MGMT Ch 5

What name is given to the ratio at which one nation's currency can be exchanged for another nation's currency or for gold? a. Exchange rate b. Quota c. Direct investment d. Exchange controls

a. Exchange rate

What name is given to the maximum number of units of a particular product that may be imported into a country? a. Quota b. Dumping c. Exchange controls d. Cartel

a. Quota

What term describes a trade arrangement in which one company--the licensor--allows another company--the licensee--to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee, or royalty? a. Quota b. Franchising c. Licensing d. International business

c. Licensing

What term describes an international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy, and that recommend and promote policies to improve the well-being of consumers and societies across the world? a. European Union (EU) b. International Monetary Fund (IMF) c. Organization of Economic Cooperation and Development (OECD) d. World Bank

c. Organization of Economic Cooperation and Development (OECD)

A specific amount of money levied on each unit of a product brought into the country is called a. an exchange control. b. a quota. c. a fixed tariff. d. an ad valorem tariff.

c. a fixed tariff.

Trading companies offer all of the following EXCEPT a. consulting. b. warehousing. c. manufacturing. d. advertising.

c. manufacturing.

What is the World Trade Organization (WTO)? a. An economic and political union of 28 member nations that are located primarily in Europe b. Comprised of ten Southeast Asian countries with the goal to promote economic growth and overall progress in the area via trade and security c. An international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy; recommends and promotes policies to improve the well-being of consumers and societies across the world d. A global association of member countries that promotes free trade

d. A global association of member countries that promotes free trade

What name is given to the sale of goods and services to foreign markets? a. Outsourcing b. Licensing c. Dumping d. Exporting

d. Exporting

According to Hofstede's cultural dimensions theory, the United States has high uncertainty avoidance. True False

False

Outsourcing is the most committed or highest level of international business involvement. True False

False

The United States has the highest GDP per capita in the world. True False

False

According to Hofstede's cultural dimensions theory, the United States has a short time horizon or orientation. True False

True

Railroads, highways, ports, air fields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems are all examples of infrastructure. True False

True

protective tariffs raise the price of foreign goods to allow more expensive domestic goods to compete with foreign ones. True False

True

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 Slabovia, 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? a. Barter burgers for brandy. b. Appeal to the International Monetary Fund for help. c. Trade in a mutually acceptable currency. d. Hire an export agent.

a. Barter burgers for brandy.

The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of a. a direct investment. b. a contract manufacturer. c. licensing. d. a trading company.

a. a direct investment.

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company a. is exporting the lenses. b. is importing the lenses. c. has an absolute advantage. d. is increasing the trade deficit.

a. is exporting the lenses.

Because many countries do not permit foreigners to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a a. joint venture. b. direct investment. c. contract manufacturing arrangement. d. sole proprietorship.

a. joint venture.

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 facilities? a. International business b. Direct investment c. Strategic alliance d. Joint venture

b. Direct investment

The poorer and less economically advanced, less-developed countries, characterized by their low per capita income, include all of the following EXCEPT a. Guatemala. b. India. c. Ethiopia. d. Japan.

d. Japan.

Which of the following refers to a partnership formed to create competitive advantage on a worldwide basis? a. Joint venture b. Embargo c. Cartel d. Strategic alliance

d. Strategic alliance

When people in Chicago buy coffee from Columbia, South America, they a. have an absolute advantage. b. are decreasing the trade deficit. c. are exporting the coffee. d. are importing the coffee.

d. are importing the coffee.

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as a. a joint venture. b. exporting. c. direct investment. d. licensing.

d. licensing.

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 ______. a. short, very quickly b. short, very slowly c. long, very slowly d. long; very quickly

d. long; very quickly

All of the following are examples of infrastructure EXCEPT a. railroads. b. power plants. c. communication systems. d. stock exchanges.

d. stock exchanges.