1) The growth of small-scale production technology will most likely enable small
countries to produce products efficiently for their own consumption.
2) The bid is the price at which the trader is willing to sell foreign currency.
3) A major pitfall of exporting is misclassifying products in terms of the destination
country’s tariff schedule, thereby incurring a higher tax or slower delivery.
4) The combination of free trade and free movement of production factors offers
maximum production efficiency.
5) Change in the long-term industry growth rate has the potential to transform an
industry’s structure.
6) Which of the following statements is most likely true regarding relationships
between MNEs and stakeholders?
A) An MNE typically serves all stakeholder groups equally at any given time
B) No individual stakeholder group is powerful enough to cause the demise of an MNE
C) All stakeholders of an MNE have the same short-term and long-term goals and
interests
D) The inability to adequately meet the long-term needs of all stakeholders increases
the probability of an MNE failing
7) Albert, an employee at Morgan Stanley, has been given the task of handling the
foreign exchange for a customer who is moving from Brazil to Switzerland in one
week. Which of the following should Albert most likely use when exchanging the
client’s Brazilian real for Swiss francs?
A) spot rate
B) cross rate
C) currency option
D) current U.S. rate
8) ________ is the framework that managers apply to determine the competitive moves
and business approaches that run the company.
A) Competition
B) Growth
C) Strategy
D) Vision
9) Without a proven track record in collaborative arrangements, a company will most
likely need to ________.
A) have its home country government approve licensing contracts
B) delegate fewer responsibilities to partners at the company
C) negotiate harder with and make more concessions to a partner
D) depend more on trust as a control mechanism
10) A firm is currently seeking resources from foreign countries Which of the following
is the LEAST likely reason for doing so?
A) manufacturing products at a lower cost
B) gaining knowledge about a specific market
C) following a customer into the global market
D) differentiating its products from the competition
11) The three types of interpretative frameworks in international businesses are
________.
A) ethnocentric, polycentric, and geocentric
B) ethnocentric, intercentric, and monocentric
C) monocentric, neocentric, and polycentric
D) intracentric, geocentric, and neocentric
12) Which of the following statements would most likely NOT be supported by an
advocate of offshoring?
A) Offshoring increases the number of high-value jobs in the home countries of
offshoring companies
B) Offshoring is fundamentally better for workers than the introduction of labor-saving
technologies
C) Workers displaced due to offshoring are able to find new jobs as easily as those
displaced by technology
D) There are upper limits to offshoring because of the lack of skilled workers willing to
work permanently for low wages
13) Why are MNEs criticized for exporting to developing countries the same products
they sell in developed countries?
A) The prices of the products are too low in developing countries
B) Many of the products are deemed to be unnecessary for low income consumers
C) The sales enhance local company failures in developing countries
D) Developing countries need local production rather than imports
14) According to the translation process in the United States, ________.
A) companies first translate their statements into dollars, and then recast their financial
statements consistent with U.S. GAAP
B) companies recast their financial statements consistent with U.S. GAAP, and then
translate them into U.S. dollars
C) companies only need to worry about the translation process because local operations
take place in a local GAAP environment
D) companies translate foreign currency financial statements only if the dollar is
weakening against the local currency
15) Raj, an engineer, works long hours and takes full responsibility for both his good
and bad work performance. Raj most likely believes in ________.
A) self-determination
B) low power distance
C) collectivism
D) fatalism
16) What is the difference between the free trade theories of absolute advantage and
comparative advantage? How can free trade improve global efficiency?
17) Profile the causes and likely benefits that prompt companies to consider adopting a
neoclassical structure.
18) In a short essay, identify and explain three competitive factors that influence
international businesses
19) What is a management contract? What are the potential advantages to both parties
in the contract?
20) In a short essay, discuss liquidity preference as it relates to monetary risk.
21) What are the differences between merchandise and service imports and exports?
Provide examples to illustrate your answer
22) What are the roles of compatibility, configuration, coordination, and control in a
global manufacturing strategy? Describe each of these four factors.
23) In a short essay, discuss the four stages of the international product life cycle.