Which of the following terms refers to the forced transfer of assets from a company to
the government without compensation?
A) expropriation
B) nationalism
C) nationalization
D) confiscation
The value of a product relative to its weight and volume is called its ________.
A) face value
B) value investing
C) real value
D) value density
Which of the following stages of the market or site screening process involves
competitor analysis?
A) identification of basic appeal of a product
B) measurement of market or site potential
C) assessment of the national business environment
D) selection of the market or site
If Old World wants to have its furniture sold through as many distribution outlets as
possible, it should consider a(n) ________ channel.
A) exclusive
B) intensive
C) one-level
D) zero-level
The inefficient market view holds that prices of financial instruments ________.
A) are dependent on political efficiency
B) are not dependent on political efficiency
C) do not reflect all publicly available information
D) reflect all publicly available information at any given time
The main challenge facing the Caribbean Community and Common Market
(CARICOM) is that ________.
A) the bloc has not yet signed an agreement calling for a single market
B) military conflicts continue to hamper efforts to move toward political union
C) most members trade more with nonmembers than they do with each other
D) the bloc has had no success in persuading Chile to become a member
Which of the following is the first step in developing a successful export strategy?
A) identification of a potential market
B) match market needs to the company’s abilities
C) initiation of meetings
D) commitment of resources
A business-level strategy in which a company exploits economies of scale is called a
________.
A) differentiation strategy
B) stability strategy
C) low-cost leadership strategy
D) retrenchment strategy
Which of the following steps of the screening process for potential markets involves the
evaluation of fiscal and monetary policies of a nation?
A) identification of basic appeal of a market
B) measurement of market or site potential
C) assessment of the national business environment
D) selection of the market or site
The GDP per capita of a country is higher than that of Thailand. If the GDP per capita
of the country is adjusted for PPP, the country’s revised GDP is lower than that of
Thailand. Which of the following is most likely true about the country?
A) There are fewer goods available for purchase in the country than in Thailand.
B) The cost to buy everyday goods in the country is approximately the same as in
Thailand.
C) It costs less to buy everyday goods in the country than in Thailand.
D) It costs more to buy everyday goods in the country than in Thailand.
________ teaches an expatriate a culture’s values, attitudes, manners, and customs.
A) Cultural assimilation
B) Cultural orientation
C) Language training
D) Cultural environmentalism
The single greatest advantage of ________ is the ability to collect vast amounts of data
in a single sweep.
A) survey research
B) focus groups
C) consumer panels
D) interviews
Which of the following terms is used to refer to habits or ways of behaving in specific
circumstances that are passed down through generations?
A) customs
B) attitudes
C) prejudices
D) aesthetics
Which of the following philosophies maintains that a company’s sole responsibility is to
maximize profits for its owners?
A) utilitarian view
B) righteous moralist view
C) Friedman view
D) cultural relativist view
Which of the following steps of the strategy development process for exports involves
performing market research and interpreting results obtained from the research?
A) identification of a potential market
B) match needs of the market to the company’s abilities
C) initiation of meetings
D) commitment of resources
Gro-Tru would be engaging in ________, if it decides that in exchange for a
hard-currency sale it would make a hard-currency purchase of an unspecified product
from the importing nation in the future.
A) barter
B) offset
C) switch trading
D) buyback
The condition that results when the value of a nation’s exports is greater than the value
of its imports is called ________.
A) a trade deficit
B) a trade surplus
C) mercantilism
D) dumping
Which of the following is true of counterfeit goods?
A) Developed nations normally have the most active counterfeiting markets.
B) Counterfeiting is more common among less visible local brands than global brands.
C) Most counterfeit products are imitations of products that normally enjoy legal
protection.
D) Engineered industrial components and medicines are among the few categories of
products that cannot be counterfeited.
Detailed knowledge about a culture that enables people to work happily and effectively
within it is called ________.
A) cultural literacy
B) cultural imperialism
C) cultural diffusion
D) cultural divergence
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.
Which of the following methods will Happyland use to discourage foreign direct
investment inflows?
A) tax incentives
B) low-interest loans
C) performance demands
D) tax breaks