CBA 300 Final Exam
The role of generic medicine is tantamount to the concept of "licenses". Which of the following is NOT correct?
Generic drug companies benefit the original brand-name drug company.
The impact of COVID 19 "Uncertainty" on international business as of mid-July 2020 may be characterized by which, if any, of the following?
- A rapidly changing international business climate -To some extent the textbook presents "...the way it was". -The comparing and contrasting of theories with current information generated by revelations of the COVID contamination´s spread. -A potential turn towards "protectionism". ALL OF THE ABOVE
Factors driving globalizatiion include which, if any, of the following?
- Economic, which includes international trade and investment. -Technological, including Internet connectivity. -Personal Contacts, such as international travel and tourism, international telephone traffic and personal transers of funds internationally. -Political, such as the participation in international organizations and government monetary transfers. ALL OF THE ABOVE
In an attempt to manage (mitigate) political risks, which, if any, of the following may serve the international manager well?
-A proactive approach based on structural design implementation. -A reactive approach where redundancy of operations are considered.
In "Objective Uncertainty":
-All feasible outcomes are known. -There is information available -No one outcome or scenario dominates ALL OF ABOVE
In the last day of class, in the "Leadership Vídeo" by Fields Wicker-Miurin the concept of leadership underwent a "redefinition". In that video which example(s) were given of leadership?
-Binki's role in the Amazon Forest -The concept of HIV in India and how one person can make a difference. -Succession planning on a global scale. ALL OF ABOVE
Which of the following is (are) entry barriers?
-Bureaucratic inertia -Government regulations -Limited distribution access ALL OF ABOVE
Strategic Alliances can take the form of which of the following?
-Co-distribution alliances, such as "One World" -Co-manufacturing -Research and development alliances, also known as a "consortium" ALL OF ABOVE
Which of the following factors encourage standardization?
-Consistent brand image. -Emerging market segments. -Faster time-to-market. -Economies of scale ALL OF ABOVE
Which (if any) of the following is an example of intellectual property?
-Country music -Mickey Mouse -A best-selling novel ALL OF ABOVE
Export functions include
-Customs clearing and trade credits -Warehousing and price escalation -Transportation and price quotes ALL OF ABOVE
In general terms, for an overseas location, the assessment of legal risk may include which of the following?
-Degree of respect for the rule of law -Fair and imparcial criminal justice system -Degree of corruption tolerated as normal ALL OF ABOVE
"Intangibility" refers to which of the following concepts?
-Distribution -Services -Intellectual property ALL OF ABOVE
Companies seeking to expand internationally have essentially which of the following export option(s).
-Export Management Companies -Direct Exporting -Sales subsidiaries -Independent Agents ALL OF ABOVE
Which of the following are reasons that many firms engage in exporting?
-Exports reduces the risk of losing the firm's technology to potential competitors. -Exports enable the firm to serve markets where it has insufficient production facilities. ALL OF ABOVE
As presented in class, which, if any, of the following types of political risks?
-Expropriation -Kidnapping -Exchange controls -Intellectual property risk ALL OF ABOVE
Firms maintain control of their organizational culture through:
-Hiring and Promotional Practices -Socialization Process -Communication strategies ALL OF ABOVE
Modularization (as a non-legal means) may be used for
-IP Protection -Corporate Design
Common legal dimensions include which of the following?
-Intellectual property and consumer protections -Competition and trading practices -Environmental Protection and Human Rights ALL OF ABOVE
Which of the following is the most correct statement?
-International strategic alliances are on the rise. -70% of international strategic alliances result in failure
In class, an emphasis was made to "culture" consisting of which, if any, of the following?
-National culture. -Organizational Culture -"Indiviidual Culture" ALL OF THE ABOVE
Gray Markets concerns genuine goods. It may best be defined as
-Parallel distribution -Gray trade -Potenntially violating trademark laws ALL OF ABOVE
International law deals with unique concepts. Which of the following are related to International Law?
-Principles of Sovereignty and the Act of State Doctrine -Doctrine of Comity -Territoriality Principle ALL OF ABOVE
Which, if any, of the following are more closely related with Economic Integration and Sovereignty?
-Regionalization as an economic integration vehicle. I.e. USMCA -The concept of the "nation-state" and sovereignty. ALL OF THE ABOVE
"Uncertainty" may include which of the following?
-Regular Uncertainty -Objective Uncertainty -Bounded Subjective Uncertainty -Random Events ALL OF ABOVE
Which of the following represent risk(s) within international business?
-Security -Economics -Financial -Poltical ALL OF ABOVE
In Professor Barbu of Aarhus University´s "Integrated Energy Systems" presentation he asks a question: Why is it important? He answers the question by demonstrating which, if any, of the following best correlate?
