CBA Final II

In an attempt to manage (mitigate) political risks, which, if any, of the following may serve the international manager well?

A proactive approach based on structural design implementation. A reactive approach where redundancy of operations are considered. -> B and C only

In "Objective Uncertainty":

All feasible outcomes are known. There is infromation available No one outcome or scenario dominates —> All of the above

The following represent the various national legal systems prevalent in international business except:

Canonic law

Which (if any) of the following is,an example of intellectual property?

Country music Mickey Mouse A best-selling novel All of the above

In general terms, for an overseas location, the assessment of legal risk may include which of the following?

Degree of respect for the rule of law Fair and impartial criminal justice system Degree of corruption tolerated as normal —> All of the above

An examination of the world's population and predictions for future populations suggests the following:

Developed nations will have an increased demand for financial services.

"Intangibility" refers to which of the following concepts?

Distribution Services Intellectual property All of the above

As presented in class, which, if any, of the following types of political risks?

Expropriation Kidnapping Exchange controls Intellectual property risk All of the above

A business is practicing vertical integration when it receives inputs for its production processes from outside sources.

False

A government nationalizes a firm when it shifts the ownership from public to private.

False

Arbitration tends to be less private than litigation.

False

Of all the promotional mix elements, personal selling has the greatest similarities worldwide.

False

Organizational design is another term for a company's mission statement.

False

Sanctions are a trade restriction that is effective in forcing change.

False

The following represents a faithful position as to whether organizations are becoming more familiar. Arguably the conclusions can and be summarized as "convergence occurs on a micro-level and divergence at a macro-level".

False

The marketing mix is the name given to the advertising schedule used to promote a product.

False

The national defense argument for trade restrictions is based on the development level of the country.

False The level of development is not important with regard to trade restrictions. A nation would protect its own industry, even though foreign nations could be more advanced in the sector

Which of the following does NOT include Internal Political Risk?

Fragile coalition governments

A market analyst may determine a country is not a good market by making a simple calculation based on

GNI, total population, and income distribution.

The role of generic medicine is tantamount to the concept of "licenses". Which of the following is NOT correct?

Generic drug companies benefit the original brand-name drug company.

Firms maintain control of their organizational culture through:

Hiring and Promotional Practices Socialization Process Communication strategies —> All of the above

When comparing controls in international companies to those in domestic operations, it is correct to say that

ICs need more controls than domestic operations.

Modularization (as a non-legal means) may be used for

IP Protection Corporate Design —> A & B

Common legal dimensions include which of the following?

Intellectual property and consumer protections Competition and trading practices Environmental Protection and Human Rights —> All of the above

How does a variable levy affect domestic producers?

It prevents an imported good from being priced lower than the domestic good. A variable levy guarantees that the market price of the import will be the same as that of domestically produced goods; the European Union has used this levy for imported grains.

Developing nations believe that

Knowledge is a public good to be freely shared

What typically occurs as the level of a government's debt increases?

More resources are redirected toward payment of interest.

Gray Markets concerns genuine goods. It may best be defined as

Parallel distribution Gray trade Potentially violating trademark laws —> All of the above

The following are reasons for restricting the transference of technology except:

Paying for obsolete technology "The health of the people should not be held hostage to patent rights". Price fixing, tying and exclusive dealing arrangements Paying too much for technology —> Export restraints and exclusive sales agreements

What is predicted to happen with the population of many developed countries?

Population levels will fall by mid-century due to low birthrates.

International law deals with unique concepts. Which of the following are related to International Law?

Principles of Sovereignty and the Act of State Doctrine Doctrine of Comity Territoriality Principle —> All of the above

Intellectual Property may be defined as the legal entitlement of exclusve rights to use an idea, piece of knowledge, or invention.

True

One way a company uses sales,promotion is by providing point-of-purchase displays to retail stores.

True

Perception is culturally determined.

True

Purchasing power parity is a means of adjusting the exchange rates for two currencies so the currencies have equivalent purchasing power.

True

The U.S. enforcement of Equal Employment Opportunity Commission (EEOC) law in U.S. companies operating abroad is an example of extraterritoriality.

True

To compare the purchasing power of nations, managers need to know among how many people the gross national income (GNI) is divided.

