Question: The opening case in the text that profiles the rise of the automobile industry in India mentions that Nissan has invested in a new factory close to Hyundai’s in the southern city of Chennai. If it were to be assumed that Nissan chose the manufacturing location based on the ready availability of an appropriately skilled labor pool and supporting industries, it could be said that Nissan was leveraging A Cultural factorsB ExternalitiesC Exchange ratesD FDI regulations
Question: Which of the following is true about the incidence of countertrade? A During the 1980s, countertrade sharply declined in popularity among developing nationsB Today, some successor states to the former Soviet Union periodically use countertradeC In the modern era, countertrade arose in the 1980sD In the modern era, countertrade arose as a way for the United States to purchase imports
Question: Which of the following is not a distinct countertrade arrangement? A BarterB CounterpurchaseC Switch tradingD Merger
Question: What limits a country’s ability to use the same marketing message and selling approach worldwide? A Source effectsB NoiseC Cultural differencesD Globalization
Question: Japanese businessman, Ohno Taiichi, saw numerous problems with Toyota’s mass production philosophy for making cars. Which of the following is one of the problems? A Short production runs created a scarcity of inventoriesB It hampered the achievement of economies of scaleC Inability to accommodate consumer preferences for product diversityD It resulted in antagonizing workers in the United States
Question: If a firm is trying to create value by transferring core competencies to a foreign operation, it may believe that the best way to do so is to transfer parent-country nationals who have knowledge of that competency to the foreign operation. This is a reason for the firm to pursue a(n) _____ staffing policy. A EthnocentricB PolycentricC GeocentricD Regiocentric
Question: Which of the following is an advantage of adopting a geocentric staffing approach? A The multinational composition of the team reduces cultural myopia and enhances local responsivenessB It is inexpensive to implementC It reduces the costs of value creationD The firm may believe the host country lacks qualified individuals to fill senior management positions
Question: Clive, who was working as a manager in India, was a little shocked to receive a negative feedback for his lack of expertise and aptitude to take effective decisions. All that he had to say was that he had tried to involve his team in participative decision making and that this might have led them to think so. Clive’s negative feedback could be attributed to _____. A Ineffective transfer of skillsB Cultural myopiaC Unintentional biasD Poor expectation setting
Question: Because of the improved communication and transportation infrastructures and the education level of the population during the past 20 years, many international businesses view foreign factories as A Low-cost manufacturing facilitiesB Globally dispersed centers of excellenceC LiabilitiesD Sweatshops
Question: According to the results of a study by R.L. Tung, the number one reason that Japanese expatriate managers fail is A The inability of spouse to adjustB The lack of technical competenceC Personal or emotional problemsD The inability to cope with larger overseas responsibilities
Question: With regard to the types of allowances often included in an expatriate’s compensation package, a(n) _____ allowance is paid when the expatriate is being sent to a difficult location. A EducationB HousingC HardshipD Cost-of-living
Question: The use of price as a competitive weapon to drive weaker competitors out of a national market is called A Multipoint pricingB Predatory pricingC Forward pricingD Supra-competitive pricing
Question: In countries such as Great Britain, Germany, and the United States A Channel lengths are short and the retail system is fragmentedB Channel lengths are short and the retail system is concentratedC Channel lengths are long and the retail system is fragmentedD Channel lengths are long and the retail system is concentrated
Question: Which of the following two international strategies are most compatible with a geocentric staffing policy? A Global standardization and transnationalB Localization and transnationalC International and multidomesticD Global standardization and multidomestic
Question: Why is barter not a common arrangement? A It is a very complex arrangementB It is primarily used with trading partners who are generally not considered creditworthyC Firms run the risk of having to accept goods they do not wantD When the goods are exchanged simultaneously, one partner ends up financing the other
Question: Which of the following is one of the advantages that accrue to a firm that buys component parts from independent suppliers? A It facilitates the scheduling of adjacent processesB It protects proprietary production technologyC It can facilitate investments in highly specialized assetsD It may help capture orders from international customers
Question: The rapid development of the Internet in recent years has helped to A Shorten channel lengthB Temporize channel lengthC Concentrate the retail systemD Fragment the retail system
Question: In poor nations A Direct selling may be the only way to reach consumersB A pull strategy is generally favoredC A product’s attributes are well understoodD High-quality channels exist that provide point-of-sale assistance
Question: Which of the following is the most notable trend in the global retail industry in the last decade? A SegmentationB FragmentationC ShrinkageD Consolidation
