IB w/ OB Final (Ch. 1-16)

________ answers the question, "What do we do exceptionally well, especially as compared to our competitors?"

Distinctive competence a. Distinctive competence b. Differential advantage c. Scope of operations d. Resource deployment

Which of the following is not typically accomplished through a firm's organizational design?

Division of profits is determined a. Tasks are assigned to employees. b. Division of profits is determined. c. Organizational resources are allocated. d. Employees learn about performance expectations.

Which of the following is NOT an organization that governs the European Union?

European Trade Council a. Council of the European Union b. European Commission c. European Trade Council d. European Court of Justice

________ is the most common form of international business activity.

Exporting a. Exporting b. Licensing c. Greenfield strategy d. Management contract

Managers at Audio-Tech, an MNE, are trying to determine the best organizational design for the firm. Which factor is LEAST relevant to this decision?

HR metrics

Which theory suggests that one set of factors affects dissatisfaction and another set affects satisfaction?

Herzberg's two-factor theory

Erica is on the strategic planning committee at Folsom Electronics, an MNE based in Detroit. Folsom is considering opening new facilities overseas. Which of the following questions is LEAST relevant to Erica and the strategic planning committee?

How does Folsom manage domestic sales? a. What products does Folsom intend to sell internationally? b. Where and how will Folsom make those products? c. Where and how will Folsom sell the products? d. How does Folsom manage domestic sales?

________ relies on personal power and focuses on motivation and communication.

Leadership

________ is the overall set of forces that causes people to choose certain behaviors from a set of available behaviors.

Motivation

________ focuses specifically on operating processes and systems within both the firm and its subsidiaries and operating units.

Operations control

Which of the following is not one of the three steps in increasing market share, revenue, and profits?

Perform a situation analysis a. Assess alternative markets. b. Evaluate respective costs, benefits, and risks. c. Perform a situation analysis. d. Select market with most potential for entry or expansion.

Executives at Smithson Soda, a U.S. firm, have decided to enter the Chinese market through a licensing agreement with a beverage manufacturer located in Shanghai. Which of the following statements, if true, best supports this decision?

Smithson Soda is unfamiliar with the needs of Chinese consumers. a. Smithson Soda recently sold one of its manufacturing facilities. b. Smithson Soda is unfamiliar with the needs of Chinese consumers. c. Smithson Soda uses an EMC to ship its products to a Chinese distributor. d. Smithson Soda belongs to a Webb-Pomerene association to gather market research.

________ is intended to monitor both how well an international business formulates strategy and how well it goes about implementing that strategy.

Strategic control

The ________ promotes free trade among Bolivia, Chile, Colombia, Ecuador, and Peru.

The correct answer is: Andean Community a. Mercosur Accord b. Andean Community c. Central America Common Market d. Southern Cone Customs Union

________ attempt to exploit small differences in the price of a currency between markets by buying currencies in lower-priced markets and selling in higher-priced markets. Select one: a. Commercial customers b. Speculators c. Arbitrageurs d. Individuals

The correct answer is: Arbitrageurs

________ is the process by which both parties in a conflict agree to submit their cases to a private individual or body whose decision they will honor. Select one: a. Negotiation b. Repatriation c. Arbitration d. Resolution

The correct answer is: Arbitration

Todd, an analyst for the U.S. government, has been given the task of assessing the economic performance of Country X in the international marketplace. Todd will most likely review the ________ of Country X. Select one: a. BOP statistics b. IMF quotas c. portfolios d. FDI

The correct answer is: BOP statistics

Assume you are an American exporter in 1895. What currency would you most likely want to receive for business transactions? Select one: a. U.S. dollar b. British pound sterling c. German deutschmark d. French franc

The correct answer is: British pound sterling

Which of the following religions was not born in the Middle East? Select one: a. Buddhism b. Christianity c. Judaism d. Islam

The correct answer is: Buddhism

The rising value of the Canadian dollar relative to the U.S. dollar has all of the following effects EXCEPT that ________ . Select one: a. Canadian exports to the U.S. are down b. Canadian vacationers pay higher costs for trips to the U.S. c. Canadian consumers pay lower prices for U.S.-made goods d. Canadian retailers in border towns lose customers to U.S. stores

The correct answer is: Canadian vacationers pay higher costs for trips to the U.S.

Which of the following is an example of a nontariff barrier that restricts access to distribution networks? Select one: a. Malaysia's requirement that during prime time at least 40 percent of the songs on the radio be by local artists b. Turkmenistan's requirement that all imports of consumer goods be approved by the State Standards Committee c. China's policy that imported sugar be distributed only by state-owned enterprises d. Canada's requirement that baby food be packaged in 4.5- and 7.5-ounce containers

The correct answer is: China's policy that imported sugar be distributed only by state-owned enterprises

Natalie is employed by the governing organization of the EU that is responsible for proposing legislation, administering the EU's permanent bureaucracy, and implementing the provisions of the Treaty of Rome. Natalie most likely works for the ________.

The correct answer is: European Commission a. European Court of Justice b. European Commission c. European Parliament d. Council of the European Union

The ________ is responsible for proposing legislation, implementing the provisions of the Treaty of Rome, protecting EU interests in political debates, and administering the EU's permanent bureaucracy.

The correct answer is: European Commission a. European Parliament b. European Court of Justice c. European Council d. European Commission

________ is the money sent out of a politically or economically unstable country to one perceived as a safe haven. Select one: a. Invoicing currency b. Flight capital c. Capital substitution d. Foreign currency

The correct answer is: Flight capital

Which regulation prohibits the offering of bribes to any foreign government official in order to influence official actions or policies of that official or to gain or retain business? Select one: a. Foreign Corrupt Practices Act b. Helms-Burton Act c. Alien Tort Claims Act d. Disclosure of Conflict Act

The correct answer is: Foreign Corrupt Practices Act

In which country do firms publish a social balance sheet detailing their treatment and compensation of their workforce? Select one: a. France b. Germany c. the United Kingdom d. China

The correct answer is: France

Which EU country has drawn criticism for promoting an agenda of economic nationalism, and in particular, for protecting its farmers under the guise of the Common Agricultural Policy? Select one: a. Germany b. France c. Italy d. Spain

The correct answer is: France

In which country would an employee most likely question the decision of a manager? Select one: a. Spain b. Japan c. Germany d. Singapore

The correct answer is: Germany

What is the most likely reason that Germany is considered the most important member of the EU? Select one: a. Germany has the world's fourth largest economy. b. Germany's government promotes human rights. c. Germany initially suggested developing the EU. d. Germany uses a codetermination system.

The correct answer is: Germany has the world's fourth largest economy.

Which country dominated international trade during the 5th century B.C.? Select one: a. China b. Italy c. Spain d. Greece

The correct answer is: Greece

Mick has been padding his expense account on business trips. However, it seems fair to him because the company refuses to provide him with comp time despite long hours he works on these business trips. Which ethical generalization does this most likely illustrate? Select one: a. Individuals have their own personal belief system. b. Individuals are typically consistent with their beliefs. c. Individuals can rationalize behavior in various circumstances. d. Individuals from the same cultural contexts have similar beliefs.

The correct answer is: Individuals can rationalize behavior in various circumstances.

Sonya and Amber work together in the Hong Kong corporate office. Despite having similar backgrounds and education, they cannot agree on whether it is appropriate to offer bribes to Chinese officials for the purpose of expediting business transactions. Which ethical generalization does this most likely illustrate? Select one: a. Individuals have their personal belief systems. b. Culture has the strongest influence on personal ethics. c. Personal values rarely overlap with global business dealings. d. Society requires individuals to rationalize ethical inconsistencies.

The correct answer is: Individuals have their personal belief systems.

What organization is the major watchdog for monitoring working conditions in factories in developing countries? Select one: a. International Labor Organization b. Human Rights Campaign c. Organization for Economic Cooperation and Development d. World Trade Organization

The correct answer is: International Labor Organization

Which of the following was created by the Bretton Woods Agreement to facilitate the expansion and balanced growth of international trade and to promote exchange stability? Select one: a. World Bank b. Inter-American Development Bank c. International Monetary Fund d. Multilateral Investment Guarantee Agency

The correct answer is: International Monetary Fund

Which of the following is not true of Mexico? Select one: a. It is the world's largest Spanish-speaking nation. b. It has increased its protectionist measures in recent years. c. It has been promoting the privatization of multiple industries. d. It has signed free trade pacts with El Salvador, Guatemala, and Honduras.

The correct answer is: It has increased its protectionist measures in recent years.

Which country was a significant focal point for international business during the Middle Ages? Select one: a. China b. England c. Italy d. Russia

The correct answer is: Italy

The ________ is an agreement to create a customs union among the governments of Argentina, Brazil, Paraguay, and Uruguay.

The correct answer is: Mercosur Accord a. Mercosur Accord b. ASEAN Free Trade Area c. Andean Pact d. Central America Common Market

Executives at Octagon Telecom, a global telecommunications firm, are considering investing in a telephone company located in Rwanda. However, many stockholders have expressed concerns about the political risk involved in such an investment. Which of the following would most likely provide political risk insurance to Octagon? Select one: a. International Development Association b. African Development Bank c. International Monetary Fund d. Multilateral Investment Guarantee Agency

The correct answer is: Multilateral Investment Guarantee Agency

According to the text, which of the following is NOT an ethical generalization? Select one: a. Individuals have their own belief system about what is ethical and unethical. b. People from the same cultural backgrounds usually have similar ethics. c. National values have little influence on an individual's personal ethics. d. Circumstances cause individuals to deviate from their ethical beliefs.

