MIE201 Exam #1 (Chap 3)
World Bank
A collection of five financial institutions whose main goals are eliminating the most extreme levels of poverty around the globe and enhancing the income of the poorest people in every nation is the ________.
Global strategy
A company is using a(n) __________ when it views the world as a single integrated market and maintains a highly centralized control on all units.
Trading blocs
Common markets that endorse trade within the region while creating barriers against goods entering the region from nonmember nations are known as ________.
Multidomestic strategy
Company XYZ creates autonomous subsidiaries in each new country it enters, thereby giving local managers independence in decision making and running the unit. Company XYZ is enlisting which of the following strategies?
Focusing on competitors' strengths
Countries and companies trade internationally for all of the following reasons EXCEPT ________.
Dumping
FixIt Tools, an Indian tool manufacturer, has just entered the German market. FixIt started selling large quantities of its tools at a significantly lower price than the cost of production and below what FixIt would charge in India. This practice is called ________.
Free trade
If a country's government elects to bankroll exporters for their products by giving financial support, such subsidies will not lead to________.
In reducing transparency in pricing
Member countries of the European Union benefitted from switching to the common currency called the euro for all of the following reasons EXCEPT ________.
APEC
Member countries of the ________ represent 40 percent of the world's population and more than half of the world's gross domestic product (GDP).
Quotas
Restricting the quantity of specific goods that nations allow to be imported during a given year is known as ________.
Dictating policies to national governments
The WTO is guided by five principles, which do NOT include ________.
Balance of payments
The broadest indicator of international trade is the ________.
Tariffs
The government of Zenovia levies a surcharge of 200% on the value of every electronic product that is brought in the country. This is an example of _______.
Concentrating on relative strong points
The theory of comparative advantage supports which motivation for countries and companies to trade internationally?
Regarding the person as a representative of another culture
Tips for improving communication with a person from another culture include all of the following EXCEPT ________.
Economies of scale
When ABC Manufacturing buys parts and materials in large quantities and thereby obtains much better pricing and cost savings, it is utilizing _____.
Exporting
When Company A sells products outside the country in which those products are produced, it is engaging in which of the following?
Transnational strategy
When using a(n) __________ strategy, a company uses a mixed approach in which it attempts to gain the benefits of international scale while responding to local needs.
Licensing
Which of the following allows a firm to use some or all of another company's intellectual property in exchange for a fee?
A currency is called strong relative to another when its exchange rate is lower than what is considered normal
Which one of the following statements does NOT accurately describe foreign exchange rates and currency valuations?
Strategic alliance
Which term describes a long-term partnership between Company A and Company B to jointly develop, produce, or sell products?
Ethnocentrism
Your roommate is from France and often judges individuals and groups according to French standards, behaviors, and customs. This tendency is called ______.
Foreign direct investment
________ occurs when a company enters a foreign market through ownership and control of assets in that country.
Theocratic law
____________ exists in countries whose legal structure is based on religious principles.
Discouraging unfair practices
________________ is not one of the primary functions of the IMF.