Question: In which of the following instances does concentration of production make most sense? A Location externalities are not importantB The production technology has low fixed costsC Important exchange rates are expected to remain relatively stableD Flexible manufacturing technology is not available Not 100% certain on this one though
Question: One aspect of a(n) _____ staffing policy is the need for a cadre of international managers that may include many different nationalities. A PolycentricB GeocentricC EthnocentricD Regiocentric
Question: _____ refers to the extent to which the place of manufacturing influences product evaluations. A Noise barriersB Country of origin effectsC Social effectsD Host country effects
Question: Which of the following is an advantage of adopting a polycentric staffing approach? A It may be less expensive to implement compared to other approaches, reducing the costs of value creationB Host-country nationals have unlimited opportunities to gain experience outside their own countryC It enables the firm to make the best use of its human resourcesD It enables the firm to build a cadre of international executives who feel at home working in a number of cultures
Question: Time drafts A Have no value given the deferred nature of documentB Are generally not preferred in international transactionsC Are negotiable instrumentsD Are also called bills of lading
Question: What is the main attraction of countertrade? A Firms can avoid setting up in-house trading departmentsB It addresses the issue of lack of trust in international businessC A firm can finance an export deal when other means are not availableD Firms usually would not prefer to be paid in hard currency
Question: When managers in an international business consider market segmentation in foreign countries, they need to be cognizant of the differences between countries in the structure of market segments and existence of market segments that A In the home countryB Transcend national bordersC Are divided by genderD Are based on home market models
Question: The letter of credit A States that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documentsB Is an order written by an exporter instructing an importer to pay a specified amount of money at a specified timeC Serves as a receipt, a contract, and a document of titleD Indicates that the carrier has received the merchandise described on the face of the document
Question: Which of the following strategies is most compatible with a polycentric staffing policy? A International strategyB Global standardization strategyC Localization strategyD Transnational strategy
Question: Pull strategies tend to be emphasized for A Complex new productsB Consumer goodsC Industrial goodsD Services
Question: International businesses increasingly are using management development as a strategic tool; this is particularly true in firms pursuing a(n) _____ strategy as such firms need a strong unifying corporate culture and informal management networks to assist in coordination and control. A LocalizationB InternationalC TransnationalD Global standardization
Question: Many firms pay foreign service premiums as a percentage of base salary, ranging from _____ percent after tax. A 50 to 60B 5 to 15C 30 to 50D 10 to 30
Question: Occidental Petroleum negotiated a deal with Russia under which Occidental would build several ammonia plants in Russia and as partial payment receive ammonia over a 20-year period. This is an example of A Switch tradingB A buybackC A counterpurchaseD An offset
Question: Albania offered such items as spring water, tomato juice, and chrome ore in exchange for a $60 million fertilizer and methanol complex. Which type of countertrade is this? A OffsetB Switch tradingC BuybackD Barter
Question: Which of the following is true of price discrimination? A It exists whenever consumers in different countries are charged different prices for different productsB It involves charging whatever the market will bearC It can help a company minimize its costsD It is against economic sense to charge different prices in different countries
Question: 3M has built its export success on all of the following principles except A Adding additional product lines once export operation is successfulB Getting into a market first and then learning about the countryC Hiring locals to promote the firm’s productsD Entering on a small scale to reduce risks
Question: Which of the following is a drawback of adopting a polycentric staffing approach? A It is expensive to implementB The higher pay enjoyed by managers placed on an international fast track may be a source of resentment within the firmC It limits advancement opportunities for host-country nationalsD The gap that can form between host-country managers and parent-country managers
Question: The TQM philosophy was developed by a number of American consultants. Which of the following individuals is one of them? A Joseph JuranB Philip KotlerC Paul HarmonD mile Durkheim
Question: The global corporation A Considers the world to consist of distinct and unique entitiesB Operates at low relative costsC Operates from any one countryD Adjusts its products and practices to each country
Question: Because of formal and informal trade barriers and the uncertainties of the world’s current floating exchange rate regime, several automobile companies have established top-to-bottom manufacturing operations in three major regional markets. Which of the following is one of them? A AustraliaB AfricaC South AmericaD Western Europe
