, C, and D.
B. being bicultural and bilingual.
C. knowing business practices in the home and host countries.
D. having more and different skills than domestic managers.
E. two of B, C, and D.
In a personal interview or phone survey situation, some respondents want to help the
interviewer out of politeness or just to please the interviewer. This is known as:
A. market research.
B. response bias.
C. interviewer bias.
D. social desirability bias.
E. none of the above.
Gift-giving in many cultures is marked by:
A. specific etiquette and meaning that may be markedly different from what the
international manager knows in the home culture.
B. graft and corruption; for example, a way to launder money.
C. humility not fitting an international manager.
D. drinking and late parties.
Porter’s Diamond Model of national advantage:
A. claims that the ability of local firms in a country to utilize the country’s resources to
gain a competitive advantage is based on demand conditions, factor conditions,
substitute products, and firm strategy, structure, and rivalry.
B. links intraindustry trade to relative levels of per capita income.
C. is not affected by chance.
D. all of A, B, and C.
E. two of A, B, and C.
ISO 9000:
A. is the most used standard for quality in the United States.
B. is a set of five universal standards for a quality assurance system agreed to by the
ISO.
C. ensures product quality.
D. all of A, B, and C.
E. two of A, B, and C.
Import duties can be set to encourage:
A. increased imports based on sales volumes.
B. local input.
C. price-fixing.
D. imports from other suppliers.
E. all of the above.
According to the text, manufacturers of ____________ rely more on personal selling
than on advertising to communicate with their overseas markets.
A. industrial products
B. consumer products, especially in developed countries
C. consumer products, especially in developing countries
D. all of the above.
E. two of A, B, and C.
Decision making in the international environment is __________ it is in a purely
domestic environment.
A. less complex than
B. less demanding than
C. more complex than
D. about the same as
E. two of the above
Nationalization and privatization are:
A. similar trends.
B. opposing trends.
C. both risks faced by privately held firms.
D. both risks not encountered in capitalist democracies.
E. two of the above.
WIPO is a:
A. UN agency that administers intellectual property treaties and advises countries on
intellectual property-related administrative issues.
B. WTO group opposed to patent extension and pro-generic.
C. part of the Club of Rome that lobbies for longer patent periods.
D. a research arm of the fuel cartel that has been advocating longer patent protection for
biofuel processing systems.
E. creation of the Paris Union.
Which country controls the export market of rare earths?
A. Brazil
B. Russia
C. the United States
D. China
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.
In spite of the advantages of global standardization, many firms find it necessary to:
A. use the domestic marketing mix overseas.
B. modify the present mix or develop a new one for overseas markets.
C. use different marketing mixes overseas, to save money.
D. two of the above.
E. all of A, B, and C.
This government commercialized the German Fischer-Tropsch process in order to
obtain oil from coal through a catalyzed chemical reaction:
A. Israel.
B. the Sudan.
C. South Africa.
D. Germany.
The WTO is the only international organization designed to establish and help
implement:
A. efforts at peace between nations.
B. rules of trade among nations.
C. security measures between nations.
D. strategic planning for developing nations.
When host-county nationals are employed:
A. training costs are a minimum.
B. they are familiar with local customs, culture, and language.
C. they are already familiar with the home country.
D. any conflict of interest is removed.
E. two of the above.
When considering where to export, advantages to managers of focusing on a nation that
is already a sizable purchaser of goods coming from the home country include:
A. the cultures of the two countries should be relatively similar and compatible.
B. the climate for foreign direct investment in the importing nation is relatively
favorable.
C. export and import regulations are not insurmountable.
D. all of the above.
E. two of A, B, 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.
The worldwide stock of outward FDI is estimated to have increased _______ between
1990 and 2010.
A. 3-fold
B. 5-fold
C. 9-fold
D. 12-fold
E. 17-fold