Role Of Internet In International Business – Flashcards
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Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek export opportunities. These firms can best overcome ignorance by:
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collecting information.
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Countertrade is most likely to be used when:
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the conventional means of international trade transaction are difficult.
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While seeking opportunities for profitable exporting, large firms generally tend to be:
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proactive.
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The most comprehensive source of information on export opportunities for U.S. firms is the:
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Department of Commerce.
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Which of the following is an advantage of having a letter of credit?
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It facilitates an exporter to obtain pre-export financing.
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Which of the following is a hidden cost to basing production in a foreign location?
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Poor product quality
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Which of the following holds true for products with low value-to-weight ratios?
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It is advisable to manufacture them in multiple locations close to major markets.
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Which of the following is a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company?
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Six Sigma
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Manufacturing firms should typically aim at lowering the costs of value creation by:
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reducing production costs.
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Which of the following firms should spread its production over decentralized locations?
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Saturn Inc. operates in an industry where volatile fluctuations in important exchange rates are expected.
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Concentration of production makes most sense when:
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trade barriers are low.
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Six Sigma refers to a statistically based philosophy that aims to:
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eliminate waste.
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Which of the following increases when a company achieves mass customization via flexible manufacturing technologies?
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Customer responsiveness
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Which of the following firms should concentrate its production in a centralized location?
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Jupiter Inc. operates in an industry where the fixed costs are high and services of supporting industries are of prime importance.
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The concept that as plant output expands, unit costs decrease, is known as:
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economies of scale.
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The level of output at which most plant-level scale economies are exhausted is known as:
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minimum efficient scale.
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Which of the following refers to the use of price as a competitive weapon to drive weaker competitors out of a national market?
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Predatory pricing
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Which kind of distribution channel is difficult for outsiders to access?
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Exclusive
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The number of intermediaries between the product (or manufacturer) and the consumer is referred to as:
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channel length.
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Which of the following refers to choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets?
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Marketing mix
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Which of the following factors limits a firm's ability to use the same marketing message?
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Cultural differences
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Which strategy refers to the means that a firm chooses for delivering a product to its consumer?
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Distribution
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Which of the following refers to the fact that a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market?
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Multipoint pricing
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If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what kind of products would it most likely sell?
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Industrial products
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Which of the following refers to identifying distinct groups of consumers whose needs, wants, and purchasing behavior differ from others in important ways?
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Market segmentation
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Which of the following factors constrains the globalization of markets?
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Differences in technical standards
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Which of the following communication strategies relies primarily on mass media advertising as opposed to personal selling?
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Pull strategy
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Which of the following is an element of a firm's marketing mix?
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Product attributes
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According to Mendenhall and Oddou, what is the major problem in the selection of appropriate candidates for overseas assignments in many firms?
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Equating domestic performance with overseas performance potential
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The staffing policy that requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters, is called:
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polycentric.
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Which of the following staffing policies relies extensively on the use of expatriate managers?
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Ethnocentric
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Which of the following staffing policies is followed by firms that can reduce the issue of compensation to that of how much home-country expatriates should be paid?
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Ethnocentric
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Which of the following staffing approaches limits career mobility and isolates headquarters from foreign subsidiaries?
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Polycentric
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Which of the following staffing policies is pursued by firms where the lack of managers' mobility among national operations implies that the pay for expatriates should be kept country-specific?
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Polycentric
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Which of the following staffing approaches is compatible with an international strategy?
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Ethnocentric
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Which of the following staffing policies limits a firm's ability to reduce its use of expatriates?
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Geocentric
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Which of the following staffing policies is concerned with the need for a cadre of international managers that may include many different nationalities?
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Geocentric
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A firm that adopts a polycentric staffing policy is less likely to:
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suffer from cultural myopia.
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According to the results of a seminal study by R. L. Tung, the top reason why Japanese expatriate managers fail is:
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the inability to cope with larger overseas responsibilities.
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Which of the staffing policies requires all the expatriates to be home-country nationals who are transferred abroad?
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Ethnocentric
