Archives: Quiz

An ethnocentric staffing strategy can facilitate the transfer of special know-how to branch operations. In a backward integration joint venture, the parties choose to invest together in downstream business activities. Answer: FALSE Companies use polycentric staffing to re-create local operations […]

Currency speculation is the purchase or sale of a currency with the expectation that its value will remain constant. The Council of the European Union is the executive body of the EU. Answer: FALSE The first step in the identification […]

________ are usually located on small island nations or territories with favorable tax and/or secrecy laws. A) Cybermarkets B) Over-the-counter markets C) Booking centers D) Operational centers Which of the following financing methods entails the greatest risk for importers? A) […]

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 […]

________ allows labor representatives in Germany to participate in high-level company meetings by actually voting on proposed actions. A) Centralization B) Codetermination C) Individualism D) Authoritarianism Which of the following steps of the market screening process involves examining the cost […]

A ________ strategy can create cost savings due to product and marketing standardization. A) retrenchment B) multidomestic C) blue ocean D) global Adapting products and their marketing strategies in each of the national markets of a company to suit local […]

Scenario: Frankfurter Friday Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog joint in Oceania. Her company decides to expand to Asia and identifies China as the ideal market. Before she leaves for China, she […]

A typical industry analysis includes the ________. A) experience and qualifications of the researcher B) structure of the wholesale and retail distribution networks C) accurate forecast of unforeseen political changes in the country D) history of currency fluctuations Scenario: ABC […]

Reverse brain drain is the process by which ________. A) manual laborers migrate from low-income countries to high-income countries B) former communist nations lure professionals back to their homeland C) students from Europe choose to enroll themselves in American universities […]

Which of the following is an investment entry mode? A) licensing B) franchising C) joint venture D) turnkey project The psychological process of readapting to one’s home culture after working in a host-country culture is called ________. A) social loafing […]

The exchange rate at which two parties agree to exchange currencies on a specified future date is called a ________ rate. A) forward B) prime C) spot D) cross A country’s ________ is a national accounting system that records all […]

Which of the following is least likely a reason for companies to seek cross-border mergers and acquisitions? A) to get a foothold in new geographic markets B) to raise company budgets for increased research and development activities C) to increase […]

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 […]

Which of the following represents the Fisher effect? A) Cross Rate = Real Interest Rate + Nominal Interest Rate B) Real Interest Rate = Nominal Interest Rate + Spot Rate C) Nominal Interest Rate = Real Interest Rate + Inflation […]

Which of the following is an example of a dual use product? A) a blowdryer B) a GPS navigation device C) a food processor D) a vacuum cleaner ________ is a payment method commonly used when there is an ongoing […]

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 […]

Which step of the market-screening process involves determining the income elasticity of the Zulu doll? A) selection of the market B) assessment of the national business environment C) identification of the basic appeal for markets D) measurement of market potential […]

The objectives at the ________ of an organization are typically more precise and contain numerical targets of performance. A) department-level B) business-level C) global-level D) corporate-level The ease with which bondholders and shareholders may convert their investments into cash is […]

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 […]

Scenario: You’re Hired! Erica Els has just been promoted as vice president of human resources for Hudson Foods, a U.S.-based international frozen food corporation. Erica’s first task is to staff the company’s European subsidiary. One challenge facing Hudson Foods as […]

Factor proportions theory differs from the theory of comparative advantage in that the focus of factor proportions theory is on the ________. A) usage of the most abundant factors of production, while the focus of the comparative advantage theory is […]

The lowering of taxes in the U.S. by its government is an example of the ________. A) fiscal policy B) monetary policy C) social policy D) foreign affairs policy A ________ is a separate company created and owned by two […]

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 […]

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 […]

An offset agreement differs from a counterpurchase agreement in that an offset agreement ________. A) fails to specify the type of product that must be purchased B) fails to specify the amount that will be spent on the purchase C) […]

The international product life cycle theory was developed by ________. A) Milton Friedman B) Karl Marx C) Michael Porter D) Raymond Vernon An offshore financial center is usually characterized by ________. A) extensive regulations B) economic and political instability C) […]

Company debt normally takes the form of ________. A) bonds B) equity C) stocks D) bank loans An organizational structure that splits the chain of command between product and area divisions is referred to as a(n) ________ structure. A) international […]