True

When the U.S. military contracts out security details in war zones, it is engaged in privatization.

True

"Caretaker's Speech" may best be characterized by which (if any) of the following?

Verbal behavior consisting of clear, slow speech, repetition, simple sentences and active verbs. Nonverbal behavior consisting of visual restatements, gestures, demonstations, pauses and summaries. Accurate interpretation Comprehension, including understanding and checking comprehension All of the above

Shayna and her husband have developed a pizza pan that is guaranteed to keep the crust from sticking to the pan and washes clean with just water. They have applied to have exclusive rights to this product. What did they apply for?

a patent

All of the following are examples of non-tariff barriers except:

arbitrary monetary policies

During the trial, the judge openly questioned the defendant and her lawyers and often challenged the presented evidence. There wasn't a jury and the judge made the final decision. Which type of legal system would include this scenario?

civil

At the end of the trial, the judge stated that his decision for the case was based on a decision made in a similar case twenty years ago. Which form of law is indicated by the use of previous cases?

common

Primary reasons for relative changes in labor costs include increases or decreases in

compensation.

Trade barriers create costs that are paid ultimately by the

consumer.

The evolution of the combination supermarket-discount store in Europe suggests that

consumers are demanding more variety in products.

The two main issues for management to consider in designing an international company's structure include:

coordinating departments' activities to meet the firm's overall objectives.

When governments nationalize a firm, they don't seek to

extract more money from the firm.

One expectation by companies that adopt the global organizational form is that this change may

help the company be more capable of developing strategies to confront global competition.

The use of an international product structure typically

helps to avoid duplication of product experts.

Quick Stop Fashion House produces "fast fashion" clothes that represent the current fad. In the foreign environment, this type of product is considered

highly sensitive.

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

holds corporate officers personally responsible for their corporate filings.

The per se concept of U.S. law means that a situation is

illegal in and of itself.

One characteristic of the United States Foreign Corrupt Practices Act is that it

includes uncertainties such as terminology, definitions, accounting standards, and behavior standards.

GNI/capita, a crude estimate of purchasing power, must be further refined by

incorporating data on how the national income is actually distributed.

Computer memory chips are the same everywhere in the world. This means they are ______ to the foreign environment.

insensitive

Generally, management prefers global product standardization because

it creates lower costs.

One characteristic of the geographic regionalized organization is

it seems to be popular with companies that have diverse products, each with different product requirements, competitive environments, and political risks.

The geographic region structure seems to be popular with companies that

manufacture products with a low technological content.

Generally, because of higher birthrates, developing countries often have

more youthful populations than do developed nations.

Reengineering of organization forms exemplifies

movement toward lean, fast, and innovative structures and processes.

Strict liability requires

no need for a plaintiff to prove manufacturer negligence.

Which products are especially influenced by laws that regulate product ingredients and labeling?

pharmaceuticals

Jeremiah works for an all-natural breakfast cereal company. He has recommended that the company market their high-cost Oats 'n More Cereal to parts of South America because there are millions of people there that have never heard of their products. Which socioeconomic factor is Jeremiah basing his recommendation on?

population size

Henson Electronics Corp. decided to lower its export price in order to force the domestic producers in the importing nations out of business. Once these competitors are gone, Henson Electronics plans to raise its prices. What is this an example of?

predatory dumping

Following the oil tanker spill, E-Source Energy Company needed to foster campaign that showed the cleanup efforts and new technologies that would prevent future disasters. The company launched a goodwill with its foreign consumers. What type of global advertising strategy was the company using?

public relations

U.S. responses to foreign tariffs are likely to

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

Kenneth thought the company should promote the new product in foreign markets by having a contest in which the winner would receive a one-year supply of the product. Which type of advertising strategy is Kenneth suggesting?

sales promotion

Bacia Pizza Products Corp. markets into many different areas of the world and in order to do well in local markets it has to print instructions on its products in the native language of each market. Which environmental force is the company responding to?

sociocultural

The national defense argument for trade restrictions suggests that

some industries, even if they are not competitive, may need protection from imports.

Peterson Soft Drink Corp. imports fruit flavors for use in its products. The company pays $0.86 per pound on every shipment. Which type of tariff does the company pay?

specific

Companies controlled by other companies (known as parent companies) through ownership of enough voting stock to elect a majority of the voting members on the company's board of directors are known as

subsidiaries.

