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 are combined with a strategy of limited
availability of its merchandise.
C. Two of A, B, and D.
D. Zara’s approach to the fashion industry enables it to dictate industry standards on
dimensions such as customer satisfaction and order fulfillment.
E. All of A, B, and D.
Many of the Asian countries that are major exporters to the United States are also
significant importers of American goods because:
A. their rising standards of living enable their people to afford more imported products.
B. they are purchasing large amounts of capital goods to further their industrial
expansion.
C. they are importing raw materials and components that will be assembled and
subsequently be exported, often to the United States.
D. all of the above.
E. two of A, B, and C.
Most top managers:
A. prefer nonquantifiable, directional goals.
B. prefer nonquantifiable but verifiable goals.
C. prefer verifiable objectives.
D. have no preference as to quantifiable and nonquantifiable goals.
E. none of the above.
The law of one price is that:
A. only one price can be charged for an item in a contract deal.
B. in an efficient market, one price only is the permissible price.
C. in an efficient market, like goods will have like prices.
D. even in international markets, bait and switch is illegal.
According to the text, personnel working in a foreign subsidiary are working in the
international environment:
A. if they work and live in the foreign subsidiary’s country.
B. if they are responsible for the subsidiary’s exports.
C. if they are also responsible for the management of another foreign subsidiary.
D. all of the above.
E. two of A, B, and C.
Economies of scale and the experience curve:
A. explain how international trade in manufactured goods will be linked to gross
national income.
B. state that a nation will trade goods that can be produced with the production factor
that is most abundant.
C. explain why many companies will engage in international trade.
D. two of the above.
E. none of A, B, or C.
It has been estimated that at least ____________ percent of products currently on the
market were not available five years ago, creating additional pressure to locate suppliers
worldwide that can provide inputs at competitive prices and quality and with quick
responsiveness to market changes.
A. 30
B. 45
C. 50
D. 55
E. 60
In high-context cultures, face-to-face relationships tend to be important and:
A. knowledge is situational.
B. decisions focus around personal relationships.
C. long term.
D. all of the above.
What is the essential difference between an income tax and a VAT?
A. VAT is European; income tax is American.
B. VAT is indirect; income tax is direct.
C. VAT is greater than income tax.
D. VAT is reimbursable; income tax is not.
International business differs from domestic business in that a firm operating across
borders must deal with what environmental forces?
A. International
B. Foreign
C. Political
D. Competitive
E. Two of the above
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.
The principal ingredient(s) that a franchiser exports is:
A. a brand name.
B. marketing strategy.
C. a set of proven procedures.
D. two of the above.
E. all of A, B, and C.
In the area of shipment risk, ocean vessels assume:
A. all the risk for the safety of their cargo.
B. none of the risk for the safety of their cargo, except for negligence.
C. exporters or importers will have bought adequate insurance.
D. marine environments are usually safe.
E. half of the risk for the safety of their shipment.
The IMF initially played a central role in:
A. establishing trade initiatives through GAAP measures.
B. supporting war-torn nations of Europe as they recovered from their devastation.
C. setting fixed exchange rates among nations’ currencies with an established par value
based on gold.
D. the monitoring of EU initiatives to restrain trade with South Africa.
“Culture does not affect leadership attributes.” This statement is:
A. true, because leadership traits are universal.
B. true, because leadership is a top-down concept.
C. true, because the desire to be led is universal.
D. false, because all cultures understand what leadership is.
E. false, because traits understood as critical for leaders vary some by culture.
The analyst is mostly concerned with which of the following during the second
screening?
A. Trends in inflation
B. Interest rates
C. Exchange rates
D. All of the above
E. A and C
Instead of declining, this nonrenewable energy source, because of its lack of pollution
and the rising price of oil, has seen significant growth:
A. wind power.
B. nuclear power.
C. geothermal power.
D. petroleum.
The stakeholder model requires businesses to think about:
A. the stakeholders’ interest in profitability.
B. the network of tensions caused by competing demands.
C. strategy in light of sustainability.
D. the frequency of social issues faced by the stakeholders.
Which of the following is true about alliances?
A. Many alliance partners are also competitors.
B. Alliances are often difficult to manage.
C. The use of alliances is likely to decline as markets internationalize.
D. All of the above.
E. Two of A, B, and C.
_____ are paid by firms in recognition of the fact that expatriates and their families
undergo some hardships and inconveniences and make sacrifices while living abroad.
A. Bonuses
B. Allowances
C. Perks
D. Tax exemptions
E. Two of the above
The three largest markets for American exports of goods in 2010 were:
A. Japan, the UK, and China.
B. Japan, Mexico, and the UK.
C. Canada, Mexico, and China.
D. Canada, Japan, and the UK.
E. Japan, Mexico, and China.
The disadvantages of indirect exporting include:
A. foreign business can be lost if the exporter changes supply sources.
B. no expertise or large cash outlays are required.
C. the firm gains little experience from transactions.
D. two of the above.
E. all of A, B, and C.
Foreign trade zones are also called:
A. free trade zones.
B. transit zones.
C. free perimeters.
D. export processing zones.
E. all of the above.
The major globalization drivers include all of the following except:
A. competitive.
B. cultural.
C. cost.
D. market.
E. none of the above. All of the above are major kinds of globalization drivers identified
in the text.
The national defense argument for trade restrictions has been used in the United States
to argue for restriction on imports of:
A. munitions.
B. uniforms.
C. shoes.
D. all of the above.
E. two of A, B, and C.
Global teams are characterized by:
A. their virtuality and use of many media.
B. their geographic dispersion.
C. their diversity.
D. their differing member contexts.
E. all of the above.
That almost everyone in the United States self-identifies as middle class suggests that:
A. the United States is a successful meritocracy.
B. the United States measures low on the uncertainty avoidance dimension.
C. the U.S. economy has failed to support an aristocracy.
D. the United States measures small on the power distance dimension.
The Ottoman Empire’s powerful location raised the cost of Asian trade for the
Europeans and resulted in a search for sea routes to Asia.
The potential benefits of the virtual corporation concept include that:
A. it permits greater flexibility than is associated with more typical corporate structures.
B. virtual corporations form a network of static relationships that allow them to take
advantage of the competencies of other organizations.
C. this form of organization increases management’s control over the corporation’s
activities.
D. all of the above.
E. two of A, B, and C.
The attractions of using the Internet as an international advertising medium include:
A. a high number of users of the Internet read English or other common languages well.
B. Internet communications are two-way, rather than one-way like newspaper ads.
C. it is possible to tailor messages to the customer, based on answers to prior questions.
D. all of the above.
E. two of A, B, and C.