An important advantage of the staffing policy recommended by Valerie is that it
________.
A) re-creates local operations in the image of home-country operations
B) eliminates the high cost of relocating expatriate managers and families
C) helps the company develop global managers who can adjust easily to any business
environment
D) sends managers from home to look out for the company’s interests
A country imposes a tariff on goods that it sells abroad at the request of another nation.
This is an example of a(n) ________.
A) embargo
B) ad valorem tariff
C) compound tariff
D) voluntary export restraint
Scenario: Happyland
Happyland is a country characterized by beautiful beaches, vast natural resources, and a
highly skilled labor force. Happyland is now encouraging foreign direct investment
flows. The country has been exporting textiles, computer hardware, and software
programs. The net result of the trade is that Happyland exports far more goods and
services and receives more income from abroad than it imports and pays abroad.
If Happyland is successful in attracting foreign direct investment, transactions involving
those investments would appear in the country’s ________ account.
A) capital
B) services
C) income payments
D) merchandise
Which of the following is an example of globalization of production?
A) Canadian consumers who import food products from Australia
B) A German company which sells car components to British car makers
C) A U.S. company that builds a computer hardware manufacturing facility in India
D) A Swiss watch manufacturer that builds a manufacturing facility in Switzerland
Companies that produce entire inventories of products or components in one or very
few optimal locations are most likely to follow a ________ strategy.
A) retrenchment
B) global
C) blue ocean
D) multinational
Which of the following factors is responsible for growth in the international equity
market?
A) advent of cybermarkets
B) spread of countertrade
C) centrally planned economies
D) government partnerships
For countries to become members of the European Union, they have to meet certain
demands laid down by the EU referred to as the ________.
A) Copenhagen Criteria
B) Closer Economic Relations Agreement
C) Andean Community
D) Euro-Plus Pact
The process whereby countries in a geographic area cooperate with one another to
reduce or eliminate barriers to the international flow of products, people, or capital is
called ________.
A) regional economic integration
B) protectionism
C) mercantilism
D) economic nationalism
Which of the following occurs when a company sells its products to intermediaries who
then resell to buyers in a target market?
A) indirect exporting
B) counterpurchase
C) an acquisition
D) a joint venture
________ is the environmental impact of greenhouse gases (measured in units of
carbon dioxide) that results from human activity.
A) Carbon footprint
B) Greenhouse log
C) Carbon cycle
D) Greenhouse check
During which stage of the international product life cycle theory does demand rise and
remain sustained for a fairly lengthy period of time?
A) product decline stage
B) new product stage
C) maturing product stage
D) standardized product stage
Ethnocentricity can be defined as the ________.
A) scientific description of individual human societies
B) systematic study of an ethnic group’s religious core
C) merging of all ethnic practices into one homogeneous culture
D) belief that one’s own ethnic group or culture is superior to that of others