IBA Test 2
Applying home-country laws to people and situations abroad is a practice known as ________. Question content area bottom Part 1 A. transparency B. mixed system C. socialism D. extraterritoriality E. rule of law
extraterritoriality
A specific region that is located within a nation is treated as if it were outside the nation's borders. This region is designated to receive imported products that are not subject to tariffs and that are intended for assembly and subsequent re-export. Which term best describes this region? Question content area bottom Part 1 A. Economic union B. Common market C. Free trade area D. Foreign trade zone E. Regional economic integration
Foreign Trade Zone
Which of the following is a stage of regional integration in which member countries decide to remove tariffs and other barriers to trade within the bloc, but maintain trade barriers with nonmember countries? Question content area bottom Part 1 A. Common market B. Economic union C. Foreign trade zone D. Customs union E. Free trade area
Free Trade area
Which of the following primarily focuses on ensuring the reduction of tariffs among certain countries and settling trade disagreements? Question content area bottom Part 1 A. United Nations B. World Bank C. European Union D. General Agreement on Tariffs and Trade E. Smoot-Hawley Tariff Act
General Agreement on Tariffs and Trade
________ is the process of bringing together an organization's value-chain activities across different countries to realize global efficiency and synergy to benefit from similarities between countries. A. Visionary leadership B. Global sourcing C. Countertrade D. Global integration E. Local responsiveness
Global Integration
In which of the following industries have Brazil's manufacturing firms enjoyed considerable success producing for foreign clients? Question content area bottom Part 1 A. Textile machinery B. Iron ore and processed food C. Personal computers D. Cars and consumer electronics E. Diamonds and mining
Iron ore and processing food
Which term refers to a company's ability to lower the cost of operation throughout its value chain? A. Efficiency B. Learning C. Strategy D. Flexibility E. Organizational culture
Efficiency
Which term describes family conglomerates in South Korea? Question content area bottom
Chaebols
You work at an international company that is headquartered in California. Your company's R&D and manufacturing activities take place near the company headquarters. The managers at the California location are responsible for company operations worldwide, and they view the entire world as one large marketplace. As a result, your company sells the same products on six continents. Which of the following strategies is being used by your company? Question content area bottom Part 1 A. A transnational strategy B. A multidomestic strategy C. A global strategy D. A countertrade strategy E. A home replication strategy
A global strategy
________ is the seizure of company assets with compensation. Question content area bottom Part 1 A. Nationalization B. Expropriation C. Conciliation D. Arbitration E. Confiscation
Expropriation
Which of the following is a driving factor for companies to focus on local responsiveness? Question content area bottom Part 1 A. Accommodating variances in distribution channels B. Taking advantage of media that reaches buyers in different markets C. Pursuing cost savings through scale economies D. Conducting worldwide sourcing of resources, components, and energy E. Offering uniform service to global customers
Accommodating variances in distribution channels
________ is a process in which an unbiased third party listens to both sides of a case and makes a decision in favor of one party or the other, based on an impartial analysis of facts. Question content area bottom Part 1 A. Conciliation B. Litigation C. Nationalization D. Arbitration E. Confiscation
Arbitration
Due to the larger market size of an economic bloc, member country firms are able to reduce their product prices because they can ________. Question content area bottom Part 1 A. attain economies of scale B. implement a different organizational structure C. gain political support D. seek investments from external sources E. impose duties on block members
Attention economies of scale
________ is a governmental system that attempts to control most aspects of its citizens' conduct both publicly and privately, including their values and beliefs. Question content area bottom Part 1 A. Socialism B. Authoritarianism C. Democracy D. A market economy E. A mixed system
Authortatianism
Purevelon, a manufacturer of soaps and beauty products, controls all business decisions globally from its headquarters in Kansas City, Missouri. Purevelon has a__________. A. centralized structure B. geographic area structure C. decentralized structure D. multidomestic approach E. transnational strategy
Centralized Structure
