BUS 280: Final Exam

Which of the following disagrees with the concept of centrally planned economies? A) At the time of their collapse, standards of living in most centrally planned economies were at or above those of market economies. B) Basic necessities were often not provided to citizens in centrally planned economies. C) Underground economies for goods and services thrived in most centrally planned economies. D) Prices on the black market were much higher than the official prices set by governments.

A) At the time of their collapse, standards of living in most centrally planned economies were at or above those of market economies.

Which of the following terms applies to the sale of a particular brand of jeans manufactured in the U.S. and sold in Canadian stores? A) exporting B) outsourcing C) insourcing D) importing

A) Exporting

The ________ replaced the institution of GATT while retaining all of the former GATT agreements. A) World Trade Organization B) Federation of International Trade Association C) Commonwealth of Nations D) International Monetary Fund

A) World Trade Organization

The condition that results when the value of a country's imports is greater than the value of its exports is called ________. A) a trade deficit B) economies of scale C) a break-even point D) absolute advantage

A) a trade deficit

Which of the following steps should occur in the screening process for potential markets after the basic demand for a product has been identified? A) assessment of the national business environment B) selection of the market or site C) measurement of the market or site potential D) assessment of climate suitability

A) assessment of the national business environment

36) Which of the following emerged during the failure of centrally planned economic systems? A) black markets B) public markets C) free enterprise system D) market economies

A) black markets

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses? A) capitalism B) communism C) tribalism D) socialism

A) capitalism

As a result of globalization, Argonia finds that its national borders are becoming less relevant. This indicates that Argonia is undergoing ________. A) denationalization B) standardization C) reorganization D) internationalization

A) denationalization

Which of the following refers to the use of computer networks to purchase, sell, or exchange products; service customers; and collaborate with partners? A) e-commerce B) telecommuting C) data virtualization D) virtual hosting

A) e-commerce

Opponents argue that globalization ________. A) eliminates manufacturing jobs in developed nations B) generates labor market flexibility in developed nations C) brings an end to practices like outsourcing D) slows down the employment rate in developing nations

A) eliminates manufacturing jobs in developed nations

The main drawback of a multinational strategy is that it does not allow a company to ________. A) exploit scale economies in product development or marketing B) closely monitor buyer preferences in each local market C) modify its products except for the most superficial features D) respond quickly and effectively to emerging buyer preferences

A) exploit scale economies in product development or marketing

A tariff levied by the government of a country that is selling goods abroad is called a(n) ________. A) export tariff B) ad valorem tariff C) compound tariff D) specific tariff

A) export tariff

Nepotism often prevails in ________ cultures. A) extended-family B) individualistic C) monotheistic D) nuclear family

A) extended-family

Which of the following is a contractual entry mode in which one company supplies another with intangible property and other assistance over an extended period? A) franchising B) management contract C) licensing D) strategic alliance

A) franchising

Which of the following is the lowest extent of regional economic integration? A) free trade area B) political union C) common market D) customs union

A) free trade area

The most common tariffs used today are the ________ tariffs. A) import B) transit C) inverted D) export

A) import

According to mercantilism, the accumulation of national wealth depended on the ________. A) increase in a nation's trade surplus B) increase in a nation's trade deficit C) expansion of a nation's total value of trade D) expansion of a nation's total volume of trade

A) increase in a nation's trade surplus

The term ________ refers to entities cooperating across national boundaries. A) internationalization B) supranationalism C) denationalization D) multiculturalism

A) internationalization

The measures of a nation's well-being other than the financial wealth accumulated through exports are irrelevant according to ________. A) mercantilism B) absolute advantage theory C) factor proportions theory D) new trade theory

A) mercantilism

Adapting products and their marketing strategies in each of the national markets of a company to suit local preferences is called a ________ strategy. A) multinational B) blue ocean C) global D) retrenchment

A) multinational

Which of the following communication strategies uses the same home-market product and marketing promotion in target markets? A) product/communications extension B) product extension/communications adaptation C) product adaptation/communications extension D) product/communications adaptation

A) product/communications extension

An expanded money supply ________. A) reduces the cost of borrowing B) increases interest rates C) makes it difficult for financial institutions to lend money D) diminishes entrepreneurial initiatives in a country

A) reduces the cost of borrowing

Some nations encourage ________ because of recent resistance to worldwide trade agreements. A) regional pacts B) homogeneous markets C) product standardization D) domestic manufacturing

A) regional pacts

Which of the following will add to the cost of an imported product by levying an additional tax upon it? A) tariffs B) quotas C) local content requirements D) embargoes

A) tariffs

Most companies today operate in an environment of increased transparency and scrutiny regarding their business activities. This is due to ________. A) the rise of the social media B) the prosperity of developing nations C) the heterogeneity in markets D) labor market flexibility in developing nations

