The common currency of the European Union is known as the ________.
A) European currency unit
B) eurodollar
C) euro
D) European unit of account
A(n) ________ advantage is the one that a company gains from incorporating a
business activity within itself rather than leaving it to a relatively inefficient market.
A) ownership
B) internalization
C) location
D) comparative
The process of collecting and analyzing original data and applying the results to current
research needs is called ________.
A) primary market research
B) secondary market research
C) data harvesting
D) data mining
________ refers to shares of ownership in a company’s assets that give shareholders a
claim on the company’s future cash flows.
A) Stock
B) A bond
C) Debt
D) A draft
Sally, a social worker from the United States, has been stationed in Konesia for a year.
She notices several things about the Konesian society; the people who report to her, for
example, do so with an excessive amount of submissiveness, and her superior seems to
expect the same of her. Which of the following statements about Konesia would be
consistent with Hofstede’s framework?
A) Konesians work best in an informal environment.
B) Konesia has a large power distance culture.
C) Konesian society is primarily individualistic.
D) Konesians derive power from their entrepreneurial drive.
Which of the following countries of the Central American Common Market has adopted
the U.S. dollar as its official currency?
A) El Salvador
B) Honduras
C) Nicaragua
D) Costa Rica
A geocentric staffing policy is generally reserved for ________.
A) top-level managers
B) mid-level managers
C) nonmanagerial employees
D) lower-level staff
A market that is said to operate at peak efficiency and where goods are readily and
easily available is said to be a(n) ________ market.
A) perfect
B) Eurocurrency
C) foreign exchange
D) greenfield investment
Scenario: Foodland and Drinkland
Two countries, Foodland and Drinkland, produce food and drinks. In Foodland, one
resource unit produces 20 tons of food and one resource unit produces 10 tons of
drinks. In Drinkland, one resource unit produces 12 tons of food and one resource unit
produces 24 tons of drinks. Food Drinks
Foodland 20 10
Drinkland 12 24
If these two countries were to gain from trading with each other, this would support the
notion that trade is a ________.
A) zero-sum game
B) negative experience
C) positive-sum game
D) form of economic nationalism
Scenario: Global Manufacturing Inc. (GMI)
Global Manufacturing Inc., a fast-growing U.S. company, plans for a production system
in which two components of its product will be manufactured in locations where the
cost of production is lowest. The components will then be taken to maquiladoras for
final assembly. GMI plans to purchase an existing company in Brazil to produce
component A and build a subsidiary in Thailand to produce component B.
GMI’s purchase of the Brazilian company is best classified as a(n) ________.
A) greenfield investment
B) portfolio investment
C) acquisition
D) demerger