Posted: May 13th, 2018

BUSN – The Nature of International Business and Cooperation

The Nature of International Business and Cooperation among NQuestions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a pagebreak, so be sure that you have seen the entire question and all the answers before choosing an answer.1. Decision making in the international environment is _______ in a purely domestic environment.A. about the same asB. less complex thanC. more complex thanD. less demanding than2. In 2010, only 23 nations had GNIs greater thanA. the sum of the GNIs of Japan, Germany, and France.B. Walmart’s total annual sales.C. the total sales of Exxon Mobil and Citigroup.D. the sum of the combined sales of Ford and General Electric.3. The United Nations organ involved in trade development, education, and health issues is theA. Secretariat.B. General Assembly.C. Security Council.D. Economic and Social Council.4. The main drivers of globalization depend onA. the foreign environment.B. domestic growth.C. change.D. cultural differences.5. An international business manager who bases decisions solely on his or her own experience or preferenceis usingA. the self-reference criterion.B. internalization theory.C. controllable forces.D. domestic standards.6. The increased internationalization of business requires _______ to have a basic knowledge ofinternational business.A. managers of multinationalsB. all managersC. managers of transnationalsD. managers of purely domestic operations7. A/An _______ is all forces influencing the life and development of the firm.A. local populationB. group poolC. environmentD. foreign exchange8. When market demand and supply regulate the exchange rate with intervention designed to moderate therate of change, it’s called a/anA. crawling peg.B. independent float.C. market method.D. fixed peg.9. What is an economy of scale?A. The price of scales exceeds the cost of producing them.B. The price of scales is lower than the cost of producing them.C. As a plant gets larger, the average cost of producing a unit of output increases.D. As a plant gets larger, the average cost of producing a unit of output decreases.10. The idea that market forces, not government controls, should determine direction, volume, and thecomposition of international trade came fromA. the Ottoman Empire.B. Milton Friedman.C. Adam Smith.D. Salvador Allende.11. The _______, a collaboration of nations pooling money to lend to countries in debt, is associated withthe United Nations.A. IMFB. IBRDC. GATTD. OECD12. The Association of Southeast Asian Nations was formed to provide members with aA. plan for mutual protection and peaceful relations.B. common market.C. way to join with China as a political force.D. free trade area.13. The organization established along with the IMF at the Bretton Woods meeting is theA. United Nations.B. Bank for International Settlements.C. World Bank.D. International Monetary Fund.14. The _______ has had a central role as a main central reserve asset of many countries, as a vehiclecurrency, and as an intervention currency.A. U.S. dollarB. yenC. British poundD. Euro15. An import duty that’s a fixed percentage of the invoice value of an imported product is called a/an_______ duty.A. ad valoremB. specificC. invoiceD. compound16. _______ can be divided into portfolio and direct investment.A. ProductionB. Exchange rate investmentC. Foreign investmentD. Domestic investment17. Defining a standard unit of currency by its equivalent in gold is calledA. coinage.B. the price specie flow.C. the gold standard.D. par value.18. The exchange rate for a currency trade for delivery within two days is called the _______ rate.A. crossB. priorityC. spotD. forward19. Treasury and Central Bank representatives met in _______ at the end of World War II and establishedthe IMF, the World Bank, and the gold exchange standard.A. JamaicaEnd of examB. BerlinC. DiekirchD. Bretton Woods20. Inflation is generally measured by calculating the changes inA. the balance of payments of 10 nations.B. interest rates.C. exchange prices.D. the prices of a variety of goods and services.500664RR – International Environmental Forces1. The risk of punitive damages in product liability cases has causedA. little change on research or new products.B. foreign companies to withhold potentially beneficial products from the U.S. market.C. U.S. companies to increase research to find safer products.D. consumers to demand that cases be heard by a judge rather than a jury.2. Using a/an _______ staffing policy, selection of the best person for each job is done without consideringnational origin.A. polycentricB. regiocentricC. geocentricD. ethnocentric3. The broad purpose of market screening is toA. keep track of competitors’ activities.B. pinpoint the most attractive prospects.C. make decisions on organizational structure.D. compare geographic and product structures.4. Payments made to expatriates to compensate for extra costs of living abroad are calledA. differentials.B. allowances.C. premiums.D. bonuses.5. ICs pay _______ when the host-country taxes are higher than home-country taxes.A. housing allowancesB. tax differentialsC. tax disincentivesD. bonuses6. Reverse brain drain, a concern of American businesspeople, is related to the trend towardA. a decline in workforce quality.B. investing in local industry.C. outsourcing to developing countries.D. discrimination in host countries.7. When skilled workers migrate in search of professional and economic opportunities, it’s calledA. brain