The traditional functions of purchasing, such as supplier determination, analysis, and
selection, have to be accomplished before the actual purchasing via e-procurement.
The effectiveness of supply chain management efforts is strongly influenced by how a
company manages the interface of logistics with sourcing and manufacturing.
As exemplified by companies such as Campbell’s, international firms seldom have to
change name, labels, or colors due to cultural differences.
The EU is a supranational body that has become, essentially, a regional government.
Value chain analysis is an assessment conducted on the chain of interlinked activities of
an organization or set of interconnected organizations, intended to determine where and
to what extent value is added to the final product or service.
A form of organization characterized by lateral decision processes, horizontal networks,
and a strong corporatewide business philosophy is a horizontal corporation.
A company headquartered in another country is known as a foreign business.
Every importer should know how the U.S. Customs calculates import duties and know
the importance of the product classification.
Triple-bottom-line accounting is built on the assumption that capitalism can become
humanized.
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.
Under a polycentric staffing orientation, ICs primarily hire HCNs for subsidiaries and
PCNs for headquarters’ positions, and movement from the local subsidiaries to
headquarters’ positions is common.
Some observers have argued that American industry and the American economy as a
whole will be strengthened by offshoring activities to workers in India or other nations
that have comparative advantages in areas such as labor costs.
The United Nations uses the term transnational to describe an enterprise doing business
in more than one country.
Direct exporting is an excellent means of getting a feel for international business
without committing a great amount of human or financial resources.
The planning process that begins at the highest level in the organization and continues
downward is top-down planning.
New exporters always come to the process with a carefully developed marketing
strategy.
Dunning’s eclectic theory of international production provides an explanation for the
choice by the international firm of its overseas production facilities.
Hofstede’s individualism-collectivism dimension measures the degree to which people
tend to be integrated into groups.
China, Mexico, and Japan are the three largest trading partners of the United States, in
terms of the total volume of imports and exports.
Scenarios are a particularly useful approach for international companies that face high
levels of change and uncertainty, because they allow management to anticipate and
prepare for opportunities and threats by predicting and controlling for these
developments.
According to the text, when a company offshores activities, it relocates those activities
to the facilities of another company that is located in a foreign location.
Linder’s theory of overlapping demand explains the direction of trade for minerals and
agricultural products.
Policy continuity and government stability are more important to a business than the
type of political system.
The practice of country risk assessment is an exercise in xenophobic and ethnocentric
thinking.
The combination of an openness to and awareness of diversity across cultures and
markets with a propensity and ability to synthesize across this diversity has been termed
a transnational mindset.
Emerging industry-based B2B exchanges can help optimize the supply chain across an
entire network of organizations, not merely within a single company.
When the historic growth rates of a product are known, future growth can be forecast
by means of trend analysis.
For controls to be effective, all operating units of an IC must provide headquarters with
timely, accurate, and complete reports, including those dealing with financial,
technological, market opportunity, and political and economic information.
Tariffs are categorized as financial and political forces, but they are usually not seen as
legal forces.
The only reason firms are nationalized is to spread a socialist-communist ideology.
Companies sometimes enter markets where strong competitors are in order to distract
their competitors from entering their own home market.
Which of the following dimensions has (have) been identified as being associated with
cross-cultural adjustment?
A. Work context
B. Gender
C. General environment
D. all of the above
E. two of A, B, and C
In the U.S. court system, tort claims may result in:
A. exceedingly large awards.
B. lower liability insurance.
C. a reduction in strict liability.
D. reduced liability insurance costs for foreign companies.
E. none of the above.
An argument against the protection of an infant industry is that:
A. in the long run the industry will have a competitive advantage.
B. firms need protection from imports until the required investment capital is obtained.
C. protection of emerging industries occurs only in developing nations.
D. there can be high costs from subsidizing infant industries.
E. Two of the above.
Most African nations have their main trade relationships:
A. within local FTAs.
B. with other African nations due to transport costs.
C. with developed nations, often built on former colonial ties.
D. with China.
The premiums charged by marine insurance companies on an international transaction
depend on:
A. the age of the ship.
B. whether the goods are stowed on deck or under deck.
C. the volume of business.
D. how the good are packed.
E. all of the above.
Individualism-collectivism measures:
A. the degree to which people in the culture are integrated into groups.
B. the tendency to differentiate male roles.
C. the degree to which social inequality is tolerated.
D. A and B.
According to trade theory:
A. traders need to know the exchange rate between their own currency and that of the
nation they are considering trading with before they can decide whether it is
advantageous to import, export, or buy locally.
B. if a currency’s exchange rate strengthens, then its exporters will no longer be able to
profitably export their products.
C. devaluation of a currency will automatically cause a nation’s products to be
price-competitive in international markets.
