Archives: Quiz

1) On the floor of a futures exchange one futures contract is traded where both the long and short parties are closing out existing positions. What is the resultant change in the open interest? Circle one. a. No change b. […]

1) A five-year interest rate swap that can be canceled at the two year point is (Circle one) a. The difference between two plain vanilla interest rate swaps b. The difference between a a plain vanilla interest rate swap and […]

1) As a Japanese MNE, Sony is more likely to use ________ to evaluate performance of its foreign operations. A) quality targets B) market share C) ROI D) sales 2) Forecasters must predict the magnitude, direction, and ________ of an […]

1) At Fidelity Enterprises, raw materials, parts, and components are acquired from suppliers as they are needed in the manufacturing process so that Fidelity does not have to store large inventories. Which of the following does Fidelity most likely use? […]

1) Which of the following is NOT a major reason that companies adopt IT systems? A) maintaining effective arms’ length relationships with customers B) producing high-quality products quickly and efficiently C) communicating effectively with suppliers D) managing inventory levels proficiently […]

1) Under the ________ form of totalitarianism, the regime confines itself to political control of the state. It does not regulate the economic and social structure of society. A) fascist B) communist C) theocratic D) authoritarian 2) A bond that […]

1) The U.N. Global Compact is best described as a(n) ________. A) corruption mandate B) environmental initiative C) external code of conduct D) international trade guideline 2) Why do turnkey operators often require a feasibility study as part of the […]

1) The ________ the level of the company at which managers make decisions, the more that organization is ________. A) higher; decentralized B) lower; centralized C) higher; centralized D) higher; unstructured 2) According to the research described in your text, […]

1) LIBOR is best defined as the ________. A) interest rate of the National Bank of London B) short-term interest rate for dollars held in the Eurodollar market C) interest rate of the European Union D) deposit rate that applies […]

1) Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time? A) trade deficit B) Gini coefficient C) balance of payments D) purchasing […]

1) Identify and briefly compare the major regional trading groups in Latin America, Asia, and Africa. 2) If a foreign subsidiary is located in a low tax country, the parent company would probably use a ________. A) high transfer price […]

1) What role has the IMF played in the Greek financial crisis of 2010-2011? A) setting the value of the drachma B) releasing funds for debt payments C) demanding the sale of state-owned assets D) lowering interest rates for international […]

1) If inflation in the United States is relatively higher than inflation in Japan, and the Japanese government wants to keep the exchange rate fixed between the yen and the dollar, it should most likely ________. A) allow its currency […]

1) Which of the following is most likely a true statement about organization culture? A) Many organizations use a robust organization culture to create consistently high performance B) Fewer and fewer companies allow an organization’s culture to emerge naturally C) […]

1) ________ focus on offering banking and other financial services to nonresident customers. A) Subsidiary banks B) Branch banks C) Affiliated banks D) Offshore financial centers 2) Which of the following is a primary business objective for pursuing ethical behavior? […]

1) Global integration occurs as countries from all over the world decide to cooperate through the ________. A) EU B) NAFTA agreement C) WTO D) CARICOM 2) Which of the following statements about small and medium-sized enterprises (SMEs) is true? […]

1) Anderson Enterprises is a U.S. firm that manufactures light fixtures for commercial and residential consumers. Anderson is looking to expand internationally, so the firm should most likely ________. A) focus on developing new recruitment strategies and selection tests B) […]

1) Risk is an important factor for companies engaged in international business. One way a collaborative arrangement helps minimize risk when operating abroad is by ________. A) reducing the possibility of technological appropriation B) freeing up resources so a company […]

1) Endaka, the “high yen,” caused financial problems for ________. A) Japanese foreign-exchange reserves B) American foreign-exchange reserves C) Japanese importers D) Japanese exporters 2) All of the following are ways that Coca-Cola has been attempting to increase its global […]

1) Uneven income distribution ________. A) exists in almost every country B) is largely a problem for poorer nations C) primarily affects people in urban settings D) is limited to a small share of the world population 2) Tom, a […]

1) Companies often face problems repatriating executives from foreign assignments to the home nation due to which of the following? A) The vacant position cannot be filled overseas B) The firm must increase compensation substantially C) Different departments compete excessively […]

1) Vertical and horizontal constraints that segment employees and their tasks within an organization are generally referred to as ________. A) structures B) networks C) boundaries D) classifications 2) An argument against limiting exports to unfriendly countries is that ________. […]

1) Which of the following best explains why international business has grown rapidly in the past few decades? A) the end of the political division between the Communist and non-Communist blocs B) greater income equality in most countries C) growing […]

1) Limitation of logging in the Amazon region is generally viewed as environmentally beneficial for the planet as a whole; however, unemployed Brazilian workers have felt that job creation inside Brazil is more important than climate protection outside Brazil This […]

1) Differences in culture, geography, and financial methods make it complicated for MNEs to identify cause-and-effect performance measures. 2) Export intensity, the percentage of total revenues coming from exports, is not always correlated with company size. Answer: TRUE 3) According […]