-Standard of living and energy production -Consumption and climate change
The direction of trade is favored among major trading partners (economically integrated) when which of the following, if any, is (are) present?
-The business climate in these importing nations are already relatively favorable. -Export and import regulations are not insurmountable. -There should be no strong cultrual objections at home to buying that nation´s good . ALL OF THE ABOVE
Export Price Escalation is primarily due to
-Transportation costs, tariffs and other duties -exchange rate fluctuations and special taxes -changing competition patterns
"Caretaker's Speech" may best be characterized by which (if any) of the following?
-Verbal behavior consisting of clear, slow speech, repetition, simple sentences and active verbs. -Nonverbal behavior consisting of visual restatements, gestures, demonstations, pauses and summaries. -Accurate interpretation -Comprehension, including understanding and checking comprehension ALL OF ABOVE
Which of the following is / are motive(s) for Strategic Alliances?
-improve appropriability of innovation. -co-opting and blocking competitors -convergence of "relational capital" -due diligence vehicle for a potential acquisition ALL OF ABOVE
"Counterfeit" refers to
-the"antithesis" of Intellectual property -fakes, knock-offs -not genuine ALL OF ABOVE
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 following are reasons for restricting the transference of technology except:
Export restraints and exclusve sales agreements
When examining the volume of international trade, how are goods and services currently represented?
Exports of services grew faster than trade in merchandise for the last 20 years.
"Human Capital" and "Relational Capital" are considered "knowledge assets" and provide an absolute advantage to an organization.
FALSE
Analysts know that a country with a large population is always a better market than a country with fewer people.
FALSE
Developed is the term given to nations that have achieved high income per capita.
FALSE
Fair competition is a strong rationale for trade barriers.
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
Only in communist countries do governments own the factors of production.
FALSE
The 17th and 18th centuries have frequently been termed the age of industrialism because this was the period when industrialization was advanced to the masses.
FALSE
The domestic environment includes all the controllable forces originating in the home country that surround and influence the life and development of the firm.
FALSE
The five major drivers of international business include political, sociocultural, technological, market, and competitive drivers.
FALSE
The following represents a accurate position as to whether organizations are becoming more familiar. Arguably the conclusions can and be summarized as "convergence occurs on a micro-level and divergence at a macro-level".
FALSE
The international division is a division in the organization that is responsible for all non-home-country activities and reports to the domestic division.
FALSE
The international environment includes all the uncontrollable forces originating outside the home country that surround and influence the firm.
FALSE
The marketing mix is the name given to the advertising schedule used to promote a product.
FALSE
The Incoterm for the situation when the seller hands over goods to a carrier at a specified place, where risk then passes is to the buyer, is
FCA
What is the Incoterm for the situation where the seller loads the goods onto the ship and the risk passes to the buyer once they are aboard the ship?
FOB
The staffing policy at Super Food International is based on the specific local context in which the company's subsidiaries operate. What type of staffing policy does this reflect?
polycentric
Jay-yeong is the finance director of a firm in Seattle. He often attends meetings for work and it is not uncommon for these meetings to overlap one another so he is finishing up with one while he should be at another. Trompenaars would say that Jay-yeong works at a company that reflects what dimension of time?
polychronic
Kellen has been asked to determine how many people live in the 50 square miles surrounding the location of the proposed building project. What does Kellen need to find?
population density
Collection documents are
presented to the buyer for payment.
When a government transfers the assets of a company from the public sector to the private sector, it is an example of
privatization
An example of political drivers of globalization would be
privatization of industries.
In the international marketing mix, branding is considered an element of ________ strategy.
product
Natalie purchases Open Source bottled water from France because it is derived from natural springs and the store brand doesn't say where it comes from. What is influencing Natalie's purchase decision?
product differentiation
Butter Babies Inc. was held responsible in court for failing to indicate on their labels that their baby bath wash contained traces of mercury and could potentially harm infants. Which type of law is playing a part in this scenario?
product liability
Most strategic business units are organized based on
product line.
International economic analyses should
provide economic data on actual and prospective markets.
Following the oil tanker spill, E-Source Energy Company needed to foster goodwill with its foreign consumers. The company launched a campaign that showed the cleanup efforts and new technologies that would prevent future disasters. What type of global advertising strategy was the company using?
public relations
If exporting turns out to be unfeasible because of import restrictions or insufficient human or financial resources, but the firm still wants to sell its products overseas, the firm should consider
pursuing licensing or joint venture agreements.
