The influence of organizational culture on change efforts is stronger than the influence
of national culture.
Foreign environmental forces act as deterrents to the international standardization of
advertising, and among the most influential of these forces are the sociocultural forces.
When a country needs new job creation, it follows that government officials will insist
on the use of labor-intensive processes.
Culture includes everything objective, and religion contains values and is thus not a part
of culture.
Global leaders confront more complex contexts than do domestic leaders.
Some evidence suggests that pioneers gain and maintain a competitive advantage in
new markets.
The specific-diffuse dimension has to do with social patterns for child rearing.
The ultimate managers of strategic planning and strategy making are the executive
board of a corporation.
Worldwide, nearly 50 percent of expatriate positions are held by women.
By accepting a time draft, the buyer assumes the responsibility for making payment at
maturity of the draft.
Promotion is the paid, nonpersonal presentation of ideas, goods, or services by an
identified sponsor.
Of all the promotional mix elements, personal selling has the greatest similarities
worldwide.
Switzerland exports cheese and chocolate because one of its factor endowments is lots
of rich agricultural land.
Country risks are increasingly political in nature.
Institutions are constructed to provide meaning and stability to social life, regulate the
relations of individuals to each other, and limit behavior of individuals and firms.
The decision of whether to finance by debt or equity may be influenced by the practices
of the local environment, that is, culture.
When a firm’s personnel have had no experience in a country, management should
probably use the company’s research personnel to conduct local market research.
International pricing involves setting prices of goods for export to both unrelated and
related firms.
Adam Smith explained how countries can benefit from international trade even if they
lack any absolute advantage over their trade partners.
Virtual team leadership is similar to co-located team leadership.
When operating in other cultures, if we realize that, underneath it all, we are all the
same, we will be fine.
A study of the liberal arts disciplines of history, political science, foreign languages, and
geography would be a helpful background for an aspiring global leader.
Mountains tend to impede trade, whereas flat areas tend to facilitate trade relationships.
Firms may choose to issue stock in foreign markets in order to tap into a broader
investor pool.
Licensing is a form of franchising.
A shipper’s export declaration (SED) is a document required by the U.S. Department of
Agriculture to control exports and supply export statistics.
A way to open up the cultural assumptions team members have is the
map-bridge-integrate model.
Contingency plans are developed in some firms for the best-and worst-case scenarios
and for critical events.
Lack of top management commitment to export is often a problem with new exporters.
A sales company is part of indirect exporting.
When people are kidnapped for ransom, the right response is to pay the ransom, get the
hostages released, and then retaliate.
An analysis of the forces controlled by the firm will include a situational analysis and
control analysis.
Nontariff barriers that are not quantitative can be divided into two groups, those that are
established by the government participation in trade and those that are administrative.
By and large, the UN record of facilitating business transactions has been minor.
The FTA’s Market Access and Compliance Department monitors foreign country
compliance with trade agreements.
Management would prefer global standardization of the marketing mix:
A. because each market demands it.
B. for cost savings.
C. to meet local conditions.
D. two of the above.
E. all of A, B, and C.
The international Fisher effect says that interest rate differentials:
A. predict exchange rate movement.
B. can be used to determine purchasing power parity.
C. are an example of the law of one price.
D. illustrate Pareto optimality.
In examining the volume of international trade:
A. exports of merchandise grew nearly fivefold between 1990 and 2010.
B. exports of services grew more than 10-fold between 1980 and 2010.
C. the proportion of world exports of commercial services accounted for by the United
States fell by nearly 20 percent between 1980 and 2010.
D. all of the above.
E. two of A, B, and C.
A structure organized by more than one dimension at the top level is known as a:
A. hybrid organization.
B. matrix organization.
C. matrix overlay.
D. network corporation.
E. virtual corporation.
Climate, topography, and natural resources are all considered part of the _________
stage of the country screening process.
A. basic needs
B. sociocultural
C. economic/financial
D. political
E. competitive
Generally, __________ products require greater modification to meet local market
requirements worldwide.
A. low-priced
B. maintenance
C. consumer
D. industrial
E. none of the above
Efforts to improve the efficiency and effectiveness of a firm’s international operations
are often referred to as:
A. offshoring.
B. outsourcing.
C. supply chain management.
D. subcontracting.
E. all of the above.
Whether the functional currency is local or the parent company’s currency, owner’s
equity is always translated at:
A. the rate in effect when the stock was issued.
B. the rate in effect the day of the consolidation.
C. the rate in effect the day of the journal entry.
D. the method of the company’s choice, but consistency is required.
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
Whereas Trompenaars was trained as an economist, Hofstede and Hall were trained as:
A. anthropologists.
B. business scholars.
C. accountants.
D. strategic planners.
Hofstede’s measure of the amount of effort a society puts into ordering the environment
and avoiding ambiguity is termed:
A. Truth.
B. flexibility.
C. ambiguity.
D. uncertainty avoidance.
NAFTA maintains restrictions on the movement of labor, a limitation that suggests it is:
A. a free trade area.
B. a common market.
C. not in compliance with WTO regulations.
D. B and C.
Control activities are the efforts to:
A. put plans into effect.
B. learn if plans are working as intended.
C. make corrections.
D. all of the above.
E. two of A, B, and C.
Legal uncertainties have affected international business, and:
A. they have prevented IB growth.
B. they have not, though, slowed down the growth of IB; instead, they have made it
more complex.
