Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
Subcultures do not exist in democratic countries with large populations.
________ is the process of staffing a company and ensuring that employees are as
productive as possible.
A) Business process reengineering
B) Human resource management
C) Organizational diagnostics
D) Industrial relations
Which of the following is used by governments for the convertibility of currencies in
their countries?
A) multiple exchange rates
B) countertrade
C) import deposit requirements
D) OTC market
Governments in developing countries impose fewer consumer protection laws in order
to ________.
A) hold down production costs and consumer prices
B) enable companies to focus on profit-making exclusively
C) decrease the flow of foreign direct investment into the country
D) decrease the complexity of the legal procedures for foreign direct investment
Which of the following variables attempts to estimate market openness when creating a
market-potential indicator for an emerging market?
A) market consumption capacity
B) market receptivity
C) market size
D) market intensity
Which of the following statements is true of geocentric staffing?
A) It reduces the high cost of relocating expatriate managers and their families.
B) It employs managers exclusively from the home country to look out for the
company’s interests.
C) It helps develop global managers who can adjust to any business environment.
D) It emphasizes on re-creating local operations in the image of home-country
operations.
Most of the world merchandise trade is composed of trade in ________.
A) minerals
B) services
C) manufactured goods
D) agricultural products
Bonds sold outside the borrower’s country and denominated in the currency of the
country in which they are sold are called ________.
A) municipal bonds
B) foreign bonds
C) Eurobonds
D) domestic bonds
Central planning is rooted in the ideology that ________.
A) the welfare of a group is more important than individual well-being
B) individual concerns should be placed above group consensus
C) individual and group concerns are just as important as government concerns
D) privatization will enhance a country’s economic well-being
Which of the following is the intentional lowering of a currency’s value by its
government?
A) revaluation
B) devaluation
C) currency hedging
D) currency arbitrage
Which of the following variables involved in market-potential analyses allows
managers to rank countries from the largest to the smallest, regardless of a particular
product?
A) market growth rate
B) market intensity
C) market size
D) market consumption capacity