CBA 300

when nations and corporations were ranked by GNI and total sales, respectively for 2020, how many had GNI greater than the total annual sales of walmart stores -103 -25 -23 -59

23

Dissatisfaction with both the purchasing power parity (PPP) and conversions using official exchange rates caused the World Bank to adopt what methodology to derive per capita GNI estimates?

Atlas conversion factors

For those of you that came to class on Nov. 18: The capital of Guinea-Bissau is

Bissau

Which region saw a sharp decline in imports and GDP in 2022 due to reliance on Russian energy and the impact of sanctions?

Commonwealth of Independent States (CIS)

An example of expropriation without compensation is when

Cuba confiscated property during the Cuban revolution of the 1950s.

To set corporate objectives, management must first

Define the firm's mission

If Ecuador has an absolute advantage in coffee and Argentina in wheat, then, according to trade theory:

Ecuador should focus production on coffee and trade for other goods

The foreign environment consists of the interactions between the domestic environmental forces and the foreign environmental forces, as well as interactions between the foreign environmental forces of two countries

False

Which of the following statements best describes "the carbon market"?

Firms trade carbon credits with other firms in exchange for less compliance with the cap.

When measuring the value produced in an economy, most international organizations prefer to use

GNI

How did the Jamaica Agreement affect IMF members?

It established the rules for the floating rate currency exchange rate system.

How does a variable levy affect domestic producers?

It prevents an imported good from being priced lower than the domestic good.

From a cultural perspective, management's objectives and aspirations are associated with:

Security and mobility; Personal life, Affiliation and Social Acceptance, Power and Achievement

What is one of the reasons suggested by economist Alfred Marshall for why firms tend to cluster together on a geographic basis

Technological information can be readily shared

Firms from __________ had the largest total outstanding stock of direct overseas investment at the beginning of 2020.

The United States

Jason lives in a country with oppressive tax rates and overwhelming government red tape that a company must go through to export its products. How might these factors affect the economy in this country?

The underground economy would be bigger.

absolute advantage

The united states can produce more wheat for the same or lower costs than many other countries. This is an example of

Which country has the largest amount of recoverable coal reserves?

United States

Can Ukraine continue to export food across the Black Sea despite Russia's threat?

Yes, with the support of Turkey and the United Nations.

A fixed peg currency arrangement means that

a currency's exchange rates fluctuate around a fixed rate with a narrow band

an internatioonal reserve asset called special drawing rights is

a virtual currency with no tangible presence

In some countries, when an import of a product reaches the government-specified amount, then no further imports of that product are allowed for the year. What type of quota does this represent?

absolute

The capability of one nation to produce more of a good or service than another country for the same or lower costs of inputs is an

absolute advantage

The direction of trade is favored among major trading partners (economically integrated) when which of the following, if any, is (are) present?

all of the above

Which, if any, of the following are more closely related with Economic Integration and Sovereignty?

all of the above

During a trial, the judge openly questioned the defendant and her lawyers and often challenged the presented evidence. There wasn't a jury and the judge made the final decision. Which type of legal system would include this scenario?

civil

in 2018, amazon reported profits of $11.2 billion and

claimed a federal tax rebate

According to Trompenaars, a culture's attitude toward the environment can range from

control over the environment to harmony with it

What does CIF in international trade stand for?

cost, insurance, freight

In which type of currency arrangement would a currency be readjusted periodically at a fixed, preannounced rate?

crawling peg

Social dumping occurs when an exporting country

creates unfair competition based on lower costs because the exporting country provides little social support to the worker.

Dispersed ethnic groups, such as Chinese, Hispanics, Indians and others, are examples of:

cross-national segments

the "operational code" is mostly found in

developing nations

What is a key challenge for a late entrant in a country market?

difficulty in finding a good distributor

After the taxes are taken out of her pay, Sue takes home $1,254 in her paycheck. This dollar amount represents her

disposable income

The tendency toward an international integration of goods, technology, information, labor and capital, or the process of making this integration happen, is called

economic globalization

A country that can sell its products at a lower cost because it has lower standards for emissions from manufacturing facilities is making use of

environmental dumping

In Sharia law, interest is forbidden, which results in

equity partnerships, where business risk is shared.

