final

Your authors discuss a number of issues that are important to business efforts aimed at international expansion. Select the quote below that best summarizes this.

"Expanding internationally is likewise done through entrepreneurial employees."

What country uses the renminbi (RMB) as its currency?

China

Currency risk is the risk of a change in the exchange rate that will adversely affect the company. Which of the following is the most common reasons companies face such risk in international markets.

Companies face this risk because they typically price their products and services in the local currency of each country in which they operate, to make it easy for local customers to understand the pricing and make the purchase. This practice exposes companies to currency risk.

Which of the following statements about Global Brand Web Strategy is not true?

Companies make sure their central brand messages and original languages remain intact regardless the recipient populations.

Global business in the private sector is seldom impacted by the IMF and other development organizations.

False

In addition, an SHRM best practice is to make the organization's culture clear by discussing the values that underpin the organization. Identify one of method for doing this that was recommended in Chapter 12.

Firms can describe the "heroes" of the organization—those employees who embody the values of the organization.

Which of the following isn't an aspect of fit when one is considering international business expansion?

Future growth

There are a number of generic corporate-level strategies that a firm may use to establish and defend their desired strategic position against rival firms. Which of the following emphasizes the production and/or sale of products to specific areas?

Geographic

The GCI is a good means to measure the nature of a national economy. What does GCI stand for?

Global Competitiveness Index

Countries and regions vary systematically in their levels of innovation, but the authors of your text believe governments can encourage innovation by supporting the pillars that enable innovation. Which of the following is not one of those pillars.

Government financing

Sometimes you just have to start from scratch. In such cases, this particular process allows you to create the exact business facilities you need -- if you have the money. What type best matches these comments?

Greenfield Ventures

There are a number of generic corporate-level strategies that a firm may use to establish and defend their desired strategic position against rival firms. Which of the following emphasizes the purchase or creation of business interests directly related to the primary business? For example, a food company might purchase or create additional food brands that complement its existing core product lines.

Horizontal scope

Which of the following entries does reflect a fact related to indirect currency exchange?

If one is in Great Britain trading for U.S.currency, the structure of the trading statement would be like this: USD/GBP.

Which of the following parties is not a central actor in export and import transactions?

Immigration and security officials

Which of the following elements is not an IPR protection noted in this chapter? NOTE: This is also an IPR but not one discussed in this chapter.

Industrial Design Rights

There are a number of generic business-level strategies that a firm may use to establish and defend their desired strategic position against rival firms. Which of the following emphasizes quality, economy, and product factors for the customer?

Integrated cost-leadership and differentiation

When you consider how to expand your business overseas, which of the following is not a question of how this would be accomplished?

Is there a positive economic logic?

Job design, when done well, can help in all of the following ways except one. Identify that one.

It helps make clear what type of employee incentives will be necessary to motivate employees.

Which of the following is not a reason companies engage in countertrade?

It's one way to avoid the purchase of low quality goods.

Which of the following economists were behind the rework of the international economic system in 1944?

John Maynard Keynes and Harry Dexter White

A key danger of this form of overseas entry to a market is often the potential loss of intellectual property that would then allow the putative partner to become a competitor. In so doing,the offending party will use the stolen ideas and processes against its former partner. Which business type best matches these comments?

Joint Ventures

hese contracts specify the terms and payment associated with trade between an importer and an exporter. It is made between banks or branches of the same bank.

Letter of credit

This form of overseas entry to a market involves the use of permissions granted to a foreign company to use intellectual property rights under defined conditions.

Licensing

The advantages and processes of global sourcing do not include one of the following. Identify that element below.

Multiple sourcing is a requirement when sourcing globally.

Which of the following statements does not reflect a disadvantage of multisourcing?

Negotiating lower rated pits one supplier against others.

According to your text, which of the following is not a MYTH related to entrepreneurs.

They're successful because they actively seek out opportunities.

Accounting standards can be complex; and this makes modification of standards difficult. In addition, differing practices among various nations add to the complications of a unified accounting format. Which of the following countries has standards that does not focus on the interests of banks rather than the interests of individual investors?

