Firms pursuing a(n) _____ have a low need for coordination between subunits.
A. global standardization strategy
B. localization strategy
C. transnational strategy
D. international strategy
The _____ occurs when a resource held in common by all, but owned by no one, is
overused by individuals, resulting in its degradation.
A. tragedy of the commons
B. moral ignorance
C. noblesse oblige
D. veil of ignorance
_____ allows the company to produce a wider variety of end products at a unit cost that
at one time could be achieved only through the mass production of a standardized
output.
A. Standardization
B. Kaizen
C. Six Sigma
D. Lean production
The most recent attempt to reenergize the free trade movement in Africa occurred in
early 2001, when _____, Uganda, and Tanzania, member states of the East African
Community (EAC), committed themselves to relaunching their bloc, 24 years after it
collapsed.
A. Sudan
B. Ethiopia
C. Kenya
D. Somalia
_____ are established through patents, copyrights, and trademarks.
A. Digital signatures
B. Ownership rights over private property
C. Origination fees and tributes
D. Ownership rights over intellectual property
_____ are export specialists that act as the export marketing department or international
department for their client firms.
A. Small Business Development Centers (SBDCs)
B. Centers for International Business Education and Research (CIBERs)
C. Export Legal Assistance Networks (ELANs)
D. Export Management Companies (EMCs)
After the Uruguay Round of GATT extended global trading rules to cover trade in
services, the first two industries targeted for reform by the WTO were:
A. textiles and technology.
B. telecommunications and financial services.
C. automotives and aerospace.
D. agriculture and consulting services.
Which of the following factors hinders globalization of consumer goods market?
A. National differences in tastes and preferences
B. Higher production costs in developed nations
C. Homogenization of material culture
D. Increased outsourcing of goods and services
When contemplating FDI, why do firms apparently prefer to acquire existing assets
rather than undertake greenfield investments?
A. Greenfield investments are characterized by reduced management control.
B. Mergers and acquisitions are preferred because most greenfield investments fail.
C. It is easier and less risky for a firm to build strategic assets than acquire similar
assets.
D. Mergers and acquisitions are quicker to execute than greenfield investments.
Mergers and acquisitions are quicker to execute than greenfield investments. This is an
important consideration in the modern business world where markets evolve very
rapidly.
_____ gives top-level managers the power and authority to be able to bring about
needed major organizational changes.
A. Personal control
B. Decentralization
C. Bureaucratic control
D. Centralization
Based on several studies, the data suggest that real wages:
A. for unskilled workers have decreased while real wages for skilled workers have
increased.
B. for both skilled and unskilled labor have decreased.
C. for both skilled and unskilled labor have increased.
D. for unskilled workers have increased while real wages for skilled worker have
decreased.
The extra profit that producers make when supply is artificially limited by an import
quota is referred to as a _____.
A. quota rent
B. specific tariff
C. tariff rate quota
D. subsidy
_____ include such factors as indictments against theft, adultery, incest, and
cannibalism.
A. Norms
B. Folkways
C. Mores
D. Values
Which of the following is a problem that arises due to an international division
structure?
A. In an international division structure, a firm’s international division tends to be
organized on products.
B. The heads of domestic functions are presumed to be able to represent the interests of
all countries to headquarters.
C. The heads of foreign subsidiaries are not given as much voice in the organization as
the heads of domestic functions or divisions.
D. The dual-hierarchy structure can lead to conflict and perpetual power struggles
between the areas and the product divisions.
The Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions excludes:
A. bribes made to secure contracts that would otherwise not be secured.
B. grease payments to gain exclusive preferential treatment.
C. facilitating payments made to expedite routine government action.
D. payments to government officials for special privileges.
Those in favor of floating exchange rate claim that ____.
A. uncertainty in monetary markets dampens the growth of international trade
B. inflation is beneficial to a country if it is controlled closely
C. trade imbalances can be adjusted by using floating exchange rates
D. governments can have rigid control over monetary markets by using floating rates
A(n) _____ strategy makes most sense when demands for local responsiveness are high,
but cost pressures are moderate or low.