Question: A _____ is issued to the exporter by the common carrier transporting the merchandise and it serves as a receipt, a contract, and a document of title. A Bill of ladingB CollateralC DraftD Letter of credit
Question: Which of the following is a drawback of relying on an EMC? A They do not provide references and have no antecedentsB The exporting company can fail to develop its own exporting capabilitiesC They typically add little value to the exporting companyD They typically lack knowledge about the local business regulations
Question: _____, or reductions in unit costs as plant output expands, are achieved because of greater utilization of capital equipment and the productivity gains that come with specialization of employees within the plant. A Minimum efficient scaleB Production cost curveC Maximum efficient scaleD Economies of scale
Question: The mission of the _____ is to provide financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries. A Sogo shoshaB World BankC Overseas Commercial ServiceD Ex-Im Bank
Question: Which of the following is an advantage related to both a relatively low level of fixed costs and to a low minimum efficient scale? A A firm can hedge against potential adverse moves in currenciesB Products can be standardized across different national marketsC Firms can operate entirely out of their home countriesD Product manufacturing can be limited to a single location
Question: Which of the following is an advantage of a geocentric approach to staffing for international businesses? A It permits better corporate center controlB It is inexpensive to implementC It helps build a strong cultureD It helps transfer core competencies
Question: A citizen of Japan who moves to the United States to work at Microsoft would be classified as a(n) A ExpatriateB InpatriateC Third-country nationalD Host-country national
Question: When should an exporter get export credit insurance? A When the exporter is facing a situation where the importer may default on paymentB When the exporter is dealing with a country that has a nonconvertible currencyC When he is unable to obtain any pre-export financingD When the exporter has received a letter of credit from the importer’s bank
Question: Re-entry of expatriate managers into their home-country organization is termed _____. A InpatriationB NestingC RepatriationD Homing
Question: Historically, most outsourcing decisions have involved A The manufacture of physical productsB The procurement of agricultural productsC The mining of precious resourcesD The provision services
Question: In an international context, _____ exists whenever consumers in different countries are charged different prices for the same product. A Standardized pricingB Global pricingC Predatory pricingD Price discrimination
Question: The opening case in the text that profiles the rise of the automobile industry in India mentions that Nissan has invested in a new factory close to Hyundai’s in the southern city of Chennai. If it were to be assumed that Nissan chose the manufacturing location based on the ready availability of an appropriately skilled labor pool and supporting industries, it could be said that Nissan was leveraging A Cultural factorsB ExternalitiesC Exchange ratesD FDI regulationsQuestion: Which of the following is true about the incidence of countertrade? A During the 1980s, countertrade sharply declined in popularity among developing nationsB Today, some successor states to the former Soviet Union periodically use countertradeC In the modern era, countertrade arose in the 1980sD In the modern era, countertrade arose as a way for the United States to purchase importsQuestion: Which of the following is not a distinct countertrade arrangement? A BarterB CounterpurchaseC Switch tradingD MergerQuestion: What limits a country’s ability to use the same marketing message and selling approach worldwide? A Source effectsB NoiseC Cultural differencesD GlobalizationQuestion: Japanese businessman, Ohno Taiichi, saw numerous problems with Toyota’s mass production philosophy for making cars. Which of the following is one of the problems? A Short production runs created a scarcity of inventoriesB It hampered the achievement of economies of scaleC Inability to accommodate consumer preferences for product diversityD It resulted in antagonizing workers in the United StatesQuestion: If a firm is trying to create value by transferring core competencies to a foreign operation, it may believe that the best way to do so is to transfer parent-country nationals who have knowledge of that competency to the foreign operation. This is a reason for the firm to pursue a(n) _____ staffing policy. A EthnocentricB PolycentricC GeocentricD RegiocentricQuestion: Which of the following is an advantage of adopting a geocentric staffing approach? A The multinational composition of the team reduces cultural myopia and enhances local responsivenessB It is inexpensive to implementC It reduces the costs of value creationD The firm may believe the host country lacks qualified individuals to fill senior management positionsQuestion: Clive, who was working as a manager in India, was a little shocked to receive a negative feedback for his lack of expertise and aptitude to take effective decisions. All that he had to say was that he had tried to involve his team in participative decision making and that this might have led them to think so. Clive’s negative feedback could be attributed to _____. A Ineffective transfer of skillsB Cultural myopiaC Unintentional biasD Poor expectation