Greenway Farm Equipment Co. is a subsidiary of Tuppin Manufacturing Group. Recently, the production team at Greenway learned that a developer had automated a faster process for attaching component parts and advised Tuppin about the innovation. What type of reporting does this reflect?

technological

Unlike quotas, voluntary export restraints (VERS) are imposed by

the exporting country's government. Although quotas are applied by the Importing country, VERS are applied by the exporting country.

The extent to which an IC relies,on subsidiary management to make decisions would most likely depend on

the size of the IC.

Michelle has been tasked with the job of analyzing the economy of three South American countries to determine if they have business potential. In her final report, she makes note of national income that may not be reported because it involves illegal activity. This indicates that Michelle is accounting for what?

the underground economy

"Counterfeit" refers to

the"antithesis" of Intellectual property fakes, knock-offs not genuine All of the above

If two English multinational companies had a dispute arising in New York City, and there were no choice of law or choice of forum clauses in their contract, it is likely that

they would bring their dispute to an English court.

The text predicts that in the future, managers in many ICs can expect

to make greater use of the dynamic network structure.

Madison Foods Corp, is frustrated in its efforts to sell products in Europe because several countries are demanding that the company label products in the specific language associated with the country. These demands are examples of a

trade obstacle.

Nora knew her package had arrived because she saw the truck with the Amazon logo pull into her driveway. The logo she recognized is an example of a

trademark.

One of the problems associated with the "cheap foreign labor" argument for restricting trade is that

wages don't account for all production costs.

In Sharia law, interest is forbidden, which results in

equity partnerships, where business risk is shared.

"Uncertainty" may include which of the following?

Regular Uncertainty Objective Uncertainty Bounded Subjective Uncertainty Random Events —> All of the above

Which of the following represent risk(s) within international business?

Security Economics Financial Political All of the above

The Food and Drug Administration in the United States works to protect citizens from harmful products and companies must meet the regulations it sets. Which classification of nonquantitative nontariff barrier does this represent?

Standards

If a company is able to standardize the marketing mix globally, how does it affect economies of scale?

The company can take advantage of economies of scale based on longer production runs and lower manufacturing costs.

Why does McDonald's use the color hunter green as the background for its golden arches logo in Europe when it uses red in the United States?

The green is viewed as eco-friendly.

Somewhat tangential to class, but as a result of COVID, the term "locational neutrality" as raised in one of the lectures. It referred to:

The phenomena associate with the geographic dispersal of a workforce by use of technology and communicational platforms.

In class, the argument was made that there are basically two types of government: "authoritarian and democratic".

True

What occurs when GNI increases faster than the population?

There probably is an expanding market.

What is an accurate description of an IC's structures and systems?

They need to be able to evolve over time.

An evolving structure for an international organization over time is normal, as the company's involvement in foreign markets increases over time.

True

As mentioned in the Geringer textbook, and highlighted in class, the issue of "extraterriality" as applied in international law consists of a country's attempt to apply its laws to nonresidents and foreigners, and to activities that take place beyond its borders.

True

As presented in class there are two basic types of risks. Internal, which includes Micro and Macro risks and External, which includes International Risks

True

Counterfeit Legal Remedies usually entail a wide variety of procedures, such as the seizure of goods by Customs, a requirement for the recordation of trademarks and copyrights. However, relief is usually inadequate.

True

In class, the Professor highlighted the concept of KR Insurance by alluding to the Camisea project in Peru and the Alberto Fujimori government. KR stands for kidnap and ransom insurance.

True

Fairway Golf Inc. traditionally received a telephone order for its products and shipped them out. Since the packaging was bulk, customers would receive their order in about three weeks. The company has recently promoted overnight delivery service and find that most customers are willing to pay the price for this faster shipping method. What trend does this represent?

disintermediation

After the taxes are taken out of her pay, Sharon takes home $1,254 in her paycheck. This dollar amount represents her

disposable income.

Keenan worked in his company's international office in Indonesia for many years. During his time there, political unrest caused many U.S. citizens, like Keenan, to have questions. What do governments put in place to represent their citizens in situations like this?

embassies