Archives: Quiz

1) ________ are transition mechanisms that propel the partners’ strategies forward in a turbulent environment faster than would be possible for each company alone. a) cooperative strategies b) entry strategies c) options strategies d) competitive strategies 2) according to the […]

1) using the internet to streamline global supply systems ________. a) enhances the efficiency of the supply chain b) eliminates the reliance on local suppliers c) creates a vertical hierarchical structure within organizations d) increases fixed costs 2) which of […]

1) expropriation of corporate assets without prompt and adequate compensation is an example of ________. a) economic risk b) political risk c) legal risk d) cultural risk 2) historically, a firm reorganizes as it internationalizes to ________. a) inhibit organizational […]

1) ________ is a systems view in which one seeks to optimize the total materials cycle from virgin material, to finished material, to component, to product, to obsolete product, and to ultimate disposal. a) industrial engineering b) ecological succession c) […]

1) one major disadvantage of cross-border alliances is that there is a potential loss of a company’s technology and knowledge. 2) antidumping laws enable formal institutions to affect international competition. Answer: true 3) creating shared value (csv) leverages the unique […]

1) the context of leadership comprises the attributes of the leader and the decisions to be made. 2) companies using an ethnocentric staffing approach, avoid using parent-country nationals to fill in key managerial positions. Answer: false 3) common law is […]

1) the strategic management process consists of independent and discontinuous steps. 2) humane orientation measures the extent to which a society takes part in self-enhancement. Answer: false 3) relationship building is the process of getting to know one’s contacts in […]

1) stereotyping occurs when a person assumes that every member of a society or subculture has the same characteristics or traits. 2) most managers in mexico find that the management style that works best there is authoritative and paternal. Answer: […]

1) enculturation refers to a state of disorientation and anxiety about not knowing how to behave in an unfamiliar culture. 2) cultural noise is the cultural variables that undermine the communication of intended meaning. Answer: true 3) according to the […]

1) employees in countries that rank high on power distance are more likely to prefer a consultative, participative leadership style. 2) nafta is an agreement that came into force to lower tariffs to 25 percent within three to five years, […]

1) paternalism and patronage are important in humane-oriented societies. 2) nontask sounding involves general, polite conversation and informal communication before meetings. Answer: true 3) alliances can be formed for various purposes, e.g., sharing technology, marketing, or production joint ventures. Answer: […]

1) the ringi process involves gaining approval on a proposal by circulating documents to those concerned throughout the company. 2) the critical factors necessary for successful leadership abroad have come to be known as the cultural quotient. Answer: false 3) […]

1) inpatriates are managers with global experience who are transferred to the organization’s headquarters country, so their overseas business and cultural experience and contacts can facilitate interactions among the country’s far-flung operations. 2) the increased complexity regarding the social responsibility […]

1) in the globalized economy, the knowledge and management resources required for the firm to succeed are no longer concentrated in a single region but are distributed around the world. 2) under protectionism, public opinion is rallied in favor of […]

1) to address the globalizationlocalization dilemma, firms that have evolved through the multinational form and the global company seek the advantages of horizontal organization in the pursuit of transnational capability. 2) fundamental to japanese culture is a concern for the […]

1) privatization refers to the forced sale of an mnc’s assets to local buyers with some compensation to the firm, perhaps leaving a minority ownership with the mnc. 2) italian negotiators have a sense of drama and do not hide […]

1) the japanese ningensei style of communication refers to the preference for humanity, reciprocity, a receiver orientation, and an underlying distrust of words and analytic logic. 2) people in countries with a high level of national individualism are more likely […]

1) the term “polarization” describes the process of discussion by which two or more parties aim to reach a mutually acceptable agreement. 2) cross-border alliances are used to gain rapid entry into a new or consolidating industry and to take […]

1) cultural intelligence is also known as cultural quotient. 2) local managers are, by and large, ineffective in dealing with problems in sensitive political situations. Answer: false 3) the availability of raw materials and other resources offers both greater control […]

1) according to the study by lazarova and caligiuri, career planning sessions are associated with successful repatriation. 2) improved customer attraction and retention; improved reputation; and improved employee recruitment, motivation, and retention are business benefits of corporate social responsibility. Answer: […]

1) according to hofstede, the crucial fact to grasp about leadership in any culture is that it is a complement to ‘subordinateship.” 2) the difference between social responsibility and ethical behavior is a matter of scope and degree. Answer: true […]

1) making decisions with more information and less uncertainty about the process and the outcome is referred as tolerance for ambiguity. 2) people with high uncertainty avoidance are motivated by more risky opportunities for variety and fast-track advancement. Answer: false […]

1) the relationship-building process during negotiation is over as soon as a negotiator is done exchanging task-related information. 2) the prevailing labor relations system in a country is important to the international manager because it can constrain the strategic choices […]

1) a foreign exchange intervention with an offsetting open market operation that leaves the monetary base unchanged is called a.an unsterilized foreign exchange intervention b.a sterilized foreign exchange intervention c.a balance-of-payment exchange rate rule d.monetary neutrality 2) u.s. banks created […]

1) the gold standard eliminates the possibility of a balance of payments disequilibrium by: a.changing the peg value of the currency to an ounce of gold b.inflating prices in countries with net inflows of gold and deflating prices in countries […]

