International Business Exam - ALL Quizzes
At the end of World War II, the UN called for the conference that set up the World Bank and the IMF. This conference was held in
Brennon Woods, New Hampshire
Which country ranked the highest in 2-16 in terms of merchandise exports?
China
ASEAN, whose initial, political goal was to foster peaceful relations among members, includes China as its core member.
False
An international company (IC) is a company headquartered in another nation.
False
Biomass is a category of renewable energy fuels based on their heavy weight.
False
Britain was the world's leading manufacturing country for about 1,800 years, until it was replaced by the United States in the 1800s.
False
Early business sustainability efforts looked beyond their own operations and focused on the external aspects of conversation and environmental regulation.
False
Feminine cultures in Hofstede's dimensions care about relationships and are not focused on business success.
False
Geothermal power is derived from mirrors or sensors used to collect sunlight.
False
Hofstede is primarily concerned with social values and the dimensions he identified that help parents understand their children
False
In a currency board arrangement, a country's government commits to adopt the currency of another.
False
Intellectual property includes patents and trademarks, but not copyrights.
False
Internalization theory suggests that when an organization has superior knowledge, it may obtain better price by selling it to the open market.
False
Lobbyists who advocate for new laws that will affect the production standards of a business are an example of an internal force.
False
Logistics refers to managerial functions associated with the movement of raw materials and work in progress, but not finished goods.
False
On an open account, the buyer assumes all of the payment risk.
False
Permanent members of the UN Security Council vote on Security Council measures and only the Secretary-General of the UN has veto power.
False
Sanctions are implemented by the government to a domestic firm as a way to encourage exports or protect the firm from imports.
False
Terrorists avoid kidnapping because the repercussions can be harmful to their movement.
False
Thanks in part to communication advancements, international trade has stabilized and become evenly distributed across all countries of the world.
False
The Bretton Woods system led to minimal growth in international trade but helped to reduce inflation levels.
False
The British prime minister, David Cameron, led the privatization movement.
False
The EU is administered by the European Commission, a group composed of six commissioners, elected at the EU level.
False
The European Patent Organization (EPO) makes fitting for a patent in all 28 EU member states more difficult than it was previously.
False
The International Monetary Fund uses the U.S. dollar as its unit of account.
False
The United States in recent years has had a significant deficit in its current account. This means that the U.S. citizens are exporting more than they are importing.
False
The World Bank is made up of one large institution, the International Development Association, and three smaller institutions.
False
The advent of globalization has had minimal effect on labor standards around the world.
False
The balance of payments (BOPs) is a record of a country's transactions with its major trading partners.
False
The dynamic capability theory states that for a firm to invest overseas, it must have three kinds of advantages: ownership specific, internalization, and location specific.
False
The international environment includes all the uncontrollable forces originating outside the home country that surround and influence the firm.
False
The law of one price states that in an efficient market, like products will never have like prices.
False
The national defense argument for trade restrictions is based on the elopement level of the country.
False
The stakeholder model for environmentally sustainable business has failed because we don't have an accounting system to measure the present costs of environmental irresponsibility.
False
Voluntary export restraints reimposed by the importing nation to avoid violating WTO rules.
False
When adjusting to other cultures, the first step managers can take is to compare their current culture to another to asses its value.
False
When production equipment is similar, home office control of quality in foreign affiliates is more difficult because management must ensure that all plants adhere to the same standard.
False
This country engaged in many privatizations in the aftermath of the 2008-2009 financial crisis.
Greece
Who took the United States off the gold system?
President Nixon
"Petroleum man" faces inevitable extinction, as we currently understand resources.
True
A disadvantage for companies that insist on less risky transactions, such as a letter of credit, is that they may be losing business to competitors who sell on open accounts.
True
A straight bill of lading is nonnegotiable.
True
As used in the text, the term environment means all the forces influencing the life and development of the firm.
True
Buddhism is based on the teachings of Siddhartha Gautama
True
CIBER is an international business research and education program located at U.S. universities.
True
Countries put limitations on the convertibility of their currencies when they are concerned that their foreign reserves could be depleted.
True
Free trade zones are areas designated by the government of a country for duty-free entry of imported goods.
True
International economic analyses should provide economic data on both actual and prospective markets.
True
It has been argued that the ultimate goal of effective supply chain management systems is to reduce the inventory.
True
Often new reporters think that they won't have to localize their approach, assuming that a marketing technique or distribution system that works in one country will work in another.
True
One of the significant differences between formal and informal institutions is how they gain compliance.
True
Opponents of free trade point out that globalization has contributed to a decline in environmental and health conditions.
True
Outsourcing is hiring others to do noncore activities.
True
Recently many governments, including the U.S. government, have contracted out certain services to private companies.
True
Strategic plans promote consistency of action among the firm's managers worldwide and encourage them to consider the ramifications of their actions in the firm's other geographic and functional areas.
True
Subsidies are implemented by the government to a domestic firm as a way to encourage exports or protect the firm from imports.
True
The "over-the-wall" approach to product design involves the initial step in which designers prepare the products design, followed by sending the newly created designs to the company's manufacturing engineers.
True
The International Finance Corporation (IFC) invests in companies and financial institutions in developing countries.
True
The International Monetary Fund is a source of economic data that analysts can access to assess economic conditions.
