Leadership traits may vary some by culture, but underneath they build on the idea that
all people want to be led and directed.
A confirmed letter of credit guarantees payment to the seller.
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.
One way that the WTO defines dumping is the selling of a product abroad for less than
the average cost of production in the importing nation.
Management contracts can enable the global partner to control many aspects of a joint
venture even when holding only a minority position.
The UN General Assembly is the main staff organization responsible for the UN
administration.
According to the text, the process of coordinating and integrating the flow of materials,
information, finances, and services within and among companies in the value chain is
called operations management.
Entering foreign markets may be described by two levels of involvement,
nonequity-and equity-based.
If a Chinese worker earns $1 a day, then goods produced by this worker will cost less
than the same goods produced by an American earning $18 an hour.
A common cause of the added complexity of foreign environments is managers’
unfamiliarity with other cultures and is called self-reference syndrome.
The Bank for International Settlements is like a central bank for central bankers.
The Bank for International Settlements operates as the banker for central banks.
The Bretton Woods system led to minimal growth in international trade but helped to
reduce inflation levels.
Most virtual teams meet at their launch and during crisis.
Moving funds can reduce tax exposure in high-tax locales and can be used as a way to
address limitations placed by foreign governments on the repatriation of profits.
Transformational experiences are a recommended part of preparation for global
leadership.
When the U.S. military contracts out security details in war zones, it is engaged in
privatization.
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 called a hybrid organization.
Parent-country nationals usually are not knowledgeable about the host-country culture
and language, but many such expatriates have adapted, learned the language, and
become thoroughly accepted in the host country, which allows them to avoid any biases
of their own cultural experience and to be able to understand and perform effectively
within the new operating context.
Environmental sustainability is about maintaining the environment, and it is both local
and global.
According to the text, a concurrent engineering approach to design promotes
cross-functional participation in the design process and thereby helps to identify and
avoid many of the potential sourcing, manufacturing, and other difficulties that can be
associated with a particular design.
Facebook is a social institution based on free association.
When possible, it is better for companies to initially outsource complex activities in
order to achieve better cost benefits.
Assessing global leadership skills is a well-understood, basic process.
The type of structure that simplifies the task of directing worldwide operations because
every country in the world is clearly under the control of someone who is in contact
with headquarters is global product.
Team norms are legitimate, shared standards against which the appropriateness of
behavior can be evaluated.
The standardization of processes and machinery provides a reasonable guarantee that
parts manufactured in the firm’s various plants will be interchangeable.
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.
The national defense argument for trade restrictions suggests that some industries, even
if they are not competitive, need protection from imports.
Nonrenewable energy sources include coal, fossil fuels, and ocean thermal energy
conversion.
A nation’s relative ability to design, produce, distribute, or service products within an
international trading context, while earning increasing returns on its resources, is known
as national competitiveness.
International firms must export their products or services in order to establish and
expand their overseas operations.
The L/C sets up the bank as an intermediary between the seller and the buyer and
reduces risk of nonpayment.
The development of expanded regional trade agreements, such as the Association of
Southeast Asian Nations, Mercosur, and the EU, can substantially alter the level and
proportion of trade flows within and across regions.
Cultural attitudes toward change can influence the acceptance of new production
methods.
The Bretton Woods Conference established the European Union currency, the euro.
The relationships among ecological, social, and economic systems in sustainable
environments need to be:
A. discreet.
B. renewable.
C. positive.
D. interdependent.
A foreign currency sale is recorded as revenue, using the exchange rate:
A. on the date of the sale.
B. on the date the balance sheet is consolidated to financial reports.
C. on a historical average over the period between the sale and the consolidation.
D. that the company decides to use.
Countries put limitations on the convertibility of their currency when they are
concerned that:
A. there is too much domestic spending.
B. foreigners will hold control of their monetary policy.
C. their foreign reserves could be depleted.
D. there is not enough domestic spending.
The following arrangement can provide a firm with foreign products:
A. overseas joint venture.
B. overseas independent contractor.
C. foreign sales office.
D. two of the above.
E. all of A, B, and C.
WIPO and TRIPS represent:
A. patent harmonization agreements in Southeast Asia and the EU, respectively.
B. anticounterfeiting agreements in Korea and North America, respectively.
C. WTO and UN agreements on IP.
D. UN and WTO agencies or programs that focus on IP.
E. international governments during litigation at the World Court.
The international business manager can choose to:
A. transfer a management practice intact.
B. transfer and adjust a management practice.
C. not transfer a management practice at all.
D. two of A, B, and C.
E. all of A, B, and C.
Purchasing power parity is a way to compare:
A. the purchasing power of several currencies.
B. tastes in several different cultures.
C. the impact of financial aid in several economies.
D. meals in the quick-service restaurant sector—via the Big Mac index.
The price of gold since about 1200 A.D. has been:
A. trending downward.
B. flat, keeping its value.
C. wildly fluctuating.
D. trending upward.
The current account on the BOP has three subaccounts:
A. export, import, and capital.
B. tangible exports, tariff revenues, and capital.
C. fixed assets, current liabilities, and long-term debt.
D. merchandise, services, and unilateral transfers.
Hiring and promoting employees on the basis of the specific local context in which the
subsidiary operates refers to:
A. an ethnocentric orientation.
B. a polycentric orientation.
C. a regiocentric orientation.
D. a geocentric orientation.
E. none of the above.
The Alien Tort Statute allows foreigners to:
A. sue in U.S. courts for residency in the United States.
B. file claims in U.S. courts for violations of international law that may have occurred
beyond U.S. borders.
