Regulations for the purpose of environmental protection generally increase short-term
production costs.
Objectives of individual business units in an organization exclusively contain numerical
targets of performance.
A product’s income-elasticity refers to the sensitivity of the price of a product relative to
changes in the income of consumer population.
The main purpose of self-managed teams is to help break down barriers between
departments.
A global matrix structure is an organizational structure that divides worldwide
operations according to a company’s product areas.
Secondary data tends to be very expensive because it has already been analyzed and
summarized by another party.
Which of the following is prompting farmers in many developed nations to discover
new ways to manage risk and increase agricultural efficiency?
A) enforcement of trade embargoes and tariffs
B) exposure of agribusiness to market forces
C) provision of extensive government subsidies
D) designation of agricultural products as dual use products
Folk customs that spread by cultural diffusion to other regions develop into ________.
A) trash culture
B) traditions
C) popular customs
D) superstitions
Scenario: Blickinstock at the Crossroads
Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin
America. To that end, Blickinstock is trying to decide whether to purchase an existing
company in a remote region of Argentina or build its own subsidiary. Keith Moon,
Blickinstock’s vice president of global business development, will be making a
presentation to the board outlining the company’s options. Developed countries have
been the major participants behind cross-border mergers and acquisitions.
Which of the following refers to convergence in buyer preferences in markets around
the world?
A) heterogenization of markets
B) globalization of markets
C) segmentation of markets
D) nationalization of markets
Donna Bader, Globalization opponent
Donna Bader spent her final year at college studying the effect of various economic
factors on the economy of developing nations. Based on the results of her study, she
concluded that globalization does these countries more harm than good.
Each ________ is composed of unique cultural, political, legal, and economic
characteristics that define business activity within that nation’s borders.
A) capital market
B) national business environment
C) international bond market
D) operational center
Which of the following products has a low value-density ratio?
A) semiconductors
B) emerald
C) crude oil
D) premium perfumes
Scenario: The French Government
The French Government has placed many restrictions upon the use of the English
language within their borders. They argue that the inflow of English movies, music, and
literature is responsible for the dilution of their rich culture.
According to Hofstede’s framework, organizations which have cultures that score high
on ________ tend to be more hierarchical, with power deriving from prestige, force,
and inheritance.
A) uncertainty avoidance
B) power distance
C) short-term orientation
D) femininity
Scenario: Chuck Praeger, Global Entrepreneur
Chuck Praeger has made a name for himself by selling high-quality golf equipment to
customers in Europe. He would like to expand his business into the Pacific Rim
countries and has therefore, begun making inquiries into potential distributors.
Chuck believes that his business has grown because of his personal involvement in
every step of the way. What advice do you offer Chuck as he continues to expand his
business in new Asian markets?
A) Contact distributors directly to avoid misunderstandings that can arise when using
third-party contacts.
B) Always stick to corporate settings when doing business to avoid misunderstandings
that can arise in less formal environments.
C) Protect your interests by insisting on detailed contracts from the start.
D) Use proper intermediaries as required in Pacific Rim nations.
Which of the following is an appropriate and widely-used method for staffing
international business operations?
A) collective narcissism
B) cronyism
C) nepotism
D) geocentric approach
The process of forecasting both a company’s human resource needs and its supply is
called ________.
A) human resource planning
B) human resource accounting
C) recruitment
D) selection
Scenario: The French Government
The French Government has placed many restrictions upon the use of the English
language within their borders. They argue that the inflow of English movies, music, and
literature is responsible for the dilution of their rich culture.
________ cultures value hard work and promote entrepreneurial risk taking.
A) Short-term oriented
B) High uncertainty avoidance
C) Individualist
D) Collectivist
Small companies selling traditional products benefit from ________.
A) the barriers to trade that restrict their products from crossing domestic boundaries
B) increased investment by foreign competitors in domestic markets
C) government policies that seek to regulate the flow of capital across national borders
D) technology that lowers the costs and difficulties of global communication
The condition that results when the value of a country’s imports is greater than the value
of its exports is called ________.
A) a trade deficit
B) economies of scale
C) a break-even point
D) absolute advantage
A majority of the total world merchandise trade occurs among ________.
A) middle-income and low-income economies
B) high-income economies
C) newly industrialized countries
D) emerging markets
The practice by which managers and other employees find jobs within their own
companies for relatives is known as ________.
A) ethnocentricism
B) enculturation
C) nepotism
D) stratification
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.
Betty notices that organizations in China tend to be hierarchical with power derived
from prestige and force. Which of the following statements is consistent with her
observation?
A) Chinese society considers caste system and class system a myth.
B) Chinese men are subordinate to Chinese women.
C) China scores high on the power distance dimension.
D) China owes its success to its individualistic society.
Companies often establish largely independent, self-contained units in each of its
national markets to implement a ________ strategy.
A) retrenchment
B) global
C) multinational
D) blue ocean
Economic transition is the process of moving from ________.
A) developed to developing economies
B) centrally planned to free-market economies
C) developed to emerging economies
D) free-market to centrally planned economies