Arbitration is often preferred when the contract stipulates U.S. law and one of the litigants is foreign because it is
quicker, cheaper, and more private than litigation.
Stakeholder theory pushes managers to be clear about how they want to do business, so it forces a business to
recognize underlying values and principles.
The intent of the Foreign Corrupt Practices Act is to
reduce corruption and thereby make the costs of doing business transparent.
What is the final stage of Lewin's change model?
refreezing
Which of the elements in Porter's diamond model of national advantage takes into consideration companies that locate near the suppliers they need to produce their product?
related and supporting industries
In Trompenaars's affective culture, emotions are seen as
responses to be freely displayed.
Repatriation can be associated with
reverse culture shock.
During the past century, there has been a noticeable shift in the workforce from
rural to urban settings.
As articulated by Edward Hall, which, if any, of the following is (are) correct?
High context correlates with Emotions.
Hofstede's power distance dimension can be described as
Hofstede's power distance dimension can be described as
Which of the following does NOT include Internal Political Risk?
Insecure borders
Incoterms are developed and maintained by the
International Chamber of Commerce.
How does climate affect the population of a region?
It affects what people can do, physically and economically.
Why is it predicted that the use of coal as an energy source will decline?
It pollutes heavily.
Why is sustainable business local and global simultaneously?
It requires a simultaneous focus inside the business and widely outside it.
Developing nations believe that
Knowledge is a public good to be freely shared
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
What is an accurate description of the spouses of expatriates?
Many experience stages of grief, similar to the loss of a loved one, due to career effects of the assignment.
"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
A company's organizational structure helps to determine where formal power and authority will be located within the organization.
TRUE
An evolving structure for an international organization over time is normal, as the company's involvement in foreign markets increases over time.
TRUE
As mentioned in the Geringer textbook, and highlighted in class, the issue of "extraterritoriality" as applied in international law consists of a country´s attempt to apply its laws to nonresidents and foreigners, and to activities that take place beyond its borders.
TRUE
As presented in class there are two basic types of risks. Internal, which includes Micro and Macro risks and External, which includes International Risks
TRUE
Counterfeit Legal Remedies usually entail a wide variety of procedures, such as the seizure of goods by Customs, a requirement for the registration of trademarks and copyrights. However, relief is usually inadequate.
TRUE
Hybrid organizations are often the result of a regionally organized company having introduced a new and different product from what the regionally organized form is accustomed to handling.
TRUE
If all countries had strong, freely convertible currencies, there probably wouldn't be a need for international countertrade.
TRUE
In class, the Professor highlighted the concept of KR Insurance by alluding to the Camisea project in Peru and the Alberto Fujimori government. KR stands for kidnap and ransom insurance.
TRUE
In class, the argument was made that there are basically two types of government: "authoritarian and democratic".
TRUE
In the article titled "Steriotypes Are Often Harmful, and Accurate" Yale psychologist Paul Bloom states: "Our ability to stereotype people is NOT some sort of arbitrary quirk of the mind, but rather it´s a specific instance of a more general process, which is that we have experience with things and people in the world that fall into categoreis and we could use our experience to make geralizations of novel instances of these catagories. So everyone here has a lot of experience with chairs and apples and dogs, and based on this you could see these unfamiliar examples and you could guess - you could sit on the chair, you could eat the apple, and the dog will bark."
TRUE
Income distribution studies confirm the belief that income is more evenly distributed in the richer nations.
TRUE
Intellectual Property may be defined as the legal entitlement of exclusve rights to use an idea, piece of knowledge, or invention.
TRUE
International markets often differ widely because of great variations in the uncontrollable environmental forces.
TRUE
One World and Star Alliance are examples of distribution alliances and non-Japanese Keiret-sus.
TRUE
One of the four elements that must be considered when designing the structure of an international company is customer expertise, which allows a business to gauge the similarity of client groups and market segments.
TRUE
One way a company uses sales promotion is by providing point-of-purchase displays to retail stores.
TRUE
Perception is culturally determined.
TRUE
Rapid growth in world exports since 1980 presents positive and negative econsequences. It demonstrates that increasing sales through exporting is a viable growth strategy and creates jobs in exporting nations. In addition it acts as a warning to managers that they must be prepared to meet increased competion from exports in their own domestic markets.
TRUE
Since services are intangible, service quality is more difficult to quantify, allowing for more subjective view.
TRUE
Some advocates claim Islamic finance is socially responsible because it bans investors from funding campaigns that sell or promote products such as alcohol, tobacco, pornography, gambling and even pork. Others claim that it creates a system that funds terrorism.
TRUE
The International Monetary Fund is a source of economic data that analysts can access to assess economic conditions.