1) The opportunity to increase profitability is the primary reason that firms decide to export. 2) The protection of intellectual property rights is very similar from country to country. Answer: FALSE 3) Although the broadening of product lines increases distribution […]

1) U.S. and U.K. companies tend to be more transparent than Japanese companies. 2) The essential-industry argument holds that industries with potential export capabilities should be protected. Answer: FALSE 3) Demand for a country’s independently floating currency is a function […]

1) A company that adapts its marketing to foreign differences without deviating very much from its experience is following a customer orientation. 2) U.S.-based MNEs are not permitted to set budgets and monitor results using the same exchange rate. Answer: […]

1) Using a concentrated configuration, an MNE performs value activities in different countries. 2) Most countries’ imports account for more than half of their citizens’ consumption Answer: FALSE 3) The balanced scorecard is an approach to performance measurement that closely […]

1) It is difficult to compare globalization of business over time because shifting national borders have changed the nature of transactions from domestic to international and vice versa 2) The primary duty of the customs agency of a government is […]

1) The law is often based on imprecisely defined moral concepts that cannot be separated from legal concepts. 2) In the long run, MNEs must adequately meet the needs of all stakeholders in order to prosper and survive. Answer: TRUE […]

1) The Big Mac Index suggests that exchange rates should leave Big Mac hamburgers costing the same in the U.S. as abroad. 2) A problem of advertising through media that reach multiple countries is that the product may not be […]

1) The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive. 2) Many professional basketball teams recruit tall youngsters in foreign countries into basketball camps where […]

1) The term collectivism refers to a system that stresses the primacy of societal goals over individual goals. 2) Decentralization has the key advantage of letting decisions be made by those who directly deal with customers, competitors, and markets. Answer: […]

1) When comparing economic and demographic variables among countries, one should consider that consumers in developing countries do not necessarily follow the same historical patterns as those in more developed countries. 2) English-speaking peoples account for a larger portion of […]

1) None of the new members of the EU has yet been allowed to adopt the euro as its currency. 2) Upon selection of an executive for an expatriate posting, the most common predeparture training involves a range of instructive […]

1) Ownership advantages refer to a firm’s specific assets, international experience, and the ability to develop either low-cost or highly differentiated products within the context of its particular value chain. 2) Headquarters management often feels that people within an established […]

1) As exemplified in China, the government in a collectivist society is highly connected to and interdependent with business. 2) An effective tariff is the sum of the ad valorem tariff plus the specific duty. Answer: FALSE 3) If the […]

1) When income inequality is high in a specific country, the per capita GDP figures are more meaningful. 2) Most cultural variables are universal. Answer: TRUE 3) The infant-industry argument for trade protection holds that an industry needs government protection […]

1) The foreign-born population as a percentage of total population is substantial for some countries and insignificant for others. 2) GE’s Ecomagination program has enabled the firm to develop a competitive advantage over its competitors. Answer: TRUE 3) The U.S. […]

1) Although a company may have a good track record with collaborative arrangements, this is of little help when negotiating new collaborative arrangements with different companies. 2) A currency that is pegged to another currency is usually changed on a […]

1) New configurations of value activities create coordination and control challenges that cannot be addressed by the functionality outlined in a formal structure. 2) The term brain drain describes the export of high-technology products in exchange for low-technology products. Answer: […]

1) Gross domestic product is the value of production that takes place within a nation’s border, without regard to whether the production is done by domestic or foreign factors of production. 2) The Netherlands is an example of a country […]

1) NGOs must be recognized by the United Nations in order to do humanitarian work in developing countries. 2) The argument for using import controls to promote exports is partially premised on the assumption that other countries will remove their […]

1) Home country consumers are typically active in preventing their domestic companies from dumping products into foreign markets. 2) The three levels of quality standards are general, international, and industry-specific. Answer: FALSE 3) Agricultural subsidies by developed countries impede the […]

1) Currency is a major issue in financial reporting because companies must decide in which currency to present their financial information to the general public. 2) Translation of foreign currency financial statements is the process of restating foreign currency financial […]

1) Although countries are similar in terms of having a mandatory retirement age, they differ in what that age is. 2) The Eurocurrency market is a retail, rather than wholesale, market. Answer: FALSE 3) Under mercantilism, colonial powers sought to […]

1) The requirement by the U.S. government that its subsidiaries abroad comply with trade restrictions with Cuba is an example of externalities. 2) A company with limited resources is more likely to achieve national distribution within a small country than […]

1) If a brand name becomes generic in one country, it becomes generic in other countries as well. 2) A company would most likely outsource abroad in order to gain access to more domestic products. Answer: FALSE 3) Good scanning […]

1) An advantage of locating operations where there are many competitors is that the cluster of competing firms attracts multiple suppliers and specialized personnel. 2) Some companies that opt for the cost leadership strategy plan to sell products below the […]