Ten high-technology companies joined forces to produce and market their products in
China. By joining together, these companies were able to enter the Chinese market for
the first time. A good name for this type of arrangement is a consortium.
Uruguay is a member of NAFT
A.
Which of the following is true of free trade zones (FTZs)?
A. In an FTZ, payment of import duties is postponed until the product leaves the FTZ
area and enters the country.
B. FTZs operate throughout the world, replacing imported goods with domestic goods.
C. An FTZ is, in essence, a taxable enclave and considered part of the country as far as
import regulations are concerned.
D. An FTZ benefits export companies but does not offer any advantages to an importer.
E. The creation of FTZs typically increases taxes, duties, surcharges, and freight
charges on imported goods.
In the context of international business negotiations, even in countries where women do
not participate in management, American female negotiators are first treated as _____.
A. distractions
B. ignorant people
C. incompetent people
D. foreigners
E. inexperienced people
The _____ is a multicountry agreement that has established a regional patent system
that allows any nationality to file a single international application for a European
patent.
A. Madrid Arrangement
B. Paris Convention
C. TRIPs Agreement
D. Basel Convention
E. European Patent Convention
Which of the following countries rejected the euro?
A. Austria
B. Greece
C. Finland
D. Denmark
E. Spain
Which of the following arrangements are undertaken when a firm wants to keep its
seasonal distribution channels functioning throughout the year?
A. Price skimming.
B. Using the services of a trading company.
C. Establishing a retail store.
D. Using the services of an export management company.
E. Complementary marketing.
Mary is a new international sales rep for an industrial supply company. She will learn
that the inherent nature of industrial goods creates a market where:
A. firms engage in a high degree of customization.
B. most of the production and sale of a good takes place in the domestic market.
C. product and marketing mix standardization are commonplace.
D. the demand for the good produced is relatively predictable and stable.
E. the buyer seeks satisfaction from the product.
In 1561, _____ came to Europe from the Near East, via the Dutch traders, for the first
time.
A. tulips
B. roses
C. chrysanthemums
D. sunflowers
E. carnations
“Slammer,” “Melissa,” and “Goner worm” are all examples of:
A. viruses damaging the Internet.
B. politically sensitive products.
C. third-world diseases.
D. hackers intent on attacking multinational businesses.
E. new video games espousing Internet crime.
With _____, the seller assumes all risk until the actual dollars are received.
A. open accounts
B. irrevocable letters of credit
C. dollar drafts
D. factoring
E. forfaiting
Why are German and Japanese firms generally better at managing market volatility than
American firms?
A. Their emphasis is on beating competitors.
B. They value employees highly and eschew layoffs.
C. They maintain limited product lines.
D. They reduce prices faster and raise advertising expenditures during booms.
E. They consider market share to be a strategic goal.
For most American firms, where corporate cultures emphasize beating competitors,
such stabilizing measures as maintaining broad product lines and broad market
coverage, raising prices faster and reducing advertising expenditures during booms,
ignoring market share as a strategic goal, eschewing layoffs, and focusing on stability
are usually given only lip service. Conversely, German and Japanese firms value
employees and stability more highly and are generally better at managing volatility in
markets.