A major drawback of geocentric staffing is that it is expensive.
Polycentric staffing places managerial responsibility in the hands of people intimately
familiar with the local business environment.
An international area structure separates domestic from international business activities
by creating a separate international division with its own manager.
Companies strive toward quality improvements for attaining economies of scale.
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.
A common market requires that member nations create a common currency.
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. Unwanted cultural influence in a nation can
cause governments to block imports that it believes are harmful.
Scenario: Susan Goes Global with Grape Fizz
Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to
set up production facilities in other countries and has been advised to assess the
political system of each country before she does so.
Totalitarian governments tend to favor private ownership of economic resources.
Mercantilist countries used to amass wealth by acquiring less-developed territories
around the world.
Companies usually create a single marketing plan to be used in all markets in which
they sell their products.
All foreign exchange transactions can be performed in the over-the-counter (OTC)
market.
Strategy is the set of planned actions that managers take to help a company meet its
objectives.
In geocentric staffing, operations outside the home country are managed by the
best-qualified individuals, regardless of their nationality.
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.
In regional economic integration, industries that require mostly unskilled labor tend to
shift production to low-wage nations within a trading bloc.
Advance payment is the least favorable method of payment collection for exporters.
Which of the following steps should occur in the screening process for potential
markets after the basic demand for a product has been identified?
A) assessment of the national business environment
B) selection of the market or site
C) measurement of the market or site potential
D) assessment of climate suitability
Which of the following is the first phase of human resource planning?
A) developing a plan to recruit and select people to fill vacant and anticipated new
positions
B) estimating the company’s future human resource needs
C) taking an inventory of the company’s current human resources
D) promoting employees to positions of greater responsibility
A company selling in a country with a strong currency while sourcing from a country
with a weak currency ________.
A) practices unethical conduct
B) experiences a trade deficit
C) ends up bankrupt
D) improves its profits
Which of the following statements is true of Paribo, a democratic nation whose legal
system is based on civil law?
A) The law is based on religious teachings and is enforced by the country’s religious
leaders.
B) The law is flexible and its interpretations differ with situations.
C) The law is based on a detailed set of written rules that constitute a legal code.
D) The law is interpreted on the basis of tradition, precedent and usage.
Issues regarding potential threat from substitute products in a market are addressed in
________.
A) security analysis
B) technical analysis
C) product fit analysis
D) competitor analysis
Scenario: The French Government
The French Government has placed many restrictions upon the use of the English
language within their borders. They argue that the inflow of English movies, music, and
literature is responsible for the dilution of their rich culture.
The French Government promotes the concept of ________ by building museums and
monuments to preserve the legacies of important events and people.
A) subculture
B) national culture
C) popular culture
D) monoculture
Which of the following is the lowest extent of regional economic integration?
A) free trade area
B) political union
C) common market
D) customs union
An additional tariff placed on an imported product that a nation believes is receiving an
unfair subsidy is called a(n) ________.
A) countervailing duty
B) ad valorem tariff
C) antidumping duty
D) compound tariff
If Wilson Industries selects a new area for its production units, the company will be
implementing ________.
A) capacity planning
B) process planning
C) facilities location planning
D) product structure modeling
Which of the following will a company that is pursuing a low-cost leadership strategy
most likely use for creating its product?
A) implement handcrafted artisanship
B) manufacture in large production batches
C) manufacture components in-house
D) customize products for each customer
All company and product brand names are made up of semantic elements or language
building blocks called ________.
A) aesthetics
B) morphemes
C) hybrid words
D) propositions
Which of the following is an exchange rate that requires delivery of the traded currency
within two business days?
A) forward rate
B) spot rate
C) cross rate
D) prime rate
Which of the following is a major obstacle to economic transition?
A) lack of government support
B) environmental degradation
C) privatization
D) black markets
An ongoing process of gathering, analyzing, and dispensing information for tactical or
strategic purposes is called ________.
A) data harvesting
B) peer production
C) survey research
D) environmental scanning
Which of the following occurs when a company sells its products to buyers in a target
market without going through intermediary companies?
A) export through local distributors
B) export through agents
C) sale through export management companies
D) sale through export trading companies
If Silk Industries pressures channel members to carry a product and promote it to final
users, it is using ________.
A) pull strategy
B) push strategy
C) vertical integration
D) horizontal integration
A(n) ________ is an international trip by government officials and businesspeople that
is organized by agencies of national or provincial governments for the purpose of
exploring international business opportunities.
A) focus group
B) field research
C) expo
D) trade mission
A ________ team is one composed of employees who work at similar levels in different
operative departments in an organization.
A) self-managed
B) global
C) virtual
D) cross-functional
A loan in which the borrower promises to repay the borrowed amount plus a
predetermined rate of interest is called a(n) ________.
A) equity
B) exchange rate
C) stock
D) debt
Describe four corporate responsibility issues and explain how these issues can impact a
company’s international relations.
When should managers consider decentralized decision making? What benefits might
emerge?
Explain the market power theory of FDI, and discuss why the decision whether or not
to follow rivals into a new international market is important.
Explain the concept of balance of payments and describe its two major components.
Define secondary market research and briefly discuss any three secondary data sources.
Differentiate between the push and pull promotional strategies. Explain the factors that
determine whether the push or the pull strategy is appropriate in a given marketing
environment.