TRUE
The initial introduction to the course suggests that "international business" may best be characterized as a complex, dynamic "system".
TRUE
The logo that allows consumers to identify a company or product is an example of a trademark.
TRUE
The mobility of capital, labor and the transfer of knowledge have been described as the drivers of globalization.
TRUE
The percentage of household expenditures spent on consumer durables by households in developing nations is half the percentage spent by consumers in developed nations.
TRUE
The purpose of economic analysis is to assess the overall outlook of the economy and the impact of economic changes on the firm.
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
Why does McDonald's use the color hunter green as the background for its golden arches logo in Europe when it uses red in the United States?
The green is viewed as eco-friendly.
Somewhat tangential to class, but as a result of COVID, the term "geographic neutrality" as raised in one of the lectures. It referred to:
The phenomena associated with the geographic dispersal of a workforce by use of technology and communicational platforms.
How does the Canadian Shield benefit or hurt Canada's potential for international business?
The topography associated with this area does not support populations which means it would cost companies more to manufacture there.
Why is every western coast between 20 and 30 degrees north or south of the equator dry?
The winds blow away from the land, carrying moisture with them.
According to Percy Barnevik, how should a global manager respond when told "You can't do that in Brazil because of current government regulations."?
They should take this as an opportunity to innovate.
Regency Hotel Group uses an ethnocentric staffing policy. Based on this, how would the company most likely handle an issue involving labor in a host country?
They would send a labor negotiator from the home country to mitigate the issue.
Which organization provides an acquisition support program that searches for suitable acquisitions in foreign locations?
U.S Department of Commerce
Japan has established trade barriers in the form of tariffs against
U.S. beef, citrus, and dairy products.
NAFTA and other treaties are the main reasons that most of Canada's exports go to
US
Walter is an executive for a large company. He has two children who are considered "third-culture kids." What does this mean?
Walter and his family are expats who have lived in several different countries.
In his book, The Art of the Long View, Peter Schwartz identified the process of constructing multiple stories of what could happen next as an important step for companies to take. What was the author referring to?
scenarios
The capability of one nation to produce more of a good or service than another country for the same or lower cost of inputs is a(n)
absolute advantage.
Supporters of mercantilism would agree that
accumulation of precious metals is an activity essential to a nation's welfare.
Kendall was recently assigned to a management role in his company's overseas operation. He has been taken off guard several times when his employees responded negatively because they said he didn't take their culture into consideration when he made decisions. His employees are referring to a
self-reference criterion.
What material, when heated, will yield up to 25 liters or more of liquid hydrocarbons per ton of input?
shale
According to the theory of comparative advantage, a nation
should produce the goods for which its absolute disadvantage is less.
The national defense argument for trade restrictions suggests that
some industries, even if they are not competitive, may need protection from imports.
When Maddie got to her manager's office, she noticed the door was closed and decided the manager was busy so she should come back later. What aspect of culture is affecting her decision to return later?
spatial relationships
Jamie prefers to keep her work life and home life separate. She doesn't socialize with her work associates after-hours and doesn't discuss her family when she is at work. Which of Trompenaars's dimensions does this exemplify?
specific vs. diffuse
At Torno Manufacturing, the company identifies its purpose by having discussions with employees, vendors, community members, and other groups pertinent to the business. Which theory for a sustainable business does Torno Manufacturing follow?
stakeholder theory
The organizational form at Luscious Chocolate Company includes separate groups organized by specialization, including candy bars, baking chocolate, and premium chocolates. Each of these groups are defined as distinct, independent businesses with clearly defined markets. What is this an example of?
strategic business units
One challenge presented to employers by the rural to urban migration is
supporting the social and psychological adjustment necessary for rural immigrants in an urban work setting.
If the Securities and Exchange Commission learns that a business might be involved in corruption, it will look at other businesses in the same industry to assess if they might also be involved. What is this process called?
sweeping
Counterarguments to the "protect domestic jobs from cheap foreign labor" argument include that
the labor rate is not all of the labor cost.
Warren Bennis would agree that
the leader inspires, while the manager controls.
Sorrell Agri Products needs to determine how it will promote the new product, how much it will cost, and where it will be distributed. In other words, the company is making decisions about
the marketing mix.
Generally, we can assume that the higher the GNI/capita value
the more advanced the economy.
The rural-to-urban shift is a reflection of
the movement of the population from rural areas to cities.
Parul told the members of the management team that the topography of North Carolina did not lend itself to their needs for the new manufacturing facility. What is Bethany referring to?
the physical features of the area
In Japan, product liability requires that
the plaintiff prove design or manufacture negligence.
