BUSN 100 Chapter 3

________ allows a company to reap the benefits on international scale and stay responsive to local market dynamics. A. Customization B. Global strategies C. Joint ventures D. A transnational strategy E. Licensing

A transnational strategy

Which of the following acts outlaws payments that are intended to get government officials to break the laws of their own countries or to secure "improper advantage" in gaining or retaining sales? A. Mustering-Out Payment Act B. Special Payment Act C. Export-Import Bank Act D. Foreign Corrupt Practices Act E. Federal Corrupt Practices Act

Foreign Corrupt Practices Act

________ refers to buying goods or services from a supplier in another country. A. Franchising B. Licensing C. Importing D. Partnering E. Intermediating

Importing

The ________ was established to foster international financial cooperation and provide short-term loans to countries that are unable to meet their financial obligations. A. International Monetary Fund B. World Commerce Center C. World Trade Organization D. European Union E. North American Free Treaty

International Monetary Fund

How can a person improve the communication process when working with a person from another culture? A. Add emphasis to important issues through the use of body language. B. Expect the other person to have the same values and beliefs that you do, or to at least understand and support your beliefs. C. Always be straightforward and direct. D. Use preconceived ideas and stereotypes to minimize social mistakes. E. Learn how respect is communicated in various cultures.

Learn how respect is communicated in various cultures.

Which of the following best describes economic globalization? A. Companies can produce goods and services at lower costs by distributing at higher quantities. B. The increasing integration and interdependence of world-wide national economies. C. Companies must compete globally because competitors are doing so. D. The supply and demand of one country's currency on the international market. E. The idea that each country should specialize in areas where it can produce more efficiently than other countries.

The increasing integration and interdependence of world-wide national economies.

Which of the following is a major disadvantage of customizing products to suit local markets? A. Customized products attract more taxes and duties. B. Customization is likely to increase the costs and operational complexity. C. Customers' preferences will likely be ignored when using customization. D. Customization prevents companies from obtaining subsidies. E. Customization reduces the diversity of a company's offerings.

Customization is likely to increase the costs and operational complexity.

France and Germany rely on a legal system known as ________, in which legal parameters are specified in detailed legal codes. A. common law B. theocratic law C. civil law D. precedent law E. case law

civil law

Taxes, surcharges, or duties levied against imported goods are known as ________. A. tariffs B. import sanctions C. embargoes D. import quotas E. restrictive import standards

tariffs

Foreign direct investment (FDI) ________. A. usually does not receive support from domestic governments B. typically gives companies greater control C. carries much less economic risk D. is less complex than any other form of global entry E. carries much lesser political risk

typically gives companies greater control

Which of the following is essential when determining product design and branding for an international market? A. recognizing language differences B. understanding the need for customer support C. identifying the available local talent D. understanding of culture and regulation E. identifying price point

understanding of culture and regulation

Which of the following has made the rapid growth in global business possible by making it safer, easier, and more profitable? A. favorable exchange rates B. the rapidly growing middle class in China C. the ability to focus on relative strengths to create comparative advantage D. standardized systems and procedures. E. advances in communication and transportation technologies

advances in communication and transportation technologies

The number of units of one currency that must be exchanged for a unit of the second currency is known as the ________ between the currencies. A. balance payment B. tariff rate C. exchange rate D. trade balance E. trading bloc

exchange rate

Which of the following is one of the least risky forms of international business activity? A. exporting B. licensing C. franchising D. strategic alliance E. joint venture

exporting

Which of the following strategies is best when attempting to enter a foreign market slowly and then designing the firm's product offerings for that market? A. business merger B. joint venture C. foreign direct investment D. exporting E. franchising

exporting

As one of the largest trading blocs, the European Union has created their own currency to ________. A. move towards the goal of becoming one country with several states B. make transactions less expensive C. minimize widespread imbalances among member nations D. keep inflation rates high E. increase the cost of trade for nonmember nations

make transactions less expensive

A company benefits from economies of scale when it ________. A. produces goods or services in multiple locations B. manufactures and distributes products in higher quantities C. adopts a highly differentiated marketing strategy D. does not use centralization of production and distribution E. engages in the production of personalized products

manufactures and distributes products in higher quantities

Theocratic law is found in Iran and Pakistan and is based on ________. A. legal parameters B. judicial interpretations C. traditions and customs D. detailed legal codes E. religious principles

religious principles

When considering how to market a product internationally, what can be used to ensure the exact same product is sold everywhere around the world? A. a transnational strategy B. standardization C. a strong promotion strategy D. franchising E. joint licensing agreements

standardization

Transparency International is a(n) ________. A. agency of the United Nations that is formed to mediate international negotiations B. agency of the United Nations that is formed to investigate transparency issues in international trade C. agency that works toward implementing protectionist regimes across the globe D. watchdog group that works to reduce business-government corruption around the world E. accounting agency that promotes the use of unified accounting systems across the world

watchdog group that works to reduce business-government corruption around the world