settingQuestion: Because of the improved communication and transportation infrastructures and the education level of the population during the past 20 years, many international businesses view foreign factories as A Low-cost manufacturing facilitiesB Globally dispersed centers of excellenceC LiabilitiesD SweatshopsQuestion: According to the results of a study by R.L. Tung, the number one reason that Japanese expatriate managers fail is A The inability of spouse to adjustB The lack of technical competenceC Personal or emotional problemsD The inability to cope with larger overseas responsibilitiesQuestion: With regard to the types of allowances often included in an expatriate’s compensation package, a(n) _____ allowance is paid when the expatriate is being sent to a difficult location. A EducationB HousingC HardshipD Cost-of-livingQuestion: The use of price as a competitive weapon to drive weaker competitors out of a national market is called A Multipoint pricingB Predatory pricingC Forward pricingD Supra-competitive pricingQuestion: In countries such as Great Britain, Germany, and the United States A Channel lengths are short and the retail system is fragmentedB Channel lengths are short and the retail system is concentratedC Channel lengths are long and the retail system is fragmentedD Channel lengths are long and the retail system is concentratedQuestion: Which of the following two international strategies are most compatible with a geocentric staffing policy? A Global standardization and transnationalB Localization and transnationalC International and multidomesticD Global standardization and multidomesticQuestion: Why is barter not a common arrangement? A It is a very complex arrangementB It is primarily used with trading partners who are generally not considered creditworthyC Firms run the risk of having to accept goods they do not wantD When the goods are exchanged simultaneously, one partner ends up financing the otherQuestion: Which of the following is one of the advantages that accrue to a firm that buys component parts from independent suppliers? A It facilitates the scheduling of adjacent processesB It protects proprietary production technologyC It can facilitate investments in highly specialized assetsD It may help capture orders from international customersQuestion: The rapid development of the Internet in recent years has helped to A Shorten channel lengthB Temporize channel lengthC Concentrate the retail systemD Fragment the retail systemQuestion: In poor nations A Direct selling may be the only way to reach consumersB A pull strategy is generally favoredC A product’s attributes are well understoodD High-quality channels exist that provide point-of-sale assistanceQuestion: Which of the following is the most notable trend in the global retail industry in the last decade? A SegmentationB FragmentationC ShrinkageD ConsolidationQuestion: In which of the following instances does concentration of production make most sense? A Location externalities are not importantB The production technology has low fixed costsC Important exchange rates are expected to remain relatively stableD Flexible manufacturing technology is not available Not 100% certain on this one thoughQuestion: One aspect of a(n) _____ staffing policy is the need for a cadre of international managers that may include many different nationalities. A PolycentricB GeocentricC EthnocentricD RegiocentricQuestion: _____ refers to the extent to which the place of manufacturing influences product evaluations. A Noise barriersB Country of origin effectsC Social effectsD Host country effectsQuestion: Which of the following is an advantage of adopting a polycentric staffing approach? A It may be less expensive to implement compared to other approaches, reducing the costs of value creationB Host-country nationals have unlimited opportunities to gain experience outside their own countryC It enables the firm to make the best use of its human resourcesD It enables the firm to build a cadre of international executives who feel at home working in a number of culturesQuestion: Time drafts A Have no value given the deferred nature of documentB Are generally not preferred in international transactionsC Are negotiable instrumentsD Are also called bills of ladingQuestion: What is the main attraction of countertrade? A Firms can avoid setting up in-house trading departmentsB It addresses the issue of lack of trust in international businessC A firm can finance an export deal when other means are not availableD Firms usually would not prefer to be paid in hard currencyQuestion: When managers in an international business consider market segmentation in foreign countries, they need to be cognizant of the differences between countries in the structure of market segments and existence of market segments that A In the home countryB Transcend national bordersC Are divided by genderD Are based on home market modelsQuestion: The letter of credit A States that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documentsB Is an order written by an exporter instructing an importer to pay a specified amount of money at a specified timeC Serves as a receipt, a contract, and a document of titleD Indicates that the carrier has received the merchandise described on the face of the documentQuestion: Which of the following strategies is most compatible with a polycentric staffing policy? A International strategyB Global standardization strategyC Localization strategyD Transnational strategyQuestion: Pull strategies tend to be emphasized for A Complex new productsB Consumer