In countries with high illiteracy rates, a(n) ________ should not be used to collect
information.
A) personal interview
B) written survey
C) focus group
D) field research
According to Hofstede’s framework, a culture that scores low on ________ can change
more rapidly because tradition and commitment are not impediments to change.
A) masculinity
B) individualism
C) long-term orientation
D) risk-taking
A(n) ________ exports products on behalf of an indirect exporter.
A) local distributor
B) subsidiary
C) sales representative
D) export management company
________ is the chance that political forces may change a country’s business
environment in ways that lead investors to lose some or all of the value of their
investment or be forced to accept a lower-than-projected rate of return.
A) Governmental risk
B) Operating risk
C) Transaction risk
D) Political risk
Scenario: Moonland Union
Twenty-six nations of Moonland region, have decided to cooperate with one another to
eliminate trade barriers among them and create the Moonland Union. They are not sure,
however, to what extent they want to cooperate.
Which of the following would the government of Zucoland most likely experience as a
benefit of joining the trading bloc?
A) increased national sovereignty
B) increased military security
C) trade diversion
D) higher-wage employment
The French government buying its own securities on the open market is part of the
________ of France.
A) fiscal policy
B) monetary policy
C) industrial policy
D) investment policy
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.
Which of the following statements is true of rationalized production?
A) It depends on a large number of distribution channels which leads to inefficiency.
B) It depends on a large number of distribution channels which increases the cost of
production.
C) It can bring the entire production process to a standstill, if work is stopped in one
country.
D) It is an unethical method of production as it uses questionable labor practices to
reduce costs.
Which of the following was a prominent mercantilist nation?
A) U.S.
B) China
C) Britain
D) Japan
Which of the following communication strategies uses the same home-market product
and marketing promotion in target markets?
A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation
Scenario: Not-So-Free Freeland
Freeland is a semi-closed economy whose government believes in protecting national
identity and building a self-sustained economy. The government’s priority is to protect
local jobs and provide opportunities to Freeland’s emerging industries to flourish
without the threat of external competition. Which of the following motives is least
likely attributed to Freeland’s restriction on free trade?
A) political motives
B) economic motives
C) social motives
D) cultural motives
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.
A home country encourages outflows of foreign direct investment because it ________.
A) helps in replacing jobs at home
B) sends resources out of the home country
C) tends to increase the long-term competitiveness of firms
D) takes the place of all the exports and imports in the country
Decreasing levels of customer loyalty to an organization’s products is a major
disadvantage of the ________ strategy.
A) blue ocean
B) stability
C) low-cost leadership
D) growth
The European Union (EU) and European Free Trade Association (EFTA) created the
European Economic Area (EEA).
The way in which a company divides its activities among separate units and coordinates
activities among those units is referred to as ________.
A) organizational structure
B) organizational network analysis
C) organizational diagnostics
D) organizational climate