The Nature of International Business and Cooperation among N<\/p>\n
Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page
break, so be sure that you have seen the entire question and all the answers before choosing an answer.
1. Decision making in the international environment is _______ in a purely domestic environment.
A. about the same as
B. less complex than
C. more complex than
D. less demanding than
2. In 2010, only 23 nations had GNIs greater than
A. the sum of the GNIs of Japan, Germany, and France.
B. Walmart\u2019s total annual sales.
C. the total sales of Exxon Mobil and Citigroup.
D. the sum of the combined sales of Ford and General Electric.
3. The United Nations organ involved in trade development, education, and health issues is the
A. Secretariat.
B. General Assembly.
C. Security Council.
D. Economic and Social Council.
4. The main drivers of globalization depend on
A. the foreign environment.
B. domestic growth.
C. change.
D. cultural differences.
5. An international business manager who bases decisions solely on his or her own experience or preference
is using
A. the self-reference criterion.
B. internalization theory.
C. controllable forces.
D. domestic standards.
6. The increased internationalization of business requires _______ to have a basic knowledge of
international business.
A. managers of multinationals
B. all managers
C. managers of transnationals
D. managers of purely domestic operations
7. A\/An _______ is all forces influencing the life and development of the firm.
A. local population
B. group pool
C. environment
D. foreign exchange
8. When market demand and supply regulate the exchange rate with intervention designed to moderate the
rate of change, it\u2019s called a\/an
A. crawling peg.
B. independent float.
C. market method.
D. fixed peg.
9. What is an economy of scale?
A. The price of scales exceeds the cost of producing them.
B. The price of scales is lower than the cost of producing them.
C. As a plant gets larger, the average cost of producing a unit of output increases.
D. As a plant gets larger, the average cost of producing a unit of output decreases.
10. The idea that market forces, not government controls, should determine direction, volume, and the
composition of international trade came from
A. the Ottoman Empire.
B. Milton Friedman.
C. Adam Smith.
D. Salvador Allende.
11. The _______, a collaboration of nations pooling money to lend to countries in debt, is associated with
the United Nations.
A. IMF
B. IBRD
C. GATT
D. OECD
12. The Association of Southeast Asian Nations was formed to provide members with a
A. plan for mutual protection and peaceful relations.
B. common market.
C. way to join with China as a political force.
D. free trade area.
13. The organization established along with the IMF at the Bretton Woods meeting is the
A. United Nations.
B. Bank for International Settlements.
C. World Bank.
D. International Monetary Fund.
14. The _______ has had a central role as a main central reserve asset of many countries, as a vehicle
currency, and as an intervention currency.
A. U.S. dollar
B. yen
C. British pound
D. Euro
15. An import duty that\u2019s a fixed percentage of the invoice value of an imported product is called a\/an
_______ duty.
A. ad valorem
B. specific
C. invoice
D. compound
16. _______ can be divided into portfolio and direct investment.
A. Production
B. Exchange rate investment
C. Foreign investment
D. Domestic investment
17. Defining a standard unit of currency by its equivalent in gold is called
A. coinage.
B. the price specie flow.
C. the gold standard.
D. par value.
18. The exchange rate for a currency trade for delivery within two days is called the _______ rate.
A. cross
B. priority
C. spot
D. forward
19. Treasury and Central Bank representatives met in _______ at the end of World War II and established
the IMF, the World Bank, and the gold exchange standard.
A. Jamaica
End of exam
B. Berlin
C. Diekirch
D. Bretton Woods
20. Inflation is generally measured by calculating the changes in
A. the balance of payments of 10 nations.
B. interest rates.
C. exchange prices.
D. the prices of a variety of goods and services.<\/p>\n
500664RR \u2013 International Environmental Forces<\/p>\n
1. The risk of punitive damages in product liability cases has caused
A. little change on research or new products.
B. foreign companies to withhold potentially beneficial products from the U.S. market.
C. U.S. companies to increase research to find safer products.
D. consumers to demand that cases be heard by a judge rather than a jury.
2. Using a\/an _______ staffing policy, selection of the best person for each job is done without considering
national origin.
A. polycentric
B. regiocentric
C. geocentric
D. ethnocentric
3. The broad purpose of market screening is to
A. keep track of competitors\u2019 activities.
B. pinpoint the most attractive prospects.
C. make decisions on organizational structure.
D. compare geographic and product structures.
4. Payments made to expatriates to compensate for extra costs of living abroad are called
A. differentials.
B. allowances.
C. premiums.
D. bonuses.
5. ICs pay _______ when the host-country taxes are higher than home-country taxes.
A. housing allowances
B. tax differentials
C. tax disincentives
D. bonuses
6. Reverse brain drain, a concern of American businesspeople, is related to the trend toward
A. a decline in workforce quality.
B. investing in local industry.
C. outsourcing to developing countries.
D. discrimination in host countries.
7. When skilled workers migrate in search of professional and economic opportunities, it\u2019s called
A. brain drain.
B. market forces.
C. competitive labor.
D. labor quality.
8. Only _______ percent of ICs have repatriation programs.
A. 49
B. 10
C. 5
D. 60
9. Market screening is derived from
A. current market trends.
B. environmental scanning.
C. local sociocultural forces.
D. global opportunities and threats.
10. Only the continent of _______ lacks inland waterways.
A. Australia
B. Asia
C. North America
D. South America
11. The two components of material culture are technology and
A. economics.
B. aesthetics.
C. materials.
D. purchasing.
12. There are several criteria for segmenting markets. Which of the following are two criteria for
segmenting?
