question

When museums and monuments are built in order to preserve legacies of important events or people, it promotes which of the following? a. Cultural diffusion b. Caste system c. National culture d. Social mobility

answer

c. National culture

question

The United Kingdom and United states value ______, whereas Japan and South Korea value ________. a. caste system; class system b. aesthetics; ethnocentricity c. individual freedom; group consensus d. quality of life; quantity of life

answer

c. indivual freedom; group consensus

question

People from which of these cultures are casual about time and maintain flexible schedules? a. Japan b. The United States c. Northern Europe d. Latin America

answer

d. Latin America

question

Bowing to show respect in Japan is an example of which of these cultural traits? a. Tradition b. Concept c. Gesture d. Material object

answer

c. Gesture

question

Which of the following describes a behavior, often dating back several generations, that is practiced within a homogenous group of people? a. Manners b. Attitude c. Popular custom d. Folk custom

answer

d. Folk custom

question

A ___________ is a system of social stratification in which people are born into a social ranking, with no opportunity for social mobility. a. moksha b. class system c. caste system d. kosher

answer

c. caste system

question

Which of these religions is the world's single largest religion? a. Jewish b. Christianity c. Islamic d. Confucianism

answer

b. Christianity

question

Which of these, according to Hofstede, describes the degree of inequality between people in different occupations? a. Power distance b. Uncertainty avoidance c. Individualism d. Collectivism

answer

a. Power distance

question

An autocratic style of management would be best received by which of the following situations? a. Low power-distance countries b. High power-distance countries c. Uncertainty avoiding countries d. Countries with high individualism

answer

b. High power-distance countries

question

An agreement in which one company provides a foreign company with a complete package of materials and service including advice and standardized operating procedures is called? a. outsourcing. b. licensing. c. direct investment. d. franchising.

answer

d. franchising.

question

Which of the following is an example of paralanguage? a. Widening your eyes b. Moving closer to the listener c. Speaking faster d. Touching while you speak

answer

c. Speaking faster

question

An arrangement in international business in which two companies, a foreign company and a local firm, invest together to create a local business is called a. joint venture. b. local assembly. c. indirect exporting. d. licensing.

answer

a. joint venture.

question

Two carmaker have developed a strange, but successful partnership. Ford, a U.S. automaker, and Mazda, an Asian carmaker, have collaborated on several models including the Explorer, the Probe, the Mazda 323, and the MX-6. The U.S. automaker has supplied Mazda with help in marketing, finance, and styling. In return, Mazda has provided manufacturing and product development expertise with Ford. Both companies have worked together toward a common goal and both have benefited as a result of their ______. a. international savvy b. international competitive expertise c. strategic alliance d. knowledge of global competition

answer

c. strategic alliance

question

Which of the following is not an advantage of licensing? a. Capital-free entry b. Low risk c. Can obtain information about the dynamics of the market d. Increased employment in the company licensing its brand or technology

answer

d. Increased employment in the company licensing its brand or technology

question

Companies which contract with a foreign firm to make products according to stated specifications are using a. direct exporting. b. indirect exporting. c. licensing. d. local manufacturing.

answer

d. local manufacturing.

question

As a firm exporting to direct investment, the relative amount of a firm's financial commitment, risk, and profit potential a. increases. b. decreases. c. remains the same. d. the risks decrease and potential for profit increases.

answer

a. increases.

question

The practice of international management is best approached from which of the following perspectives? a. historical b. Human relations c. Contingency d. Systems approach

answer

c. Contingency

question

The rules of the game for the international manager are set by a. multinational corporations. b. international trade associations. c. international political associations. d. individual countries and cultures.

answer

d. individual countries and cultures.

question

What is perhaps the most likely reason why McDonald's has expanded internationally? a. Cut costs b. find new sources of financing c. Overcome limited expansion opportunities at home d. Establish economies of scale.

