question

The reasons a government may nationalize a firm include:

answer

1. extract more money 2. profitability 3. idealogy 4. job preservation 5. control 6. happenstance

question

Privately owned companies sometimes complain that government-owned companies have the following unfair advantages:

answer

1. can cut prices 2. cheaper financing 3. government contracts 4. export assistants 5. can hold down wages

question

Nationalization and privatization are:

answer

opposing trends

question

Zimbabwe is an example of:

answer

stability and instability (now its instability) all of the above

question

Government stability is a characteristic of a government that:

answer

maintains itself in power and whose fiscal, monetary, and political policies are predictable and not subject to sudden radical changes.

question

International business can be a powerful political force, in part because:

answer

about half of the worlds biggest economic units are firms, not nations

question

The trend for firms in regard to country risk assessment (CRA) is to:

answer

update and strengthen the function // concentrate much more on CRA in making decisions about foreign activities

question

What is the role of the home country in risk assessment?

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does the host country bear a friendly attitude toward the home country or not

question

The national defense argument for trade restrictions has been used in the United States to argue for restriction on imports of:

answer

footwear

question

An argument against using trade restrictions to punish an offending nation is that:

answer

sanctions seldom achieve their goal of forcing change in the offending country.

question

Dumping is:

answer

selling a product abroad for less than the cost od production, the price in the home market, or the price to third countries

question

Financial dumping is:

answer

unfair competition caused by a nation's low requirements for bank capital-assets ratio

question

New types of dumping include:

answer

social, environmental, financial services, cultural, and tax dumping

question

Anyone studying legal forces affecting international business soon realizes that:

answer

the variety of these forces complicates the task of understanding the laws

question

The existence of the rule of law in a foreign market suggests that:

answer

foreign businesses know that their interests will be protected

question

Extraterritoriality is:

answer

country's attempt to apply it laws to foreigners or nonresidents and to acts and activities that take place outside its borders

question

The Alien Tort Statute allows foreigners to:

answer

file lawsuits in U.S. courts for alleged violations of international law

question

Enforcing contracts that cross international borders is:

answer

quite complicated

question

Arbitration is a private solution that is:

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a dispute resolution mechanism that is an alternative to legislation // often preferred by foreign litigants bc it's perceived as fairer, faster, cheaper, and more confidential than courts

question

Incoterms attempt to standardize shipping agreements, and they include:

answer

1. FAS- free alongside ship-port of call 2. CIF - cost, insurance, freight, - foreign import 3. CFR- cost and freight - foreign port

question

Incoterms include:

answer

they are universal trade terminology developed by the international chamber of commerce and includes FAS, CIF, CFR

question

Legal uncertainties have affected international business, and:

answer

...

question

Usually, it is reasonable to assume that foreign law:

answer

will differ from U.S. law and must be understood

question

Intellectual property:

answer

patents, trademarks, tradenames, copyrights, and trade secrets // anything that is the result of things created by using someone's intellect

question

Patents are government grants that give the owner:

answer

the exclusive right to manufacture, exploit, use, and sell that invention or process

question

Historically, gold has been used as a way for people to store value because of its:

answer

scarcity and easily assessed level of purity

question

Sir Isaac Newton put England on the gold standard when he:

answer

established the price of gold in terms of British currency

question

Bretton Woods led to an exchange rate agreement known as the Bretton Woods System or:

answer

gold exchange standard and the fixed rate system

question

Financial forces such as inflation and taxation are considered uncontrollable because:

answer

these forces originate outside the business and are beyond its influence

question

The forward currency market:

answer

allows managers to lock in purchases of currencies at known rates

question

The present floating exchange rate system is not a totally free float because:

answer

some central banks from time to time intervene in the market to buy or sell large amounts of currency to affect the supply and demand of a particular currency

question

Market forces that set the relative prices of currencies are:

answer

...

question

Arbitrage functions to:

answer

close any gaps and make markets back at equilibrium // exploit price differences between markets, so as to profit with no risk

question

When the law of one price is applied to interest rates, it suggests that:

answer

interest rates vary to take account of differing anticipated levels of inflation

question

The international Fisher effect says that the interest rate differentials in any two currencies reflect:

answer

the expected change in their exchange rates

question

Purchasing power parity is a way to compare:

answer

the number of units of a currency // the purchasing power of several currencies

question

To fully understand why, how, and where they intend to do business, now and over time, managers must have:

answer

a clear understanding of the company's mission

question

International strategy:

answer

the way firms make choices about acquiring and using scarce resources in order to achieve their international objectives

question

To create a competitive advantage that is sustainable over time, the international company should try to develop competencies that:

answer

1. create value 2. are rare 3. are difficult to imitate or substitute for 4. are organized

question

According to a survey by Bain & Company, the management tool with the highest level of satisfaction among global executives is:

answer

strategic planning

question

According to the text, the firm's ultimate manager of strategic planning is the:

answer

CEO

question

According to the text, the strategic planning process provides a formal structure in which managers will:

answer

1. analyze company's external environment 2. analyze company's internal environment 3. define company's business and mission 4. set corporate objectives 5. quantify goods 6. formulate strategies 7. make tactical plans

question

In analyzing the corporate controllable variables, management must address the question:

answer

1. Who are the company's target customer's 2. What value does the company want to deliver to the these customers 3. How will this customer value be created?

question

An assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations and intended to determine where and to what extent value is added to the final product or service is known as:

answer

value chain analysis

question

According to the text, value chain analysis focuses primarily on which question?

answer

How will this customer value be created?

question

Knowledge that an individual has but that is difficult to express clearly in words, pictures, or formulae, and therefore difficult to transmit to others, is known as:

answer

tacit knowledge

question

A broad statement that defines the organization's purpose and scope is known as a:

answer

mission statement

question

A description of the company's desired future position if it can acquire the necessary competencies and successfully implement its strategy is known as a:

answer

vision statement

question

Action plans to enable organizations to reach their objectives are known as:

answer

competitive strategies

question

When a company faces relatively weak pressures for local responsiveness and cost reductions, it should tend to use a:

answer

home replication strategy

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