A) the rise of the social media

A tariff levied by the government of a country that a product is passing through on its way to a final destination is called a ________ tariff. A) transit B) compound C) export D) specific

A) transit

________ is a payment method commonly used when there is an ongoing relationship between the involved parties. A) Advance payment B) Documentary collection C) Letter of credit D) Open account

B) Documentary collection

________ is an effective alternative to traditional distribution channels for firms that sell digitized products. A) Dual licensing B) Electronic distribution C) Visual merchandising D) Digital switchover

B) Electronic distribution

________ markets are characterized by the rural population migrating to cities for better pay and thus, overloading cities' infrastructures. A) Traditional B) Emerging C) Virtual D) Developed

B) Emerging

________ are all goods and services sold abroad and sent out of a country. A) Net national products B) Exports C) Gross domestic products D) Imports

B) Exports

________ is defined as the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service. A) Global offering B) Globalization of production C) Global governance D) Globalization of markets

B) Globalization of production

Who among the following popularized the idea of central economic planning in the nineteenth century? A) Frederick Taylor B) Karl Marx C) Peter Drucker D) Henry Fayoln (An economy where decisions on what to produce, how to produce and for whom are taken by the government)

B) Karl Marx

________ is the process of identifying and selecting an organization's objectives and deciding how the organization will achieve those objectives. A) Stratification B) Planning C) Economic transition D) Value chain analysis

B) Planning

The condition that results when the value of a nation's exports is greater than the value of its imports is called ________. A) a trade deficit B) a trade surplus C) mercantilism D) dumping

B) a trade surplus

Which of the following steps of the market screening process involves examining the cost of transporting goods? A) identification of basic appeal of a market B) assessment of the national business environment C) measurement of market or site potential D) selection of the market or site

B) assessment of the national business environment

Which of the following steps of the the market screening process involves an evaluation of the government bureaucracy? A) identification of basic appeal of a market B) assessment of the national business environment C) measurement of market or site potential D) selection of the market or site

B) assessment of the national business environment

Which of the following is the intentional lowering of a currency's value by its government? A) revaluation B) devaluation C) currency hedging D) currency arbitrage

B) devaluation

Gentian Violet is a dye manufacturing company that uses computer networks to sell its products, service customers, and collaborate with partners. Which of the following technologies is the company engaging in this scenario? A) rapid prototyping B) e-business C) simulation D) console automation

B) e-business

Which of the following is prompting farmers in many developed nations to discover new ways to manage risk and increase agricultural efficiency? A) enforcement of trade embargoes and tariffs B) exposure of agribusiness to market forces C) provision of extensive government subsidies D) designation of agricultural products as dual use products

B) exposure of agribusiness to market forces

Which of the following refers to convergence in buyer preferences in markets around the world? A) heterogenization of markets B) globalization of markets C) segmentation of markets D) nationalization of markets

B) globalization of markets

A(n) ________ advantage is the one that a company gains from incorporating a business activity within itself rather than leaving it to a relatively inefficient market. A) ownership B) internalization C) location D) comparative

B) internalization

Locating production facilities within regional markets is popular because ________. A) regional markets offer greater range of resources needed for production B) it provides duty-free access to every consumer in a trade bloc C) the marketing strategies applied at the regional market level will also be applicable at the global level D) it simplifies political and economic activities

B) it provides duty-free access to every consumer in a trade bloc

Which of the following is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time? A) franchising B) licensing C) management contract D) strategic alliance

B) licensing

Which of the following is considered as a primary activity in an organization? A) infrastructure B) marketing and sales C) procurement D) human resource management

B) marketing and sales

Which of the following refers to a written statement of why a company exists and what it plans to accomplish? A) memorandum of association B) mission statement C) vision statement D) articles of association

B) mission statement

7) Globalization is characterized by ________. A) the demise of democracy within a nation B) national boundaries becoming less relevant C) the fortification of trade barriers D) rigid foreign relations policies

B) national boundaries becoming less relevant

Which of the following is the greatest extent of regional economic integration? A) free trade area B) political union C) common market D) customs union

B) political union

According to value-chain analysis, inbound and outbound logistics are considered as ________. A) tertiary activities B) primary activities C) support activities D) core competencies

B) primary activities

The segment of the economic environment comprising independently owned firms that seek to earn profits is called the ________. A) political sector B) private sector C) democratic sector D) public sector

B) private sector

Which of the following communication strategies expands the same product into new target markets but alters its marketing promotion? A) product/communications extension B) product extension/communications adaptation C) product adaptation/communications extension D) product/communications adaptation

B) product extension/communications adaptation

Which of the following terms is used to refer to the process of ranking people into social layers or classes? A) social transformation B) social stratification C) social loafing D) social mobility