answer

c. Overcome limited expansion opportunities at home

question

The entry strategy of _________ provides the least amount of risk and resource costs, but also the least control. a. exporting b. licensing c. franchising d. a joint venture

answer

a. exporting

question

An MNC that is host-country oriented is called a. ethnocentric. b. polycentric. c. geocentric. d. localcentric.

answer

b. polycentric.

question

The emergence of a largely borderless economic world has created a _______ for markets of all shapes and sizes. a. condition of chaos b. terrible business climate c. paradigm shift d. new reality

answer

d. new reality

question

A manager in Japan should realize that Japanese are motivated a. by time off. b. in groups. c. by money only. d. by public praise only.

answer

b. in groups.

question

A key to successfully implementing a "push" promotion strategy abroad is a. to create a brand loyal consumer b. a company's sales force. c. creating consumer demand through mass-media advertising. d. all of the above.

answer

b. a company's international sales force.

question

Which of the following best describes the global economy? a. Trade b. Diversity c. Interdependency d. Multinational corporation

answer

c. Interdependency

question

_____ are imitation products passed off as legitimate trademarks, patents, or copyrighted works. a. Brand name goos b. Counterfeit goods c. Foreign goods d. Intangible goods

answer

b. Counterfeit goods

question

The TRIAD market consists of which regions? a. Western Europe, Eastern Europe, and North America b. Western Europe, Asia, and the United States c. Western Europe, Asia, and North America d. Europe, Southeast Asia, and the Americas

answer

c. Western Europe, Asia, and North America

question

The risk of expropriation is highest in countries that a. have a large number of MNC's operating. b. experience continuous political upheaval. c. have low levels of education and economic development. d. have unstable economies.

answer

b. experience continuous political upheaval.

question

All of the following are examples of domestic economic conditions except a. size of population. b. economic growth over the last five years. c. availability of energy resources. d. legal protection of brands.

answer

d. legal protection of brands.

question

A country's ability or intention to meet its financial obligations determines its a. economic risk. b. political risk. c. expropriation risk. d. appropriability risk.

answer

a. economic risk.

question

Which of these is essential to production in any country? a. Availability of labor b. Tariffs and quotas c. Governmental control d. Local financing

answer

a. Availability of labor

question

Governmental regulation and government bureaucracy are important factors evaluated in which of these steps of the market / site screening process? a. Identify basic appeal b. Measure market / site potential c. Assess the infrastructure d. Assess the national business environment

answer

d. Assess the national business environment

question

Tariff serve primarily to a. encourage foreign trade. b. equalize production capacity. c. raise prices on imports. d. limit the amount of goods leaving the domestic market.

answer

c. raise prices on imports.

question

Limits placed on foreign producers which guarantee that approximately 50 percent of the U.S. sugar market be reserved for American sugar growers is an example of a. tariffs. b. blocked currency. c. quotas. d. excise taxes.

answer

c. quotas.

question

The use of the Internet raises difficult questions about a. ownership of intellectual property. b. taxation. c. residence location. d. all of the above.

answer

d. all of the above.

question

Which of these is the main political motive behind government intervention in trade? a. Promotion of a strategic trade policy b. Protecting jobs c. Protection of national identity d. Protecting young industries from competition

answer

b. Protecting jobs

question

Which of these industries is typically protected for national security reasons? a. Agriculture b. Textile c. Cosmetic d. Housing

answer

a. Agriculture

question

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. domestic c. export d. import

answer

a. transit

question

A ban on trade in one or more products with a particular country is called a(n) a. embargo. b. tariff-quota. c. tariff. d. export restraint.

answer

a. embargo.

question

Fluctuations in _______ among the world's currencies are of critical importance in global marketing. a. immigration b. reciprocity c. exchange rates d. equity

answer

c. exchange rates

question

If a U.S. dollar had been worth 2 German marks in 1999 and 4 German marks in 2000, then American goods would have been _______ expensive in Germany in 1999 than in 2000. a. more b. less c. equally as d. cannot be determined with the information given

answer

b. less

question

Personnel directors typically select potential expatriates on the basis of a. their ability to speak more than one language. b. their ability to adapt to different cultures. c. their desire to learn another culture. d. their domestic track record and technical expertise

answer

d. their domestic track record and technical expertise

question

Managers prefer that exchange rates be a. stable. b. freely floated. c. volatile. d. unpredictable.