C. file claims in U.S. courts for alleged violations of foreign laws.
D. file claims against other foreign nationals for violations of U.S. EEOC law.
E. avoid prosecution from U.S. laws as long as they live, work, and have citizenship in
another country.
Before accepting a foreign posting and becoming an expatriate, you should:
A. arrange with someone fairly high in the home-country company to be your mentor
and look out for your interests.
B. insist that the bosses tell you exactly what the company expects you to accomplish.
C. try to assess how your family will adopt to the major changes involved.
D. all the above.
E. two of A, B, and C.
Hall suggests that communication tends to be implicit and indirect in:
A. the United States.
B. high context (HC).
C. low context (LC).
D. Australia.
The effectiveness of every organization depends to a great extent on how well its:
A. human resources are utilized.
B. production facilities are operated.
C. financial resources are planned.
D. all of the above.
E. two of A, B, and C.
Whereas Trompenaars was trained as an economist, Hofstede and Hall were trained as:
A. anthropologists.
B. business scholars.
C. accountants.
D. strategic planners.
Virtual teams that meet frequently to build trust are said to:
A. live in airport terminals.
B. have nomadic norms.
C. have high levels of consideration.
D. B and C.
E. create a regular heartbeat.
World Bank studies have shown that underdevelopment is often due to:
A. factors such as parasites and viruses that are a part of tropical climates and expand
unchecked because of the lack of winter temperatures.
B. mental slowness in people of the climates around the equator.
C. socialist political regimes.
D. lack of government investment in education.
What is an export license?
A. Permission from the U.S. government to export
B. An international quality performance rating
C. A shipping qualification
D. Permission from the top management team to export
E. Permission to transfer domestic currency abroad
A strategic plan:
A. will be prepared when the tactical plan is finalized.
B. describes how the firm’s goals will be met.
C. contains sales forecasts and budgets.
D. all of the above.
E. two of A, B, and C.
The EMU (European Monetary Union or Economic and Monetary Union) has
established the euro, a currency that is used in:
A. all of the EU.
B. all of the EU and much of the rest of Europe.
C. 16 of the EU member-countries.
D. the Bank for International Settlements and the IMF.
In a small power distance culture:
A. people will want direction, so top-down leadership styles are appropriate.
B. seniority, rank, and title are important.
C. first names are likely to be used in the office because the ideal is equality.
D. A and C.
Documented agreements containing technical specifications or other precise criteria that
will be used consistently as guidelines, rules, or definitions of the characteristics of a
product, process, or service are referred to as:
A. standards.
B. processes.
C. logistics.
D. value chains.
E. none of the above.
Facebook is:
A. an organization based on kinship.
B. an organization based on free association.
C. a tool that international marketers best avoid, given the complexities of culture.
D. a passing fad that will absorb many marketing budgets but won’t produce much in
the way of results.
Reliance on subsidiary management can depend on items such as:
A. two of B, C, and E.
B. how well the executives know one another.
C. IC management understanding host-country conditions.
D. all of B, C, and E.
E. the financial condition of the parent company.
Organizational structure:
A. refers to the way that an organization formally arranges its various domestic and
international units and activities and the relationships among these organizational
components.
B. helps to determine where formal power and authority will be located within the
organization.
C. is primarily created and evolved by senior management.
D. all of the above.
E. two of A, B, and C.
The segment approach requires that markets should be which of the following?
A. Accessible
B. Actionable
C. Profitable
D. All of the above
E. A and B
Tax liability on foreign earnings is controlled by:
A. the tax treaties in place between the two relevant countries.
B. the tax rates in the local jurisdictions.
C. how the foreign operations of a company are organized.
D. negotiations between the company and the host country.
(p.139)-According to the text, the fastest-growing renewable energy source is:
A. solar PV.
B. nuclear power.
C. wind power.
D. biomass.
The U.S. Export-Import Bank (Ex-Im Bank) offers the following:
A. export credit insurance.
B. guarantees.
C. direct and intermediary loans.
D. Working Capital Guarantee.
E. all of the above.
An export bill of lading serves as:
A. a contract for carriage between the shipper and the carrier.
B. a receipt from the carrier for the goods shipped.
C. a certificate of ownership.
D. a receipt for the IRS.
E. A, B, and C.