International Management Test 2 SEVI 4583

Currently, what percentage of the world's total population is found in developing countries? A) more than 75 percent B) around 25 percent C) close to 5 percent D) under 50 percent

A) more than 75 percent

Government stability has to do with A) policies that are permanent or change gradually. B) democratic processes and free elections. C) a commitment to military strength. D) leadership that listens to citizens and responds to their needs.

A) policies that are permanent or change gradually.

U.S. responses to foreign tariffs are likely to A) raise the cost of the imported goods for U.S. consumers. B) force a reduction in tariffs. C) create equity across markets, which is the goal. D) establish the fundamental rule of power rather than principle.

A) raise the cost of the imported goods for U.S. consumers.

When measuring the value produced in an economy, most international organizations prefer to use A) GNI. B) GDP. C) GNP. D) PPP.

A) GNI.

WIPO is a A) UN agency that administers an intellectual property system. B) WTO group opposed to patent extension and pro-generic. C) part of the Club of Rome that lobbies for longer patent periods. D) research arm of the Fuel Cartel that has been advocating longer patent protection for biofuel processing systems.

A) UN agency that administers an intellectual property system.

Trademarks are defined as A) a shape, color, design, sound, phrase, abbreviation by which a product is designated. B) long-standing businesses that represent the hallmarks of an industry. C) new products that have never been placed on the market before. D) the key products that make the most money for a company.

A) a shape, color, design, sound, phrase, abbreviation by which a product is designated.

The three main approaches to law are: A) civil, common, and religious. B) civil, Sharia, and court-based. C) Sharia, Talmudic, and Napoleonic. D) criminal, civil, and common.

A) civil, common, and religious.

Some countries impose both an ad valorem duty and a specific duty on a single import. What type of duty are these countries using? A) compound B) duplex C) secondary D) elite

A) compound

When governments nationalize a firm, they don't seek to A) extract more money from the firm. B) increase the firm's profitability. C) preserve jobs. D) sell the firm to foreign investors.

A) extract more money from the firm.

In U.S. accounting law, the Sarbanes-Oxley Act A) holds corporate officers personally responsible for their corporate filings. B) seeks to establish barriers to foreign listings on the U.S. stock exchanges. C) is a response to reduced corporate earnings due to corruption. D) attempts to establish GAAP practices for foreign companies.

A) holds corporate officers personally responsible for their corporate filings.

One reason a government chooses to restrict trade would be to A) to eliminate domestic jobs. B) foster relations with other nations. C) to indicate an isolationist stance. D) protect domestic infant industries.

D) protect domestic infant industries.

Trade obstacles are considered to be legal forces because A) customs is controlled by a country's national police or army. B) their compliance is costly to the firm and the consumer. C) they are protected by the courts. D) they often are based on legislation.

D) they often are based on legislation.

The World Bank categorizes countries based on GNI per capita, using the following categories: A) undeveloped economies, developing economies, developed economies. B) developed economies, industrializing economies, developing economies. C) developing economies, newly industrializing economies, developed economies. D) high-income economies, middle-income economies, low-income economies.

high-income economies, middle-income economies, low-income economies.

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: A) the home office. B) national agencies. C) economic consultants. D) the international affiliate.

the home office.

what is the purpose of economic analyses? A) to anticipate political developments within and across countries B) to forecast exchange rates C) to assess the overall outlook for the economy and the impact of economic changes on the firm D) to compare the rate of economic and political change in order to determine financial variances

to assess the overall outlook for the economy and the impact of economic changes on the firm

A large international debt may result in A) reduction in the level of component production at the local level. B) decreased levels of foreign exchange available for importing components for local assembly. C) increased numbers of importers. D) growing levels of sales by home country factories that sell to the subsidiary in the indebted nation.

B) decreased levels of foreign exchange available for importing components for local assembly.

Reductions in birthrates are occurring worldwide because A) governments are scaling back family planning programs. B) of an increased level of urbanization. C) women are experiencing a decline in status. D) governments are encouraging higher levels of marriage and at earlier ages.

B) of an increased level of urbanization.

If the United States and Italy fell into a trade dispute, which form of international law would govern the situation? A) litigation B) public C) civil D) private

B) public

The primary reason tariffs are put in place is to A) raise government revenue at the cost of importers. B) raise the price of imports, to protect domestic goods. C) punish countries over political issues. D) encourage foreign consumption.

B) raise the price of imports, to protect domestic goods.

Nationalization and privatization are implemented by A) big business. B) the government. C) international affiliates. D) consumers.

B) the government.

Japan restricts the number of automobiles its manufacturers can export to the United States each year. What is this an example of? A) voluntary export restraint B) ad valorem tariff C) absolute quota D) sanction

C) absolute quota

The most important sources of international law are A) the UN International Court of Justice. B) the U.S. Supreme Court and the EU Court of Justice. C) bilateral and multilateral treaties, along with customary law. D) common and civil law.

C) bilateral and multilateral treaties, along with customary law.

Smaller nations would like patent protection to be A) extended, to allow for them to build their competitive advantage. B) extended, so that they can recoup development costs. C) reduced, so that they can make money sooner. D) dissolved, so that they can increase their profits.

C) reduced, so that they can make money sooner.