answer

a. stable.

question

Which is the final stage of the culture shock process? a. Gradual adjustment b. The honeymoon stage c. Biculturalism d. Irritation and hostility

answer

c. Biculturalism

question

When a country has a weak currency relative to other nations, it makes imports ___________ relative to domestic products. a. more expensive b. equitable in price c. more attractive d. less expensive

answer

a. more expensive

question

All of the following a barriers to a global staffing policy, except a. staff availability. b. corporate strategy. c. cost constraints. d. host government requirements.

answer

b. corporate strategy.

question

Among older Japanese women, a management position a. was a great honor. b. caused her husband loss of face. c. was common for college educated women. d. All of the above

answer

b. caused her husband loss of face.

question

What is the term for a firm selling a product in a foreign country below its domestic price or below its actual cost? a. Competition b. Monopolistic practice c. Globalization d. Dumping

answer

d. Dumping

question

European nations are most likely to use which type of law? a. Common b. International c. Statutory d. Civil

answer

d. Civil

question

Under what form of law are past court decisions used as precedents? a. Religious law b. Civil law c. Common law d. Statutory law

answer

c. Common law

question

The modern Western system of _________ is technically illegal in Moslem nations.` a. steel b. consumer products c. textiles d. banking

answer

d. banking

question

Seizure of assets falls into all of these categories except a. confiscation. b. local content requirements. c. expropriation. d. nationalization.

answer

b. local content requirements.

question

Which of these is the policy of hiring people to represent a company's views on political manners? a. Partnership b. Lobbying c. Bilateral agreement d. Localization

answer

b. Lobbying

question

The Foreign Corrupt Practices Act forbids U.S. companies from ____________ government officials or political candidates in other nations. a. lobbying b. politically influencing c. bribing d. contacting

answer

c. bribing

question

A ____________ is a right granted to the inventor of a product or process that excludes others from making, using, or selling the invention. a. patent b. trademark c. civil right d. copyright

answer

a. patent

question

The Nike "Swoosh" is a a. patent. b. fad. c. copyright. d. trademark.

answer

d. trademark.

question

The main of privatization is to a. lower the responsibility and accountability. b. increase economic efficiency. c. increase subsidiaries to companies. d. slow the economic growth.

answer

b. increase economic efficiency

question

In 1999, the U.S. government brought charges against Microsoft for which of these? a. To enforce antitrust laws b. For having too much money c. To reduce competition d. For laying off too many people

answer

a. To enforce antitrust laws

question

When one company is able to control a product's supply-and therefore its price-it is considered a(n) a. government-owned company. b. monopoly. c. underground-controlled company. d. supply-driven company.

answer

b. monopoly.

question

In a countertrade exchange, PepsiCo trades soft drink concentrate with Russia for a. exclusive rights to future Pizza Hut and Taco Bell franchises. b. information of MIA's from the war in Vietnam. c. Stolichnaya Vodka. d. Beluga Caviar.

answer

c. Stolichnaya Vodka.

question

A process that involves the study of similarities and differences among consumers in two or more nations or societies a. international attitude evaluation. b. multigraphic societal scanning. c. polyphasic anthropology d. cross-cultural analysis

answer

d. cross-cultural analysis

question

The reverence that Japan shows towards its elderly is an example of the nation's a. values. b. beliefs c. customs. d. religion.

answer

a. values.

question

The number 13 is considered "unlucky" in America whereas the number 4 is considered "unlucky" in Japan. This is an example of differences in a. cultural symbols. b. values. c. ethics. d. morals.

answer

a. cultural symbols.

