International Management Chapter 2
A small to medium, family-owned enterprise, often located in a small German town is city is known as ________. A) keiretsu B) perestroika C) glasnost D) mittelstand
D
Because of its excellent port facilities, Singapore thrives on ________. A) shipping B) oil refining C) franchising D) reexporting
D
Because of its past colonial relationship, the United Kingdom has a competitive advantage in which of the countries listed below? A) Somalia B) Gabon C) Senegal D) the Republic of South Africa
D
Thailand, Malaysia, and Indonesia were all recipients of significant FDI during the 1980s and 1990s because they offer ________. A) strong domestic currencies B) large domestic markets C) few trade barriers D) low labor costs
D
The European Union is comprised of ________ countries. A) 12 B) 15 C) 22 D) 28
D
The World Bank classifies the Four Tigers as ________. A) developing B) middle-income C) newly developed D) high-income
D
Who was responsible for introducing glasnost and perestroika to the Soviet Union? A) Czar Nicholas II B) Boris Yeltsin C) Vladimir Putin D) Mikhail Gorbachev
D
Which country is an undeveloped nation? A) Cambodia B) Costa Rica C) India D) Somalia
A
Which of the following has achieved high-income status according to the World Bank? A) the Czech Republic B) Mexico C) Chile D) Turkey
A
The Korean term, chaebol, refers to ________. A) a family-based conglomerate B) workplace harmony C) economic restructuring D) cooperative banks
A
What is the most likely reason that Germany is considered the most important member of the EU? 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.
A
Which country has the highest per capita income in North America? A) the United States B) Central America C) Canada D) Mexico
A
Which of the following is not a similarity between India and Great Britain? A) parliamentary system B) dependent judiciary C) an amateur bureaucracy D) state-owned industry
A
The world's most populous Spanish-speaking nation is ________. A) Spain B) Brazil C) Mexico D) China
C
Which of the countries listed below is considered one of the Four Tigers? A) North Korea B) Indonesia C) Taiwan D) China
C
Which of the following African countries is not a major oil exporter? A) Algeria B) Gabon C) Zambia D) Libya
C
T/F: By evaluating the income level of a nation, a firm can assess the purchasing power of citizens and the status of the public infrastructure.
TRUE
Companies doing international business are more likely to be successful when they ________. A) conduct frequent performance appraisals B) understand local market characteristics C) employ primarily local managers D) rely on experienced expatriates
B
Executives at Oswego Enterprises, a U.S. textile company, are discussing the idea of expanding into the Asian market by opening a facility in Hong Kong. Which of the following is a characteristic of Hong Kong? A) complete autonomy from China B) entry point to mainland China C) location of few major banks D) low labor rates for a poorly educated workforce
B
Russia's major natural resources include which of the following? A) aluminum B) natural gas C) vermiculite D) grain
B
) 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? A) influence of British government B) insufficient natural resources C) dominance of French firms D) risk of civil unrest
C
A policy that encourages economic growth through export expansion is called ________. A) export expansion B) export substitution C) export promotion D) development stimulation
C
T/F: Asia is a source of both skilled and unskilled labor.
TRUE
T/F: Japan has been criticized for unfairly promoting its exports and at the same time protecting its markets from imports.
TRUE
All of the following except ________ are typical exports from New Zealand. A) dairy products B) computer technology C) kitchen appliances D) petroleum
A
Brampton Industries has a facility in a country that has been designated by the World Bank as middle-income. Which of the following is the most likely location of Brampton's plant? A) Costa Rica B) Turkey C) Latvia D) Rwanda
A
Export promotion has been successfully applied by which of the countries listed below? A) Taiwan B) Cuba C) Argentina D) Brazil
A
Immediately following World War II, Japan's Ministry for International Trade and Investment encouraged firms to concentrate on ________.