A. Large and definable
B. Unclassified and unfulfilled
C. Small and elusive
D. Diverse and accessible
13. The two types of market screening procedures are
A. initial screening and secondary screening.
B. country screening and segment screening.
C. market indicators and market factors.
D. trend analysis and cluster analysis.
14. The initial step international business managers must take in learning to live with other cultures is to
A. realize that other cultures exist and are different from their own.
B. learn the language.
C. make friends with natives of the country.
D. visit the country.
15. The International Energy Agency concluded in 2010 that
A. a worldwide energy revolution based on low-carbon technologies is under way.
B. sustainable energy development was not feasible.
C. oil reserves would dry up by 2020.
D. oil demand must immediately drop worldwide by 10 percent.
16. A combination of _______ causes the same extremes in temperature and humidity in other countries as
is found in Colombia.
A. tropical rain forests and plains
B. heat and moisture
C. rain and fog
D. mountains and lowlands
17. Generally, because of higher birth and fertility rates, developing countries have more _______
populations than industrial countries.
A. healthy
B. unhealthy
C. mature
D. youthful
18. A commitment to actions that meet present needs without compromising the ecological, social, and
economic needs of future generations characterizes
A. socialism.
B. economic stability.
C. ethnocentricity.
D. environmental sustainability.
19. After Saudi Arabia, the country with the greatest heavy oil reserves is
A. Iraq.
B. Venezuela.
C. Canada.
D. Iran.
End of exam
20. Most anthropologists\u2019 theories of culture include the proposal that
A. regional variations on culture are partially due to genetic differences.
B. the beliefs, rules, and institutions of most cultures are nearly indistinguishable from each other.
C. each aspect of a culture develops because of a specific, often isolated need.
D. culture defines the boundaries of different groups.<\/p>\n
500666RR \u2013 The Organizational Environment, Part 1<\/p>\n
1. The term for what people are doing when they put forth less effort while members of a group is
A. catatonia.
B. groupthink.
C. individualism.
D. social loafing.
2. Japanese anime became a popular media in the United States due to
A. American fans pulling anime in.
B. Disney\u2019s adoption of the style in its animated movies.
C. heavy advertising in the United States by Japanese comic companies.
D. an unusual amount of manga piracy.
3. Which of the following means that goods are shipped to the buyer and payment isn\u2019t made until they\u2019ve
been sold?
A. Bank collection time draft
B. Consignment
C. Irrevocable letter of credit
D. Cash in advance
4. _______ places increasing emphasis on recruiting and developing human resources.
A. Marketing
B. Globalization
C. Accounting
D. Localization
5. Which of the following is the least costly for a buyer of exported goods?
A. Cash in advance
B. Bank collection time draft
C. Irrevocable letter of credit
D. Open account
6. A _______ strategy is often used where there\u2019s a strong pressure to reduce costs and limited pressure to
adapt products for local markets.
A. transnational
B. global
C. home replication
D. multidomestic
7. The Small Business Administration (SBA) provides _______ assistance.
A. business development and financial
B. educational and placement
C. market analysis and Web development
D. product-search and product-support
8. A partnership between competitors, customers, or suppliers is called a\/an
A. growth triangle.
B. merger.
C. affiliation.
D. strategic alliance.
9. A _______ is an arrangement under which a company provides managerial know-how in some or all
functional areas to another party for a fee.
A. manufacturing contract
B. strategic alliance
C. joint venture
D. management contract
10. A company in which each country\u2019s division manager reports directly to the CEO is
A. organized by geographic regions.
B. a hybrid organization.
C. a matrix organization.
D. divided by both product and function.
11. Independent businesses that handle import shipments for compensation are called
A. foreign freight forwarders.
B. commerce chambers.
C. customhouse brokers.
D. bonded warehouse managers.
12. The behaviors and processes that go along with organizing people to achieve a common purpose are
seen in
A. line supervisors.
B. managers.
C. leaders.
D. chairmen of the board.
13. One disadvantage of indirect exporting is that
A. licensing and red tape can delay completion of shipments.
B. large cash outlays are required.
C. it\u2019s difficult to find the right agent for a firm\u2019s product.
D. the firm gains little experience from transactions.
14. Incoterms were developed by the International Chamber of Commerce to
A. promote trade missions.
B. translate international contracts.
C. facilitate legal price quotes between buyers and sellers.
D. clarify terms of sale.
15. Organizational _______ is a process dealing with how a company should be organized for integration,
efficiency, and effectiveness.
