D311 Final Exam Quiz Questions
During early stages of international expansion, it is most likely for a firm to _______________. A) start operating in countries similar to its own country B) handle many of their operations abroad on its own C) invest extensively in its own production facilities D) do business in many countries
A
Management must do all of the following in order to adequately protect against the risks of exposure to exchange-rate fluctuations EXCEPT: A) Avoid potential situations for exposure B) Adopt a policy assigning responsibility for minimizing exposure C) Formulate strategies for hedging exposure D) Organize and implement a reporting system that monitors exposure
A
The corporate controller is responsible for all of the following EXCEPT: A) Overseeing financial and accounting services B) Evaluating acquisitions abroad C) Hedging currency and interest-rate risks D) Managing cash flow
A
Toyota initially failed to sell pickup trucks in the United States until it redesigned the interior to accommodate drivers who wore cowboy hats. This demonstrates which of the following reasons for product alterations? A) Cultural considerations B) Legal considerations C) Infrastructure considerations D) Environmental considerations
A
Which of the following describes a company that follows a social marketing orientation? A) It considers political and safety dimensions of its products. B) It is a not-for-profit entity based in a developed country. C) It is a government-owned entity from an emerging economy. D) It generates sales to niche markets using social networking sites.
A
Which of the following is a global set of quality standards intended to promote quality at every level of an organization? A) ISO 9000 B) ISO 14000 C) Kanban D) Six Sigma
A
Which of the following is an independent legal entity set up in a country according to that country's laws of incorporation? A) The foreign subsidiary B) The controlled foreign corporation C) The foreign branch D) The second-tier subsidiary
A
Which of the following is the selling and handling of goods through unofficial distributors? A) The gray market B) The skimming strategy C) The open market D) The penetration strategy
A
All of the following are legal considerations to alter products to a foreign market EXCEPT: A) Labeling requirements B) Exchange rates C) Environmental protection regulations D) Technical standards
B
Danone has been shifting emphasis from wealthier markets to developing markets because: A) Consumers in developing markets prefer yogurt B) Danone's markets in wealthier countries have been maturing C) Yogurt is too expensive to produce in Europe due to regulations D) Gap analysis indicated significant growth opportunities in wealthier markets
B
From a consumer standpoint, a brand conveys a perception of whether firms will deliver what they promise. However, the importance is more crucial in countries with strong cultural characteristics of __________. A) power distance B) uncertainty avoidance C) masculinity D) long-term orientation
B
Poor roads and theft en route to and from warehouses make it hazardous to transport products in Brazil. This best demonstrates which of the following factors that contribute to distribution cost differences? A) Levels in a distribution system B) Infrastructure conditions C) Retail inefficiencies D) Inventory stock-outs
B
Supply-chain management typically refers to activities in the value chain that occur _________ the company, whereas operations management refers to _________ activities. A) inside; external B) outside; internal C) without; collaborative D) in the foreign country hosting; home-country
B
The following are common marketing orientations around the world EXCEPT: A) Strategic marketing orientation B) Policy marketing orientation C) Sales orientation D) Customer orientation
B
The process of removing differences in accounting standards is referred to as: A) Integration B) Reconciliation C) Convergence D) Harmonization
B
To prevent the theft of highly controlled drugs, pharmaceutical company Eli Lilly puts chips into drug containers to track their location. This exemplifies the use of technology called _____. A) AQL B) RFID C) ERP D) PTX
B
What are the two basic problems of using data on countries for comparing countries with each other? A) Unavailability and costs B) Inaccuracy and noncomparability C) Comprehensibility and complexity D) Costs and complexity
B
What is the "liability of foreignness?" A) The foreign liabilities on the balance sheet of an MNE. B) The lower survival rate of MNEs compared to local companies for several years after they begin operations. C) An MNE's risk of being liable for mistakes made in operating a foreign subsidiary. D) An MNE's risk of not achieving its forecasted sales targets in a host country because of the population's preference for local products.
B
What was Burger King's strategy for expanding quickly in France after it reentered that country in 2013? A) It engaged in a joint venture with another fast-food chain. B) It acquired another fast-food chain with hundreds of restaurants. C) It invested more than $600 million in building and staffing new restaurants. D) It attracted franchisees with large financial and restaurant capabilities willing to run more than 15 restaurants at once.