A
Samsung, Hyundai, Daewoo Group, and LG are all examples of ________. A) chaebol B) keiretsu C) glasnost D) sogo shosha
A
The Four Tigers are also called ________. A) newly industrialized countries B) newly independent states C) commonwealth of independent states D) commonwealth of industrialized countries
A
The Republic of China is most commonly known as ________. A) Taiwan B) Vietnam C) Hong Kong D) Singapore
A
The prime market for lower-income countries that are trying to raise their living standards through exports is ________. A) the United States B) Japan C) Germany D) China
A
U.S. exports of goods and services in 2012 accounted for about ________ percent of U.S. GDP. A) 14 B) 23 C) 30 D) 45
A
What is London's origin as a world financial center? A) military power of the 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
A
Which of the following markets has the GREATEST impact on the world's current economic activity? A) United States B) European Union C) China D) Japan
A
Which of the following religions was not born in the Middle East? A) Buddhism B) Christianity C) Judaism D) Islam
A
A policy that attempts to stimulate development of local industry by discouraging imports through tariffs and nontariff barriers is called ________. A) export substitution B) import substitution C) development stimulation D) protectionism
B
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? A) weak judiciary system B) rampant corruption C) state capitalism D) religious strife
B
As of 2013, how many countries participate in the European Union's common currency, the euro? A) 12 B) 17 C) 22 D) 27
B
Because of its past colonial relationship, France has a competitive advantage in which of the countries listed below? A) Botswana B) Chad C) Kenya D) the Republic of South Africa
B
Countries designated "middle income" have per capita incomes of ________. A) less than $995 B) between $1,025 and $12,476 C) between $12,477 and $23,221 D) between $23,222 and $34,021
B
Hawthorne Enterprises, an Australian firm, has plans to open a manufacturing facility in France next year. Some executives at the firm are unhappy with this decision, most likely because France ________. A) opposes human rights legislation B) promotes economic nationalism C) refuses to switch to the euro D) advocates free trade
B
Parker Manufacturing is considering relocating its headquarters from its current location in Vancouver, British Columbia. Executives at Parker want the firm to be located with the majority of other MNCs in the world. Which location would be most appropriate? A) Zurich B) Boston C) Tokyo D) London
B
The European Union accounted for about ________ in GDP in 2011. A) 6 trillion dollars B) 17 trillion dollars C) 35 trillion dollars D) 79 trillion
B
The Japanese term, keiretsu, refers to a(n) ________. A) major Japanese bank B) family of interrelated companies C) export trading company D) supplier
B
The Newly Independent States refers to the ________. A) Central European countries B) former Soviet republics C) largest African nations D) Four Tigers
B
The countries of North America produce approximately ________ percent of the world's output. A) 18 B) 26 C) 45 D) 52
B
What country holds the world's largest land mass? A) the United States B) Russia C) China D) Canada
B
What is the most likely reason that Taiwanese businesses are increasingly investing in Chinese factories? A) demand for automated manufacturing B) need for low-wage workers C) government requirements D) need for additional land
B
What region is sometimes called the cradle of civilization? A) the European Union B) the Middle East C) the Far East D) Africa
B
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? A) Germany B) France C) Italy D) Spain
B
Which of the following aspects about Canada is a concern to many international investors? A) legal system instability B) separatist movement C) weak infrastructure D) education system
B
Which of the following best explains why Japan's economic growth has slowed? A) state industries B) import restrictions C) poor quality control D) fast-growing population
B
Which two countries make up the Indian subcontinent? A) India and Egypt B) India and Pakistan C) Afghanistan and India D) India and Iran
B
________ is the dominant market for Canadian goods. A) The European Union B) The United States C) China D) Mexico
B
________ is the money sent out of a politically or economically unstable country to one perceived as a safe haven. A) Invoicing currency B) Flight capital C) Capital substitution D) Foreign currency
B
________ is the world's most populous country. A) India B) China C) Indonesia D) The United States
B
Approximately ________ of the world's current economic activity is concentrated in North America, the EU, and Japan. A) 24% B) 46% C) 57% D) 72%
C
ITX Enterprises, an electronics firm, plans to open a new manufacturing facility. Managers are considering building the new plant in Canada. Which of the following is a risk associated with a Canadian expansion? A) unstable federal and state governments B) inadequate secondary education systems C) political instability related to language conflicts D) shrinking supply of natural resources for exporting
C
The Japanese term sogo shosha refers to a(n) ________. A) major Japanese bank B) family of interrelated companies C) export trading company D) supplier
C
Under the United Nations Convention on the Laws of the Sea, countries are given control over navigation within ________ of the coastline. A) one mile B) five miles C) twelve miles D) twenty miles
C
What caused South Korea's economic growth to suddenly slow in 1997-1998? A) collapse of the chaebol B) return to Communist rule C) Asian currency crisis D) import substitution policies
C
What is the most significant problem for Singapore today? A) Chinese control B) shipping costs C) labor shortages D) low technological expertise
C
When a firm makes a sale of goods denominated in Japanese yen, the yen is referred to as ________. A) flight capital B) export capital C) the invoicing currency D) the transaction currency
C
Which country listed below commonly attracts flight capital? A) Germany B) Canada C) the United States D) Singapore
C
Which of the following is a member of the Arctic Council? A) France B) Singapore C) Finland D) Mexico
C
Which of the following is true of Mexico? A) It is the world's third-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 refused to sign free trade pacts with El Salvador, Guatemala, and Honduras.