The correct answer is: National values have little influence on an individual's personal ethics.

________ is the risk associated with the potential for the employees or operations of the firm to be threatened by changes in laws, environmental standards, tax codes, and terrorism. Select one: a. Transfer risk b. Ownership risk c. Operating risk d. Exchange rate risk

The correct answer is: Operating risk

Why did the producers of the The Apprentice have problems selling the Japanese version of the show to Japanese TV networks? Select one: a. Public humiliation is avoided in the Japanese culture. b. Japanese networks were offended by the show's language. c. Backtranslation tools were unavailable to the Japanese producers. d. The Japanese political system supports the concept of lifetime employment.

The correct answer is: Public humiliation is avoided in the Japanese culture.

________ suggests that a national government can make its country better off if it adopts trade policies that improve the competitiveness of its domestic firms in oligopolistic industries. Select one: a. National defense argument b. Infant industry argument c. Maintenance of existing jobs d. Strategic trade theory

The correct answer is: Strategic trade theory

According to the low-context-high-context theory, in which of the following countries should advertisements be fact-oriented? Select one: a. Japan b. Greece c. Saudi Arabia d. Switzerland

The correct answer is: Switzerland

Which country does NOT require firms to capitalize financial leases? Select one: a. Switzerland b. United States c. Great Britain d. Canada

The correct answer is: Switzerland

Salvo Software develops computer games and business software systems that are popular throughout the world. Like many software firms, Salvo has experienced problems with illegal counterfeiting of its products. Given this concern, which of the following would be of most interest to Salvo?

The correct answer is: TRIPS a. TRIMS b. BARS c. TRIPS d. GATS

Which of the following is a condition of Dunning's eclectic theory? Select one: a. The firm must own a competitive advantage that overcomes competing against foreign firms in their markets. b. Research and development costs must outweigh expenses related to foreign direct investment. c. The firm must benefit more from outsourcing a service than controlling a foreign business. d. Business activity must be more profitable in a domestic location than in a foreign location.

The correct answer is: The firm must own a competitive advantage that overcomes competing against foreign firms in their markets.

________ suggests that arbitrage activities will continue until the price of the good is identical in both markets. Select one: a. Purchasing power parity b. The law of one price c. Equilibrium pricing d. Two-point arbitrage

The correct answer is: The law of one price The law of one price is the economic theory that the price of a given security, commodity or asset has the same price when exchange rates are taken into consideration. The law of one price is another way of stating the concept of purchasing power parity. The law of one price exists due to arbitrage opportunities.

According to the text, what is the most likely reason that Japan's cultural values could hinder the country's future prospects? Select one: a. Most firms prefer to hire experienced workers rather than new college graduates. b. The needs of young workers are being sacrificed to protect older workers. c. Lifetime employment policies promote the interests of businesses. d. Part-time employees are being offered full health benefits.

The correct answer is: The needs of young workers are being sacrificed to protect older workers.

What occurred at the Louvre Accord? Select one: a. Central banks allowed the dollar's value to fall. b. The value of the U.S. dollar was stabilized. c. EU members adopted a common currency. d. An exchange rate mechanism was established.

The correct answer is: The value of the U.S. dollar was stabilized.

The 12 member countries became known as the European Union when the ________ was signed in 1993.

The correct answer is: Treaty of Maastricht a. Treaty of Rome b. Treaty of Geneva c. Genoa Agreement d. Treaty of Maastricht

Which currency played a central role in the Bretton Woods system? Select one: a. British pound b. German mark c. Japanese yen d. U.S. dollar

The correct answer is: U.S. dollar

Which of the following was determined by Leontief? Select one: a. U.S. exports were less capital intensive than imports. b. U.S. exports were more capital intensive than imports. c. Relative factor endowments were not a factor in determining trade patterns. d. Specialization was not a factor in determining imports and exports.

The correct answer is: U.S. exports were less capital intensive than imports.

Bolton Products, an MNE based in Chicago, is developing a marketing campaign for a new laundry detergent that will be sold in Canada. What is the most relevant question that Bolton's marketers should ask when adapting their campaign for linguistic differences? Select one: a. What are the attitudes and needs of French Canadians and English Canadians? b. What are the geographic differences between British Columbia and Ontario? c. Which Canadian provinces are populated by French-speaking consumers? d. How does Canadian class structure differ from American class structure?

The correct answer is: What are the attitudes and needs of French Canadians and English Canadians?

Which of the following African countries is not a major oil exporter? Select one: a. Algeria b. Gabon c. Zambia d. Libya

The correct answer is: Zambia

What is a Eurodollar? Select one: a. a euro held by an American b. a U.S. dollar deposited in a European bank c. a euro deposited in a U.S. bank. d. any currency deposited in a country other than the country of issue

The correct answer is: a U.S. dollar deposited in a European bank

Civil law is primarily based on ________. Select one: a. actions taken by local governments b. the cumulative wisdom of judges' decisions on individual cases through history c. a codification of what is and is not permissible d. the officially established rules governing the faith and practice of a particular religion

The correct answer is: a codification of what is and is not permissible

Extraterritoriality refers to ________. Select one: a. the transfer of ownership of resources from the private to the public sector b. a government's attempt to regulate business activities outside its borders c. nationalization of a corporation without fair and appropriate compensation d. restrictions on the ability of a company to return profits to its headquarters

The correct answer is: a government's attempt to regulate business activities outside its borders

Which theory suggests that a country should export those goods and services for which it is more productive than other countries and import those goods and services for which other countries are more productive? Select one: a. mercantilism b. comparative advantage c. absolute advantage d. specialization of countries

The correct answer is: absolute advantage

Which of the following is the likely motive for Procter & Gamble's move into China? Select one: a. leveraging core competencies b. acquiring new resources c. accessing new markets d. improving competition

The correct answer is: accessing new markets

Logix Manufacturing is a U.S. firm with a factory in Mexico City. Local leaders in Mexico City ask Logix managers to make contributions to a youth sports organization. Logix provides the league with new equipment and uniforms. Which stance towards social responsibility does Logix most likely have? Select one: a. proactive b. obstructionist c. accommodative d. defensive

The correct answer is: accommodative

What type of tariff is assessed as a percentage of the market value of the imported good? a. transit tariff b. ad valorem tariff c. specific tariff d. compound tariff

The correct answer is: ad valorem tariff

When an overseas banking operation is jointly owned by a parent bank and a local or foreign partner, what is it called? Select one: a. subsidiary bank b. branch bank c. affiliated bank d. correspondent bank

The correct answer is: affiliated bank

Firm-based theories of international trade are best at explaining trade in all of the following types of products except ________. Select one: a. aluminum b. televisions c. bulldozers d. stereo equipment

The correct answer is: aluminum

Bad news in Korea should be delivered ________. Select one: a. right away b. in private c. at the end of the day d. when another person opens a gift

The correct answer is: at the end of the day

The primary purpose of conducting a backtranslation is to ________. Select one: a. convey a positive image b. meet FAA requirements c. avoid communication mistakes d. ensure global media functionality

The correct answer is: avoid communication mistakes

Carmen is a vice president at TechWorks, an MNE that manufactures computer chips. TechWorks is considering expansion, and Carmen is responsible for identifying potential locations. Which of the following would best help Carmen assess the competitiveness of a country's manufacturing sector? Select one: a. balance on services b. balance on goods and services c. balance on merchandise trade d. official settlements balance

The correct answer is: balance on merchandise trade

Which of the following is not an international business transaction? Select one: a. purchasing products in one country and assembling them in another b. building a plant in a foreign country to capitalize on lower labor costs c. borrowing money from a major bank to finance capital improvements d. shipping finished products from one country to another for retail sale

The correct answer is: borrowing money from a major bank to finance capital improvements

Walton Enterprises, a U.S. firm, has a facility in China. Walton managers in China frequently complain about the arbitrary rules and decisions implemented by Chinese government authorities. Such legal unpredictability suggests that China has a system based on ________ law. Select one: a. civil b. common c. theocratic d. bureaucratic

The correct answer is: bureaucratic

Of the laws that may form the basis for a country's legal system, which one is considered the riskiest for international businesses? Select one: a. common law b. religious law c. bureaucratic law d. statutory law

The correct answer is: bureaucratic law

Apex Enterprises wants the right to buy a foreign currency at a specified price at any time up to a specified date. Apex most likely needs a ________. Select one: a. forward premium b. forward discount c. call option d. put option

The correct answer is: call option

AeroTech, a German firm, deposits a check in a U.S. bank. The deposit will be recorded as a ________. Select one: a. capital outflow in the U.S. BOP b. capital inflow in the U.S. BOP c. unilateral debit in the U.S. d. credit to Germany's BOP

The correct answer is: capital inflow in the U.S. BOP balance of payment

Social stratification refers to how people in a society are ________. Select one: a. sorted for housing b. identified by families c. paid for employment d. categorized by attributes

The correct answer is: categorized by attributes

Under a managed float ________. Select one: a. currency values are determined only by private sector forces b. central banks sometime manipulate exchange rates c. countries agree to exchange paper currencies for gold d. countries may adopt any exchange rate system

The correct answer is: central banks sometime manipulate exchange rates

Dual-use products are those that can be used for both ________ and ________ purposes. Select one: a. civilian; military b. domestic; business c. wholesale; retail d. profit; nonprofit

The correct answer is: civilian; military

Strategic trade theory applies best to which industry identified below? Select one: a. air transportation b. commercial aircraft construction c. farming d. automobile manufacturing

The correct answer is: commercial aircraft construction

Firms such as Procter & Gamble that use recycled materials whenever possible are most likely demonstrating their ________. Select one: a. commitment to environmental protection b. concern for general social welfare c. implementation of a code of ethics d. responsibility to stakeholders

The correct answer is: commitment to environmental protection

What type of trade were the early country-based theories of international trade most useful in understanding? Select one: a. services b. brand name goods c. commodities d. high-tech goods

The correct answer is: commodities

Country X wants to encourage trade by eliminating trade barriers with the three countries along its borders. Country X wants the group of countries to adopt a common external trade policy toward nonmembers and to allow citizens in any of the member countries to practice their trades in any of the member nations. Which form of economic integration is Country X most likely considering?

