int'l business final exam

Companies pursuing a home replication strategy typically centralize product development functions in their home country and then transfer innovations to foreign markets to capture additional value.

True - Companies pursuing a home replication strategy typically centralize product development functions in their home country and then transfer innovations to foreign markets to capture additional value.

Supporters of mercantilism would agree that

accumulation of precious metals is an activity essential to a nation's welfare.

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 is one argument in support of globalization?

free trade enhances economic development

Japan has been one of China's largest sources of imports, along with South Korea and the United States. Because there is still political enmity between China and Japan due to the Japanese occupation of parts of China during World War II, the best explanation for the present Japanese trade relationship with China is

geographic proximity

"Human Capital" and "Relational Capital" are considered "knowledge assets" and provide an absolute advantage to an organization.

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

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 - This demonstrates the practice of transshipping to evade allocated quotas.

T/F: An international company (IC) is a company headquartered in another nation.

False - it has operations in multiple nations

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.

How do government embassies protect citizens who are in a foreign country?

Government embassies can provide information about political risks and make protests.

Which of these countries follows common law?

Hong Kong

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

On September 15

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

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

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

True

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

True - This is the case with all double-entry bookkeeping.

Unfair international competition for a company can be minimized by passing national laws.

True - Unfair international competition is minimized through national laws, negotiations between governments, and the efforts of institutions such as the World Trade Organization.

Tropical rain forests are

a barrier to economic development

The argument that free trade is the best strategy for advancing the world's economic development is considered

a proposition with which most economists agree

The U.S. government assigns specific amounts of sugar imports that can come from 40 nations. What type of quota does this represent?

allocated

Jenna reported to the management team that their proposed investment in Great Britain could be affected by the Brexit announcement. Which aspect of strategic planning does this demonstrate?

analyze the company's external environments

A measure of the number of children born to a woman during her lifetime is the

birth rate

The U.S. current account deficit can be explained partially by

citizens of other nations wanting to own dollars, and invest in the United States.

One factor for relative changes in labor costs is increases or decreases in

compensation

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

crawling peg

The "Operational Code" is mostly found in

developing nations

In Sharia law, interest is forbidden, which results in

equity partnerships, where business risk is shared.

When considering where to export, advantages to managers of focusing on a nation that is already a sizable purchaser of goods coming from the home country include the fact that

export and import regulations are not insurmountable.

Which element in Porter's diamond model of national advantage distinguishes between the land a company owns and the transportation systems available for it to use?

factor conditions - Porter's diamond model of national advantage includes factor conditions as one of its four primary kinds of variables that influence a firm's ability to use its country's resources to gain a competitive advantage.

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

holds corporate officers personally responsible for their corporate filings.

A company prides itself on using a renewable energy source to run its plant. What is an example of a renewable energy source this company might use?

hydropower

Under the Foreign Corrupt Practices Act, facilitating payments are allowed for

import approvals

Which of the following are characteristics of services?

intangibility, heterogeneity, inseparability, perishability

Changes in the way corporate planning is done today include

interaction with important customers, distributors, and suppliers.

Dunning's eclectic theory of international production states that if a firm is going to invest in production facilities abroad, it must have one of 3 kinds of advantages. Which one relates to firms having various alternatives to entering foreign markets, ranging from making arm's-length market transactions to operating wholly owned subsidiaries?

internalization - With the internalization advantage, firms have various alternatives to entering foreign markets, ranging from making arm's-length market transactions to operating wholly owned subsidiaries.

Economic analyses become more complex when a firm enters overseas markets because

management must operate in two new environments, foreign and international.

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

market

The fact that almost everyone in the United States self-identifies as middle class suggests that the United States

measures low on the power distance dimension

With increasing inflation, borrowing becomes

more attractive because repayment can be made with cheaper money.

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

Following the merger of Hintz Corporation and Minor Holdings Corporation, the new company issued a list of broad guidelines that managers should use when dealing with problems. These were viewed as general guides that were left to the interpretation of managers. These guidelines are an example of

policies - Policies are broad guidelines used to assist lower-level managers to handle recurring problems. Because policies are broad, they permit discretionary action and interpretation.

In the international marketing mix, branding is considered an element of ________ strategy.

product

Foreign affiliates must obey the local laws. If they don't, they could be subject to

seizure by the host government

A company was frustrated to learn that it would have to pay the same import duty on shipments worth $100 as it did for shipments costing $2,000. What can a government do to correct this situation?

set an official price

Triple-bottom-line accounting is a good way for a business to

share the results of its social, environmental, and economic performance with its stakeholders.

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

The World Trade Organization was originally founded as

the General Agreement on Tariffs and Trade

An example of retaliatory trade restrictions is

the U.S. response to the EU ban of hormone-treated beef.

In a managed float currency arrangement, the currency fluctuates while

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

Because of the importance of economic information to the control and planning functions at headquarters, the collection of data and preparation of reports are usually the responsibility of

the home office

Studies conducted by the World Bank indicate that tropical climates allow for

the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites.

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

trade obstacle

When the law of one price is applied to interest rates, it suggests that

varying interest rates take into account anticipated differences in inflation levels.

In Japan, antitrust legislation

was introduced by the United States and did not harmonize well with Japanese values

Which country has the largest amount of recoverable coal reserves?

United States