question

If you were responsible for marketing communications a Paper Mate, the pen manufacturing company, and had to provide product literature to distributed in France, you would be wise use what is called "___________", whereby you have your literature translated from American English into French, and then from French into American English by someone in France. a. back talk b. back translation c. double talk d. double indemnity

answer

b. back translation

question

Since global marketing is affected by economic consideration, a scan of the global marketing should include a. a comparative analysis of the economic development in different countries. b.an assessment of the economic infrastructure in the countries. c. consumer income in different countries. d. all of the above.

answer

d. all of the above.

question

Wrigley's Gun distributes its products in identical form in all the countries in which it markets. This is an example of which type of international marketing strategy? a. Extension b. Customized c. Adaptation d. Invention

answer

a. Extension

question

The majority of the total world merchandise trade occurs a. between high-income countries and low- and middle-income nations. b. among world's high-income economies. c. among low- and middle-income nations. d. among the emerging markets.

answer

b. among world's high-income economies.

question

An institution that sets rules governing trade between its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions is the a. World Health Organization. b. World Trade Organization. c. International Cooperation Organization. d. League of Nations.

answer

b. World Trade Organization.

question

Just as countries and regions can discourage international trade through trade barriers, they can also encourage it through offering ______, helping on site location, and providing other services. a. lavish parties and entertainment b. bribes placed in numbered Swiss bank accounts c. prison labor d. investment incentives

answer

d. investment incentives

question

Hungary has offered a five-year "tax holiday"-a period during which no corporate taxes will be assessed-to encourage foreign firms to develop manufacturing facilities there. What is the term for this in international business. a. Global cooperation b. Trade incentive c. Bribery d. Countertrade

answer

b. Trade incentive

question

When a country is not able to produce a good more efficiently than another, but produces the good more efficiently than any other goods, it is said to have a(n) a. absolute advantage. b. resource problem. c. zero-sum game. d. comparative advantage.

answer

d. comparative advantage.

question

Which of these is not a problem associated with the infant industry argument? a. It can cause domestic companies to become overly innovative. b. Once protection of an industry is given, it can be politically difficult to eliminate it. c. Protection can do more economic harm than good. d. Governments are required to distinguish between industries that are worth protecting and those that are not.

answer

a. It can cause domestic companies to become overly innovative.

question

The Uruguay Round of negotiations modified the original GATT treaty in all of the following way except a. intellectual property rights were clearly defined. b. the WTO was established to enforce the new GATT. c. tariffs and nontariff barriers in trade in telecommunications were reduced significantly. d. international trade in services was included in the GATT for the first time.

answer

c. tariffs and nontariff barriers in trade in telecommunications were reduced significantly.

question

A key component of the WTO that was carried over from the GATT is the principle of non-discrimination called a. normal trade relation. b. equality of all nations. c. equity exchange. d. fairness principle.

answer

a. normal trade relation.

question

Which form of entry into a foreign market requires the greatest commitment? a. Direct exporting b. Direct investment c. Joint venture d. Licensing

answer

b. Direct investment

question

The world's three most important financial centers are a. Bonn, Zurich, and New York. b. London, Amsterdam, and Sydney. c. New York, Tokyo, and Bombay. d. Tokyo, London, and New York.

answer

d. Tokyo, London, and New York.

question

Which of these is the market consisting of all stocks bought and sold outside the issuer's home country? a. The Eurocurrency market b. The international equity market c. The foreign exchange market d. The international bond market

answer

b. The international equity market

question

When goods are stored in a commercial warehousing facility the parties to the contract have entered into what type of agreement? a. A bailor-benefit bailment b. A bailee-benefit bailment c. A mutual benefit bailment d. A commercial benefit

answer

c. A mutual benefit bailment

question

A _____ is a system of social stratification in which people are born into a social ranking, with no opportunity for social mobility. a. moksha b. class system c. caste system d. kosher

answer

c. caste system

question

Foreign countries with very low per capita incomes may, nonetheless, be attractive markets for expensive goods. Mexico, for example, has an average income of less than $1,000 but is a good market for luxury automobiles. The reason is a. consumers spend more than they can afford b. foreign consumers save more than U.S. consumers c. currency exchange rates d. income is unevenly distributed

answer

d. income is unevenly distributed

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