A local labor market is made up of
the pool of available employees with the necessary skills and who are within commuting distance.
Dumping best refers to
the practice of selling products abroad at below fair market value.
At Kaiser Manufacturing, the company pays import duties that are a stated percentage of the invoice value of the product. Which type of tariff does this company pay?
ad valorem
Joshua realized the company's marketing materials should avoid the color red in South Africa because it is the color of mourning in that country. What part of culture is Joshua taking into consideration?
aesthetics
Studies conducted by the World Bank indicate that tropical climates allow for
the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites.
Researchers have found three dimensions associated with cross-cultural adjustment, including: interaction with local nationals, adjusting to the general environment, and
the work context.
Some nontariff barriers are difficult to discourage because
they consist of government subsidies and standards.
Tiger Appliance Group needs to fill a management position in its foreign office in Germany. They haven't been able to find anyone in Germany with the skills for the job, so they are extending their search to other parts of Europe hoping to find someone with similar cultural values as the German office. Which category of employee are they looking for?
third-country national
Country risk assessment is a measure of the
threat of losing an investment or not being paid.
Managers of international companies that are attempting to develop a competitive advantage face a formidable challenge because
time, talent, and money are scarce.
The text predicts that in the future, managers in many ICs can expect
to make greater use of the dynamic network structure.
When the value of imports into a nation exceeds the value of its exports, that nation is experiencing a(n)
trade deficit.
Potential losses or gains when financial statements are converted from one currency to another are known as:
transaction risk
Cross-licensing refers to
transnational intellectual property transference
In which stage of Kurt Lewin's change model does a company prepare employees for change?
unfreezing.
Kendrik decided not to take the overseas position because he knew managers worked alongside their staff and did not have private offices in this particular international culture. He thought this made managers look less important and inconsequential. What aspect of culture is he concerned with?
unspoken language
All of the following are examples of non-tariff barriers except:
arbitrary monetary policies
Price and profit allocation decisions are usually best made
at the IC headquarters.
Ferguson Furniture group has adopted an ethnocentric staffing policy. Based on this, where are most of the decisions made for the home and host country facilities?
at the company's headquarters, using the home country's frame of reference
A time draft with a maturity of less than 270 days that has been accepted by the bank on which the draft was drawn, thus becoming the accepting bank's obligation is called a(n)
banker's acceptance.
Trompenaars's achievement versus ascription dimension describes social status based on what one does or who one is. In the United States, where people build who they are through work, social status tends to be
based on achievement.
The major motivation for immigration is a
better economic situation.
Scenarios are used by managers to
brainstorm various plausible stories about the future.
Foreign business denotes
business conducted within a foreign country.
Which of these actions is the least risky for an exporter?
cash in advance
During the 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
What is an example of a physical force that can affect standardization of a product?
climate
Which of the following was used in class as an example of dumping?
cold rolled steel exported to US by Korea.
Terri Henson represents his union at the negotiations table as they talk with the company management team about higher wages and more health insurance coverage. The process Terri engages in with the company is called
collective bargaining.
The steps of John Kotter's approach to organizational change include
communicate the vision.
A nation having absolute disadvantages in the production of two goods with respect to another nation has a(n) ___________ in the production of the good in which its absolute disadvantage is less.
comparative advantage
The automobile manufacturer decided it had to enter the European market because if it didn't, then all of the other car companies that were already there would get the business. Which driver is indicating internationalization for the manufacturer?
competitive
A company's ability to achieve and maintain a unique and valuable competitive position both within a nation and globally, generating higher rates of profit than its competitors, is known as
competitive advantage.
Jefferson Materials Corp. has developed a fire-resistant fabric that no one else has been able to replicate. It is used throughout the world in firefighting equipment and supplies. Since it is the only company making the product, customers are willing to pay a premium for the fabric. In this scenario, the fire-resistant fabric has helped the company develop a(n)
competitive advantage.
Trade barriers create costs that are paid ultimately by the
consumer
When Corinne was introduced to the manager from the overseas office, she noticed he tended to lean in as he spoke with her. This made her uncomfortable, so she did her best to put some space between them during the meeting. What is causing Corinne to feel uncomfortable?
conversational distance
To create a competitive advantage that is sustainable over time, the international company should try to develop competencies that
create value for customers and for which they are willing to pay.
Social dumping occurs when an exporting country
creates unfair competition based on lower costs because the exporting country provides little social support system to the worker.
Dispersed ethnic groups, such as Chinese, Hispanics, Indians and others, are examples of:
cross-national segments
The top factor leading to expatriate failure is:
cultural inflexibility
The "Operational Code" is mostly found in
developing nations.