C
Which of these countries is not a member of the EU? A) Austria B) Monaco C) Norway D) Portugal
C
Who was Russia's first democratically elected president? A) Mikhail Baryshnikov B) Mikhail Gorbachev C) Boris Yeltsin D) Vladimir Putin
C
________ is the currency in which the sale of goods and services is denominated. A) Flight capital B) Euro currency C) Invoicing currency D) Capital substitution
C
In the twenty-first century, growth rates in ________ have outpaced those in ________. A) the United States and China; India and Japan B) Canada and Japan; Germany and the U.S. C) Japan and India; China and Canada D) China and India; Germany and Japan
D
India was a colony of which country? A) China B) France C) Pakistan D) the United Kingdom
D
One likely consequence of the diminishing Arctic ice cap is ________. A) less war B) more affordable utility rates for lesser-developed nations C) an increase in regional tourism D) the creation of the Northwest Passage
D
Which of the following is most likely a true statement about New Zealand? A) The country prohibits privatization in most industries. B) Most of the country's population lives on the South Island. C) The country primarily relies on its gold and coal resources. D) Merchandise trade is extremely important to the country's GDP.
D
T/F South American producers rely on mass production and economies of scale for their success in international markets.
FALSE
T/F: All European Union member countries share a common currency-the euro.
FALSE
T/F: All four countries that are part of the Four Tigers have a Chinese heritage.
FALSE
T/F: All of the countries that were aligned with the former Soviet Union are classified as lower-income countries.
FALSE
T/F: Coca-Cola turned over its secret soft drink formula to the Indian government in order to remain in the country.
FALSE
T/F: International trade accounts for a major part of the U.S. economy.
FALSE
T/F: Japan's remarkable growth rate has continued into the twenty-first century.
FALSE
T/F: Like France, the United Kingdom is a strong supporter of protectionist policies.
FALSE
T/F: Money sent out of a politically or economically unstable country to one perceived as a safe haven is known as protected capital.
FALSE
T/F: Over the last two decades, Mexico has been relatively closed to foreign goods and investors
FALSE
T/F: Switzerland is a long-standing member of the European Union.
FALSE
T/F: Japan's economic success has been facilitated by its keiretsu.
TRUE
T/F: Over 30 OECD's members are all classified as high-income countries
TRUE
T/F: Singapore's economy relies on reexporting.
TRUE
T/F: The Czech Republic, Hungary, and Poland are classified as high-income countries by the World Bank.
TRUE
T/F: The currency in which the sale of goods and services is denominated is the invoicing currency.
TRUE
T/F: The single largest bilateral trading relationship in the world is between the United States and Canada.
TRUE
T/F: Twelve of the 15 Newly Independent States established a forum called the Commonwealth of Independent States.
TRUE
T/F:A sogo shosha is typically a member of a keiretsu.
TRUE
About what percentage of the world's 500 largest corporations in 2010 were headquartered in the United States? A) 12% B) 19% C) 27% D) 45%
C