goodsC Industrial goodsD ServicesQuestion: International businesses increasingly are using management development as a strategic tool; this is particularly true in firms pursuing a(n) _____ strategy as such firms need a strong unifying corporate culture and informal management networks to assist in coordination and control. A LocalizationB InternationalC TransnationalD Global standardizationQuestion: Many firms pay foreign service premiums as a percentage of base salary, ranging from _____ percent after tax. A 50 to 60B 5 to 15C 30 to 50D 10 to 30Question: Occidental Petroleum negotiated a deal with Russia under which Occidental would build several ammonia plants in Russia and as partial payment receive ammonia over a 20-year period. This is an example of A Switch tradingB A buybackC A counterpurchaseD An offsetQuestion: Albania offered such items as spring water, tomato juice, and chrome ore in exchange for a $60 million fertilizer and methanol complex. Which type of countertrade is this? A OffsetB Switch tradingC BuybackD BarterQuestion: Which of the following is true of price discrimination? A It exists whenever consumers in different countries are charged different prices for different productsB It involves charging whatever the market will bearC It can help a company minimize its costsD It is against economic sense to charge different prices in different countriesQuestion: 3M has built its export success on all of the following principles except A Adding additional product lines once export operation is successfulB Getting into a market first and then learning about the countryC Hiring locals to promote the firm’s productsD Entering on a small scale to reduce risksQuestion: Which of the following is a drawback of adopting a polycentric staffing approach? A It is expensive to implementB The higher pay enjoyed by managers placed on an international fast track may be a source of resentment within the firmC It limits advancement opportunities for host-country nationalsD The gap that can form between host-country managers and parent-country managersQuestion: The TQM philosophy was developed by a number of American consultants. Which of the following individuals is one of them? A Joseph JuranB Philip KotlerC Paul HarmonD mile DurkheimQuestion: The global corporation A Considers the world to consist of distinct and unique entitiesB Operates at low relative costsC Operates from any one countryD Adjusts its products and practices to each countryQuestion: Because of formal and informal trade barriers and the uncertainties of the world’s current floating exchange rate regime, several automobile companies have established top-to-bottom manufacturing operations in three major regional markets. Which of the following is one of them? A AustraliaB AfricaC South AmericaD Western EuropeQuestion: A _____ is issued to the exporter by the common carrier transporting the merchandise and it serves as a receipt, a contract, and a document of title. A Bill of ladingB CollateralC DraftD Letter of creditQuestion: Which of the following is a drawback of relying on an EMC? A They do not provide references and have no antecedentsB The exporting company can fail to develop its own exporting capabilitiesC They typically add little value to the exporting companyD They typically lack knowledge about the local business regulationsQuestion: _____, or reductions in unit costs as plant output expands, are achieved because of greater utilization of capital equipment and the productivity gains that come with specialization of employees within the plant. A Minimum efficient scaleB Production cost curveC Maximum efficient scaleD Economies of scaleQuestion: The mission of the _____ is to provide financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries. A Sogo shoshaB World BankC Overseas Commercial ServiceD Ex-Im BankQuestion: Which of the following is an advantage related to both a relatively low level of fixed costs and to a low minimum efficient scale? A A firm can hedge against potential adverse moves in currenciesB Products can be standardized across different national marketsC Firms can operate entirely out of their home countriesD Product manufacturing can be limited to a single location Question: Which of the following is an advantage of a geocentric approach to staffing for international businesses? A It permits better corporate center controlB It is inexpensive to implementC It helps build a strong cultureD It helps transfer core competenciesQuestion: A citizen of Japan who moves to the United States to work at Microsoft would be classified as a(n) A ExpatriateB InpatriateC Third-country nationalD Host-country nationalQuestion: When should an exporter get export credit insurance? A When the exporter is facing a situation where the importer may default on paymentB When the exporter is dealing with a country that has a nonconvertible currencyC When he is unable to obtain any pre-export financingD When the exporter has received a letter of credit from the importer’s bankQuestion: Re-entry of expatriate managers into their home-country organization is termed _____. A InpatriationB NestingC RepatriationD HomingQuestion: Historically, most outsourcing decisions have involved A The manufacture of physical productsB The procurement of agricultural productsC The mining of precious resourcesD The provision servicesQuestion: In an international context, _____ exists whenever consumers in different countries are charged different prices for the same product. A Standardized pricingB Global pricingC Predatory pricingD Price discrimination