A company produces an ad in France that features seminude models. When advertising the same product in Israel, the models are fully clothed. According to Lars Perner's research, which cultural dimension is playing a role in this about global advertising decision?

explicitness

A company wanted to evade a quota imposed on imports, so it shipped its finished goods to a country that didn't have a quota, and then relabeled them and shipped them to the quota-imposing country. This process is called intermediate shipping.

false

As presented in class, the concept of a "Nation-State" and Sovereignty are not directly linked to the concept of Economic Integration.

false

Exporting companies should always quote their prices as FOB rates.

false

In the textbook "International Business" by Geringer, the author proposes that culture is a learned behavior transmited across generations to solve societal problems.

false

Lobbyists who advocate for new laws that will affect the production standards of a business are an example of an internal force

false

Mountain ranges facilitate global markets and the process of internationalization.

false

Romaine's company sent her and 3 other executives from her company to Thailand to assess business opportunities there. The Thai government publicized the visit and arranged for them to meet with various groups. This is called a field trip.

false

Social desirability bias is seen as an advantage when conducting market research.

false

The United Kingdom Bribery Act only penalizes a company for the act of bribery when it has been committed in the U.K.

false

When a government allows the repatriation of earnings, it is considered an entry barrier.

false

a nation's GNI and a company's sales are directly comparable because GNI is a measure of value added, as are sales

false

epetition of the bottom-up or top-down planning process until all differences are reconciled is called sequential planning.

false

multinational corporations consist of several entities in different countries, each of which has its own independent strategy and policies

false

A boot designer was surprised when its marketing campaign featuring a cowboy fell flat in some South American countries but prospered in the United States. They later determined that a cowboy was not a glamourous job in parts of South America so it held little appeal to consumers. In this instance, the company used what aspect of aesthetics incorrectly?

folklore

Governments may nationalize private firms in order to

follow an economic or political ideology

When a snack mix producer in one country bases its product price on the market forces in another country, they are utilizing what pricing strategy?

foreign national pricing

International business differs from domestics business in that a firm operating across borders must deal with the forces associated with which three kinds of environments?

foreign, domestic, international

Jorge wants to lock in today's exchange rate because he is worried rates might skyrocket in the next few months. He wants to lock in this rate for the shipments he has due in the next 60 days. What type of rate is Jorge interested in?

forward rate

What was Theodore Levitt referring to when he said that the future belonged to corporations that operated "as if the entire world were a single entity: [such an organization] sells the same things in the same way everywhere?

globalization

Actions that involve antitrust laws usually involve

government against business

A measure of an economy's size based on the market value of goods and services produced within a nation in a year is

gross domestic product

Francis is an economist and typically measures the overall economic output of a nation even though he realizes it doesn't account for the flows of FDI and income into and out of the nation. What measure is Francis using?

gross domestic product

Companies pursuing a multidomestic strategy typically have

high levels of local market customization

In U.S. accounting law, the Sarbanes-Oxley Act

holds corporate officers personally responsible for their corporate filings.

When a company examines import data, what does it learn about basic need potential in a country?

immediate market potential at going price

From comparisons of income distribution studies over time, it generally appears that

income is more evenly distributed in the richer nations.

Which of the following is NOT a mode of entry?

indirect importing

Which of the following are characteristics of services?

intangibility, heterogeneity, inseparability, perishability

Compared to the traditional process, in the new strategic planning process

interaction with important customers and suppliers is included.

Rhonda grew up in the U.S. and had never really given much thought to climate change, assuming that people could control nature. But then she moved to Sweden, a country that is leading the way in global climate change rankings. Now she believes that it is important to work with the environment, not try to control it. Which of Trompenaars's seven dimensions is described?

internal vs. external direction

Olivia is a human resource manager, and she is interested in the increase in the number of working women at her company. This is most likely because

it causes a larger labor supply that may change production processes.

Which of the following statements about economic integration is true?

it has been associated in class with non equilibrium thermodynamics

Why is it predicted that the use of coal as an energy source will decline?

it produces heavy pollution

Unlike the United States, many countries around the world currently require labeling of genetically modified foods. This represents what type of environmental force faced by international marketers?

legal

What is the main role of an agent in the market country?

legal representative

When barriers are high, alternative modes of entry may have to be chosen. Which mode of entry best exemplify this statement?

license a local producer

When Hilton Hotels provides management for foreign hotels that use the Hilton name and receives a fee for doing so, it is participating in which form of market entry?

management contract

What is the main challenge associated with harnessing the benefits of global interconnection?