The correct answer is: common market a. economic union b. common market c. customs union d. free trade area

Which theory suggests that a country should produce and export those goods and services for which it is relatively more productive than other countries are and import those goods and services for which other countries are relatively more productive? Select one: a. relative advantage b. comparative advantage c. absolute advantage d. specialization of countries

The correct answer is: comparative advantage

Pepsi's reason for following Coca-Cola to new markets was most likely to ________. Select one: a. acquire resources and supplies b. leverage core competencies c. compete more effectively d. gain economies of scale

The correct answer is: compete more effectively

According to the model developed by Rob van Tulder and Alex van der Zwart, Anglo-Saxon countries view the state, the market, and civil society as ________. Select one: a. competitive b. symbiotic c. supervisory d. corrupt

The correct answer is: competitive

Which of the following is not a common argument for government intervention in international trade? Select one: a. the infant industry argument b. the national defense argument c. maintenance of existing jobs d. competitive trade theory

The correct answer is: competitive trade theory

What type of tariff includes both ad valorem components and specific components? Select one: a. transit tariff b. harmonized tariff c. export tariff d. compound tariff

The correct answer is: compound tariff

All of the following are common activities of a bank's commercial customers EXCEPT ________. Select one: a. exporting goods b. importing services c. receiving dividends from foreign sources d. conducting short-term sales of foreign currency

The correct answer is: conducting short-term sales of foreign currency

Braxton Clothing Company most likely forbids its buyers from accepting gifts from potential suppliers because the firm wants to avoid a(n) ________. Select one: a. conflict of interest b. strategic breakdown c. breach of contract d. trade violation

The correct answer is: conflict of interest

According to the model developed by Rob van Tulder and Alex van der Zwart, what is the key to the Continental European Approach? Select one: a. consumer demands for quality products and services b. cooperation between labor, business, and government c. competition to encourage consumer market expansion d. oversight by nongovernmental organizations

The correct answer is: cooperation between labor, business, and government

Singapore Airlines' ________ is its award-winning standards of customer satisfaction. Select one: a. core competency b. distinctive advantage c. differential advantage d. strategic imperative

The correct answer is: core competency

The international monetary system provides a mechanism for ________. Select one: a. establishing global accounting standards b. enforcing the payment of importing tariffs and fees c. correcting imbalances between a country's international payments and receipts d. increasing a country's paper currency value in comparison to the global gold standard

The correct answer is: correcting imbalances between a country's international payments and receipts International monetary systems are sets of internationally agreed rules, conventions and supporting institutions, that facilitate international trade, cross border investment and generally the reallocation of capital between nation states.

A(n) ________ is calculated to offset the advantage an exporter receives from a subsidy. Select one: a. compound tariff b. export promotion c. countervailing duty d. substitution tariff

The correct answer is: countervailing duty

Under the gold standard ________. Select one: a. currency values were determined by supply and demand b. countries agreed to buy or sell their paper currencies for gold c. countries were free to adopt any nation's exchange rate system d. the dollar's value was allowed to fall on currency markets

The correct answer is: countries agreed to buy or sell their paper currencies for gold

Which form of arbitrage is considered the most important in the foreign-exchange market? Select one: a. two-point arbitrage b. three-point arbitrage c. covered interest d. arbitrage of goods

The correct answer is: covered interest Covered interest arbitrage is an arbitrage trading strategy whereby an investor capitalizes on the interest rate differential between two countries by using a forward contract to cover (eliminate exposure to) exchange rate risk.

When the gold standard ended ________. Select one: a. currency values were determined by supply and demand b. central banks sometimes manipulated exchange rates c. countries agreed to buy or sell their paper currencies for gold d. countries were free to adopt whatever exchange rate system best met their own requirements e. the dollar's value was allowed to fall on currency markets

The correct answer is: currency values were determined by supply and demand

If a currency is selling at a forward premium it most likely means that the foreign-exchange market believes that the ________. Select one: a. currency will depreciate over time b. country's economy is weak c. currency will appreciate over time d. country's economy is strong

The correct answer is: currency will appreciate over time

The sale of a Mercedes-Benz from Germany to France would be recorded as a merchandise export in the ________ account of Germany's balance of payments. Select one: a. capital b. current c. official reserves d. export

The correct answer is: current

Supply factors affecting the decision to undertake FDI include all of the following except ________. Select one: a. logistics b. production costs c. customer mobility d. access to key technology

The correct answer is: customer mobility

Which of the following is not one of the major accounts in the BOP accounting system? Select one: a. capital account b. debt account c. official reserves account d. errors and omissions

The correct answer is: debt account

When an organization does everything it must do from a legal standpoint but nothing more, it has adopted the ________ to social responsibility. Select one: a. obstructionist stance b. defensive stance c. accommodative stance d. proactive stance

The correct answer is: defensive stance

The price of foreign exchange is set by ________. Select one: a. the international monetary fund b. the gold standard c. demand and supply in the marketplace d. administrators of the World Bank

The correct answer is: demand and supply in the marketplace

What is the primary focus of the new trade theory developed by Krugman, Helpman, and Lancaster? Select one: a. protecting intellectual property rights b. expanding research and development c. developing economies of scale d. exploiting the experience curve

The correct answer is: developing economies of scale

Carol, an American banker, received a quote between the U.S. dollar and the Japanese yen of $.00924/¥1. Carol most likely received a(n) ________ quote. Select one: a. indirect b. direct c. dollar d. yen

The correct answer is: direct

In a high-context culture, the presence of a lawyer during business dealing would be considered a sign of ________. Select one: a. wisdom b. trust c. distrust d. pragmatism e. commitment

The correct answer is: distrust

Executives at Cornwall Industries, a U.S. firm, are considering expanding into Niger. As a manager at the firm you have been given the task of analyzing the advantages and disadvantages of Niger. Which of the following is the most likely problem associated with expanding into Niger? Select one: a. influence of British government b. insufficient natural resources c. dominance of French firms d. risk of civil unrest

The correct answer is: dominance of French firms

The patterns of trade and investment in international business are LEAST affected by ________. Select one: a. linguistics b. cultural ties c. education trends d. military alliances

The correct answer is: education trends

Country Q is run by a dictator, and Country X wants to use a nontariff barrier to discipline Country Q. Which of the following would most likely be implemented by Country X? Select one: a. numerical export control b. voluntary export restraint c. regulatory control d. embargo

The correct answer is: embargo

Laws regarding ________ are the primary reason the manufacturers in Germany and France compete on quality rather than price. Select one: a. interest rates b. worker safety c. patent liability d. employee benefits

The correct answer is: employee benefits

A foreign trade zone is primarily used by governments to ________. Select one: a. protect currency rates b. enforce tariffs and duties c. monitor foreign investments d. encourage economic development

The correct answer is: encourage economic development

Which of the following best explains why international factory owners would most likely want regular ILO inspections? Select one: a. eliminate workplace corruption b. encourage investments from MNEs c. comply with World Trade Organization d. earn reductions in exporting taxes and fees

The correct answer is: encourage investments from MNEs

Which of the following is not a common activity of MNCs? Select one: a. owning and controlling foreign assets b. buying resources in various countries c. creating goods in a variety of countries d. establishing foreign exchange rates

The correct answer is: establishing foreign exchange rates

When behavior conforms to generally accepted norms, it is referred to as ________ behavior. Select one: a. ethical b. societal c. normal d. unethical

The correct answer is: ethical

Black and Decker produces tools at a plant in North Carolina and ships the tools to retailers in England. This is an example of which type of international business activity? Select one: a. merchandising b. importing c. exporting d. trading

The correct answer is: exporting

The primary purpose of the foreign-exchange market is to ________. Select one: a. encourage globalization b. assist developing countries c. facilitate currency conversions d. stabilize the currency exchange rate

The correct answer is: facilitate currency conversions

Hawkins Tire is an international chain of discount tire stores. The firm has recently opened a store in Frankfurt, Germany, where there are already a number of local tire stores. Which of the following is the most likely negative effect of Hawkins Tire on Frankfurt? Select one: a. failure of local tire stores b. higher prices for tires c. lower tire selection d. poor tire quality

The correct answer is: failure of local tire stores

The Japanese term, keiretsu, refers to a(n) ________. Select one: a. major Japanese bank b. family of interrelated companies c. export trading company d. supplier

The correct answer is: family of interrelated companies

What was the initial goal of the World Bank? Select one: a. administer the gold standard b. hold financial reserves for all countries c. finance reconstruction of war-torn economies d. provide capital for corporate expansion activities

The correct answer is: finance reconstruction of war-torn economies

What was created by the gold standard? Select one: a. fixed exchange rate system b. floating exchange rate system c. global accounting standards d. export and import regulations

The correct answer is: fixed exchange rate system

A bond that is issued by Nestle, a Swiss company, that is denominated in yen and sold to residents of Japan is most likely a ________. Select one: a. Eurobond b. global bond c. foreign bond d. country fund

The correct answer is: foreign bond Definition of foreign bond. A bond issued by a foreign borrower in the currency of the country in which it is sold. Examples include Yankee bonds (US dollar denominated bond issued by a foreign borrower in the US), Samurai bonds (issued in Japan and denominated in yen) and Bulldog bonds (issued in the UK in sterling).