A. competitiveness
B. design
C. division
D. functions
16. The term tactical plans refers to
A. detailed, short-term operational plans.
B. broad operational plans on which strategic plans are based.
C. scenarios presented as comprehensive future strategies.
D. long-term strategies that address best- and worst-case scenarios.
17. Manufacturers that sell products from other companies in foreign markets along with their own are
referred to as
A. resident buyers.
B. commission agents.
C. cooperative exporters.
D. export merchants.
18. The difference between tacit knowledge and explicit knowledge is that
A. tacit knowledge is always expressed visually.
B. tacit knowledge is difficult to express in terms of pictures or words.
C. explicit knowledge is codified in numbers only.
D. explicit knowledge is subjective while tacit knowledge is objective.
19. The McDonald\u2019s, Kentucky Fried Chicken, or Subway in your area is an example of a
A. joint venture.
B. licensed product.
End of exam
C. strategic alliance.
D. franchise.
20. Residents of a country who represent various noncompeting foreign suppliers and take orders in those
firms\u2019 names are known as manufacturers\u2019
A. traders.
B. retailers.
C. agents.
D. distributors.<\/p>\n
500668RR \u2013 The Organizational Environment, Part 2<\/p>\n
1. The type of debt nearly always repaid in full by the borrower, with a repayment rate of 97 percent, is
_______ loans.
A. federally guaranteed
B. company-to-company
C. micro-
D. parallel
2. A middle ground between an ad campaign that\u2019s standardized worldwide and an entirely local ad
campaign is called a\/an _______ approach.
A. hybrid advertising
B. shared-management
C. computerized-management
D. programmed-management
3. The benefits of offshore financial centers include
A. high interest and low fees.
B. fluctuating currency exchange rates.
C. advantageous accounting practices.
D. low taxes and few banking regulations.
4. Which of the following adds 3\u20135 percent to the quoted price of a product, due to the costs of importing?
A. B2B costs
B. Export duties
C. Invoice charges
D. Customhouse broker\u2019s fees
5. _______ are responsible for a shift in power from manufacturers to retailers.
A. Internet advertisers
B. Private brands
C. Public brands
D. Foreign environmental forces
6. When a subsidiary transfers its net cash flows to a cash center that disperses the case to net receivers,
the subsidiary is engaging in
A. hedging.
B. leading and lagging.
C. transferring.
D. multilateral netting.
7. The Sarbanes-Oxley Act was passed by Congress in response to
A. an international demand for antitrust protection.
B. a need to protect U.S. citizens from foreign laws.
C. the Enron scandal.
D. product liability lawsuits.
8. Taking a position in one market to offset exposure to price changes in an opposite position is called
A. consolidation.
B. centralization.
C. hedging.
D. diversification.
9. Developing countries frequently see the use of used equipment in production as
A. evidence the company will produce inferior products.
B. a means to employ more people who will be hired to fix broken equipment.
C. assurance the equipment has done its job elsewhere.
D. evidence the company doesn\u2019t want to take chances on untried technology.
10. _______ exposure is a currency exchange risk resulting from exposure during the consolidation of
subsidiary financial statements.
A. Translation
B. Parallel
C. Derivative
D. Temporal
11. The attitudes of governments toward transfer pricing is
A. indifference.
B. academic interest.
C. suspicion.
D. encouragement.
12. The basic cultural decision a marketer has to make when placing a product in a foreign country is
whether
A. social taboos are implied by the product\u2019s name.
B. the product will be used by men or women.
C. the advertising for the product will be tasteful enough for the foreign audience.
D. to position the product as foreign or local.
13. Applying a total systems approach to managing the flow of materials, information, finances, and
services in a value chain is called
A. luxury brand development.
B. supply chain management.
C. information and technology management.
D. organizational realignment.
14. Including such items as maintenance, repair, operating supplies, office equipment, and other services
and supplies, indirect procurement can account for as much as _______ percent of the total purchasing
expenditures in companies.
A. 50
B. 25
C. 80
D. 70
15. Swedish safety requirements for machinery operators
A. make imports of Swedish products popular in the U.S.
B. are difficult to pin down because they vary from one machine to another.
C. make exporting U.S. machines to Sweden very easy.
D. are stricter than those imposed by the U.S. Occupational Safety and Health Act.
16. When companies report on environmental and social, as well as financial results, it\u2019s called
A. convergence.
B. triple bottom line.
C. global edge.
D. parallel management.
17. Relocating activities a company used to do in-house to another country is called
A. offshoring.
B. outsourcing.
C. immigration.
D. emigration.
18. Global retailing requires that the company pay particular attention to _______ in distribution strategies.
A. use of animal skins in products
B. product loyalty
C. localization
D. native company competition
19. Which of the following is not a part of the total product?
A. Package
End of exam
B. Warranty
C. Integration
D. Accessories
20. Of all the promotional mix elements, _______ may be the one with the greatest similarities worldwide.
A. sales promotion
B. personal selling
C. public relations
D. advertising<\/p>\n
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