managing risks from interdependency

what is identified in the text as being one of the five major drivers of globalization

market, cost, technological, political, competitive

Due to the expanding importance of foreign-owned firms in local economies, host governments have made their policies toward these companies

more liberal

Which of the following is not a characteristic of Strategic Alliance?

none of the above

Tariffs on some products no longer serve their original purpose of protecting domestic producers but they are still levied by the government. What are these types of tariffs called?

nuisance

When is the ban on domestic sales of Ukrainian grain in some European Union countries expected to end?

on september 15

Sharon is a multitasker and prefers to work on more than one project at a time at work. Edward Hall would say that Sharon favors which approach to time?

polychronic

In terms of quantifying objectives and goals, most top managers

prefer verifiable objectives

When a government transfers the assets of a company from the public sector to the private sector, it is an example of

privatization

As a way to decrease its tax rate, a company moved its profits out of the United States to a location with lower tax rates. What strategy is the company using?

profit shifting

What is a key advantage of licensing as an entry mode?

quick profits

U.S. responses to foreign tariffs are likely to

raise the cost of the imported goods for U.S. consumers

Which characteristic of an environmental stable business is occurring when a coal company reclaims land that has been mined so the community can use it for other purposes?

resources are limited

In Trompenaar's affective culture, emotions are seen as

responses to be freely displayed

What is a significant economic consequence of the conflict in Ukraine on global trade?

rise in commodity prices

What is a major concern in joint ventures regarding technology transfer?

rise of know-how dilution

A company relies on an exchange rate that is based on trade for delivery within two business days. What type of exchange rate does the company use?

spot rate

U.S-based Good For you Coffee Company introduced its line of herbal coffees to the international market two years ago. They were well received, and now foreign competitors are starting to export similar products. Which stage of the product life cycle is the product currently in?

stage 3

A company shipped 50,000 units of a product to another country. The first 25,000 units entered the country duty-free, but a duty was charged on the next 50,000. This illustrates

tariff rate quota

What does an 'Incremental' strategic posture in foreign entry imply?

tentativeness and keeping future options open

The theory of resource endowment explains

that a nation will export goods that can be produced with the production factor that is most abundant

The World Trade Organization was originally founded as

the General Agreement on Tariffs and Trade

In a managed float currency arrangement, the currency fluctuates while

the country's monetary authority privately intervenes on the exchange market.

Monochronic time is best illustrated by

the flight schedule at an airport

Trompenaar's particularist dimension describes a culture in which

the judgement of something depends on the situation

Dumping best refers to

the practice of selling products abroad at below fair market value.

What is the goal of value chain analysis?

to enable managers to identify which set of activities it will do itself and which it will outsource

Examples of socioeconomic data are:

total population, population density, and population distribution, age distribution

When a government sets a quota on the amount of sugar that can be imported, it is implementing a(n)

trade obstacle

Nancy knew her package had arrived because she saw the truck with the Amazon logo stop in front of her house. The logo she recognized is an example of a

trademark

"Born global" is best defined as engaging in export activities from the very beginning of a firm´s existence.

true

"Cultural Distance" refers to, among other factors, the distance a culture is geographically distant from the United States. And the linguistic distance from English.

true

Estimation by analogy can be used to examine market factors.

true

Generally, the higher the GNI per capita is, the more advanced the nation's economy will be.

true

If all countries had strong, freely convertible currencies, there probably wouldn't be a need for international countertrade.

true

In a control posture, acquiring a local firm is often the best strategy in emerging markets.

true

Licensing contracts should limit the geographical area for the licensee.

true

Litigation of disputes that cross international borders can arise in both state and federal courts in the United States.

true

One World and Star Alliance are examples of distribution alliances and non-Japanese Keiret-sus.

true

Strategic alliances can include joint R&D and shared manufacturing.

true

The Sarbanes-Oxley Act (SOX) was created to increase ethical behavior by public company boards, their management, and their accounting firms.

true

The mobility of capital, labor and the transfer of knowledge have been described as the drivers of globalization.

true

The proportion of world trade coming from North America, Latin America, Africa, and the Middle East has decreaed since 2003

true

When using the term "Operational Code" it is understood as a law that is not written, but is enforced as though it were written.

true

n BOP accounting, a deficit in the current account is always accompanied by a surplus in the capital account.

true

Which type of contract involves the construction of whole plants and training of personnel?

turnkey contracts

According to Porter, the four variables he believes influence a firm's ability to gain a competitive advantage create a ____ of resource generation and application

virtuous circle

World trade is dominated with exchanges

within geographic regions.