International Business Exam - ALL Quizzes

At the end of World War II, the UN called for the conference that set up the World Bank and the IMF. This conference was held in

Brennon Woods, New Hampshire

Which country ranked the highest in 2-16 in terms of merchandise exports?

China

ASEAN, whose initial, political goal was to foster peaceful relations among members, includes China as its core member.

False

An international company (IC) is a company headquartered in another nation.

False

Biomass is a category of renewable energy fuels based on their heavy weight.

False

Britain was the world's leading manufacturing country for about 1,800 years, until it was replaced by the United States in the 1800s.

False

Early business sustainability efforts looked beyond their own operations and focused on the external aspects of conversation and environmental regulation.

False

Feminine cultures in Hofstede's dimensions care about relationships and are not focused on business success.

False

Geothermal power is derived from mirrors or sensors used to collect sunlight.

False

Hofstede is primarily concerned with social values and the dimensions he identified that help parents understand their children

False

In a currency board arrangement, a country's government commits to adopt the currency of another.

False

Intellectual property includes patents and trademarks, but not copyrights.

False

Internalization theory suggests that when an organization has superior knowledge, it may obtain better price by selling it to the open market.

False

Lobbyists who advocate for new laws that will affect the production standards of a business are an example of an internal force.

False

Logistics refers to managerial functions associated with the movement of raw materials and work in progress, but not finished goods.

False

On an open account, the buyer assumes all of the payment risk.

False

Permanent members of the UN Security Council vote on Security Council measures and only the Secretary-General of the UN has veto power.

False

Sanctions are implemented by the government to a domestic firm as a way to encourage exports or protect the firm from imports.

False

Terrorists avoid kidnapping because the repercussions can be harmful to their movement.

False

Thanks in part to communication advancements, international trade has stabilized and become evenly distributed across all countries of the world.

False

The Bretton Woods system led to minimal growth in international trade but helped to reduce inflation levels.

False

The British prime minister, David Cameron, led the privatization movement.

False

The EU is administered by the European Commission, a group composed of six commissioners, elected at the EU level.

False

The European Patent Organization (EPO) makes fitting for a patent in all 28 EU member states more difficult than it was previously.

False

The International Monetary Fund uses the U.S. dollar as its unit of account.

False

The United States in recent years has had a significant deficit in its current account. This means that the U.S. citizens are exporting more than they are importing.

False

The World Bank is made up of one large institution, the International Development Association, and three smaller institutions.

False

The advent of globalization has had minimal effect on labor standards around the world.

False

The balance of payments (BOPs) is a record of a country's transactions with its major trading partners.

False

The dynamic capability theory states that for a firm to invest overseas, it must have three kinds of advantages: ownership specific, internalization, and location specific.

False

The international environment includes all the uncontrollable forces originating outside the home country that surround and influence the firm.

False

The law of one price states that in an efficient market, like products will never have like prices.

False

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

False

The stakeholder model for environmentally sustainable business has failed because we don't have an accounting system to measure the present costs of environmental irresponsibility.

False

Voluntary export restraints reimposed by the importing nation to avoid violating WTO rules.

False

When adjusting to other cultures, the first step managers can take is to compare their current culture to another to asses its value.

False

When production equipment is similar, home office control of quality in foreign affiliates is more difficult because management must ensure that all plants adhere to the same standard.

False

This country engaged in many privatizations in the aftermath of the 2008-2009 financial crisis.

Greece

Who took the United States off the gold system?

President Nixon

"Petroleum man" faces inevitable extinction, as we currently understand resources.

True

A disadvantage for companies that insist on less risky transactions, such as a letter of credit, is that they may be losing business to competitors who sell on open accounts.

True

A straight bill of lading is nonnegotiable.

True

As used in the text, the term environment means all the forces influencing the life and development of the firm.

True

Buddhism is based on the teachings of Siddhartha Gautama

True

CIBER is an international business research and education program located at U.S. universities.

True

Countries put limitations on the convertibility of their currencies when they are concerned that their foreign reserves could be depleted.

True

Free trade zones are areas designated by the government of a country for duty-free entry of imported goods.

True

International economic analyses should provide economic data on both actual and prospective markets.

True

It has been argued that the ultimate goal of effective supply chain management systems is to reduce the inventory.

True

Often new reporters think that they won't have to localize their approach, assuming that a marketing technique or distribution system that works in one country will work in another.

True

One of the significant differences between formal and informal institutions is how they gain compliance.

True

Opponents of free trade point out that globalization has contributed to a decline in environmental and health conditions.

True

Outsourcing is hiring others to do noncore activities.

True

Recently many governments, including the U.S. government, have contracted out certain services to private companies.

True

Strategic plans promote consistency of action among the firm's managers worldwide and encourage them to consider the ramifications of their actions in the firm's other geographic and functional areas.

True

Subsidies are implemented by the government to a domestic firm as a way to encourage exports or protect the firm from imports.

True

The "over-the-wall" approach to product design involves the initial step in which designers prepare the products design, followed by sending the newly created designs to the company's manufacturing engineers.

True

The International Finance Corporation (IFC) invests in companies and financial institutions in developing countries.

True

The International Monetary Fund is a source of economic data that analysts can access to assess economic conditions.

True

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

True

The United Nations operates with voluntary agreements, so it is essentially an informal institution.

