21. Which of the following is
a sociocultural factor in the international environment?
a.
Language
b.
Exchange rates
c.
Tariffs, taxes, and
quotas
d.
Per capita income
e.
Infrastructure
ANS:
22. ____ is normally used to classify countries as developed or
developing.
a.
Exchange rates
b.
Interest rates
c.
Gross national
product
d.
Per capita income
e.
Inflation rates
ANS:
23. ____ generally are located in Asia, Africa and South America.
a.
MNCs
b.
EUs
c.
LDCs
d.
WTOs
e.
MFNs
ANS:
24. A country’s physical facilities that support economic activities
make up its ____.
a.
resource markets
b.
infrastructure
c.
physical markets
d.
product markets
e.
plants and
equipment
ANS:
25. If you built a computer company in Africa and then found that your
product was having difficulty being distributed to customers because of the
road system, your problem would be related to
a.
an inadequate
infrastructure.
b.
an economy
incapable of supporting growth.
c.
a poor resource
market.
d.
a poor product
market.
e.
none of these.
ANS:
26. Your grocery store in India is having trouble getting the local
farmers to supply you with the proper produce. This is a problem with India’s
a.
product market.
b.
resource market.
c.
infrastructure.
d.
economy.
e.
power distance.
ANS:
27. Exchange rates are included in which of the following
international environments?
a.
The legal-political
sector
b.
The economic
environment
c.
The sociocultural
environment
d.
The barter system
environment
e.
The government
sector
ANS: :
28. The legal-political environment, in international operations,
includes which of the following?
a.
Shared knowledge,
beliefs and values
b.
Political risks
c.
Social
organizations
d.
Infrastructure
e.
None of these
ANS:
29. Political risk is defined as an organization’s risk of ____ due to
politically based events or actions by host governments.
a.
loss of assets
b.
managerial control
c.
earning power
d.
all of these
e.
managerial control
and earning power only
ANS:
30. A company’s risk of loss of assets, earning power, or managerial
control due to politically based events or action by host government is
referred to as
a.
MFN.
b.
political risk.
c.
tariffs.
d.
political
instability.
e.
terrorism.
ANS:
31. Rooftop International, Inc. buys insurance against host government
takeover when investing in foreign countries. This is an example of which
sector of the international environment?
a.
Legal-political
b.
Sociocultural
c.
Technological
d.
Economic
e.
Infrastructure
ANS:
32. Which of the following is NOT a legal-political factor in the
international environment?
a.
Laws and
regulations
b.
Language
c.
Tariffs, quotas,
taxes
d.
Political risk
e.
Government
takeovers
ANS:
33. A foreign terrorist kidnaps your firm’s marketing VP while the VP
is in the host country. This is a harsh example of
a.
economic
development.
b.
infrastructure.
c.
political risk.
d.
international law.
e.
social risk.
ANS:
34. A nation’s ____ includes the shared knowledge, beliefs and values,
as well as the common modes of behavior and ways of thinking, among members of
a society.
a.
power distance
b.
culture
c.
masculinity
d.
individualism
e.
uncertainty
avoidance
ANS:
35. Cultural factors in foreign countries are ____ the political and
economic factors.
a.
easier than
b.
similar to
c.
more perplexing
than
d.
less important than
e.
none of these
ANS:
36. ____ refers to the degree to which people accept inequality in
power among institutions, organizations, and people.
a.
Power distance
b.
Uncertainty
avoidance
c.
Individualism
d.
Collectivism
e.
Masculinity
ANS: :
37. Countries whose social values reflect low power distance
a.
are highly
democratic.
b.
accept inequality
in power among institutions, organizations, and people.
c.
expect equality in
power.
d.
avoid uncertainty.
e.
none of these.
ANS:
38. A loosely knit social framework in which individuals are expected
to take care of themselves is called
a.
culture.
b.
individualism.
c.
ethnocentrism.
d.
masculinity.
e.
power distance.
ANS:
39. Collectivist values are represented in the social framework of
which of these?
a.
The United States
b.
Australia
c.
Ecuador
d.
Great Britain
e.
