The balance of payments in ______________ shows trade in currently
produced goods and services, as well as unilateral transfers of merchandise.
a. current account balance
b. capital account
c. trade balance
d. direct investments
e. portfolio investment
__________________ refers to a foreign government’s takeover for the purpose of
making the industry a government-run industry.
a. Expropriation
b. Confiscation
c. Domestication
d. Nationalization
e. None of the above
The ________________ of the product refers to the quality degradation over time
and/or product obsolescence along the product life cycle.
a. perishability
b. cost of transportation
c. cost of insurance
d. value-to-volume ratio
e. intermodal ratio
In many countries, goods with _______________ roots are strongly valued.
a. Swiss
b. Italian
c. American
d. Russian
e. South African
The United States was ranked number _______ on the 2005 Country
Innovativeness Ranking.
a. one
b. two
c. four
d. five
e. six
___________________ publishes PPP statistics every year.
a. The World Bank
b. The International Monetary Fund
c. The World Trade Organization
d. The European Union
e. none of the above
One attempt to combine the strengths of standardization and customization of
products is to deal with both issues as functions of product design. The
_______________ approach consists of developing a mostly uniform core-
product/platform and then adding attachments that match local market needs.
a. core-product
b. uniform commercial code
c. die-casting
d. modular
e. PRIZM
In the area of global organizational design, the major firm-specific factors include the
following EXCEPT:
a. local customers.
b. strategic importance of international business.
c. product diversity.
d. company heritage.
e. quality of local managerial skills.
Actual exchange rates can be very different from the expected rates forecasted by
economists. Many interrelated factors influence the value of a floating currency.
The three most important fundamental factors are the nation’s balance of payments
situation, world political events, and:
a. the world inflation rate.
b. the country’s currency value.
c. the nation’s inflation rate relative to its trading partners.
d. the tax structure of the nation.
e. the supply of gold that the nation holds.
In Japan, access to the web was previously dominated by ______________________,
the Japanese telecom firm, which charges sky-high fees.
a. British Telecom.
b. Toyota.
c. Nippon Telephone & Telegraph (NTT).
d. Seven-Eleven Japan.
e. AT&T.
_______________________ refers to people’s unconscious tendency to resort to
their own cultural experience and value systems to interpret a given business
situation.
a. Cultural morals
b. Cultural ethics
c. Self-Reference Criterion (SRC)
d. Monocultural
e. Global culture
Product lines can be categorized as:
a. Core product, niche items, seasonal products, and filler products
b. Core product, niche items, seasonal products, and filter products
c. Core product, niche items, seasonal products, and final products
d. Core product, niche items, seasonal products, and flimsy products
e. None of the above
When attempting to identify an appropriate overseas market and an appropriate
segment, socioeconomic variables should be considered. All of the following
are socioeconomic variables that should be considered EXCEPT:
a. demographics.
b. economic.
c. geographic.
d. econometrics.
e. climatic characteristics.
There are five identifiable stages in the evolution of marketing across
national boundaries. The first stage is:
a. global marketing.
b. international marketing.
c. export marketing.
d. direct marketing.
e. domestic marketing.
_________________ influences decisions regarding what activities and
technologies a company should concentrate its investment and managerial
resources in (in relation to its competitors in the industry).
a. Relative advantage
b. Absolute cost advantage
c. Comparative advantage
d. Competitive advantage
e. Sourcing advantage