OPTIONAL PRACTICE SOM 354

Which scenario best represents a mores violation?

Bribing a government official in a country where bribery is illegal

In which of these companies is centralized production most appropriate?

Company B, which sells a product with a high value-to-weight ratio, and operates in an industry where location externalities are important

Custom Cabinetry International needs immediate access to wood in order to produce an order of 50,000 high-end retail display cases by the end of next year. It cannot afford to wait and establish a new operation in a foreign country where this species of wood is prevalent, so it decides to purchase an existing company instead. Why did Custom Cabinetry decide to make this purchase?

Mergers and acquisitions are quicker to execute than greenfield investments

Which organization was created to implement the GATT agreement

World Trade Organization

One focus of strategic trade policy is to help domestic companies gain

a first-mover advantage

The mercantilist doctrine promoted government intervention in order to achieve

a surplus in the balance of trade

A country's national competitive advantage and its attractiveness as a location for international business are most influenced by

a well-developed education system

If France is more efficient at producing fine wines than other nations, then France has an

absolute advantage

Aesha works for a moderately priced running shoe manufacturer and while their products are lower in cost, there is a high degree of consumer pressure to create the best quality running shoes possible and to constantly innovate with new designs. Which aspect of Porter's Diamond does this demonstrate?

demand conditions

____________ is variously defined as selling goods in a foreign market at below their costs of production or as selling goods in a foreign market at below their "fair" market value

dumping

Charlize is from South Africa and believes that the customs and beliefs of her culture are superior to those she has encountered during her trip to America. Charlize's attitude is an example of

ethnocentrism

Some countries have a policy that restricts the export of honey. This is called an

export ban

Fast Tracker Inc., a US based company, makes custom wearable fitness trackers in Oregon, which are then shipped to Europe for sale there. Based on this information, Fast Tracker Inc. is involved in

exporting

The economic and strategic advantages that accrue to early entrants into an industry is called

first-mover advantages

It is one of Sanjay's job responsibilities to report the amount of foreign direct investment undertaken by the government over a one-year time period. Sanjay reports the ______________ of FDI

flow

Madeline is always late to meetings. She knows she needs to improve her time management because it is a typical expectation in the United States. This attitude toward time is an example of a

folkway

The _________ view argues that international production should be distributed among countries according to the theory of comparative advantage and countries should specialize in the production of goods they can produce most efficiently

free market

Simone lives in a county in which the government does not impose quotas on what can be imported or on what businesses can produce and sell to another country. What type of situation does this describe?

free trade

within the context of the individual as the basic unit of social organization, what is a manifestation of the emphasis on individualism in many Western societies?

high degree of managerial mobility between companies

In the Republic of Nabu, natives are resistant to change and do not like to take risks. They value job security and retirement benefits. In addition, they have a strong need for rules and regulations. Based on this information, the Republic of Nabu demonstrates which cultural dimension identified by Hofstede?

high uncertainty avoidance

A South American nation has a direct restriction on the number of vegetables that may be imported into the country. Which instrument of trade policy does this reflect?

import quota

Dolby Fashion House, an Italian manufacturer of evening dresses, granted US company On the Runway Inc. the right to produce and sell Dolby Fashion's products in the US. In return, On the Runway Inc. has to pay a royalty fee on every unit sold. According to this information, what form of FDI is Dolby Fashion House using?

licensing

Internalization theory is used to explain why a company prefers FDI over ______________ as a way to enter a foreign market

licensing

An implication of trade barriers for business practice is that they

limit the firm's ability to serve a country from locations outside of that country

When the management team reviews its government contract on office chairs, they noticed that in order to bid on the project, at least 37% of the value of the office chairs had to be produced in the US. This stipulation is an example of

local content requirement

Maribeth's department at Jenner Manufacturing is responsible for the flow of the raw material and component parts into the company that are needed to manufacture its library study carrels and chairs. What department does Maribeth work in?

logistics

What is an example of a "hidden" cost associated with basing production in a foreign location?

low productivity

Which l;anguage is spoken as the mother tongue by the largest number of people in the world?

mandarin

The ____________ refers to the level of output at which most plant-level scale economies are exhausted

minimum efficient scale

______________ Arises when two or more enterprises encounter each other in different regional markets, national markets or industries

multipoint competition

Which theory stresses that in some cases, countries specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can support only a limited number of firms?

new trade theory

Subsidies and quotas are examples of _________________ barriers a country might impose

nontariff

several factors that are probably more important to an explanation of differential economic growth rates over time than culture include

political systems

Jamal operates a company that manufactures dog food. He pays his factory workers minimum wage, while he pays his managers twice as much with profit sharing. This represents which of Hofstede's cultural dimensions?

power distance

A __________ refers to the extra profit that producers make when supply is artificially limited by an import quota

quota rent

Which political ideology reflects the idea that a multinational enterprise is an instrument of imperialist domination?

radical view

In the context of achieving operational integration and collaboration within a global supply chain, which operational objective refers to a global firm's ability to a global firm's ability to satisfy customers' requirements across global supply chain functions in a timely manner?

responsiveness

A firm might justify a preference for licensing over FDI because licensing

results in the licensee bearing the costs and risks

Collin was born into a poor family, but he worked hard during high school and went on to receive his master's degree in business followed by a high-level job. Today he is considered "upper middle class" and enjoys a comfortable lifestyle. Collin's journey is an example of

social mobility

The US agriculture industry has long-benefited from high tariff rates and _______ that protect domestic agriculture and traditional farming communities

subsidies

One of the main benefits that FDI provides to the home country is

the home country's balance of payments benefits from the inward flow of foreign earnings

The Heckscher-Ohlin theory is based on the idea that

the pattern of international trade is determined by differences in factor endowments

A European nation has the world's most efficient computer monitor manufacturing industry, while a country in Central America has the world's most efficient agricultural machines industry. The European nation trades computer monitors with the Central American country in exchange for agricultural machinery. This form of trade between two countries illustrates

the theory of absolute advantage

The basic message of the ____________is that potential world production is greater with unrestricted free trade than it is with restricted trade.

theory of comparative advantage

A situation in which an economic gain by one country results in a economic loss by another is called a

zero-sum game