Country X protects its domestic manufacturers from foreign competition by using a variety of nontariff barriers. Which of the following is NOT one of those nontariff barriers? Select one: a. foreign trade zones b. product standards c. regulatory controls d. local purchase requirements

The correct answer is: foreign trade zones

What is a currency selling at if the forward price is less than the spot price? Select one: a. forward premium b. forward discount c. par value d. swap price

The correct answer is: forward discount

McDonald's has licensed its brand name, operational systems, and trademarks to individual restaurant owners in Europe. This is called international ________. Select one: a. leasing b. marketing c. franchising d. diversifying

The correct answer is: franchising

Browning Enterprises is planning to conduct a corporate social audit. Which of the following would LEAST likely occur during the audit? Select one: a. defining current social responsibility goals b. gathering social goal data from shareholders c. assessing the accomplishment of social goals d. analyzing social responsibility resource distribution

The correct answer is: gathering social goal data from shareholders

Which theory suggests that trade flows can be determined by firms making the necessary research and development expenditures? Select one: a. global strategic rivalry theory b. national competitive advantage theory c. international product life cycle theory d. country similarity theory

The correct answer is: global strategic rivalry theory

Vandever Enterprises is considering expanding its operations into Asia. Managers at the firm are currently evaluating the income levels of three different Asian countries. Which of the following is LEAST likely to be determined by this analysis? Select one: a. public infrastructure status b. purchasing power of citizens c. government's ability to monitor corruption d. technological sophistication of local production processes

The correct answer is: government's ability to monitor corruption

A call option ________. Select one: a. is a privately traded currency vehicle available only through stockbrokers b. grants the right to buy a specified amount of foreign currency at a set price c. allows the holder to buy foreign exchange at the wholesale rate d. is another term for currency future

The correct answer is: grants the right to buy a specified amount of foreign currency at a set price

Which of the following is NOT characteristic of the Latin American negotiating style? Select one: a. impatience with documentation b. hiding of emotions c. impulsive decision making d. loyalty to employer

The correct answer is: hiding of emotions

Which of the following is not one of the conditions specified in eclectic theory for the occurrence of foreign direct investment? Select one: a. ownership advantage b. location advantage c. home country advantage d. internalization advantage

The correct answer is: home country advantage

Siemens is headquartered in Germany but maintains operations in the United States. The United States is the ________ country. Select one: a. home b. host c. parent d. subsidiary

The correct answer is: host

Free trade ________. Select one: a. is another term for managed trade b. implies that the national government exerts minimal influence on the exporting and importing decisions of private firms c. proposes that national governments should directly help domestic firms by providing export subsidies and tax breaks d. suggests that the national government should actively intervene to ensure that domestic firms' exports receive an equitable share of foreign markets and that imports are controlled to minimize losses of domestic jobs and market share in specific industries

The correct answer is: implies that the national government exerts minimal influence on the exporting and importing decisions of private firms

A policy that attempts to stimulate development of local industry by discouraging imports through tariffs and nontariff barriers is called ________. Select one: a. export substitution b. import substitution c. development stimulation d. protectionism

The correct answer is: import substitution

The government of Country X is encouraging the growth of domestic manufacturing by implementing high barriers to imported goods. Country X is most likely following a strategy of ________. Select one: a. strategic trade b. export promotion c. import substitution d. industrial development

The correct answer is: import substitution

Carter Industries has a garment facility in Guatemala. Which of the following is most likely an issue faced by the firm? Select one: a. severe FDI restrictions b. poor control of counterfeiting c. inadequate educational systems d. government ownership of rivals

The correct answer is: inadequate educational systems

In most cases, tariffs are imposed for the purpose of ________. Select one: a. increasing national government revenue b. complying with trade regulations c. increasing foreign trade activity d. promoting consumer safety

The correct answer is: increasing national government revenue

The first theories of international trade used ________ as a unit of analysis. Select one: a. individual countries b. country clusters c. regions d. continents

The correct answer is: individual countries

Which virtue of a job candidate would most likely NOT be perceived as valuable by a Japanese employer? Select one: a. unity b. loyalty c. individualism d. personal responsibility

The correct answer is: individualism

The government of Country X actively manages the national economy by providing subsidies to aerospace firms and automobile manufacturers. Country X most likely engages in ________. Select one: a. trade blocs b. industrial policies c. export promotion strategies d. import substitution policies

The correct answer is: industrial policies

Which of the following is LEAST susceptible to ethical variations in international business? Select one: a. hiring practices b. working conditions c. insurance benefits d. employee privacy

The correct answer is: insurance benefits

Which theory explains why a firm would choose to enter a foreign market via FDI rather than exploit its ownership advantages internationally through other means? Select one: a. eclectic theory b. internalization theory c. relative factor endowments d. national competitive advantage

The correct answer is: internalization theory

The international business activity called ________ occurs when capital is supplied by residents of one country to residents of another country. Select one: a. international investment b. global direct investment c. portfolio financing d. state capitalism

The correct answer is: international investment

The British term for the trading of intangible goods is ________. Select one: a. visible trade b. invisible trade c. merchandise exports and imports d. service exports and imports

The correct answer is: invisible trade

What is the most significant problem for Singapore today? Select one: a. Chinese control b. shipping costs c. labor shortages d. low technological expertise

The correct answer is: labor shortages

Statutory law is primarily based on ________. Select one: a. legislative actions b. historic precedents c. moral judgments d. religious beliefs

The correct answer is: legislative actions

Walt Disney permits a German clothing manufacturer to market children's pajamas embroidered with Mickey Mouse in return for a percentage of company sales. This is an example of ________. Select one: a. franchising b. licensing c. leasing d. piracy

The correct answer is: licensing

Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following training topics would most likely prepare expatriate managers for handling ethics issues in China and Bangladesh? Select one: a. multilingual contexts b. local religious customs c. local business practices d. global marketing methods

The correct answer is: local business practices

France's requirement that during prime time at least 40 percent of the songs played on 1700 AM and FM stations must be written or sung by French or Francophone artists is an example of which type of nontariff barrier? Select one: a. product and testing standards b. restricted access to distribution networks c. numerical export controls d. public-sector procurement policies e. local-purchase requirements

The correct answer is: local-purchase requirements

The type of gift exchanged by business people in Japan is primarily determined by all of the following factors EXCEPT the ________. Select one: a. nature of the business relationship b. length of the business relationship c. amount of business being transacted d. location of the business in the community

The correct answer is: location of the business in the community

Which of the following is a negotiating style common among Japanese managers? Select one: a. being argumentative b. making subtle power plays c. exhibiting emotional passion d. making spontaneous decisions

The correct answer is: making subtle power plays

Colgate-Palmolive expanded into overseas markets with its toothpaste when the product reached the ________ stage of the product life cycle. Select one: a. growth b. maturity c. decline d. development

The correct answer is: maturity

Saudi Arabia's nationalization of the oil industry in the 1970s is an example of ________. Select one: a. macropolitical risk b. micropolitical risk c. transfer risk d. ownership risk

The correct answer is: micropolitical risk micropolitical risk - affects only a specific firm or firms within a specific industry macropolitical risk - affect all firms in a country

What is London's origin as a world financial center? Select one: a. military power of British Empire in the nineteenth century b. influence of royalty on the city's reputation c. rule over several former American colonies d. prestige of the London Stock Exchange

The correct answer is: military power of British Empire in the nineteenth century

Which of the following would LEAST likely help a country change its technological environment? Select one: a. investment in infrastructure b. investment in human capital c. minimum wage increase d. foreign direct investment

The correct answer is: minimum wage increase

Randall's Groceries, an international supermarket chain, recently opened a new store in the Taiwanese market. Which of the following will Taiwanese consumers LEAST likely experience? Select one: a. greater selection of products b. more mom-and-pop stores c. higher standards of quality d. creation of more local jobs

The correct answer is: more mom-and-pop stores

The ________ requires that any preferential treatment granted to one country must be extended to all countries.

The correct answer is: most-favored-nation principle a. GATT b. WTO c. export promotion system d. most-favored-nation principle

The ________ concept states that if one EU member state determines that a product is appropriate for sale, then all other EU members are also obliged to do so under the provisions of the Treaty of Rome.

The correct answer is: mutual recognition a. harmonization b. arbitration c. mutual recognition d. free movement of goods

A boundaryless economy is one in which ________. Select one: a. exported goods are predominant b. regional borders are significant c. trade laws are strictly enforced d. national borders are irrelevant

The correct answer is: national borders are irrelevant

Which theory of international trade explains that success in international trade comes from the interaction of four country- and firm-specific elements? Select one: a. national competitive advantage b. country similarity c. absolute advantage d. relative factor endowments

The correct answer is: national competitive advantage

The ________ holds that a country must be self-sufficient in critical raw materials, machinery, and technology or it will be vulnerable to foreign threats. Select one: a. national defense argument b. infant industry argument c. industrial policy d. strategic trade theory

The correct answer is: national defense argument

The ________ holds that a country must be self-sufficient in critical raw materials, machinery, and technology or it will be vulnerable to foreign threats. a. national defense argument b. infant industry argument c. industrial policy d. strategic trade theory

The correct answer is: national defense argument

Country X treats foreign firms the same way it treats domestic firms. Country X most likely engages in ________.