United Kingdom

Accounting standards can be complex; and this makes modification of standards difficult. In addition, differing practices among various nations add to the complications of a unified accounting format. Which of the following countries has standards that focus on the interests of individual investors?

United States

Sometimes it's cheaper to do this than to have a partner. Sometimes a company might by their former partner, resellers, early partners, etc. Which business type best matches these comments?

Wholly-Owned Subsidiaries via the purchase of an existing company

This organization is one of the oldest international organizations in the world and works to negotiate some trade barrier issues between companies. They've been effective, but they've often been slow.

World Customs Organization

The _________________________________ is the global nongovernmental organization tasked with coordinating and marshaling efforts to harmonize intellectual property rights among countries and regions.

World Intellectual Property Organization

Which of the following would you recommend in situations where there's little money for research and develop but the company is willing to bear higher product costs in the future?

a straight product extension

Many companies seek business from the World Bank. This includes large consulting firms like McKinsey, BearingPoint, and PricewaterhouseCoopers. Which of the following degrees are most sought after by these organizations?

business

The advantages of a _________________ structure are that the company can afford to hire and retain specialized staff who have deep expertise and can bring savings to the company through centralized cash management and more efficient capital investment. This also enables the firm to gain economies of scale for investment and borrowing activities that will reduce transaction costs and get the firm the most competitive pricing.

centralized

Which of the following is not a primary reason for FX markets to exist?

currency abatoir

What are the BRIC countries cited by your authors in this chapter?

specific countries: Brazil, Russia, India, and China

Currency exchange markets use some of the same terms as those found in equity and other markets. In the case of currency, there is always one currency that is being traded for another currency. In this process, there are also costs. Which of the following terms is not normally applied to this currency exchange process?

speculation ratio

When looking to trade currencies immediately and without previous contracts or investements, one will normally apply which of the following?

spot rates

The World Bank has two primary parts. Which of the following correctly identifies one of these parts?

the International Development Association

The International Bank for Reconstruction and Development (IBRD) was formed in 1944. Later activity led this organization be called something else. What is this organization called more commonl

the World Bank

According to your text, when considering the expansion of a business overseas which of the following is usually not a reason for the expansion?

to increase the overall penetration of business as a means of comparative advantage

Your company leaders based their marketing decisions on the results they'd seen with your new product in the markets nearest your company's home office. Which of the following would you see as being employed in this situation?

an approach that considers country-of-origin effect

There is an obvious demand for a product that doesn't yet exist in Country X. Knowing that your company has the research and development funds as well as the desire to entire the market. Which of the following would you recommend in this situation?

an effort to invent something new

One way to deal with the problem of currency fluctuations involves a practice in which...

an exchange rate is agreed upon by two parties for a future exchange of currency some specific point in the future, usually 30 days, 60 days, 90 days, or 180 days in the future.

Which of the scenario planning steps involves defining two dimensions of greatest uncertainty?

Step 3

Which of the following is an example of an innovation contest?

The XPRIZE Foundation made a challenge to researchers. For $10 million be the first team to meet the following criteria: "Build a reliable, reusable, privately-financed, manned spaceship capable of carrying three people to 100 kilometers above the Earth's surface twice within two weeks."

According to your text, which of the following is not part of the entrepreneurial process, though it might make sense to include?

risk evaluation

Multinational firms have a choice in how they finance international operations. Some choose to raise capital through equity markets, issuing stock on domestic or overseas stock exchanges. Others opt for debt financing through banks or bond markets in order to not give up ownership in the firm. Which of the following is an example of raising capital through equity markets?

selling shares in a stock exchange

Which of the common international expansion entry mode listed below best fits the following definition? It has fast entry and provides established operations from the outset.

Acquisition

According to your text, the principles of management can be distilled down to four critical functions. Which of the following is not one of those functions?

Administering

Multinational firms can issue bonds in overseas markets as well as in their home countries. Even China now has an active bond market. According to your text, which of the following is not mentioned as a relevant element of this new market?

After 2010, this market was responsible for the rapid growth of Chinese business interests throughout the country.