B) social stratification

Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture? A) macroculture B) subculture C) cultural universal D) monoculture

B) subculture

Which of the following is an important goal of regional economic integration? A) to increase the selling prices of products B) to raise the living standards of people C) to limit the choice of products available to customers D) to establish a socialist government

B) to raise the living standards of people

Which of the following is an example of globalization of production? A) Canadian consumers who import food products from Australia B) A German company which sells car components to British car makers C) A U.S. company that builds a computer hardware manufacturing facility in India D) A Swiss watch manufacturer that builds a manufacturing facility in Switzerland

C) A U.S. company that builds a computer hardware manufacturing facility in India

Which of the following statements is true of licensing? A) Licensing restricts finances needed for international expansion. B) Cross licensing grants a company the right to use a property but does not grant it sole access to a market. C) A major advantage of licensing is that it is the least risky method of international expansion. D) Licensing increases the likelihood that a licensor's product will appear on the black market.

C) A major advantage of licensing is that it is the least risky method of international expansion.

Which of the following statements is true of the environmental forces that affect strategy formulation? A) Socialist economic systems normally levy light taxes on business profits. B) Countries that excessively spend on R&D tend to have lower levels of prosperity. C) Approval of the host government is almost always necessary for making direct investments. D) Free-market economies tend to levy high taxes on business profits.

C) Approval of the host government is almost always necessary for making direct investments.

Which of the following was a prominent mercantilist nation? A) U.S. B) China C) Britain D) Japan

C) Britain

6) ________ is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. A) Privatization B) Heterogenization C) Globalization D) Decentralization

C) Globalization

________ place limits on the quantity of a product being imported. A) Embargoes B) Trade blocs C) Non-tariff barriers D) Anti-dumping duties

C) Non-tariff barriers

A(n) ________ tariff is levied as a percentage of the stated price of an imported product. A) specific B) compound C) ad valorem D) transit

C) ad valorem

A document ordering the importer to pay the exporter a specified sum of money at a specified time is called a ________. A) bill of lading B) letter of credit C) bill of exchange D) management contract

C) bill of exchange

The rise of a new international entity called the ________ suggests that any company, regardless of age, experience, and resources, can engage in international business. A) transnational corporation B) multinational corporation C) born global firm D) global firm

C) born global firm

In most centrally planned economies that failed, ________. A) market conditions had determined who would produce goods B) prices of products were seen as a function of supply and demand C) central planning agencies had specified the production goals D) central planners had paid attention to efficiency improvement

C) central planning agencies had specified the production goals

Which of the following is a special ability of a company that competitors find extremely difficult to equal? A) comparative advantage B) absolute advantage C) core competency D) economy of scale

C) core competency (what a company does well; make and develop products according to company mission)

The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ________. A) gross domestic product (GDP) B) gross world product (GWP) C) gross national product (GNP) D) gross state product (GSP)

C) gross national product (GNP)

The first step in the screening process for potential markets and sites is to ________. A) select a favorable market or site B) measure the market or site potential C) identify the basic appeal of a market D) assess the national business environment

C) identify the basic appeal of a market

32) Devaluation of a nation's currency ________. A) gives foreign companies in the country an edge over domestic companies B) leads to a decline in the supply of goods and services C) increases the price of a country's imports D) increases consumers' buying power

C) increases the price of a country's imports

Any commercial transaction that crosses the borders of two or more nations is known as ________. A) domestic marketing B) market segmentation C) international business D) global manufacturing

C) international business

North Korea practices a policy of self-reliance known as ________. A) guanxi B) laissez-faire C) juche D) kaizen

C) juche

Which of the following steps of the market screening process involves the analysis of the quality of workforce, materials, and infrastructure? A) identification of basic appeal of a market B) assessment of the national business environment C) measurement of market or site potential D) selection of the market or site

C) measurement of market or site potential

Which of the following strategies is appropriate for companies in industries where buyer preferences do not converge across national borders? A) retrenchment strategy B) global strategy C) multi-domestic strategy D) mass customization strategy

C) multi-domestic strategy

Companies often establish largely independent, self-contained units in each of its national markets to implement a ________ strategy. A) retrenchment B) global C) multinational D) blue ocean

C) multinational

A business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in several countries is called a ________.

C) multinational corporation

The practice by which managers and other employees find jobs within their own companies for relatives is known as ________. A) ethnocentricism B) enculturation C) nepotism D) stratification

C) nepotism

Which of the following is considered as a support activity in an organization? A) inbound logistics B) marketing and sales C) procurement D) customer service

C) procurement (Process of selecting vendors, est. payment terms, the negotiation of contracts and actual purchasing of goods -- acquiring (procuring) all of the goods, services and work that is vital to an organization.