The correct answer is: national treatment a. trade balancing b. national treatment c. mercantilism d. foreign treatment

Wilfred Enterprises has foreign operations in Taiwan, India, and China. The firm pays an annual insurance premium to the Overseas Private Investment Corporation. The firm is most likely protecting itself from ________. Select one: a. privatization b. natural disasters c. nationalization d. financial instability

The correct answer is: nationalization

Cultures emphasizing collectivism are more likely to emphasize ________. Select one: a. self-interest b. self-actualization c. nepotism d. higher education

The correct answer is: nepotism the practice of those with power or influence of favoring relatives or friends, especially by the act of giving them a job

The Four Tigers are also called ________. Select one: a. newly industrialized countries b. newly independent states c. commonwealth of independent states d. commonwealth of industrialized countries

The correct answer is: newly industrialized countries

The IT department at World Airlines has recently improved the airlines' Website to help facilitate transactions. Now, when repeat customers log on to the Website, their seating preferences and billing addresses are automatically accessed. For World Airlines customers located in the European Union, the company will most likely have to ________. Select one: a. obtain customer permission before using cookies b. register the domain name of all clients c. block all pop-ups on the Website d. provide a secure Web portal

The correct answer is: obtain customer permission before using cookies

Brandon, a U.S. manager, is on a business trip in Tokyo meeting with a group of executives. Brandon receives a gift from one of the Japanese executives. What should Brandon most likely do? Select one: a. verify the gift's cost b. open the gift in private c. refuse to accept the gift d. open the gift in front of the group

The correct answer is: open the gift in private

Social structure is best defined as the ________. Select one: a. means by which a society's members communicate with each other b. attitudes of MNEs towards corporate social responsibility on a global scale c. overall framework that determines the roles of individuals within a society d. behavior of and opportunities available to MNCs operating in a given society

The correct answer is: overall framework that determines the roles of individuals within a society

The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ________. Select one: a. labor costs b. per capita incomes c. natural resources d. cultures and languages

The correct answer is: per capita incomes

Alcoa's gift of $112,000 to a small town in Brazil to build a sewage treatment plant is an example of ________. Select one: a. guanxi b. philanthropic giving c. ethical compliance d. legal compliance

The correct answer is: philanthropic giving

According to public choice analysis, domestic trade policies that affect international business have a tendency to develop from ________. Select one: a. political goals b. economic needs c. foreign competition d. corporate litigation

The correct answer is: political goals

Which international trade theory originated in the marketing field? Select one: a. new trade theory b. product life cycle theory c. country similarity theory d. theory of competitive advantage

The correct answer is: product life cycle theory

What is the primary purpose of the International Finance Corporation? Select one: a. make soft loans b. make hard loans c. promote private sector development in developing countries d. provide political risk insurance to MNEs operating in emerging economies

The correct answer is: promote private sector development in developing countries

According to mercantilism, what should a country's primary goal be? Select one: a. protecting citizens from unfair labor practices b. encouraging imports to prevent resource depletion c. promoting exports to enlarge gold and silver holdings d. ensuring sufficient labor for low-wage jobs in the textile industry

The correct answer is: promoting exports to enlarge gold and silver holdings

What do many human rights and environmental activists believe is missing in the WTO's objectives?

The correct answer is: protection for laborers a. protection for laborers b. stronger union control c. increased service trade d. foreign agricultural subsidies

Which of the following is not addressed by the Trade-Related Investment Measures Agreement (TRIMS)?

The correct answer is: protection of intellectual property rights a. trade-balancing rules b. foreign-exchange access c. domestic sales requirements d. protection of intellectual property rights

The Bretton Woods conference sought to do all of the following EXCEPT ________. Select one: a. renew the gold standard b. create the International Monetary Fund c. create the International Bank for Reconstruction and Development d. provide no-interest capital loans to emerging economies around the world

The correct answer is: provide no-interest capital loans to emerging economies around the world

The federal government policy that international air travel purchased with U.S. government funds must occur on U.S. airlines is an example of which type of nontariff barrier? Select one: a. restricted access to distribution networks b. numerical export controls c. public-sector procurement policies d. local-purchase requirements

The correct answer is: public-sector procurement policies

BGL Enterprises, a global firm, operates a facility in Angola. Managers want to reduce the firm's vulnerability to political risk in Angola. All of the following actions would most likely accomplish this task EXCEPT ________. Select one: a. reducing net investment in the subsidiary b. purchasing capital equipment outright c. buying inputs from local suppliers d. being a good corporate citizen

The correct answer is: purchasing capital equipment outright

The theory of ________ states that the prices of tradable goods, when expressed in a common currency, will tend to equalize across countries as a result of exchange rate changes. Select one: a. supply and demand b. purchasing power parity c. arbitrage d. competitive advantage

The correct answer is: purchasing power parity

Alfred Communications, a U.S. firm, is considering opening a facility in India. However, executives at the firm are not certain that India is the best location for investment. What is the most likely reason for management's concerns? Select one: a. weak judiciary system b. rampant corruption c. state capitalism d. religious strife

The correct answer is: rampant corruption

After World War II, international business was primarily triggered by the ________. Select one: a. loss of high-quality Japanese goods b. reduction of tariffs and quotas c. improvement of transportation d. introduction of the Euro

The correct answer is: reduction of tariffs and quotas

Which theory answers the question, "What determines the products for which a country will have a comparative advantage?" Select one: a. relative advantage b. absolute advantage c. relative factor endowments d. specialization of countries

The correct answer is: relative factor endowments

Dawson Enterprises, a U.S. firm, conducts business in Saudi Arabia. The MNE recently experienced a business dispute with a local firm and was forced to meet the demands of the local firm without going through due process. Dawson's experience most likely occurred because Saudi Arabia relies on ________. Select one: a. civil law b. common law c. religious law d. bureaucratic law

The correct answer is: religious law

A common market ________.

The correct answer is: requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production a. is complete political and economic integration of two or more countries b. requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, eliminate barriers to the movement of the factors of production, and coordinate economic policies c. eliminates trade barriers among member countries d. requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production

Demand factors affecting the decision to undertake FDI include all of the following except ________. Select one: a. customer access b. marketing advantages c. customer mobility d. resource availability

The correct answer is: resource availability

The "level playing field" argument is primarily used to justify government policies that ________. Select one: a. reduce import tariffs b. restrict foreign competition c. establish regional trade blocs d. manipulate foreign exchange

The correct answer is: restrict foreign competition

Thailand's policy whereby foreign banks can operate only three branches and only one of these can be in the city of Bangkok is an example of which type of nontariff barrier? Select one: a. product and testing standards b. restricted access to distribution networks c. numerical export controls d. public-sector procurement policies

The correct answer is: restricted access to distribution networks

The importance of foreign direct investment in the world's economy has ________ over time. Select one: a. fallen slightly b. fallen significantly c. risen significantly d. risen slightly

The correct answer is: risen significantly

Foreign portfolio investments are most likely motivated by the desire for ________. Select one: a. risk reduction b. controlling ownership c. active management d. immediate globalization

The correct answer is: risk reduction

Which of the following aspects about Canada is a concern to many international investors? Select one: a. legal system instability b. separatist movement c. weak infrastructure d. education system

The correct answer is: separatist movement

Attitudes ________. Select one: a. are the means by which a society's members communicate with each other b. are the overall framework that determines the roles of individuals within a society c. shape the behavior of and opportunities available to MNCs operating in a given culture d. stem from deep-seated beliefs about the individual's position in relation to his or her deity

The correct answer is: shape the behavior of and opportunities available to MNCs operating in a given culture

Dell Computers invests excess cash balances overnight in a London bank to earn a higher interest rate than it could earn in a New York bank. Dell is most likely making a(n. ________. Select one: a. international currency investment b. short-term portfolio investment c. long-term portfolio investment d. foreign direct investment

The correct answer is: short-term portfolio investment

The balance of payments is useful to international business people for all of the following reasons except ________. Select one: a. warning of new policies that could affect a country's business climate b. indicating reductions in a country's foreign exchange reserves c. signaling increased riskiness of lending to countries d. predicting future exchange rates

The correct answer is: signaling increased riskiness of lending to countries

Compared to Thailand, the United States has a ________ level of exports of goods and services as a percentage of GDP. Select one: a. slightly lower b. slightly higher c. significantly lower d. significantly higher

The correct answer is: significantly lower

The international bond market is a major source of debt financing for all of the following EXCEPT ________. Select one: a. foreign governments b. international firms c. large corporations d. small businesses

The correct answer is: small businesses

Which of the following is a characteristic of most Mittelstand firms? Select one: a. emphasis on low price guarantees b. reliance on global supply chains c. dependence on foreign investors d. specialization in product niches

The correct answer is: specialization in product niches

Rowland Enterprises wants to hedge the foreign-exchange risks involved in international transactions. Which of the following would be LEAST appropriate for Rowland? Select one: a. currency futures b. forward market c. currency options d. spot market

The correct answer is: spot market The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market, in which delivery is due at a later date.