According to your text, which of the following is not a global financial center?

Beijing

These contracts specify a great deal related to the exchange of goods including the date of payment, the date of shipping, the means of shipping, etc. They are often used by banks to complete sales between two companies.

Bill of lading

This method used to enter a new market involves the reuse of existing structures and equipment that is not currently in use. What type best matches these comments?

Brownfield Ventures

As the old saying goes, "Money makes the world go around." That's true of business as well. To that end, this chapter discusses financing options. Your chapter discusses bootstrapping as a means to pull together funds outside of traditional financing options. This may get a business started, but many forms of bootstrapping present significant personal risk too. Which of the following is not a form of bootstrapping a business referenced in your textbook?

Business financing loans

Among the most populated countries the World Bank has identified those that are easiest to do business and those that aren't. Among the most populous countries, which of the following is not one of the countries identified by the World Bank as being friendly?

Cote d'Ivoire

Sometimes countries must trade products or services instead of currency. This is called?

Countertrade

Which of the following is not one of those functions that is highly correlated to exceptional financial performance, according to the discussion in Chapter 12?

Creating a financial competence in new employees

There are four predictors of a manager's ability to succeed as an expatriate: 1. Self-orientation, 2. Others orientation, 3. Perceptual ability, and 4. Cultural toughness. Which of these concepts is most consistent with the following example? Interviews and counseling suggest the candidate has the ability to adapt to other cultures and locations, in part because he or she understands and is secure in their native culture. They don't need to be defensive about their own culture and aren't easily offended. However, they aren't apologetic about it either.

Cultural toughness

Which of the following countries is not mentioned in the U.S. Trade Representative list in its 2010 Priority Watch list as being the worst offenders of international intellectual property rights?

Czech Republic

Your text discusses a number of issues that are important to one specific business uses when hiring new employees that are likely to excel at customer service. Which of the following is not one of those listed by the authors?

Degrees and certifications

There are a number of generic business-level strategies that a firm may use to establish and defend their desired strategic position against rival firms. Which of the following emphasizes the use of distinctive product factors to appeal to the customer?

Differentiation strategy

Which of the following items are not part of the Phase 1 Global Start-up Assessment?

Do I have a strong management team with international experience?

Which of the following is essential if one hopes to create a successful business operation overseas? It doesn't matter if this is an internet-based business or involves the purcahse of a new company overseas.

Due diligence

If someone told you one Euro could currently by 1.04 U.S. dollars in the FX market, which of the following symbols would you expect to see on the trading board?

EUR 1/USD 1.04

Which of the following words comes from the French word meaning "to undertake"?

Entrepreneur

Which of the following have traditionally been seen as being different than the average small-business owner because of their reliance on innovation and speed?

Entrepreneurs

Which of the terms below is best associated with the following definition: _________________ are sometimes seen as people of very high aptitude who pioneer change.

Entrepreneurs

Which of the following isn't an aspect of due diligence when one is considering international business expansion?

Examining the "rule of law"

Which of the common international expansion entry mode best fits the following definition? It has fast entry with low risk.

Exporting

Which of the following is not a reason for foreign exchange (FX) markets to exist?

FX markets provide a means for parties to earn interest on currency.

Which of the following is not a primary strategic theme of the World Bank?

Facilitating the expansion and balanced growth of international trade

Which of the following is not a role of the IMF?

Poverty reduction and sustainable growth in the poorest countries

There are some functions that are consistent across all organizations. Thus, they apply to international companies too. Which of the following is not one of those functions specified in Chapter 12?

Professional development

Which of the following statements about marketing decision making represents a benefit not consistent with a centralized structure?

Regional managers are able to adapt to local marketing conditions without central office approval.

Which of the following is neither an aspect of hard criteria nor soft criteria?

Risk adversity

There are four predictors of a manager's ability to succeed as an expatriate: 1. Self-orientation, 2. Others orientation, 3. Perceptual ability, and 4. Cultural toughness. Which of these concepts is most consistent with the following example? A candidate is intrinsically driven and secure within her own "skin", her own history, and her own abilities.

