Which of the following disagrees with the concept of centrally planned economies?
A) At the time of their collapse, standards of living in most centrally planned economies
were at or above those of market economies.
B) Basic necessities were often not provided to citizens in centrally planned economies.
C) Underground economies for goods and services thrived in most centrally planned
economies.
D) Prices on the black market were much higher than the official prices set by
governments.
Which of the following would be most appropriate for conducting primary market
research on attitudes, behaviors, and purchasing habits in Country B?
A) Internet-based research
B) focus groups
C) consumer panels
D) data from trade agencies
Which of the following statements is true about country image and its effects on global
companies?
A) It embodies all important facets of a nation’s business environment.
B) If a country’s image is positive in one product class, it tends to be positive in all
other product classes as well.
C) An image, once formed, seldom changes over time.
D) Products made in emerging countries are evaluated more positively than products
made in developed countries.
The relative ability of two countries’ currencies to buy the same basket of goods in
those two countries is called ________.
A) gross national product
B) gross domestic product
C) purchasing power
D) purchasing power parity
A government buys its own securities on the open market when the ________.
A) inflation rate in the country is high
B) inflation rate in the country is low
C) interest rates in the country are high
D) interest rates in the country are low
An exchange rate system in which the exchange rate for converting one currency into
another is set by international governmental agreement is called a ________ system.
A) floating exchange-rate
B) fixed exchange-rate
C) cross rate
D) spot rate
A British toy company manufactures all of its product lines in a single facility in
Europe. Which of the following is the company demonstrating?
A) continuous production
B) lean production
C) centralized production
D) horizontal integration
A class system is a system of social stratification in which ________.
A) people are divided into various political groups and subgroups
B) a person’s social rank depends upon his/her parentage
C) people join highly exclusive associations that forbid external interaction
D) personal ability and actions determine an individual’s social status and mobility
________ refers to the purchase, sale, or exchange of goods and services across
national borders.
A) Domestic trade
B) Foreign direct investment
C) International trade
D) Mercantilism
Which of the following is a cultural component that implies gauging the beauty and
appeal of artwork?
A) customs
B) mores
C) folkways
D) aesthetics
________ is traded freely in the foreign exchange market, with its price determined by
the forces of demand and supply.
A) Representative money
B) Private currency
C) Hard currency
D) Fiat money
If Gem Jewels wants its employees to get “into the minds” of the local people, it should
provide ________.
A) language training
B) sensitivity training
C) cultural orientations
D) environmental briefings
________ is the financing obtained from investors who believe the borrower will
experience rapid growth and who receive equity in return for their investment.
A) Internal funding
B) Venture capital
C) Credit derivative
D) Mortgage loan
The main benefit of a global strategy is that it allows a company to ________.
A) closely monitor buyer preferences in each local market
B) save costs due to product and marketing standardization
C) customize its products and services
D) respond effectively to emerging buyer preferences
Which of the following methods of export/import financing is Techno Toys’ bank using
if it acts as an intermediary without accepting financial risk?
A) documentary collection
B) buyback
C) letter of credit
D) advance payment