1) assume that citibank quotes you a buy rate of $1.95 per pound and a sell rate of $1.98 per pound. how much will you pay in dollars, if you buy 1,000 pound from citibank? a.$505.05 b.$512.82 c.$1,950 d.$1,980 2) […]

1) assume that the following exchange rates exist for the u.s. dollar, japanese yen and the british pound. if you are an arbitrageur that starts with $1,000 in new york, a.you will buy pound in new york, because pound is […]

1) a belgian company pays $100,000 to a consulting company in chicago for a consulting report. this causes a: a.credit in the u.s. investment income b.debit in the u.s. investment income c.credit in u.s. services d.debit in u.s. services 2) […]

1) suppose the dollar is devalued. if an import contract is written in dollars, then the value of u.s. imports: a.decrease b.increase c.stay the same d.not possible to answer with the given information 2) the structure of interest rates existing […]

1) suppose that the one-year swiss interest rate is 1% and the one-year u.k. interest rate is 11%. if the current spot rate is 0.75 swiss franc per pound, what must the one-year forward rate (sfr/pound) be according to the […]

1) eurocurrency deposits are like certificates of deposit because both: a.are guaranteed by deposit insurance b.have fixed terms c.are stated in terms of libor d.are adjusted every three months 2) under the flexible exchange rate regime, which of the following […]

1) suppose that the one-year u.s. interest rate is 8% and the equivalent one-year india interest rate is 12%. according to covered interest parity, there is: a.forward discount on dollar b.forward premium on dollar c.forward premium for indian rupee d.forward […]

1) if mexico fully dollarizes its economy, it agrees to: a.print pesos only to finance deficits of its national government b.use the u.s. dollar alongside its peso to finance transactions c.have the u.s. treasury be in charge of its tax […]

1) suppose that the 1-year forward rate of dollar per pound is $1.32, the current spot rate ($/pound) is $1.20, and the expected future spot rate ($/pound) is $1.40. the expected premium on the pound is: a.-6.7% b.5.7% c.10% d.16.7% […]

1) if a country has a trade surplus, the domestic holdings of foreign currency will tend to _______ and the foreign currency will _______. a.decrease; depreciate b.decrease; appreciate c.increase; depreciate d.increase; appreciate 2) in september, 2005, exports of goods from […]

1) which of the follow are reasons for offshore banking? i.avoid high costs of domestic regulation ii.avoid government mandated credit allocations iii.avoid taxes on capital flows iv.avoid attempts to seize foreign deposits a.ii only b.i and iii c.i,ii, and iii […]

1) in the twin deficits hypothesis, to reduce a current account deficit, a country has to: a.increase domestic investment b.reduce private saving c.reduce government budget deficit d.all of the above are correct 2) a contract written by a bank to […]

1) assume floating exchange rates. suppose there are a 5% growth in u.s output and a 5% increase in foreign inflation. then, which of the following will offset these changes? a.10% increase in money supply b.10% decrease in money supply […]

1) assume the following: the current spot rate s$/£ = 2.00 and the annual interest rates: ius = 4% and iuk = 8%. according to covered interest parity, if an intern at a bank in u.k. sets the 90-day forward: […]

1) michael phelps, the u.s. olympic swimmer, spends $2,000 on traveling costs around england after the london olympic game. this is counted as: a.debit to services b.credit to services c.debit to unilateral transfer d.credit to unilateral transfer 2) an economy […]

1) which of the following are reasons by the absolute ppp would not hold? i.consumer preferences ii.transaction costs iii.local taxes iv.company discounts a.ii only b.iv only c.i, ii, and iv d.i, ii, and iii 2) compared to domestic banks, eurobanks […]

1) consider the following variances of different stocks all with the same expected returns. which stock represents the riskiest choice? a.stock a: 0.03 b.stock b: 0.25 c.stock c: 0.005 d.stock d: 0.22 2) the u.s. economy is experiencing large trade […]

1) which of the following economies has adopted a currency board exchange rate system? a.malaysia b.south korea c.china d.hong kong 2) which of the following statement is correct? a.since 1974, the major industrial countries have operated under a system of […]

1) when the leakages are ________ the injections, then the value of income received from producing goods and services will equal to total spending. a.greater than b.less than c.equal to d.the sum of 2) suppose that the one-year swiss interest […]

1) considering the internal balance in an economy, which of the following could lead to lower interest rate and higher income? a.an increase in government spending b.a depreciation of domestic currency c.an increase in money supply d.a decrease in money […]

1) if the expected inflation in brazil in higher than the expected inflation in the u.s., and the real interest rates are equal across countries, then we would expect the brazilian real (brazils currency) to: a.appreciate b.depreciate c.remain the same […]

1) figure 2.3: refer to figure 2.3. suppose that the u.k agreed to peg its currency against the u.s. dollar at $2.00 per pound during the bretton woods system. assume that the u.s. increases its imports from the u.k. as […]

1) which of the following exchange rate systems is best suited for a country with trade concentrated with one major country? a.fixed peg b.currency standard c.free floating d.managed floating 2) which of the following are reasons for foreign firms to […]

1) assume that the united states faces a 5 percent inflation rate while the u.k has a 7 percent inflation rate. according to the relative ppp, the dollar would be expected to: a.appreciate by 2 percent against the british pound […]

1) suppose the central bank pursues restrictive monetary policy. then: a.the is curve shifts right b.the is curve shifts left c.the lm curve shifts right d.the lm curve shifts left 2) suppose russia’s inflation rate is 200% over one year […]