Self-orientation

Multinational firms choose to raise money in foreign markets for a number of reasons. Which of the following was not addressed in your text?

Sell shares to existing clients outside of public markets

These contracts specify the performance levels an outsourcer must meet to fulfill their duties to the company that engaged their services.

Service-level agreements

These contractual instruments specify the nature of payment. Which of the following fits a situation in which an exporter offers an importer a bill of exchange that requires the importer to be paid as soon as this document is presented?

Sight draft

Which country was invited but refused to join the IMF at its inception?

Soviet Union

Managers may want to choose an expatriate when certain situations or needs exist. Which of the following is not a reason that suggests the need to hire an expat?

The corporate strategy is focused on multidomestic or market-oriented operations.

Firms that use expatriates to staff international operations must be aware of and prepare for the possibility of expatriate failure, which means that the expatriate returns to the home country before completing the international assignment. Researchers estimate the expatriate failure rate to be 40 percent to 55 percent. What is the most common reason for these failures?

The expatriates or their families are unable to adapt to the foreign culture.

Which of the following is not cited by your text as being true of research and development?

The heyday of American R&D labs came in the 1960s and early 1970s.

Innovation hubs promote all but which of the following elements?

They can encourage greater financing for the work being done there.

Selecting the right employees and placing them in the right positions within the company is a key human resources management function and is vital to a company's success. Companies should devote as much care and attention to this "soft" issue as they do to financial planning, because errors will have a financial impact and adverse effects on a company's strategy. An accurate and complete job description is a powerful strategic human resources management tool that costs little to produce and can save a bundle in reduced turnover. While the realistic description may discourage some applicants, those who follow through with the application process are much more likely to be satisfied with the job once hired. Which of the following is not one of the recommendations made for creating effective job descriptions?

Use multiple languages to ensure the greatest diversity and best understanding of information.

There are a number of generic corporate-level strategies that a firm may use to establish and defend their desired strategic position against rival firms. Which of the following emphasizes the use of bundling complementary products of different types? This is often seen in companies that establish divisions or affiliated companies that are related to the primary customer but provide multiple income streams. For example, a car company may produce cars for sale, but they also make parts, provide financing, offer insurance, and other related income streams.

Vertical scope

Your chapter proposes a basic business plan template that includes which of the following? Select the one that does not apply. (NOTE: Many of the items listed below should be part of a plan, even though there not listed in your text.)

Vision statement

Which of the following is not a question posed when asking whether a company should proceed with international expansion?

What new countries fit your differentiation?

In addition to having an appropriate degree, which of the following is not one of the skills or experiences your text lists as a desired experience or skill for employment in consulting firms that work with the World Bank?

international travel

According to your text, there are typically three distribution strategies for entering a new market. These are very often related to the means in which a company enters a market. Which of the types below best fits the following example. Company X joins with Company Y, a long-time player in the new market, to distribute products together.

joint venture

Multinational firms often organize as separate companies in different countries to gain advantages. As a result, a multinational company may have numerous foreign subsidiaries, all owned by the parent. A consolidated financial statement brings together all the financial statements of a parent and its subsidiaries into a single financial statement. The consolidated financial statement must reconcile all the investment and capital accounts as well as the assets, liabilities, and operating accounts of the firms. Consolidated financial statements demonstrate that firms — although legally separate from the parent and each other — are in fact economically interdependent. The following list includes several reasons that benefit multi-national companies for following this practice; however, one is incorrect. Select the one entry that doesn't belong.

meets national reporting requirements

According to your text, there are number of mistakes companies make when moving into a new market. These include of the following except?

not offering a unique business perspective

When one seeks to speculate on the future rise or fall of a currency but don't want to commit themselves to purchasing said currency, they will usually make use of which of the following concepts?

options

Which of the following would you recommend in situations where the sales of a product might be boosted by a change in packaging (size, colors, verbiage, etc.) that more appeals to a local audience.

product adaptation

According to your text, the role of government in terms of international business and finance includes all of the following except...

providing security that allows for stable markets free from war.