B
When Smith Electronics employs Hyde Park Consulting to conduct its research activities, this process is called ________. A) nearshoring B) outsourcing C) vertical integration D) onshoring
B
Which is true about Nokero? A) It started as a local company and then grew to be a multinational. B) It started out as a global company. C) It is a spin-off of GE. D) It is a joint venture of Project C.U.R.E., Shelterbox, and Power the World.
B
________ is the process of restating foreign-currency financial statements into U.S. dollars. A) Convergence B) Translation C) Procurement D) Consolidation
B
Estimating a company's potential sales for a given type of product and comparing how different elements in the marketing mix can best serve prospective customers is called ____________. A) sales analysis B) skimming C) gap analysis D) export price escalation
C
The process of having inputs for the production process supplied by outside suppliers is called ______________. A) buying B) processing C) sourcing D) offshoring
C
Uruguay has a small population. What is the most likely reason why a US consumer goods company would want to produce in that country anyways? A) Uruguay is a member of the European Union (EU) and a company that produces in Uruguay can export products tariff-free to other EU countries. B) Uruguay has high tariffs and producing in Uruguay is cheaper than importing products to Uruguay. C) Uruguay is a member of Mercosur, a large South American trading bloc. A company that produces in Uruguay can export products tariff-free to other Mercosur countries, some of which have large populations such as Brazil or Argentina. D) Uruguay's per capita GDP is one of the highest in the world.
C
When committing resources to a foreign location, managers should assess the opportunities and risks associated with the foreign locations they are considering. The textbook discusses four types of risks. Which type of risk is not among them? A) Political risk B) Foreign exchange risk C) Labor risk D) Natural disaster risk
C
Which of the following activities is included in the concept of logistics? A) Controlling consumption B) Employing international workers C) Transporting and storing goods D) Relating to customers
C
Which type of bond is sold outside the borrower's country, but denominated in the currency of the country of issue? A) A LIBOR bond B) A EuroBond C) A foreign bond D) A treasury bond
C
A company wants to make sure that it will earn a specific amount of money on a new product. This approach best demonstrates which of the following pricing strategies? A) A coordination strategy B) A penetration strategy C) A skimming strategy D) A cost-plus strategy
D
According to the textbook, the success of a global operations strategy depends on four key factors. Which of the following is not one of those factors? A) configuration B) compatibility C) coordination D) capacity
D
All of the following are important determinants in a company's capital structure EXCEPT: A) Preferences of banks and pension funds B) National corruption levels C) Local tax rates D) Working capital management
D
How many households does a Carrefour hypermarket require within 20-minute driving distance to do sufficient business? A) 40,000 B) 150,000 C) 320,000 D) 500,000
D
In an accounting sense, which of the following is true: A) Conservative countries tend to understate assets and income B) Optimistic countries tend to be more liberal in their recognition of income C) U.S. and British companies are more optimistic D) All of the above
D
What did Burger King do when it entered India, a country with many vegetarians? A) It dropped all meat items from its menu. B) It delegated much of the menu selection to its Indian partner. C) It conducted extensive market research. D) B) and C)
D
What is the "last mile issue?" A) Problems getting products from the warehouse to the final customer. B) Getting the final customer to understand how to use a product. C) None of the first two answers. D) Both of the first two answers.
D
What is the term used to refer to cash flows from a project back to the parent in the parent's currency? A) Estimated cash flows B) Projected cash flows C) Remittance D) Parent cash flows
D
What is/are Carrefour's requirement(s) for expanding into a foreign country? A) Economic growth of the foreign country B) Suppliers for its stores' stock located in the foreign country C) Being the first hypermarket company in the foreign country D) A) and C)
D
What was/were Burger King's reason(s) for leaving Colombia after its first entry into this Latin American country in the 1980s? A) Economic turmoil B) Political turmoil C) Restrictions on transferring royalty payments from Columbia to the US D) All of the above
D
Which of the following is a system that stresses three principles: customer satisfaction, continuous improvement, and employee involvement? A) Enterprise resource planning B) Lean manufacturing C) Just-in-time inventory management D) Total quality management
D
Which type of exposure arises when accounts receivable or payable are denominated in a foreign currency? A) Translation exposure B) Economic exposure C) Lag strategy exposure D) Transaction exposure
D