Coffman Electronics produces small, portable printers. The market for the product has stabilized, and Coffman has shifted production to Taiwan. However, Coffman's marketing department in the U.S. remains responsible for advertising and branding decisions. Coffman Electronics is most likely in the ________ product stage of the product life cycle. Select one: a. globalized b. standardized c. maturing d. new

The correct answer is: standardized

In which stage of the international product life cycle does the innovating firm's country become a net importer of the product? Select one: a. new product stage b. maturing product stage c. standardized product stage d. never

The correct answer is: standardized product stage

China is attracting the attention of multinational companies and investors for all of the following reasons EXCEPT its ________. Select one: a. move to adopt market-oriented economic policies b. abandonment of many communist principles c. hard-working, low-cost labor force d. state ownership of key industries

The correct answer is: state ownership of key industries

Which of the following is NOT a similarity between India and Great Britain? Select one: a. parliamentary system b. independent judiciary c. professional bureaucracy d. state-owned industry

The correct answer is: state-owned industry

The U.S. Freedom of Information Act is an example of ________. Select one: a. common law b. civil law c. statutory law d. bureaucratic law

The correct answer is: statutory law

Immediately following World War II, Japan's Ministry for International Trade and Investment encouraged firms to concentrate on ________. Select one: a. steel and shipbuilding b. automobiles and electronics c. financial services d. apparel and footwear

The correct answer is: steel and shipbuilding

Country X wants to stimulate exports. Which of the following would most likely help Country X achieve this goal? Select one: a. subsidies b. currency controls c. investment controls d. quotas

The correct answer is: subsidies

The cumulative effect of GATT in developed countries was a ________.

The correct answer is: substantial reduction in tariffs a. substantial reduction in tariffs b. small increase in tariffs c. substantial increase in tariffs d. reduction in world trade

The U.S. government has decided to impose a tariff rate quota on sugar imports into the United States. Which of the following would benefit the most from this decision? Select one: a. domestic candy producers b. sugar substitute producers c. soft drink producers d. U.S. consumers

The correct answer is: sugar substitute producers

The Heckscher-Ohlin theory ________. Select one: a. suggests that a country should export those goods for which it is more productive than other countries and trade for those goods for which other countries are more productive b. states that a country should produce and export those goods for which it is relatively more productive than other countries and import those goods for which other countries are relatively more productive than it is c. suggests that a country will have a comparative advantage in producing products that intensively use resources it has in abundance d. argues that most trade in manufactured goods should be between countries with similar per capita incomes

The correct answer is: suggests that a country will have a comparative advantage in producing products that intensively use resources it has in abundance

A(n) ________ imposes a low tariff rate on a limited amount of imports of a specified good, but imposes a prohibitively high tariff on the good above that limited amount. Select one: a. tariff rate quota b. numerical export control c. voluntary export restraint d. ad valorem tariff

The correct answer is: tariff rate quota

Businesses in ________ discourage nepotism while in ________ family ties are crucial to ensure the growth of a company. Select one: a. the U.S.; China b. China; Germany c. Saudi Arabia; the United Kingdom d. France; the United States

The correct answer is: the U.S.; China

R.J. Reynolds' decision to follow laws regarding the marketing of its products in the United States but market its tobacco aggressively in countries without such regulations is an example of which approach to social responsibility? Select one: a. the obstructionist stance b. the defensive stance c. the accommodative stance d. the proactive stance

The correct answer is: the defensive stance

What is the largest component of international trade in the service industry? Select one: a. tourism b. accounting c. consulting d. higher education

The correct answer is: tourism

Parson's Pet Products, an Australian firm, ships many products to Canada. In order to take advantage of low trade barriers in the U.S., Parson's Pet Products ships its items first to the U.S. and then reexports the goods to Canada. Parson's Pet Products is most likely using ________.

The correct answer is: trade deflection a. trade circumvention b. origination manipulation c. trade deflection d. external circumvention

Expropriation is best defined as the ________. Select one: a. transference of ownership of resources from private to public sector with no compensation b. transference of ownership from private to public sector with compensation to private owners for their losses c. conversion of state-owned property to privately owned property d. conversion of state-owned property to privately owned property with no compensation

The correct answer is: transference of ownership from private to public sector with compensation to private owners for their losses

Products manufactured in Brazil are transported through Mexico on their way to England. Mexico applies a tariff on the goods. What type of tariff is implemented by Mexico? Select one: a. transit tariff b. ad valorem tariff c. export tariff d. compound tariff

The correct answer is: transit tariff

Suppose £1 is trading for $2.00 in New York City and $1.80 in London. A foreign exchange trader could take $1.80 and buy £1 in London's financial exchange market and then sell it for $2.00 in New York's financial exchange market. What is this an example of? Select one: a. two-point arbitrage b. three-point arbitrage c. covered interest d. arbitrage of goods

The correct answer is: two-point arbitrage

Formal rules and standards in the workplace are preferred by individuals from a culture high in ________. Select one: a. power tolerance b. power respect c. uncertainty avoidance d. uncertainty acceptance

The correct answer is: uncertainty avoidance

A company that is socially responsible will most likely ________. Select one: a. do as little as possible to address social or environmental problems b. undertake efforts to protect the society in which it functions c. conform to regional, national, and international laws d. follow basic ethical standards of behavior

The correct answer is: undertake efforts to protect the society in which it functions

Examples of promoting the general welfare of society include all of the following except ________. Select one: a. making charitable contributions b. supporting public radio stations c. becoming involved in local schools d. using appropriate accounting procedures

The correct answer is: using appropriate accounting procedures

Justin is aware that his supervisor used corporate funds to pay for a personal vacation and reports the offense. This is called ________. Select one: a. whistle-blowing b. acknowledgement c. conflict of interest d. organizational communication

The correct answer is: whistle-blowing

Which of the following factors are not included in Porter's view of factor endowments? Select one: a. land b. capital c. work ethic of workforce d. educational level of workforce

The correct answer is: work ethic of workforce

HR at APEX Designs, an international architectural firm, have noticed the following behaviors among employees lately. Which of the following would NOT be considered a problematic ethical situation at APEX? Select one: a. taking office supplies home for personal use b. making personal calls during work time c. padding company expense accounts d. working excessive overtime

The correct answer is: working excessive overtime

While negotiating a contract between an American firm and a Japanese supplier, the Japanese manager responds by saying "yes." The Japanese manager probably meant ________. Select one: a. yes, I agree b. no, that's wrong c. yes, I understand d. I will think about it

The correct answer is: yes, I understand

Which of the following is a true statement based on research of McClelland's learned needs framework?

The need for achievement can be taught to people in different cultures.

Why did Toyota initially struggle in the Chinese market?

Toyota assumed that the Chinese and Japanese markets were very similar. a. Toyota faced strict safety requirements in China. b. Toyota was unable to reach agreements with Chinese suppliers. c. Toyota failed to position its cars to compete with Chinese automakers. d. Toyota assumed that the Chinese and Japanese markets were very similar.

Executives at Korman Foods, a U.S. grocery store chain, are considering a partnership with Asahi Foods, a Japanese firm. Korman Foods has never been involved in an international strategic alliance, and the firm's executives are concerned about the safety of such an arrangement. Which of the following questions is LEAST relevant for Korman executives to consider?

What performance metric tools are utilized by Asahi? a. What does Asahi hope to gain from the arrangement? b. What is the success rate of Asahi's previous alliances? c. What performance metric tools are utilized by Asahi? d. What are Asahi's strengths and weaknesses?

Which of the following would most likely trigger a gray market?

a firm has large price differences among different markets

Maureen is manager of the export department at Claussen Cutlery. Which of the following is LEAST likely a responsibility of Maureen's department?

a. overseeing domestic operations <--answer b. working with foreign distributors c. processing orders d. marketing products

Which of the following best explains the success of the sogo shosha?

access to information about global economic conditions a. access to information about global economic conditions b. ability to generate e-commerce profits and sales c. support from local and foreign governments d. acquisition of intellectual property rights

Which element of performance is relatively difficult to measure?

advertising effectiveness

As a participant at the Doha Round, you would experience the most negotiation difficulties in the area of ________.

agricultural trade a. agricultural trade b. tariff reductions c. foreign exchange d. service trade

When British Petroleum ships crude oil from its storage facilities in Kuwait to its Australian subsidiary, ________ has occurred.

an intracorporate transfer a. indirect exporting b. direct exporting c. an intracorporate transfer d. an intercorporate transfer

What is the first step in selecting a foreign market?

assessing market potential a. assessing market potential b. monitoring major markets c. evaluating host country's trade policies d. assessing general legal and political environments

GM, with a 67 percent stake in a joint venture with Raba, has assumed management control over the venture's operations. What management form is this an example of?

assigned arrangement a. shared management agreement b. assigned arrangement c. delegated arrangement d. consensual arrangement

Carmichael Candies, a U.S. firm, is considering the idea of entering the EU market through an international franchising agreement. What is the main advantage to Carmichael if the firm chooses this entry method?

avoidance of tariffs a. avoidance of tariffs b. independence from franchisee c. potential public relations problems d. high managerial and financial risks

Elisa, a manager at Thornton Consulting, recently noticed that turnover is particularly high in one of the production units. Elisa assumes that the turnover is caused by low wages, so she immediately increases the salaries of all employees in the unit. Elisa's actions have most likely been affected by ________.

bounded rationality

Carver Foods is an MNE that sells baby food around the world. What product component will most likely be standardized by Carver in all foreign markets?

brand name

Juanita recently purchased a FDX Computer. She needs assistance setting it up and contacts the firm's customer service center, which is located in Bangalore, India. FDX Computer most likely engages in which of the following?