Within the international division structure, it is common for
disagreements to be had regarding prices charged to the international division by the domestic unit.
Fairway Golf Inc. traditionally received a telephone order for its products and shipped them out. Since the packaging was bulk, customers would receive their order in about three weeks. The company has recently promoted overnight delivery service and find that most customers are willing to pay the price for this faster shipping method. What trend does this represent?
disintermediation
The payment terms discussed in the text that exporters can offer to foreign buyers are cash in advance, open account, consignment, letters of credit, and
documentary drafts.
Five years ago it cost Bernie's Bikes Inc. about $52 dollars to build a single bike. Today, it only costs the company about $31 because they have automated the process and are able to purchase component parts in larger quantities. What allowed the company to reduce the price to build a bike?
economies of scale
One reason manufacturers are using global advertising is because identical products are easier to make which allows the company to take advantage of
economies of scale.
Keenan worked in his company's international office in Indonesia for many years. During his time there, political unrest caused many U.S. citizens, like Keenan, to have questions. What do governments put in place to represent their citizens in situations like this?
embassies
One argument against globalization is that it creates a decline in
environmental conditions.
Gwyn works for a paper manufacturer and recommended to the product development team that sourcing from recycled goods would help preserve the forests for future generations. What is Gwyn referring to?
environmental sustainability
One aspect of an environmentally stable business is to ensure that there are not vast differences in the distribution of gain. In other words, the business practices
equity
Companies in which there is little pressure to reduce costs or adjust for local responsiveness and where most decisions are made using the home country's frame of reference have adopted which type of staffing policy?
ethnocentric
Knowledge that is easy for an individual to express clearly in words, pictures, or formulas is known as
explicit
Low-context cultures such as the United States tend to have these kinds of communication patterns:
explicit
A document issued by the carrier that is a contract for the shipment, a receipt for the goods shipped, and a certificate of ownership is called a(n)
export bill of lading.
Nations encounter a trade surplus when the value of
exports exceeds the value of imports.
Trompenaars's neutral vs. affective dimension is used to determine how a culture
expresses emotions.
Companies that use a polycentric staffing policy would
face pressures for local responsiveness.
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
What is the term for the sale of an exporter's accounts receivable on ordinary goods, with the balance of the payment due upon delivery or soon after?
factoring
It has been found that as much as 90 percent of expatriate failure is the result of
family-related issues.
Connor works at the headquarters of FiberNet Corp. He receives bimonthly reports that reveal if surplus funds are available. It is then Connor's job to determine how those funds should be allocated. What type of report would provide Connor with this information?
financial
Hofstede's masculinity-femininity dimension suggests that, as an international manager, you might
find men and women equally ready to assume leadership roles in a feminine culture.
For expatriate employees, the salary portion of the compensation package is
usually within the range of the employees at the same level in the home company.
According to Porter, the four variables he believes influence a firm's ability to gain a competitive advantage create a
virtuous circle.
Henson Automotive wants to understand how much water the company is using when manufacturing its energy-efficient cars. What type of measure should the company take?
water footprint
Companies should keep in mind that planning for an expat's return should start
well before the assignment even begins.
Incoterms describe three issues that arise in a commercial transaction, including
which party covers the costs.
Real Country Boots 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 considered "just another 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
International business differs from domestic business in that a firm operating across borders must deal with the forces associated with which three kinds of environments?
foreign, domestic, international
The total level of outward FDI worldwide increased about ________ between 1990 and 2018.
fourteenfold
Contract termination payments are
frequently made for work in hardship areas.
When a company faces strong pressures for reducing costs and limited pressure to adapt products for local markets, it should consider using a
global strategy.
According to opponents of the globalization of trade and investment,
globalization has contributed to a decline in environmental and health conditions.
A variable levy exists when a country
guarantees that the market price of an import will be the same as that of domestically produced goods.
The end result of legal trade obstacles is often
higher costs to consumers.
High-Rise Boots Corp. plans to expand into the European market where it finds weak pressure to respond to local demands and cost reductions are not necessary. Which competitive strategy should the company use based on these factors?
home replication strategy
Kya believes an annual review should be a reflection of an employee's accomplishments from the year while Marcus believes an annual review should be used to motivate an employee to work harder. Their beliefs are based on the culture in which they were raised. Which business function is being affected by culture in this scenario?
human resources
What is an example of an internal force that can affect a company's environment?
human resources
According to the text, personnel working in a foreign subsidiary are working in the international environment
if they are responsible for the subsidiary's exports.
The per se concept of U.S. law means that a situation is
illegal in and of itself.
Under the FCPA, facilitating payments are allowed for
import approvals.