n a(n) ________, barriers to trade within a participating country are reduced or eliminated, shared external barriers are established, and unrestricted movement of goods, services, and factors of production is permitted. Question content area bottom Part 1 A. overseas trade region B. free trade area C. customs union D. unrestricted trade location E. common market
Common Market
Ten years ago, Jenessa started a clothing company dedicated to creating upscale workout clothes for the trend-setting college student. From the start of the company, Jenessa would tell all her employees that the goal was to have the clothes featured at universities around the world. Jenessa is exhibiting which trait of visionary leadership? Question content area bottom Part 1 A. Embracing diversity B. Communicating a strategic vision C. Sharing cosmopolitan values D. Investing in human resources E. Having an international mind-set
Communicating a strategic vision
Which of the following represents a method of negotiation in which the objective is to settle any disagreements in a pleasant manner? Question content area bottom Part 1 A. Conciliation B. Nationalization C. Arbitration D. Litigation E. Confiscation
Conciliation
Which term defines the business transactions where payments are made in kind instead of in cash? Question content area bottom Part 1 A. Importing B. Home replication C. Countertrade D. Exporting E. Global sourcing
Countertrade
________ imposes limitations on the expenditure or outflow of tangible currency from a certain nation or on the influx of foreign currencies. Question content area bottom Part 1 A. A quota B. A nontariff trade barrier C. Export control D. Currency control E. A countervailing duty
Currency Control
________ represent locations at the ports of entry in each country where government authorities inspect imported products and levy tariffs. Question content area bottom Part 1 A. Regional economic blocs B. Maquiladoras C. Export trade zones D. Customs E. Foreign trade zones
Customs
Which of the following comprise the largest group of countries and include Bangladesh and Zaire? Question content area bottom Part 1 A. Developing economies B. Emerging economies C. Transition economies D. Centrally planned economies E. Advanced economies
Developing Economies
Which term refers to exported goods being priced lower than their typical value whether in home-country markets or foreign markets? Question content area bottom Part 1 A. Subsidizing B. Countervailing duties C. Dumping D. Nontariff trade barriers E. Export controls
Dumping
In order to become globally competitive, your company is making changes in its manufacturing process to make it more standardized and significantly cheaper. For which of Bartlett and Ghoshal's objectives is your company striving with these changes? Question content area bottom Part 1 A. Decentralization B. Learning C. Efficiency D. Local responsiveness E. Flexibility
Efficiency
________ include countries that have attained significant modernization, industrialization, and rapid economic growth since the 1980s. Question content area bottom Part 1 A. Centrally planned economies B. Advanced economies C. Developing markets D. Emerging economies E. Developed economies
Emerging Economies
Government intervention and trade barriers imposed by developed countries raise ______ for developing economies that supply them because tariffs are often disproportionately high. Question content area bottom Part 1 A. economic freedom levels B. subsidies C. ethical concerns D. export controls E. quotas
Ethical Concerns
Which of the following is the world's most advanced and largest regional economic bloc? Question content area bottom Part 1 A. Association of Southeast Asian Nations B. Asia Pacific Economic Cooperation C. North American Free Trade Agreement D. European Union E. MERCOSUR
European Union
Which of the following BEST defines maquiladoras? Question content area bottom Part 1 A. Transfer payments made directly to foreign firms B. Areas within a country that receive imported goods for assembly C. Export-assembly plants D. Taxes imposed on products that will be dumped E. Tariffs imposed on products imported into a country
Export-Assembly Plants
Raul works for an Argentinian company that buys goods from China and sells them in Argentina. What internationalization strategy is Raul's company using? Question content area bottom Part 1 A. Exporting B. Franchising C. Global sourcing D. Licensing E. Global strategy
Global Sourcing
How did Muhammad Yunus help address poverty in South Asia? Question content area bottom Part 1 A. He sold Sunsilk and Pantene shampoo for 2 cents per mini-sachet in Bangladesh. B. He sold health insurance for less than 20 cents per person per month to millions of customers. C. He founded the Grameen Bank that has provided micro loans to millions of people. D. He built a cell phone infrastructure that provides telephone coverage to the people of Bangladesh. E. He established a grocery store chain that sells affordable food for the local population.
He founded the Grameen Bank that has provided micro loans to millions of people.