business process outsourcing a. business process outsourcing b. foreign direct investment c. brownfield strategies d. B-O-T projects

What organizational characteristic is suggested by the standardization approach to international marketing?

centralized

Which of the following is LEAST relevant to decisions about the international marketing mix?

collectivism

General Mills and Nestle created a joint venture which fully integrated all the efforts necessary to compete against Kellogg in the European cereal market. This is an example of a.n. ________ alliance.

comprehensive a. functional b. comprehensive c. production d. international

Rubbermaid ended a joint venture in Europe when the partner firm refused to reinvest its profits into the development of new products. What was the source of this problem?

conflicts over earnings distribution a. incompatibility among managers b. inadequate access to information c. conflicts over earnings distribution d. loss of autonomy within the organization

Sanjay, an HR manager, is organized, systematic, and responsible. Sanjay would most likely score high on which Big Five personality dimension?

conscientiousness

Advanced Audio and EQ Electronics recently established a joint venture for the purpose of cooperating in the design, production, and sale of a line of audio equipment. Executives at the two firms must now decide the best way to manage the joint venture. Which of the following is the LEAST likely option?

continuing completely separate management activities a. hiring an independent management team b. jointly sharing management responsibilities c. assigning one firm all management responsibilities d. continuing completely separate management activities

Kodak focuses on developing photo editing software, and the firm has agreements with a Chinese manufacturer to assemble most Kodak cameras. Which entry mode for international business is used by Kodak?

contract manufacturing a. management contracting b. international franchising c. contract manufacturing d. international licensing

What is the most critical aspect of strategic control?

control of firm's financial resources

Sarita, a manager at a large international firm, is primarily responsible for the financial resources of the entire organization. Sarita is most likely the firm's ________.

controller

Apex Enterprises has recently started to engage in a small amount of direct exporting. As a result, Apex managers have delegated responsibilities for processing international orders to individuals within the production department. Which of the following is most likely used by Apex?

corollary approach

Which of the following is a disadvantage of customized international marketing?

creates inefficiencies in R&D

Which of the following would most likely reduce resistance to control?

creating a system that creates reasonable accountability a. promoting strategic selection systems b. creating a system that has a flexible focus c. creating a system that creates reasonable accountability d. providing an appeals system overseen by central management

Which of the following factors is not used to assess the competitive environment in a foreign market?

current advertising strategies a. the number of existing firms b. the size of existing firms c. current advertising strategies d. relative market shares

Organix Foods, a U.S. firm, is expanding its operations overseas. Executives at the firm plan to take a polycentric approach to international marketing. Which of the following actions will Organix most likely take?

customizing the marketing mix for each foreign market

Which model of decision making recognizes that managers are influenced by bounded rationality?

descriptive

The first step in the strategic planning process is to ________.

develop a mission statement a. perform a SWOT analysis b. develop a mission statement c. establish strategic goals d. develop a control framework

What is the final step of formulating an international business strategy?

developing a control framework a. developing a control framework b. conducting an environmental scan c. specifying tactical goals and plans d. identifying relevant value chain activities

Promotion primarily involves ________.

devising ways to enhance the desirability of the product to potential buyers

Marketing managers at Unique Home Furnishings strive to develop products, pricing strategies, promotional strategies, and distribution tactics that set the firm's products apart from those of competitors in the eyes of customers. Unique Home Furnishings has cultivated an image of perceived quality and fashion that allows the firm to charge prices higher than most furniture businesses. What is the overall business strategy of Unique Home Furnishings?

differentiation

Which strategy attempts to establish and maintain the image that an SBU's product or services are fundamentally unique from other products or services in the same market segment?

differentiation strategy a. corporate strategy b. differentiation strategy c. related diversification strategy d. unrelated diversification strategy

A global firm's worldwide learning is most likely increased by ________.

diverse operating environments a. economies of scope and scale b. diverse operating environments c. similar domestic experiences d. stringent selection practices

Which theory listed below is useful in deciding which mode of entry to use when entering foreign markets?

eclectic theory a. ownership advantage theory b. internalization theory c. eclectic theory d. relative factor endowments

What advantage does a firm that standardizes its international marketing mix achieve?

economies of scale

Carvel Industries, an MNE, broadens its product line in each of the countries that it enters. Carvel most likely benefits from ________.

economies of scope a. multinational flexibility b. economies of scale c. location efficiencies d. economies of scope

Jackie is insecure, reactive, and subject to extreme mood swings. She is lacking in ________.

emotional stability

Which Big Five personality traits are good predictors of performance across a variety of job criteria and occupational groups in the U.S. and the European Union?

emotional stability and conscientiousness

Xuan-Li, a manager at a Japanese electronics firm, has initiated a ringisho, which is currently circulating through his work group. Xuan-Li most likely generated the ringisho for the purpose of ________.

encouraging creative solutions to a problem

Maddox Home Goods is based in Illinois but has plans to target the housewares market in Europe. Maddox executives believe that the firm's successful U.S. marketing strategy will work equally well in the European market. Maddox most likely has a(n. ________ approach to international marketing.

ethnocentric

John just found out that he did not get the promotion he wanted. He isn't upset because he believes fate just wasn't on his side. What personality trait best explains John's views in this situation?

external locus of control

Mike is talkative, sociable, and assertive. He could be described using the personality trait of ________.

extroversion

Which of the following is a characteristic of the global product design?

facilitates international marketing activities

Marketing managers at Hoffman Jewelry concentrate their efforts on high-end consumers with significant amounts of disposable income. What business strategy is Hoffman Jewelry pursuing?

focus

Which strategy calls for a firm to target specific types of products for certain customer groups or regions?

focus strategy a. focus strategy b. single-business strategy c. related diversification strategy d. unrelated diversification strategy

A firm would most likely establish an international division when ________.

foreign market familiarity becomes essential

Feldman Insurance wants to enter the Brazilian market but is concerned about hostile government regulations in Brazil. Which of the following would most likely help Feldman overcome this problem?

forming a joint venture with a local firm a. forming a joint venture with a local firm b. identifying the potential market share c. hiring only local employees d. appealing to the WTO

Simmons Semiconducter and Rapid Electronics have formed a strategic alliance to develop a tool that will facilitate computer chip manufacturing. The two firms will work together only to design the tool. Which term best describes this strategic alliance?

functional alliance a. financial alliance b. functional alliance c. manufacturing alliance d. comprehensive alliance

At Garmen Industries, each unit has the same control system and the locus of authority resides at the firm's headquarters. Which control system is most likely used at Garmen?

generic organizational control

Scale Systems, an MNE, analyzes the needs of its customers worldwide and then adopts standardized operations for all markets that the firm serves. Which of the following is most likely used by Scale Systems?

geocentric approach

Martha, a manager at a marketing firm, took a personality test which indicated that she has a high degree of authoritarianism. Which of the following would Martha most likely do?

give directives to subordinates

Adecco, a temporary employment agency with worldwide clients, has eight regional divisions. Managers in each division handle recruiting, distribution, promotion, and client services for that region. Adecco is a service firm that focuses on marketing. Which organizational design is most likely used by Adecco?

global area design

Vantage Computers, an MNE, has a multidomestic corporate philosophy. Which organizational design would be most useful for Vantage?

global area design

Kodak has three divisions. One division focuses on selling high-quality film to film studios. Another division sells to professional and amateur photographers. Finally, its new business division targets emerging markets. What organizational design does Kodak utilize?

global customer design

British Airways is a single-business firm with company-wide function operations dedicated to marketing and operations, public affairs, human resources, and other basic functions. How could the organizational design of British Airways best be described?

global functional design

According to the text, which form of international organizational design is used by most MNCs?

global hybrid

Which design assigns worldwide responsibility for specific products or product groups to separate operating divisions within a firm?

global product design

Comtex, a U.S. clock manufacturer, recently built a new production facility in Bangladesh. Which term best describes the activities of Comtex?

greenfield strategy a. joint venture strategy b. brownfield strategy c. acquisition strategy d. greenfield strategy

When an export management company (EMC. acts as a commission agent for exporters, the EMC most likely ________.

handles shipping responsibilities a. obtains long-term financing b. handles shipping responsibilities c. monitors currency exchange rates d. resells the goods to domestic distributors

Courtney seeks good jobs, is confident in her abilities, and gets a lot of intrinsic satisfaction from her accomplishments. She could be described as someone with ________.

high self-esteem

Which of the following is typically critical to a turnkey project?

home government financing a. business processes b. low-wage labor force c. environmental regulations d. home government financing

When using a(n. ________, a firm utilizes the core competency or firm-specific advantage it developed in the domestic market as its main competitive weapon in the foreign markets it enters.

home replication strategy a. multidomestic strategy b. home replication strategy c. transnational strategy d. international strategy

Executives at Dawson Manufacturing, an MNE, are considering the implementation of a market pricing policy. Which of the following is NOT a potential risk to Dawson of this type of policy?

inability to assess marginal costs

When Hewlett-Packard buys microchips from Intel to use in manufacturing computers and then exports the completed computers to Europe, ________ has occurred.

indirect exporting of Intel's chips a. indirect exporting of Intel's chips b. direct exporting of Intel's chips c. an intercorporate transfer of Intel's chips d. an intracorporate transfer of Intel's chips

Product ________.

involves the development of tangible and intangible features that meet customer needs in diverse markets

Nestle and General Mills created Cereal Partners Worldwide to compete effectively in the European market. Cereal Partners Worldwide is owned equally by the two firms, so CPW is an example of a.n. ________.