C. prices and insurance costs have risen.
D. fewer large businesses want to be involved across national borders due to the
uncertainties of the legal environment.
E. none of the above.
_____________ is used by management during the planning process to eliminate the
less desirable markets.
A. Market screening
B. Environmental scanning
C. Country screening
D. Segment screening
E. None of the above
In more dense populations, international managers can expect:
A. increased political discord.
B. markets that respond well to word-of-mouth promotion.
C. contrasting topographical features.
D. lower marketing and distribution costs.
Leadership may be influenced by sociocultural forces, and its model might be:
A. either anachronistic or contemporary.
B. reasoned, emotional, strategic, or planned.
C. exogenous or endogenous.
D. paternalistic, heroic, integrative, or directive.
In __________ screening, the important variables for segmentation are commonalities
in needs and wants among consumers across nationalities.
A. country
B. product
C. segment
D. cultural
E. none of the above.
Proximity is a factor in explaining:
A. a nation’s political system.
B. the number of a nation’s political and trade relationships.
C. language patterns.
D. demand conditions.
The promotional mix includes:
A. advertising.
B. sales promotion.
C. publicity.
D. all of the above.
E. two of A, B, and C.
Reasons for global standardization of manufacturing systems include:
A. simpler organization at headquarters.
B. less design time required for a new plant.
C. easier and more cost-effective purchasing.
D. all of A, B, and C.
E. two of A, B, and C.
The U.S. current account deficit can be explained by:
A. citizens of other nations wanting to hold dollars because the dollar is a stable
currency.
B. foreigners wanting to invest in the United States.
C. U.S. citizens importing more than they are exporting.
D. B and C.
Anyone studying legal forces affecting international business soon realizes that:
A. there is a remarkable level of coordination among legal systems in the developed
nations.
B. most laws are predictable, and that, although there is variance, what constitutes
illegal behavior is commonly shared.
C. the variety of these forces complicates the task of understanding the laws.
D. thanks to the World Court, officials in most legal systems are open to collaborating
with their international colleagues.
E. none of the above.
When a government requires a permit to purchase foreign currency, the exchange rates:
A. are market-driven.
B. can be negotiated by the firm.
C. are unpredictable.
D. are set by the government, often above the free market rate.
The Doha Development Agenda is:
A. a WTO plan to establish free trade among the emirates in the Persian Gulf.
B. the government seat of Qatar and source of significant WTO funding through Sheik
Kalifa al-Thani.
C. a UN plan to develop the Arab Emirates to ensure their independence.
D. an extended conference of the WTO initially convened in Doha.
Hilton and Delta provide assistance to other international companies. That is an
example of:
A. a joint venture.
B. a management contract.
C. a strategic alliance.
D. contract manufacturing.
E. licensing.
This material, when heated to 500C, will yield 25 liters or more per ton of input:
A. shale.
B. biomass.
C. natural gas.
D. light petroleum.
The marketed energy use has been dominated since 1980 by:
A. renewable energy sources.
B. nuclear energy and coal.
C. nonrenewable energy sources.
D. solar and wind power.
On a consignment sale, the payment risk is:
A. assumed by the buyer.
B. assumed to be equally shared.
C. carried by the seller.
D. covered by insurance.
E. covered by the bank issuing the L/C.
The SDR is:
A. a special deposit for corporate reimbursement.
B. special drawing rights, an international reserve asset.
C. a special deficit refund, made to compensate for currency devaluation.
D. a paper credit issued by the Bank for International Settlements.
A broad statement that defines the organization’s purpose and scope is known as a:
A. strategic plan.
B. mission statement.
C. vision statement.
D. values statement.
E. none of the above.
Project GLOBE found that:
A. all cultures think of leadership in the same way.
B. leadership is individualistic to each culture, with little overlap.
C. leadership is nonexistent in some developing countries.
D. leadership tends to be stable in developed economies and unstable in developing
economies.
E. some leadership traits are shared among all cultures
The reasons a government may nationalize a firm include:
A. to get government contracts.
B. to promote the ideology of capitalism.
C. to preserve jobs.
D. all of the above.
E. two of A, B, and C.
The geographical area that receives the most International Development Association
(IDA) credits and grants is:
A. East Asia.
B. Latin America and the Caribbean.
C. Africa.
D. Middle East.