The main goal of tariffs is to
increase the selling price of imported goods, thereby reducing competition for domestic producers.
Which of the following is NOT a mode of entry?
indirect importing
Shondra grew up in eastern Europe but moved to New York after college. Compared to her friends that stayed in Europe, she enjoys much more freedom with her time and is able to enjoy leisure activities and be active in her career. Which of Hofstede's dimensions does this demonstrate?
indulgence vs. restraint
An LCA conducted for a T-shirt convinced Patagonia that
industrially produced cotton used excessive amounts of water compared to organic cotton.
Unrecorded transactions in an economy, such as goods and services that are bartered, are said to be part of which economy?
informal
Computer memory chips are the same everywhere in the world. This means they are ________ to the foreign environment.
insensitive
Which of these is a common type of collection document?
inspection certificates
Which of the following are characteristics of services?
intangibility, heterogeneity, inseparability, perishability
The two key components of a global mind-set are global emotional intelligence and
intellectual intelligence.
What is an example of an external force that represents financial factors affecting a business?
interest rates
Big Tire Bikes Inc. is headquartered in Maryland and does business within the United States, as well as within many countries in Europe and South America. This company is an example of a(n)
international business.
A division in the organization that is at the same level as the domestic division and is responsible for all non-home-country activities is a(n)
international division.
One example of the effect of topography is
isolated language groups, which require special marketing adjustments.
Generally, management prefers global product standardization because
it creates lower costs.
Uncertainty avoidance describes the search for truth, according to Hofstede, because
it describes how comfortable the culture's members feel in an unstructured situation.
While change models provide a platform to understand change, in reality change is not neat and orderly because
it has its basis in human behavior.
Jake asked his team to find out how many employees were available in the proposed foreign market that had the data analysis skills the company needed to complete the task. This information will help him decide if the foreign market is viable for the company to enter into. What type of information is Jake looking for?
labor market
What is an example of a resource endowment that a nation possesses?
land
One area of concern for international businesses is that U.S. tort cases may result in
large monetary awards.
Leading global change is
like leading domestic change, but exponentially more complex due to globalization.
The increasing levels of the population moving to urban areas in developing countries results in a labor pool of
low-skilled workers.
Economic analyses become more complex when a firm enters overseas markets because unlike the situation for a company operating domestically,
management must operate in two new environments, foreign and international.
Harman Advertising Agency, based in Toronto, decided to establish an operation in France because it was concerned that its competition would try to take over their clients in Europe, which represents 65 percent of their business. Which type of driver is responsible for this decision to go international?
market
Caroline works in Asia for an affiliate of Sheppard Electronics based in Oklahoma. She has learned that a large geographic sector in Asia would benefit from the company's master recharging station and shares that information with headquarters in her monthly report. Which aspect of reporting does this reflect?
market opportunities
Triple-bottom-line accounting is a good way for a business to
measure its sustainability activities and share the results with stakeholders.
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.
A broad statement that defines the organization's purpose and scope is known as a
mission statement.
The Enforcement and Compliance unit of the ITA helps American business by
monitoring and enforcing U.S. trade law and agreements.
Generally, because of higher birthrates, developing countries often have
more youthful populations than do developed nations.
Bio-Form Inc. has developed a new set of company standards, which were put into practice three days ago. The initial response among employees has been confusion as everyone adjusts to the new standards. Which of Lewin's stages is represented when the company put the new standards into practice?
moving
When there is strong pressure for a company to adapt its products or services for local markets, it should probably rely on a
multidomestic strategy.
Trompenaars's dimension of internal vs. external direction is similar to Kluckhohn and Strodtbeck's relationship to
nature.
When manufacturing or assembly is done in FTZs using imported components,
no duties need ever be paid if the finished product is exported.
Energy consumption by fuel type reveals that fuel use has been dominated since 2010 by
nonrenewable energy sources.
Connor's manager told him not to make the "OK" sign with his hand when meeting with the representatives from France as that gesture is viewed as vulgar and inappropriate in their culture. Which aspect of culture is his manager referring to?
nonverbal communication
Which of these is one of the 12 most common mistakes and pitfalls awaiting new exporters listed in the textbook?
not treating international distributors on an equal basis with domestic counterparts
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
Which action is the most risky for an exporter?
open account
Generalizations about TCNs are difficult because
people achieve the TCN status in different ways.
In terms of worker compensation associated with an IC, health insurance is considered a(n)
perk.
Which products are especially influenced by laws that regulate product ingredients and labeling?
pharmaceuticals
Gibson Baking Company sells its brownie mixes all over the world. The company includes directions on the package for baking the product at high altitude levels since this can affect baking times. Which type of environmental force caused this decision?
physical
The level of merchandise exports worldwide were ________ larger in 2017 than they were in 1980.
