expatriate failure refers to a manager’s failure to understand host-country cultural norms
and values, leading to ineffective work.
if a country’s economy is to sustain long-run economic growth, the business
environment must be conducive to innovations and entrepreneurial activity.
a counterpurchase gives exporters more flexibility than an offset.
judges in a common law system have the power to interpret the law so that it applies to
the unique circumstances of an individual case.
tariff barriers lower the costs of exporting products to a country.
it is important to realize that organizational change will occur regardless of the
commitment of senior managers to it.
total interest cost for a bond issued at a premium equals the total of the periodic interest
payments minus the premium.
A current trend in international business is the decline of medium-sized and small
multinationals, known as mini-multinationals.
research has shown that in the modern multinational enterprise, core competencies and
skills typically reside in the home country.
The Uruguay Round, finalized in December 1993, reduced protection for patents,
trademarks, and copyrights.
norms are abstract ideas about what a group believes to be good, right, and desirable.
a regional free trade agreement will benefit the world only when the amount of trade it
creates exceeds the amount of trade it diverts.
Countries that require substantial loans from the IMF to survive will endure a sharp
contraction of demand in the short term due to IMF-mandated economic policies.
a company whose current liabilities exceed its current assets may have a liquidity
problem.
an executive who performs well in a domestic setting may not be able to adapt to
managing in a different cultural setting.
which of the following is an argument favoring centralization?
a.it permits greater flexibility
b.motivational research favors it
c.it can avoid the duplication of activities
d.it gives top management time to focus on critical issues by delegating routine issues
to lower-level managers
which of the following is an example of ethnocentrism?
a.a manager in india looks down upon his subordinates because they are from a lower
caste, compared to him
b.an upper-middle-class woman talks rudely to a sales person, because she looks down
upon individuals belonging to the working-class
c.an american manager criticizes the cultural practices of saudi arabia, when he is sent
there on business, because it differs from his own cultural norms
d.a french business owner, who plans to expand his market to china, conducts a detailed
cultural study of china to customize his marketing campaign
it has been observed that a product’s production costs decline by some quantity about
each time, cumulative output:
a.increases by twenty five percent
b.quadruples
c.doubles
d.triples
____ pricing is the use of price as a competitive weapon to drive weaker competitors
out of a national market.
a.multipoint
b.value-based
c.experience curve
d.predatory
which of the following is a concern of organized labor regarding multinational firms?
a.a company can counter a union’s bargaining power with the power to move
production to another country
b.an international business will keep low-skilled tasks in its home country and farm out
only highly skilled tasks to foreign plants
c.an international business can attempt to import employment practices and contractual
agreements from its host-country
d.a multinational company is more likely to receive government support in the case of
hostile labor relations
economic growth appears to be a function of a country’s capacity for growth and
___________.
a.its previous economic success
b.its political environment
c.its free market system
d.its mixed economy
the means a firm chooses for delivering the product to the consumer is its ____.
a.communication strategy
b.segmentation strategy
c.product attributes
d.distribution strategy
a french wind power company gives an indonesian company the right to produce and
sell wind turbines in return for a royalty fee on every unit sold. which business practice
is this an example of?
a.acquisition
b.licensing
c.exporting
d.greenfield investment
Which of the following is a country in which banks emerged as the main providers of
capital to enterprises?
A.United States
B.Britain
C.Philippines
D.Switzerland
the theory of comparative advantage provides strong rationale for supporting the idea of
____.
a.business nationalism
b.free trade
c.protectionism
d.governmental intervention in trade
what is horizontal differentiation?
a.the mechanisms that enable each subunit to operate independently
b.the formal division of the organization into subunits
c.the location of decision-making responsibilities within a structure
d.the mechanisms for coordinating subunits
mendenhall and oddou’s “others-orientation” dimension, in their study on what predicts
success in foreign jobs postings, refers to:
a.the expatriate’s self-esteem, self-confidence, and mental well-being
b.the expatriate’s ability to interact effectively with host-country nationals
c.the expatriate’s ability to understand why people of other countries behave the way
they do
d.the relationship between the country of the assignment and how well an expatriate
adjusts to a particular posting
_____ refer to cooperative agreements between potential or actual competitors.
a.greenfield investments
b.strategic alliances
c.takeovers
d.licensing agreements
warner company issued $1,600,000 of 6%, 10-year bonds on one of its interest dates for
$1,381,920 to yield an effective annual rate of 8%. the effective-interest method of
amortization is to be used. how much bond interest expense (to the nearest dollar)
should be reported on the income statement for the end of the first year?
a.$110,844
b.$110,554
c.$110,262
d.$96,000
which of the following factors has had a positive effect on the volume of foreign trade
investments?
a.emerging social democracies
b.fluctuating current rates
c.aging demographics
d.world economy globalization
compare and contrast counterpurchase agreements and offset arrangements. why might
an exporter prefer an offset to a counterpurchase deal?
What are the advantages of using royalties and fees to move money across borders?
discuss the importance of the export-import bank, its goals, and its operations.
discuss the role of technology in new-product development, including the concept of
“creative destruction.”
how does the free market view support fdi?
discuss the infant industry argument for intervention in markets. what is gatt’s position
on the argument?
discuss strategic alliances. how successful are they? why do firms form strategic
alliances?
liabilities are classified on the balance sheet as being _______________ liabilities or
______________ liabilities.