D. all of the above.
E. two of A, B, and C.
Services are generally less complex to market globally than:
A. consumer products.
B. industrial products.
C. luxury products.
D. basic consumer staples.
E. None of the above.
A culture’s sense of beauty and taste is:
A. universal, as described in Homer’s The Odyssey.
B. an aesthetic concern of no interest to the international manager.
C. an aesthetic concern that may interest the trailing spouse and is good to know a little
about.
D. expressed in the culture’s art and music and important for international managers to
know about.
The inflation rate determines:
A. a currency’s strengthening.
B. the real price of borrowing in capital markets.
C. locations for outsourcing.
D. import substitution regimes.
Mail surveys can be a difficult foreign market research tool because:
A. mail deliveries can take weeks.
B. sometimes mail is not delivered at all.
C. response rates for mail surveys may be low.
D. all of the above.
E. two of A, B, and C.
A global mindset involves:
A. a good, fundamental understanding of geography.
B. solid training in foreign languages and geography.
C. an openness to diversity and inclination to synthesize across its borders.
D. early foreign experiences.
E. A and D
A standardized global leadership development approach:
A. is under development by leading scholars.
B. has been available to firms for many years.
C. has reduced the complexity of global leadership development.
D. is unlikely, given the complexity of the process.
E. B and C.
The primary motivation of tariffs is to:
A. raise government revenue at the cost of importers.
B. raise the price of imports, to protect domestic goods.
C. punish countries over political issues.
D. encourage foreign consumption.
E. none of the above.
Whether to position a product as foreign or local is a basic cultural decision for the
marketer, and it seems to depend on:
A. the distribution channel being used.
B. the product type.
C. the target market.
D. all of the above.
E. two of A, B, and C.
In general, with regard to exchange controls, developed countries:
A. rarely use them.
B. use them only to discourage foreign investment.
C. use them when needed to implement monetary policy.
D. use them secretly.
Where are decisions made?
A. IC headquarters
B. Subsidiary headquarters
C. Cooperatively by IC and subsidiary
D. All of the above
E. Two of A, B, and C
In a code law country, a brand name belongs to the:
A. person registering it first.
B. person who uses it first.
C. company that uses it first.
D. person who registers it first under the Berlin Convention.
E. none of the above.
Wind power is sourced:
A. on land only.
B. on land and sea.
C. where altitudes permit.
D. in the Swiss Alps.
Every continent has inland waterways that provide inexpensive access to interior
markets except:
A. Russia.
B. North Africa.
C. Australia.
D. North America.
Hall’s high and low context is based upon communication styles and specifically on the
role of:
A. the speakers.
B. nonverbal behavior.
C. the medium.
D. context.
The common characteristic of multinationals that are organized by function at the upper
level is a narrow:
A. and highly integrated product mix.
B. and highly integrated customer list.
C. variation of prices in the product mix.
D. research and development effort.
E. none of the above
In general, the deeper the desired immediate market penetration is:
A. the more the physical product should be standardized.
B. the greater the product must be modified.
C. the more the total product should be standardized.
D. the lower the pricing must be.
E. none of the above.
The total product:
A. all of B, C, and D.
B. includes the accessories, and after-sales service.
C. includes after-sales service.
D. includes warranty and instructions for use.
E. two of B, C, and D.
Arbitration is a private solution that is:
A. often preferred by foreign litigants because it is perceived as fairer, faster, cheaper,
and more confidential than are the courts.
B. favored by international unions.
C. recommended by the UN for international companies facing litigation in developing
countries.
D. two of the above.
E. all of A, B, and C.
Plans for the best-or worst-case scenarios or for critical events that could have a severe
impact on the firm are known as:
A. scenario plans.
B. strategic plans.
C. contingency plans.
D. emergency plans.
E. none of the above.
Environmental scanning is mostly used:
A. during the planning process.
B. to gather information on market weaknesses.
C. to obtain information on opportunities and threats.
D. all of the above.
E. A and C.
Which of the following are reasons that many firms engage in exporting?
A. Exports can allow the firm to meet customer requests for the firm to export.
B. Exports can help a company to remain price competitive in the home market.
C. Exports are the best way for gaining information about foreign markets and
competition.
D. All of the above.
E. Two of A, B, and C.
A global mindset:
A. is a “prerequisite for global industry dominance.”
B. combines an openness to and awareness of diversity across cultures and markets
with a propensity and an ability to synthesize across this diversity.
C. results from a combination of training and language skills.
D. all of the above.
E. two of A, B, and C.
The characteristics of Hofstede’s long-term orientation include:
A. social order and hierarchical relationships.
B. perseverance, pragmatism, and hierarchy.
C. the centrality of spending.
D. planning in the medium-short term.