9 times
What is the Incoterm for the situation where the seller pays the costs of freight to bring goods to the destination port and the risk passes to the buyer once the goods are loaded aboard the ship?
CFR.
On pricing, which of the following terms of sale are more convenient for foreign buyers because to establish their cost, they merely have to add the import duties, landing charges, and freight from the port of arrival to their warehouse?
CFRCorrect
________ was the world's leading manufacturing country for about 1,800 years, until it was replaced by Britain in about 1840.
CHINA
What is the Incoterm for the situation when carriage and insurance are paid to a specified destination, while risk passes to the buyer when the goods are handed to the carrier?
CIPCorrect
The Incoterm for the situation when carriage is paid to a specified destination, the seller pays for carriage, while risk passes to the buyer when the goods are handed to the carrier is
CPT
The three largest markets for American exports of goods in 2017 were
Canada, Mexico, and China.
The following represent the various national legal systems prevalent in international business except:
Canonic law
Which country ranked the highest in 2016 in terms of merchandise exports?
China
Which countries have become more important trading partners to the United States as suppliers of electronic products?
China and Malaysia
What is the Incoterm for the situation where the product is delivered at the specified destination, and the seller pays for carriage to the named place and assumes all risk until goods are unloaded?
DAP
What is the correlation between population density and bodies of water?
Densely populated regions coincide with rivers, lakes, and seacoasts.
Most of what is contained in a sales agreement is the same in the contract for a domestic representative as for an export sale. However, what is one of the two areas requiring special attention in an export sales contract?
Designation of the country and state or province whose laws will govern any contractual dispute.
Outsourcing means:
Moving either manufacturing or services offshore
Which of the following is not a characteristic of Strategic Alliance?
NONE OF ABOVE
Urban Necessities is planning its promotional strategy as it enters the foreign marketplace. The company's line of clothing serves the same function around the world so it can be promoted in the same way. However, the company will need to make slight changes to some of the clothing to meet local customer needs. Which promotion strategy should the company use?
Product adaptation-same message
Which characteristic of environmental stability is a Peterson Mining Corp. taking into account when it installs special filters that promote clean air for the surrounding community?
Resources are limited.
Nations listed in the text as losing the largest number of their people to emigration include
Russia, China, and India.
Easy Play Audio/Video Corp. has been selling audio and video equipment to the international market for six years. Recently, the company decided to drop its line of televisions because the United States is importing televisions at a lower cost than the company can make their television. Which stage of the product life cycle theory is the company currently in?
Stage 4
Nations whose mountains divide them into smaller regional areas include
Switzerland, Afghanistan, China, and Colombia.
Tropical rain forests are
a barrier to economic development.
Civil law is based on
a collection of codes.
A policy of hiring and promoting based on ability and experience without considering race or citizenship is
a geocentric policy.
The stakeholder theory operates on
a network of tensions—the competing internal and external demands that form the business context.
Shayna and her husband have developed a pizza pan that is guaranteed to keep the crust from sticking to the pan and washes clean with just water. They have applied to have exclusive rights to this product. What did they apply for?
a patent
What is an unconditional order drawn by the seller on the buyer instructing the buyer to pay the amount of the order on presentation?
a sight draft
Government administrations get concerned when the number and value of imports into the country are greater than the value of the country's exports. In other words, the administration is concerned about
a trade deficit.
Relatively inexpensive international communication enables firms to "body shop," that is, transmit computer-oriented tasks worldwide to a cheap but skilled labor force. This is an example of a ________ driver of international business activity.
technological
Sanjay is the director of operations for Fresh Farm Produce Corp. and is now able to sell his product to the international market thanks to a new computer system that is specifically designed for businesses in the fresh food industry. Which driver helped Sanjay's company internationalize?
technological
In terms of reporting, it is important that all operating units of an IC provide timely and complete reports regarding finances, market opportunities, political and economic activities, and
technology.
The theory of resource endowment explains
that a nation will trade goods that can be produced with the production factor that is most abundant.
In low-context cultures it is common to find
that communication tends to be explicit.
In her work on the implementation of change, Joyce Osland suggests that
the French will want to have change processes that are very well outlined.
Islamic financing is based upon
the Quoran and riba
Firms from __________ had the largest total outstanding stock of direct overseas investment at the beginning of 2018.
the United States
Referring to Hall's high- and low-context framework, in a high-context culture
the context carries much of the communication.
Hofstede's individualism-collectivism measures
the degree to which people in the culture are integrated into groups.