A. global standardization
B. transnational
C. international
D. localization
Which of the following is an example of a basic factor that a nation will possess as
proposed by Porter?
A. Communication infrastructure
B. Skilled labor
C. Natural resources
D. Technological knowledge
Expatriate managers may experience more than the usual degree of pressure to violate
their personal ethics because of which of the following?
A. They are surrounded by their ordinary social context and supporting culture.
B. They are psychologically and geographically closer to the parent company.
C. They may be based in a culture that does not place the same value on ethical norms
important in the manager’s home country.
D. They may be surrounded by local employees who have more rigorous ethical
standards.
A push strategy is appropriate when:
A. there are many choices of electronic media.
B. the firm is selling consumer goods.
C. distribution channels are long.
D. the firm is selling complex new products.
Company A entered the production of office software before its competitors. Because of
this, the company’s products are more familiar among and favored by customers. This
situation exemplifies the _____.
A. first-mover advantage
B. diminishing marginal returns
C. economies of scale
D. constant marginal returns
When a company’s product has a low value-to-weight ratio, the company should:
A. produce the product from two or three optimal locations and ship products from
there.
B. manufacture products from a centralized location.
C. ignore transportation costs as they would only be a minor part.
D. produce the product in multiple locations close to major markets.
In the 1970s, the United States _____ which requires all publicly traded companies,
whether or not they are involved in international trade, to keep detailed records that
would reveal whether a violation of the act has occurred.
A. adopted the Convention on Combating Bribery of Foreign Public Officials in
International Business Transactions policy
B. passed the Foreign Corrupt Practices Act
C. joined Transparency International
D. joined the Organisation for Economic Co-operation and Development (OECD)
An international U.S.-based company sets up a production unit in a developing country
with poor environmental regulations. This contributes to the:
A. noblesse oblige situation.
B. inequity aversion.
C. global tragedy of the commons.
D. Friedman effect.
Which of the following is an example of ethnocentrism?
A. A manager in India looks down upon his subordinates because they are from a lower
caste, compared to him.
B. An upper-middle-class woman talks rudely to a sales person, because she looks
down upon individuals belonging to the working-class.
C. An American manager criticizes the cultural practices of Saudi Arabia, when he is
sent there on business, because it differs from his own cultural norms.
D. A French business owner, who plans to expand his market to China, conducts a
detailed cultural study of China to customize his marketing campaign.
The governments of both Canada and the United States are keen on adding other Latin
American countries to NAFTA.
An important drawback of a purely domestic capital market is that the:
A. investment does not receive protection from governments.
B. investments are riskier than in global capital markets.
C. market lacks a strong regulatory mechanism.
D. cost of capital tends to be higher than it is in a global market.
In a _____, any individual who has an innovative idea is free to try to make money out
of that idea by starting a business (by engaging in entrepreneurial activity).
A. command economy
B. planned economy
C. market economy
D. mixed economy
Which of the following combinations of exchange rates was recommended for
translating budget and performance by Lessard and Lorange?
A. Translating budget using projected rate and translating actual performance using
initial rate
B. Translating both actual performance and budget using initial rate
C. Translating budget using ending rate and translating actual performance using initial
rate
D. Translating both actual performance and budget using projected rate
Which of the following is a consequence of the emphasis on individual performance in
many Western societies?
A. Decreased entrepreneurship
B. High degree of managerial mobility
C. Increased loyalty towards an individual company
D. Executives are not exposed to different ways of doing business
Which of the following is the main principle of mercantilism?
A. Protection of domestic industries is not essential for a nation’s welfare.
B. Government intervention is not required in global trade.
C. Countries should encourage absolute free trade.
D. It is in a country’s best interests to maintain a trade surplus.
Which of the following is an example of a support activity in a firm’s value chain?
A. Research and development
B. Customer service
C. Human resources
D. Marketing and sales
Identify the theory that supports the view that, in some cases, countries export for the
reason that the world market can support only a limited number of firms.
A. Heckscher-Ohlin theory
B. Smith’s theory
C. Ricardo’s theory
D. New trade theory