drain.B. market forces.C. competitive labor.D. labor quality.8. Only _______ percent of ICs have repatriation programs.A. 49B. 10C. 5D. 609. Market screening is derived fromA. current market trends.B. environmental scanning.C. local sociocultural forces.D. global opportunities and threats.10. Only the continent of _______ lacks inland waterways.A. AustraliaB. AsiaC. North AmericaD. South America11. The two components of material culture are technology andA. economics.B. aesthetics.C. materials.D. purchasing.12. There are several criteria for segmenting markets. Which of the following are two criteria forsegmenting?A. Large and definableB. Unclassified and unfulfilledC. Small and elusiveD. Diverse and accessible13. The two types of market screening procedures areA. initial screening and secondary screening.B. country screening and segment screening.C. market indicators and market factors.D. trend analysis and cluster analysis.14. The initial step international business managers must take in learning to live with other cultures is toA. realize that other cultures exist and are different from their own.B. learn the language.C. make friends with natives of the country.D. visit the country.15. The International Energy Agency concluded in 2010 thatA. a worldwide energy revolution based on low-carbon technologies is under way.B. sustainable energy development was not feasible.C. oil reserves would dry up by 2020.D. oil demand must immediately drop worldwide by 10 percent.16. A combination of _______ causes the same extremes in temperature and humidity in other countries asis found in Colombia.A. tropical rain forests and plainsB. heat and moistureC. rain and fogD. mountains and lowlands17. Generally, because of higher birth and fertility rates, developing countries have more _______populations than industrial countries.A. healthyB. unhealthyC. matureD. youthful18. A commitment to actions that meet present needs without compromising the ecological, social, andeconomic needs of future generations characterizesA. socialism.B. economic stability.C. ethnocentricity.D. environmental sustainability.19. After Saudi Arabia, the country with the greatest heavy oil reserves isA. Iraq.B. Venezuela.C. Canada.D. Iran.End of exam20. Most anthropologists’ theories of culture include the proposal thatA. regional variations on culture are partially due to genetic differences.B. the beliefs, rules, and institutions of most cultures are nearly indistinguishable from each other.C. each aspect of a culture develops because of a specific, often isolated need.D. culture defines the boundaries of different groups.500666RR – The Organizational Environment, Part 11. The term for what people are doing when they put forth less effort while members of a group isA. catatonia.B. groupthink.C. individualism.D. social loafing.2. Japanese anime became a popular media in the United States due toA. American fans pulling anime in.B. Disney’s adoption of the style in its animated movies.C. heavy advertising in the United States by Japanese comic companies.D. an unusual amount of manga piracy.3. Which of the following means that goods are shipped to the buyer and payment isn’t made until they’vebeen sold?A. Bank collection time draftB. ConsignmentC. Irrevocable letter of creditD. Cash in advance4. _______ places increasing emphasis on recruiting and developing human resources.A. MarketingB. GlobalizationC. AccountingD. Localization5. Which of the following is the least costly for a buyer of exported goods?A. Cash in advanceB. Bank collection time draftC. Irrevocable letter of creditD. Open account6. A _______ strategy is often used where there’s a strong pressure to reduce costs and limited pressure toadapt products for local markets.A. transnationalB. globalC. home replicationD. multidomestic7. The Small Business Administration (SBA) provides _______ assistance.A. business development and financialB. educational and placementC. market analysis and Web developmentD. product-search and product-support8. A partnership between competitors, customers, or suppliers is called a/anA. growth triangle.B. merger.C. affiliation.D. strategic alliance.9. A _______ is an arrangement under which a company provides managerial know-how in some or allfunctional areas to another party for a fee.A. manufacturing contractB. strategic allianceC. joint ventureD. management contract10. A company in which each country’s division manager reports directly to the CEO isA. organized by geographic regions.B. a hybrid organization.C. a matrix organization.D. divided by both product and function.11. Independent businesses that handle import shipments for compensation are calledA. foreign freight forwarders.B. commerce chambers.C. customhouse brokers.D. bonded warehouse managers.12. The behaviors and processes that go along with organizing people to achieve a common purpose areseen inA. line supervisors.B. managers.C. leaders.D. chairmen of the board.13. One disadvantage of indirect exporting is thatA. licensing and red tape can delay completion of shipments.B. large cash outlays are required.C. it’s difficult to find the right agent for a firm’s product.D. the firm gains little experience from transactions.14. Incoterms were developed by the International Chamber of Commerce toA. promote trade missions.B. translate international contracts.C. facilitate legal price quotes between buyers and sellers.D. clarify terms of sale.15. Organizational _______ is a process dealing with how a company should be organized