True
The U.S. enforcement of Equal Employment Opportunity Commission (EEOC) law in U.S. companies operating abroad is an example of extraterritoriality.
True
The United Nations operates with voluntary agreements, so it is essentially an informal institution.
True
The WTO has negotiated a TRIPS agreement whereby property rights do not take precedence over public health.
True
The logo that allows consumers to identify a company or product is an example of a trademark.
True
The proportion of world trade coming from North America, Latin America, Africa, and the Middle East has decreased since 1983.
True
The sales agreement should specify as simply as possible the duties of the buyer and firm.
True
The vast proportion of outward FDI, about two-thirds, originates from the developed countries.
True
Those who work in the international environment find that decision making is more complex than it is in a purely domestic environment.
True
Understanding how religion affects cultural attitudes is important for marketing professionals to know.
True
Wind power is an example of renewable energy source.
True
Which organization offers a matching service, bringing potential exporters together with business partners in specific markets?
U.S. Department of Commerce
Tropical rain forests are
a barrier to economic development
Government protection of economic activities is
a historical function of government
Extraterritoriality refers to
a nation's attempt to enforce its law beyond its borders
Trademarks are defined as
a shape, color, design, sound, phrase, abbreviation by which a product is designated
Material culture includes
all human-made objects
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
With respect to the current state of global problems, Mark Malloch Brown, former deputy secretary-general of the United Nations, suggests that
as the world becomes more closely connected, it becomes less governable at the national level
The output of a synchronized manufacturing system is set
at the output of the slowest operation that is working at full capacity
Why is scenario analyses an important tool for managers?
by anticipating the future and recognizing the warning signs of turbulence ahead, managers can develop more effective strategies.
What is the downside of flexible manufacturing?
changes in the production line cost money
Using cross-functional and customer participation in the design stage is a type of __________ engineering.
concurrent
Since 1983, the proportion of world trade coming from the United States has
decreased overall
To set corporate objectives, management must first
define the firm's mission
A major portion of the exports from developing countries go to __________ countries, and this proportion has been __________.
developed; decreasing
Once a firm has determined there is a need for the firm's products in a foreign market, the next step is to
draft the export marketing plan
Molly has lived in Ireland her entire life and believes that the only way to do things is "the Irish way." This belief is an example of
ethnocentrism
A patent gives the inventor
exclusive right to manufacture, exploit, use, and sell the invention for a given time period
Gabriel Industries is located near a port city which allows it to ship products easily overseas to its international customers. The geographic location of the company is an example of a(n)
external force
In synchronous manufacturing, a production increase at the bottleneck means an increase
for the entire production system
Which of the environments associated with a company refers to the uncontrollable forces originating outside the home country?
foreign
The World Bank categorizes countries based on GNI per capita, using the following categories:
high-income economies, middle-income economies, low-income economies
What is an example of an internal force that can affect a company's environment?
human resources
Performance measures are done to assess
if the strategy and its implementation are proceeding successfully
GNI/capita, a crude estimate of purchasing power, must be further refined by
incorporating data on how the national income is actually distributed
Since 1980, the United States proportion of world trade in commercial services has
increased one-third
Unrecorded transactions in an economy, such as goods and services that are bartered, are said to be part of which economy?
informal
Two basic ways to understand the role of leadership are to provide direction for a collection of individuals or to
integrate a group
The most obvious cultural distinction a company must take into account when deciding to undertake international business is
language
Culture is a group of shared world views, social rules, and interpersonal dynamics that is
learned, interrelated, and shared
The three characteristics of evolving sustainable business practices are
limits, interdependence, and equality
A company would rely on triple-bottom-line accounting to
measure the company's strategic performance
A broad statement that defines the purpose for a company's existence, including its business, objectives, and approach for reaching those objectives is known as a __________ statement.
mission
Arbitration is a private solution that is
more private than litigation
Which of these measures would typically be used in measuring supply chain performance?
orders delivered on time
Managers generally mention three areas in which they lack knowledge related to exporting, including identification of foreign markets, export procedures, and
payment and financing procedures
When a government transfers the assets of a company from the public sector to the private sector, it is an example of
privatization
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
Which aspect of strategic planning helps a company maintain itself within the boundaries of the mission and vision statements?
setting corporate objectives
A company would create procedures in order to
specify how certain activities will be carried out
Problems of the gold standard include
storage cost, weight, doesn't earn interest
Knowledge that an individual has but that is difficult to express clearly in words, pictures, or formulas and is therefore difficult to transmit to others is known as __________ knowledge.
tacit
The International Monetary Fund would characterize a developing economy as one in which
technology is not as developed
When considering the limits associated with sustainability, a company should address
that environmental resources are exhaustible
A measure of the degree to which family income within a countries distributed equally is called
the GINI index
When considering where to export, advantages to managers of focusing on a nation that is already sizable purchaser of goods coming from the home country include all of the following EXCEPT
the cultures of the two countries should be relatively similar and compatible.
A business would rely on the GINI Index to understand
the degree to which family income is distributed equally within a country
Bretton Woods led to an exchange rate agreement known as the Bretton Woods System or
the gold exchange standard
The stakeholder model requires businesses to think about
the network of tensions caused by competing demands
When an international manager is considering where to do business, one of the first considerations is
the size of the economy
If two English multinational companies had a dispute arising in New York City, and there was no choice of law or choice of forum clauses in their contract, it is likely that
they would bring their dispute to an English court