n which of the following approaches does an organization give a lot of autonomy to its subsidiaries to manage the business? A. Home replication strategy B. Countertrade strategy C. Global strategy D. Transnational strategy E. Multidomestic strategy
Multidomestic strategy
Which of the following was formed by three countries to increase market entrance, remove barriers to trade, establish investment standards, and encourage bidding on government contracts within the three countries participating in it? Question content area bottom Part 1 A. MERCOSUR B. European Union (EU) C. Association of Southeast Asian Nations D. Asia Pacific Economic Cooperation E. North American Free Trade Agreement (NAFTA)
NAFTA- North American Free Trade Agreement
Which of the following identifies the reporting relationships in an organization? Question content area bottom Part 1 A. Local responsiveness B. Organizational structure C. Home replication strategy D. Organizational culture E. Visionary leadership
Organizational Structure
Which term refers to acquiring certain value-chain activities, including the production of finished products from independent suppliers? Question content area bottom Part 1 A. Conglomeration B. Microfinancing C. Purchasing power D. Outsourcing E. Privatization
Outsourcing
Which of the following is used by managers to analyze data to estimate market potential in a certain location? Question content area bottom Part 1 A. Intellectual property protection B. Physical infrastructure C. Political stability D. Purchasing power parity E. Size of the lower-class society
Purchasing power parity
________ represents cost alterations that indicate the amount of products that customers are able to purchase in their own country, using their own monetary system, in accordance with their standard of living. Question content area bottom Part 1 A. Purchasing power parity B. Offshoring C. Tenders D. Privatization E. Outsourcing
Purchasing power parity
________ are taxes placed on imported goods that increase the final purchase price for consumers. Question content area bottom Part 1 A. Quotas B. Nontariff trade barriers C. Subsidies D. Tariffs E. Export controls
Tariffs
Which type of country risk produced by a governmental system involves threats or use of force or violence in order to attain some kind of political goal? Question content area bottom Part 1 A. Terrorism B. Embargo C. Boycott against a business D. Sanctions E. Government seizure of company assets
Terrorism
In emerging markets, why do successful firms develop close community relationships? Question content area bottom Part 1 A. To collaborate with family conglomerates B. To locate quality and accessible business partners C. To better understand local conditions, and earn customer respect and loyalty D. To target political systems in developing markets E. To challenge developing market rivals
To better understand local conditions, and earn customer respect and loyalty
________ is the degree to which organizations disclose substantial information about their financial position and accounting measures. Question content area bottom Part 1 A. Transparency B. Expropriation C. Rule of law D. Arbitration E. Extraterritoriality
Transparency
Top managers who provide inspirational direction and motivation to employees in an attempt to take a company to a better future are exhibiting ________. Question content area bottom Part 1 A. discipline B. efficiency C. visionary leadership D. technical skills E. flexibility
Visionary leadership
Which legal system is based on a comprehensive structure where laws are clearly written, accessible, and divided into three categories: commercial, civil, and criminal? Question content area bottom Part 1 A. Rule of law B. Religious law C. Civil law D. Mixed system E. Common law
civil law
Companies help address poverty around the world in many ways. If a foreign firm in an emerging market modernizes local roads and bridges and creates jobs for workers in the community, the firm is ________. Question content area bottom Part 1 A. engaging in microfinancing activities B. encouraging economic growth C. partnering with family conglomerates D. customizing products to meet local needs E. engaging in global sourcing
encouraging economic growth
Regional integration enables member countries to gain bargaining power in world affairs by ________. Question content area bottom Part 1 A. attracting direct investment from outside the bloc B. expanding the market size of member country firms C. helping member country firms to achieve economies of scale D. enhancing the productivity of member countries E. establishing a stronger political position as a united bloc
establishing a stronger political position as united bloc
Which term refers to understanding and administering laws, regulations, and rules that are used to establish standards for conduct? Question content area bottom Part 1 A. Political system B. Mixed economy C. Legal system D. Totalitarianism
legal system
A ________ depends on the interactions of supply and demand in order to determine prices for products and services. Question content area bottom Part 1 A. mixed economy B. market economy C. socialist society D. totalitarian economy E. command economy
market economy
Which challenge of emerging markets is associated with corruption and weak legal frameworks that discourage business investments? Question content area bottom Part 1 A. Dominance of family conglomerates B. Lack of qualified local partners C. Political instability D. Lack of physical infrastructure E. Excessive bureaucracy
politcal instability
A(n) ________ is a group of official organizations that create a government. Question content area bottom Part 1 A. common law B. market economy C. legal system D. extraterritoriality E. political system
political system
Which of the following includes organizations like NAFTA, the EU, and ASEAN? Question content area bottom Part 1 A. International organizations B. Special interest groups C. Regional trade organizations D. Governments E. Competing firms
regional trade organization
________ refers to a legal system where rules are clarified, publicly revealed, justly applied, and valued by all. Question content area bottom Part 1 A. Civil law B. Rule of law C. Common law D. Religious law E. A mixed system
rule of law
________ include establishments such as OPEC and OECD that work to improve the development of specific communities. Question content area bottom Part 1 A. International organizations B. Governments C. Special interest groups D. Regional trade organizations E. Competing firms
special interest groups
Which term refers to official propositions prepared by a purchaser to procure specific goods or services? Question content area bottom Part 1 A. Privatization B. Purchasing power C. Outsourcing D. Offshoring E. Tenders
tenders