Chapter 5 Practice Quiz- Part three (Principles of Management)

Which of the following characteristics relates to the World Bank?

Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries

What term describes restrictions on the amount of a particular currency that may be bought or sold?

Exchange controls

The ration at which one nation's currency can be exchanged for another nation's currency or gold is the

Exchange rate

What is a multinational corporation (MNC)?

A corporation, such as IBM, ExxonMobil, and Nestle, that operates on a worldwide scale, without significant ties to any one nation or region

You are the president of Henry Motor Corp., and see the great potential markets in Eastern Europe for personal transportation. Your plan is to purchase an old Soviet tank plant and convert it into an auto factory. The Russian government welcomes your plan, which is an example or

A direct investment

You are the marketing manager for American Cycle Corporation, which is trying to improve its global position. Your major domestic competitor is Puffy Bike Co. Each firm lacks the resources to compete globally, but together they could become competitive. Knowing that this advantage exists, you are proposing

A strategic alliance

Which of the following characteristics relates to the U.K. Bribery Act?

All organizations with business operations in the United Kingdom can be held liable for bribery, even if the bribery did not occur within the United Kingdom

The United States' prohibition of the importing of Cuban cigars is an example of

An embargo

A middleperson who markets your goods in another country is acting as

An export manufacturer

What term describes the agreement between ten Southeast Asian countries with the goal to promote economic growth and overall progress in the area via trade and security?

Association of Southeast Asian Nations

You are the international marketing manager for Checker Burger, Inc., producer of a popular soy burger. There is an excellent market for your burgers in the republic of East Slaboviar, a producer of high-quality brandy. The only problem is that East Slaboviar currency is not accepted on the international currency exchange. What can you do to help your trade?

Barter burgers for brandy

What term describes a group of firms or nations that agree to act as a monopoly and not compete with each other?

Cartel

What term describes the purchase of overseas production and marketing facilities, in which a company may control the facilities outright, or it may be the majority stockholder in the company that controls the facilitates?

Direct investment

You are working for a U.S. oil producer in the tiny oil-rich kingdom of Freedonia. It is the local business practice to provide payoffs in cash and expensive gifts to government officials for the right to extract crude oil for export. To engage in this practice would be a violation of the

Foreign Corrupt practices Act

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as

Licensing

The functions of a trading company include all of the following EXCEPT

Licensing company names, products, and patents

According to Hofstede's cultural dimensions theory, some national cultures like Japan have a very _____ time horizon, while other countries, such as the United States, want things to happen ____.

Long; very quickly

Trading companies offer all of the following EXCEPT

Manufacturing

If companies do research to learn about cultural differences before engaging in trade in a particular country, then problems arising from these cultural differences can be

Minimized

Which of the following is not a member of the European Union?

Russia

The translation of product names can be a crucial factor in the success or failure of a foreign marketing effort because of

Sociocultural differences

The supporters of protective tariffs cite all of the following as advantages EXCEPT

Tariffs inhibit free trade and competition

What is an embargo?

The suspension of trade in a particular product by the government

You are the vice president of sales Walker Shoe Corp., manufacturer and marketer of high-quality durable shoes. You would like to gain a foothold in the developing market in the country of Bengala, but lack the resources and expertise. The Bengalese government has made an offer to share the cost and operation of the project. This is an example of

a joint venture

By requiring products to be sold for not less than what it costs to produce them, the United States is attempting to prohibit

dumping