True

The WTO has negotiated a TRIPS agreement whereby property rights do not take precedence over public health.

True

The logo that allows consumers to identify a company or product is an example of a trademark.

True

The proportion of world trade coming from North America, Latin America, Africa, and the Middle East has decreased since 1983.

True

The sales agreement should specify as simply as possible the duties of the buyer and firm.

True

The vast proportion of outward FDI, about two-thirds, originates from the developed countries.

True

Those who work in the international environment find that decision making is more complex than it is in a purely domestic environment.

True

Understanding how religion affects cultural attitudes is important for marketing professionals to know.

True

Wind power is an example of renewable energy source.

True

Which organization offers a matching service, bringing potential exporters together with business partners in specific markets?

U.S. Department of Commerce

Tropical rain forests are

a barrier to economic development

Government protection of economic activities is

a historical function of government

Extraterritoriality refers to

a nation's attempt to enforce its law beyond its borders

Trademarks are defined as

a shape, color, design, sound, phrase, abbreviation by which a product is designated

Material culture includes

all human-made objects

Jenna reported to the management team that their proposed investment in Great Britain could be affected by the Brexit announcement. Which aspect of strategic planning does this demonstrate?

analyze the company's external environments

With respect to the current state of global problems, Mark Malloch Brown, former deputy secretary-general of the United Nations, suggests that

as the world becomes more closely connected, it becomes less governable at the national level

The output of a synchronized manufacturing system is set

at the output of the slowest operation that is working at full capacity

Why is scenario analyses an important tool for managers?

by anticipating the future and recognizing the warning signs of turbulence ahead, managers can develop more effective strategies.

What is the downside of flexible manufacturing?

changes in the production line cost money

Using cross-functional and customer participation in the design stage is a type of __________ engineering.

concurrent

Since 1983, the proportion of world trade coming from the United States has

decreased overall

To set corporate objectives, management must first

define the firm's mission

A major portion of the exports from developing countries go to __________ countries, and this proportion has been __________.

developed; decreasing

Once a firm has determined there is a need for the firm's products in a foreign market, the next step is to

draft the export marketing plan

Molly has lived in Ireland her entire life and believes that the only way to do things is "the Irish way." This belief is an example of

ethnocentrism

A patent gives the inventor

exclusive right to manufacture, exploit, use, and sell the invention for a given time period

Gabriel Industries is located near a port city which allows it to ship products easily overseas to its international customers. The geographic location of the company is an example of a(n)

external force

In synchronous manufacturing, a production increase at the bottleneck means an increase

for the entire production system

Which of the environments associated with a company refers to the uncontrollable forces originating outside the home country?

foreign

The World Bank categorizes countries based on GNI per capita, using the following categories:

high-income economies, middle-income economies, low-income economies

What is an example of an internal force that can affect a company's environment?

human resources

Performance measures are done to assess

if the strategy and its implementation are proceeding successfully

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

incorporating data on how the national income is actually distributed

Since 1980, the United States proportion of world trade in commercial services has

increased one-third

Unrecorded transactions in an economy, such as goods and services that are bartered, are said to be part of which economy?

informal

Two basic ways to understand the role of leadership are to provide direction for a collection of individuals or to

integrate a group

The most obvious cultural distinction a company must take into account when deciding to undertake international business is

language

Culture is a group of shared world views, social rules, and interpersonal dynamics that is

learned, interrelated, and shared

The three characteristics of evolving sustainable business practices are

limits, interdependence, and equality

A company would rely on triple-bottom-line accounting to

measure the company's strategic performance

A broad statement that defines the purpose for a company's existence, including its business, objectives, and approach for reaching those objectives is known as a __________ statement.

mission

Arbitration is a private solution that is

more private than litigation

Which of these measures would typically be used in measuring supply chain performance?

orders delivered on time

Managers generally mention three areas in which they lack knowledge related to exporting, including identification of foreign markets, export procedures, and

payment and financing procedures

When a government transfers the assets of a company from the public sector to the private sector, it is an example of

privatization

Arbitration is often preferred when the contract stipulates U.S. law and one of the litigants is foreign because it is

quicker, cheaper, and more private than litigation

Which aspect of strategic planning helps a company maintain itself within the boundaries of the mission and vision statements?

setting corporate objectives

A company would create procedures in order to

specify how certain activities will be carried out

Problems of the gold standard include

storage cost, weight, doesn't earn interest

Knowledge that an individual has but that is difficult to express clearly in words, pictures, or formulas and is therefore difficult to transmit to others is known as __________ knowledge.

tacit

The International Monetary Fund would characterize a developing economy as one in which

technology is not as developed

When considering the limits associated with sustainability, a company should address

that environmental resources are exhaustible

A measure of the degree to which family income within a countries distributed equally is called

the GINI index

When considering where to export, advantages to managers of focusing on a nation that is already sizable purchaser of goods coming from the home country include all of the following EXCEPT

the cultures of the two countries should be relatively similar and compatible.

A business would rely on the GINI Index to understand

the degree to which family income is distributed equally within a country

Bretton Woods led to an exchange rate agreement known as the Bretton Woods System or

the gold exchange standard

The stakeholder model requires businesses to think about

the network of tensions caused by competing demands

When an international manager is considering where to do business, one of the first considerations is

the size of the economy

If two English multinational companies had a dispute arising in New York City, and there was 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