joint venture a. franchising arrangement b. acquisition strategy c. joint venture d. FDI

Which of the following is responsible for making day-to-day decisions and strategy implementation in a delegated arrangement?

joint venture executives a. both alliance partners b. joint venture executives c. one of the alliance partners d. shareholders and stockholders

The Nintendo Company manufactures electronic video consoles and game cartridges. Nintendo provides game design firms with technical specifications for how Nintendo consoles function. The game design firms create the games and then pay Nintendo a fee to manufacture those games. What mode of entry is described in this example?

licensing a. exporting b. franchising c. licensing d. joint venture

Which mode of entry has the most potential to create a future competitor?

licensing a. licensing b. exporting c. turnkey project d. contract manufacturing

A strategic alliance between Ford and Mazda experienced problems when Mazda refused to allow Ford officials to visit the Mazda research laboratory. What was the source of this problem?

limited information access a. incompatible cultures b. limited information access c. unfair distribution of earnings d. loss of autonomy for both partners

Garmin Footwear, an MNE, establishes facilities anywhere in the world that yields the lowest production or distribution costs. Garmin most likely benefits from ________.

location efficiencies a. multinational flexibility b. economies of scale c. location efficiencies d. economies of scope

According to research, high levels of job satisfaction are typically linked to ________.

low absenteeism

Garvey Enterprises, an MNC, uses a global product organizational design. Garvey manufactures and sells boating accessories to customers around the world. Which form does Garvey most likely use?

m-form ---> multidivisional; related

A direct channel includes what channel member

manufacturer, import agent, customer

Digitex, an MNE, customizes its marketing mix in each market that the firm enters to meet the idiosyncratic needs of customers in different foreign markets. What pricing policy does Digitex most likely use?

market

Which of the following factors is LEAST affected by the transportation mode selected for a product's distribution?

market share data

A(n) ________ alliance occurs when partners share expertise or services related to distribution, pricing, and communications.

marketing a. production b. marketing c. financial d. R & D

The Japanese company Bandai and the U.S. toymaker Mattel entered into a strategic alliance. Bandai agreed to distribute Mattel products like Barbie dolls in Japan while Mattel agreed to distribute Power Rangers in Latin America. What type of alliance is this an example of?

marketing a. production b. marketing c. financial d. research and development

Honda's advertising stresses its reliability and functionality. Reliability is the ________.

message

Parker Sportswear is an MNE with retail stores around the world. Parker views itself as a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market. Parker most likely uses a ________ strategy.

multidomestic a. multidomestic b. home replication c. transnational d. global

Kraft Foods is more concerned with meeting the specific needs of local customers than with reducing manufacturing costs. Which strategy is most likely used by Kraft Foods?

multidomestic strategy a. home replication strategy b. transnational strategy c. global strategy d. multidomestic strategy

Discussion concerning the extent to which personality attributes are shaped by the social and cultural environment in which people are raised is commonly called the ________.

nurture argument

People who are high in ________ are willing to listen to new ideas and to change their own beliefs as a result of new information.

openness

The ethnocentric approach to management is most likely used by firms that ________.

operate internationally the same way they do domestically

Gameware recently entered the German market. Gameware executives also wanted to enter the Canadian market but had to delay the entry because of limited resources. What type of costs will Gameware incur as a result of being unable to enter the Canadian market?

opportunity costs a. indirect costs b. direct costs c. opportunity costs d. variable costs

Toyota's efficient manufacturing techniques and reputation for producing high-quality automobiles are examples of ________.

ownership advantages a. location advantages b. ownership advantages c. internalization advantages d. internationalization advantages

Of the potential pitfalls of strategic alliances, which one is the primary cause of failure?

partner incompatibility a. partner incompatibility b. loss of autonomy c. access to information d. conflicts over distributing earnings

Which of the following factors is LEAST relevant to a firm in the process of selecting a partner for a strategic alliance?

partner's use of e-commerce a. partner compatibility b. partner's use of e-commerce c. nature of potential partner's products d. learning potential of the alliance

Management at Isis International, an MNE, is attempting to integrate the functions and activities of the firm's different units and divisions. Which of the following would LEAST likely help Isis to accomplish coordination?

performance metrics

Chrysler and BMW formed a joint venture to build engines in South America. Which term best describes this type of alliance?

production alliance a. franchise agreement b. financial alliance c. licensing agreement d. production alliance

Toyota operates a manufacturing facility in Georgetown, Kentucky. To build goodwill, Toyota provides grants to local charities, funds college scholarships to graduating high school students, and sponsors local youth sports teams. This is an example of ________.

public relations

The government of Abu Dhabi formed a joint venture with Exxon Mobil in 2006. What type of joint venture is this an example of?

public-private venture a. limited partnership b. partnership c. corporation d. public-private venture

A(n) ________ calls for the firm to operate in several different but fundamentally related businesses, industries, or markets at the same time.

related diversification strategy a. corporate strategy b. single-business strategy c. related diversification strategy d. unrelated diversification strategy

An economic union ________.

requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, eliminate barriers to the movement of the factors of production, and coordinate a. requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, eliminate barriers to the movement of the factors of production, and coordinate economic policies b. eliminates trade barriers among member countries c. requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production d. involves the elimination of internal trade barriers among member countries and the adoption of common external trade policies toward nonmembers

Micron Technology, Intel, Samsung, Hyundai, and Siemens have formed an alliance to develop the next generation of DRAM chips. What type of alliance is this an example of?

research and development a. production b. marketing c. financial d. research and development

When Disney decides to make a low investment in its Tokyo park, a higher investment in Disneyland Paris, and a similar investment in Hong Kong's theme park, Disney is modifying which component of international strategy?

resource deployment a. distinctive competence b. scope of operations c. resource deployment d. synergy

Which of the following is not a disadvantage of exporting?

restrictions on foreign investment a. vulnerability to tariffs b. logistical complexities c. potential conflicts with distributors d. restrictions on foreign investment

Pizza Hut is offering free pizza slices in Beijing. This is an example of ________.

sales promotion

What behavioral process suggests that managers sometimes adopt the first minimally acceptable alternative they identify, when a further search might suggest an even better alternative?

satisficing

A ________ is a factory in which very little transformation of a product is undertaken.

screwdriver plant a. maquiladora b. screwdriver plant c. greenfield operation d. global shipping platform

Lisa is busy studying for the GMAT. She realizes how important a good GMAT score is in her graduate school applications, and she is confident she will perform well. What personality trait best describes Lisa's confidence?

self-efficacy

Toyota and GM created a joint venture called NUMMI because Toyota wanted to learn about how to deal with labor and parts suppliers in the U.S. market while GM wanted to observe Japanese management practices. What benefit of strategic alliances were Toyota and GM primarily seeking?

shared knowledge a. ease of market entry b. shared risk c. shared knowledge d. synergy

Which type of venture is the most difficult to maintain?

shared management agreement

Under the agreement between Coca-Cola and Danone each company supplies three members of the joint venture's board of directors. What management form is this an example of?

shared management agreement a. shared management agreement b. assigned arrangement c. delegated arrangement d. consensual arrangement

Origin Outfitters uses a geocentric approach to international marketing. Which pricing policy does Origin Outfitters most likely use?

standard

Both the ethnocentric and geocentric approaches to international marketing advocate the concept of ________.

standardization

Jason states at a meeting that Japanese managers work all the time and Swiss managers are well organized. Which term best describes Jason's comments?

stereotyping

Company X and Company Z have established a business arrangement whereby the two firms will cooperate for their mutual benefit. Which of the following has most likely been established?

strategic alliance a. competitive advantage b. licensing agreement c. franchising arrangement d. strategic alliance

Which of the following most likely explains why some firms form limited partnership arrangements instead of joint ventures?

stringent local restrictions a. stringent local restrictions b. equal division of financial resources c. government control of natural resources d. decreased risk for the managing partner

Disney's ________ is evident in the fact that people recognize its characters from television and movies, visit Disney theme parks, and buy merchandise featuring the Disney characters.

synergy a. distinctive competence b. scope of operations c. resource deployment d. synergy

PepsiCo and Thomas J. Lipton Co. established a joint venture. PepsiCo supplied an extensive distribution network, and Lipton provided manufacturing expertise and brand recognition in teas. What benefit of strategic alliances were they most likely seeking?

synergy a. ease of market entry b. shared risk c. shared knowledge d. synergy

Which of the following would most likely discourage an international firm from relying on exports as an entry mode?

tariffs a. tariffs b. export promotion policies c. export financing programs d. home country subsidization

With the global strategy ________.

the firm views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide a. the firm utilizes the core competency of the firm or firm-specific advantage it developed at home as its main competitive weapon in the foreign market it enters b. the firm views itself as a collection of relatively independent operating subsidiaries c. the firm views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide d. the firm assigns responsibility for various organizational tasks to the unit of the organization best able to achieve the dual goals of efficiency and flexibility

IKEA attempts to capture global efficiencies while remaining responsive to local conditions. IKEA follows a(n. ________.

transnational strategy a. multidomestic strategy b. home replication strategy c. transnational strategy d. global strategy

Mazda was charged with dumping minivans in the U.S. market. What pricing policy was Mazda most likely using?

two-tiered

When a task is vague, ambiguous, or unstructured a(n) ________ team is more likely to thrive.

uncertainty accepting

Area knowledge refers to the idea that managers must ________.

understand the cultural, commercial, social, and economic conditions in each host country in which the firm does business