When a market is experiencing rapid growth, a company will ________. A) emphasize on decruitment B) divest its operations C) reinvest in its operations D) implement retrenchment strategies The international product life cycle theory was put forth for ________. A) […]

The theory of absolute advantage destroys the mercantilist idea that international trade is a ________. A) positive-sum game B) zero-sum game C) negative-sum game D) win-win game A team of top managers from both headquarters and international subsidiaries who meet […]

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 […]

An exchange rate calculated using two other exchange rates is called a(n) ________. A) interest arbitrage B) forward contract C) forward rate D) cross rate Eurobonds are popular because ________. A) they are less risky than traditional bonds B) they […]

IMF members formalized the existing system of floating exchange rates as the new international monetary system by drafting the so-called ________. A) Bretton Woods Agreement B) Smithsonian Agreement C) Plaza Accord D) Jamaica Agreement A(n) ________ is the most restrictive […]

The population of a(n) ________ market is mostly rural and is characterized by poor infrastructure with little credit or collateral. A) emerging B) traditional C) developed D) virtual According to the international product life cycle theory, in which stage of […]

The common currency of the European Union is known as the ________. A) European currency unit B) eurodollar C) euro D) European unit of account A(n) ________ advantage is the one that a company gains from incorporating a business activity […]

Scenario: ABC Software ABC Software is a producer of educational software for children below the age of twelve. The company has operations in Switzerland and would like to expand its foreign operations with a new facility in China. The company’s […]

During which stage of the market or site screening process do managers normally want to visit locations? A) identification of basic appeal of a product B) measurement of market or site potential C) assessment of the national business environment D) […]

Scenario: Sam Dearing, Budding International Financier Sam Dearing is a summer intern in the arbitrage department at a prestigious Wall Street firm. Sam is hoping to be offered a full-time position at the firm after he graduates from college, and […]

________ tend to occupy the highest social layer in industrialized countries. A) Teachers B) Scientists C) Medical doctors D) Business leaders The Council of the European Union is the ________ body of the European Union. A) legislative B) executive C) […]

A(n) ________ structure separates domestic from international business activities by creating a separate global branch with its own manager. A) international area B) international division C) global matrix D) global product The intentional raising of the value of a currency […]

According to the opponents of globalization, which of the following occurs as a result of worker dislocation brought about by globalization? A) increased labor costs for companies B) lower workers’ wages in developed nations C) surfeit of jobs in developed […]

________ is a political system in which political leaders rely on military and bureaucratic power to support their rule. A) Secular totalitarianism B) Secular anarchism C) Theocratic totalitarianism D) Theocratic pluralism The ________ was established in 2006 between the United […]

Had the government taken over the assets of Global Trading without compensation, and not taken over the assets of any other company, the government’s actions would be an example of ________. A) expropriation B) nationalization C) confiscation D) communism The […]

With the use of growth accounting, which of the following helps explain why the growth rate in the United States has been positive during the 1900s? A) the increase in capital per worker B) the reduction in oil prices C) […]

Those who supply ________ are holders of pounds seeking to exchange them for ________. A) dollars; pounds B) both pounds and dollars; dollars C) pounds; pounds D) pounds; dollars The reason why an increase in government expenditure has a more […]

Which of the following is an example of a supply shock? A) a surprise increase of the money supply B) an increase in government spending C) a sharp increase in the price of oil D) an increase in the price […]

Recall Application 4, “Coping with the Financial Chaos Caused by the Mortgage Crisis,” to answer the following questions: According to Application 4, the solution that the Fed came up with to prevent the collapse of Bear Stearns was to: A) […]

Recall the Application about Austrian economist Henry Hazlitt and the Broken Window Fallacy to answer the following question(s). Hazlitt questioned whether a hoodlum breaking a store window was actually good for society.According to the Application, the argument that the broken […]

Recall Application 1, “Falling Home Prices, the Wealth Effect, and Decreased Consumer Spending,” to answer the following questions: According to the application, from 1997-2006, the nationwide increase in home values averaged: A) 90 percent. B) 80 percent. C) 150 percent. […]

Refer to Figure 15.2. The economy is at full employment and the unemployment rate is at the natural rate at point A) a. B) . C) c. D) d. Consider two individuals, Willy and Blythe, who produce carrots and apples. […]

Figure 12.1 Refer to Figure 12.1. Which of the following causes a movement from Point A to Point B? A) an increase in the interest rate B) positive growth in the GDP C) negative growth in the GDP D) a […]