Which of the following communication strategies adapts a product to the requirements of the international market while retaining its original marketing communication? A) product/communications extension B) product extension/communications adaptation C) product adaptation/communications extension D) product/communications adaptation

C) product adaptation/communications extension

A group of nations in a geographic area undergoing economic integration is called a ________. A) born global firm B) maquiladora C) regional trading bloc D) Eurocurrency market

C) regional trading bloc

Which of the following is the final step in the screening process for potential markets and sites? A) assessment of the national business environment B) measurement of market or site potential C) selection of the market or site D) assessment of climate suitability

C) selection of the market or site

Which of the following do products designated as dual use require before exports can take place? A) currency controls B) countervailing duties C) special government approval D) local content requirements

C) special government approval

A ________ is a set of planned actions taken by managers to help a company meet its objectives. A) mission statement B) vision C) strategy D) core competency

C) strategy

19) ________ tend to occupy the highest social layer in industrialized countries. A) Teachers B) Scientists C) Medical doctors D) Business leaders

D) Business leaders

Which of the following statements is true of tariffs? A) Tariffs increase an imported product's appeal to buyers. B) Transit tariffs are the most widely-levied tariffs. C) Ad valorem tariffs are levied as a specific fee for each unit of an imported product. D) Export tariffs are used by countries when they believe an export's price is lower than it should be.

D) Export tariffs are used by countries when they believe an export's price is lower than it should be.

________ refers to socially learned traits associated with, and expected of, men or women. A) Conformity B) Social mobility C) Individualism D) Gender

D) Gender

________ is the process of dividing a company's activities into primary and support activities and identifying those that create value for customers. A) Fundamental analysis B) Technical analysis C) Structural analysis D) Value-chain analysis

D) Value-chain analysis

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation? A) expropriation B) nationalism C) nationalization D) confiscation

D) confiscation

An established consumer market that primarily comprises the middle class and possesses efficient infrastructure is characteristic of ________ markets. A) emerging B) frontier C) traditional D) developed

D) developed

A major flaw of the original General Agreement on Tariffs and Trade (GATT) was that it lacked the power to ________. A) displace the WTO B) reduce nontariff barriers to international trade C) govern exchange rates D) enforce world trade rules

D) enforce world trade rules

Which of the following is an important factor in forming successful business ventures in China? A) following the strategies of western countries for establishing business relationships B) focusing on establishing tight formal contracts C) giving high importance to written contracts D) establishing a trusting relationship before proceeding with business

D) establishing a trusting relationship before proceeding with business

Globalization is criticized because it ________. A) does not generate labor market flexibility in developing nations B) prevents developed countries from outsourcing work to developing nations C) creates fewer manufacturing jobs in developing nations D) exploits workers in low-wage nations

D) exploits workers in low-wage nations

Goods and services purchased abroad and brought into a country are called ________. A) gross domestic products B) exports C) gross national products D) imports

D) imports

33) The ease with which bondholders and shareholders may convert their investments into cash is called ________. A) barter B) clearing C) countertrade D) liquidity

D) liquidity

A(n) ________ advantage is the advantage of conducting a particular economic activity in a specific area because of the characteristics of that area. A) internalization B) ownership C) comparative D) location

D) location

Democracies try to preserve peaceful coexistence among groups of people with diverse cultural, ethnic, and racial backgrounds. These rights are known as ________ rights. A) indirect B) central C) subcapital D) minority

D) minority

Which of the following financing methods entails the greatest risk for exporters? A) supersedeas bond B) advance payment C) letter of credit D) open account

D) open account

Which of the following communication strategies adapts both the product and its marketing communication to suit the target market? A) product/communications extension B) product extension/communications adaptation C) product adaptation/communications extension D) product/communications adaptation

D) product/communications adaptation

The purpose of the General Agreement on Tariffs and Trade (GATT) was to ________. A) create an international currency B) regulate exchange rates C) create regional trade organizations D) promote free trade

D) promote free trade

The main benefit of a multidomestic strategy is that it ________. A) exploits scale economies in product development and marketing B) is cost-saving due to product and marketing standardization C) takes advantage of location economies D) responds quickly and effectively to emerging buyer preferences

D) responds quickly and effectively to emerging buyer preferences

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs indicates ________. A) egalitarianism B) denationalization C) generalizability D) sustainability

D) sustainability (on-going success)

Small companies selling traditional products benefit from ________. A) the barriers to trade that restrict their products from crossing domestic boundaries B) increased investment by foreign competitors in domestic markets C) government policies that seek to regulate the flow of capital across national borders D) technology that lowers the costs and difficulties of global communication

D) technology that lowers the costs and difficulties of global communication

One of the major pillars upon which the practice of mercantilism rested was ________. A) economies of scale B) pricing mechanism C) excessive imports D) trade surpluses

D) trade surpluses