All of these
ANS: :
40. Austria’s cultural preference is for achievement, heroism,
assertiveness, and material success. This would be considered
a.
power distance.
b.
individualism.
c.
masculinity.
d.
ethnocentrism.
e.
collectivism.
21. Which of the following is
a sociocultural factor in the international environment?a.Languageb.Exchange ratesc.Tariffs, taxes, and
quotasd.Per capita incomee.InfrastructureANS: 22. ____ is normally used to classify countries as developed or
developing.a.Exchange ratesb.Interest ratesc.Gross national
productd.Per capita incomee.Inflation ratesANS: 23. ____ generally are located in Asia, Africa and South America.a.MNCsb.EUsc.LDCsd.WTOse.MFNsANS: 24. A country’s physical facilities that support economic activities
make up its ____.a.resource marketsb.infrastructurec.physical marketsd.product marketse.plants and
equipmentANS: 25. If you built a computer company in Africa and then found that your
product was having difficulty being distributed to customers because of the
road system, your problem would be related toa.an inadequate
infrastructure.b.an economy
incapable of supporting growth.c.a poor resource
market.d.a poor product
market.e.none of these.ANS: 26. Your grocery store in India is having trouble getting the local
farmers to supply you with the proper produce. This is a problem with India’sa.product market.b.resource market.c.infrastructure.d.economy.e.power distance.ANS: 27. Exchange rates are included in which of the following
international environments?a.The legal-political
sectorb.The economic
environmentc.The sociocultural
environmentd.The barter system
environmente.The government
sectorANS: : 28. The legal-political environment, in international operations,
includes which of the following?a.Shared knowledge,
beliefs and valuesb.Political risksc.Social
organizationsd.Infrastructuree.None of theseANS: 29. Political risk is defined as an organization’s risk of ____ due to
politically based events or actions by host governments.a.loss of assetsb.managerial controlc.earning powerd.all of thesee.managerial control
and earning power onlyANS: 30. A company’s risk of loss of assets, earning power, or managerial
control due to politically based events or action by host government is
referred to asa.MFN.b.political risk.c.tariffs.d.political
instability.e.terrorism.ANS: 31. Rooftop International, Inc. buys insurance against host government
takeover when investing in foreign countries. This is an example of which
sector of the international environment?a.Legal-politicalb.Socioculturalc.Technologicald.Economice.InfrastructureANS: 32. Which of the following is NOT a legal-political factor in the
international environment?a.Laws and
regulationsb.Languagec.Tariffs, quotas,
taxesd.Political riske.Government
takeoversANS: 33. A foreign terrorist kidnaps your firm’s marketing VP while the VP
is in the host country. This is a harsh example ofa.economic
development.b.infrastructure.c.political risk.d.international law.e.social risk.ANS: 34. A nation’s ____ includes the shared knowledge, beliefs and values,
as well as the common modes of behavior and ways of thinking, among members of
a society.a.power distanceb.culturec.masculinityd.individualisme.uncertainty
avoidanceANS: 35. Cultural factors in foreign countries are ____ the political and
economic factors.a.easier thanb.similar toc.more perplexing
thand.less important thane.none of theseANS: 36. ____ refers to the degree to which people accept inequality in
power among institutions, organizations, and people.a.Power distanceb.Uncertainty
avoidancec.Individualismd.Collectivisme.MasculinityANS: : 37. Countries whose social values reflect low power distancea.are highly
democratic.b.accept inequality
in power among institutions, organizations, and people.c.expect equality in
power.d.avoid uncertainty.e.none of these.ANS: 38. A loosely knit social framework in which individuals are expected
to take care of themselves is calleda.culture.b.individualism.c.ethnocentrism.d.masculinity.e.power distance.ANS: 39. Collectivist values are represented in the social framework of
which of these?a.The United Statesb.Australiac.Ecuadord.Great Britaine.All of theseANS: : 40. Austria’s cultural preference is for achievement, heroism,
assertiveness, and material success. This would be considereda.power distance.b.individualism.c.masculinity.d.ethnocentrism.e.collectivism.
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