for integration,efficiency, and effectiveness.A. competitivenessB. designC. divisionD. functions16. The term tactical plans refers toA. detailed, short-term operational plans.B. broad operational plans on which strategic plans are based.C. scenarios presented as comprehensive future strategies.D. long-term strategies that address best- and worst-case scenarios.17. Manufacturers that sell products from other companies in foreign markets along with their own arereferred to asA. resident buyers.B. commission agents.C. cooperative exporters.D. export merchants.18. The difference between tacit knowledge and explicit knowledge is thatA. tacit knowledge is always expressed visually.B. tacit knowledge is difficult to express in terms of pictures or words.C. explicit knowledge is codified in numbers only.D. explicit knowledge is subjective while tacit knowledge is objective.19. The McDonald’s, Kentucky Fried Chicken, or Subway in your area is an example of aA. joint venture.B. licensed product.End of examC. strategic alliance.D. franchise.20. Residents of a country who represent various noncompeting foreign suppliers and take orders in thosefirms’ names are known as manufacturers’A. traders.B. retailers.C. agents.D. distributors.500668RR – The Organizational Environment, Part 21. The type of debt nearly always repaid in full by the borrower, with a repayment rate of 97 percent, is_______ loans.A. federally guaranteedB. company-to-companyC. micro-D. parallel2. A middle ground between an ad campaign that’s standardized worldwide and an entirely local adcampaign is called a/an _______ approach.A. hybrid advertisingB. shared-managementC. computerized-managementD. programmed-management3. The benefits of offshore financial centers includeA. high interest and low fees.B. fluctuating currency exchange rates.C. advantageous accounting practices.D. low taxes and few banking regulations.4. Which of the following adds 3–5 percent to the quoted price of a product, due to the costs of importing?A. B2B costsB. Export dutiesC. Invoice chargesD. Customhouse broker’s fees5. _______ are responsible for a shift in power from manufacturers to retailers.A. Internet advertisersB. Private brandsC. Public brandsD. Foreign environmental forces6. When a subsidiary transfers its net cash flows to a cash center that disperses the case to net receivers,the subsidiary is engaging inA. hedging.B. leading and lagging.C. transferring.D. multilateral netting.7. The Sarbanes-Oxley Act was passed by Congress in response toA. an international demand for antitrust protection.B. a need to protect U.S. citizens from foreign laws.C. the Enron scandal.D. product liability lawsuits.8. Taking a position in one market to offset exposure to price changes in an opposite position is calledA. consolidation.B. centralization.C. hedging.D. diversification.9. Developing countries frequently see the use of used equipment in production asA. evidence the company will produce inferior products.B. a means to employ more people who will be hired to fix broken equipment.C. assurance the equipment has done its job elsewhere.D. evidence the company doesn’t want to take chances on untried technology.10. _______ exposure is a currency exchange risk resulting from exposure during the consolidation ofsubsidiary financial statements.A. TranslationB. ParallelC. DerivativeD. Temporal11. The attitudes of governments toward transfer pricing isA. indifference.B. academic interest.C. suspicion.D. encouragement.12. The basic cultural decision a marketer has to make when placing a product in a foreign country iswhetherA. social taboos are implied by the product’s name.B. the product will be used by men or women.C. the advertising for the product will be tasteful enough for the foreign audience.D. to position the product as foreign or local.13. Applying a total systems approach to managing the flow of materials, information, finances, andservices in a value chain is calledA. luxury brand development.B. supply chain management.C. information and technology management.D. organizational realignment.14. Including such items as maintenance, repair, operating supplies, office equipment, and other servicesand supplies, indirect procurement can account for as much as _______ percent of the total purchasingexpenditures in companies.A. 50B. 25C. 80D. 7015. Swedish safety requirements for machinery operatorsA. make imports of Swedish products popular in the U.S.B. are difficult to pin down because they vary from one machine to another.C. make exporting U.S. machines to Sweden very easy.D. are stricter than those imposed by the U.S. Occupational Safety and Health Act.16. When companies report on environmental and social, as well as financial results, it’s calledA. convergence.B. triple bottom line.C. global edge.D. parallel management.17. Relocating activities a company used to do in-house to another country is calledA. offshoring.B. outsourcing.C. immigration.D. emigration.18. Global retailing requires that the company pay particular attention to _______ in distribution strategies.A. use of animal skins in productsB. product loyaltyC. localizationD. native company competition19. Which of the following is not a part of the total product?A. PackageEnd of examB. WarrantyC. IntegrationD. Accessories20. Of all the promotional mix elements, _______ may be the one with the greatest similarities worldwide.A. sales promotionB. personal sellingC. public relationsD. advertising

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