MGMT 5326 Final

1.

1 point

The average growth rate in commercial energy use in addition to real growth rate in GDP equals what?

Market size

Market growth rate

E-commerce readiness

Market indicator

2.

1 point

What does strategic alliance consist of?

customer, suppliers, and competitors

research, product development, and marketing

mergers and acquisitions

all of the above

3.

1 point

Government owned factors of production:

do not always have profit as a main objective

all make money

all lose money

are models of efficiency

4.

1 point

Organizational Structure refers to the way that an organization formally:

arranges its domestic and international units and activities

sets relationships among the organizations various elements

reduces middle management

mostly overseas strong corporate processes

both a and b

5.

1 point

Just-in-time:

requires the finished product to be completed in time to meet transportation departure time

requires materials and parts arrive at each point in the production process when they are needed

requires materials and parts to depart from export location when current stock is almost depleted

was a term Henry Ford invented for his automobile assembly line in the early 1900s

6.

1 point

Of the Promotion Strategies which one is not considered to be one of the most commonly used?

Different product-same message

Same product-same message

Different product for the same use-different

Different message – promotional outlay

7.

1 point

If the firm choose to do its own exporting, what are the four basic types of overseas middlemen to choose from?

manufacturer's agents

distributors/retailers

trading companies

all of the above

8.

1 point

A horizontal corporation is:

A form of organization characterized by lateral decision processes

A breakdown of major functions of a firm into smaller companies

An organization that coordinates economic activity to deliver value to customers

9.

1 point

Intra-corporate price, or the price of a good or service sold by one affiliate to another, the home office to an affiliate, or vice versa is called what?

Pricing, a Controllable Variable

Transfer Price

International Pricing

Pricing Strategies

10.

1 point

Cluster analysis is a statistical technique that identifies groups so that the objects within each group are _________?

Similar

Different

Even

Off chart

11.

1 point

The name of the specialized agency of the UN whose purpose is to promote social justice internationally recognized human and labor rights worldwide is:

League of Nations

International Labor Organization

Agency for Human and Labor Rights

none of the above

12.

1 point

The fiscal policies can be defined as the following:

The policies that address the collecting and spending of money by the government

Government policies that control the amount of money in circulation

The policies of the sales price

The policies of the currency market

13.

1 point

The Big Mac Index:

Uses a currency called the ECU

Illustrates PPP

Violates U.S. trademark law

Shows that the price of a Big Mac in the U.S. in the world standard

14.

1 point

A person, group or party that urges greater government participation in the economy and regulation or ownership of business.

Liberal

Conservative

Capitalist

Republican

15.

1 point

Which of these market factors involves using a market factor in one country to estimate a potential country's market demand?

Estimation by analogy

Trend analysis

Cluster analysis

Market screening

16.

1 point

These import duties are taxes levied on imported goods for the purpose of raising their selling price in the importing nation’s market to reduce competition for domestic producers.

Subsidies

Tariffs

Quotas

Predatory Dumping

17.

1 point

What is a disadvantage of a Virtual Corporation?

A Network of dynamic relationships

Potential to reduce management’s control over the corporation’s activities

Takes advantage of other organization’s competencies

Greater flexibility

18.

1 point

Which of the following is a global sourcing arrangement that establishes production in a country where labor costs are lower or quality is higher to supply components to the home country.

Overseas Joint Venture

In-Bond Plant Contractor

Independent Overseas Contractor

None of the above

19.

1 point

The law of one price can be defined as which of the following:

Price offered to buy

Sales price

Concept that in an efficient market, like products will have like prices

The share price of a share market

20.

1 point

The advantages of a virtual corporation provide:

greater flexibility

a network of dynamic relationships

takes advantage of other organizations' competencies

all of the above

none of the above

21.

1 point

Which organizational staffing policy selects the best person for each job without considering national origin and can therefore capitalize on the advantage of each staffing policy?

Geocentric staffing policy

Polycentric staffing policy

Ethnocentric staffing policy

Regiocentric staffing policy

22.

1 point

The "total product" is:

the product with the packaging

the entire process that a product must go through from the start of manufacturing to the sale

what the customer buys, including the brand, services, warranty, and instructions

the emotional response that a consumer gets when buying the product

23.

1 point

All of the following are examples of potential problems encountered when operating a manufacturing system except

Lower output due to lack of raw materials

Differences in product quality standards

Competition for inbound shipping contracts

Equipment breakdown

24.

1 point

Private international law is defined as:

Legal relations between governments

Laws governing transactions of individuals and companies that cross international borders

Agreements between countries, which may be bilateral (between two countries) or multilateral (involving more than two countries)

Treaties between countries that bind the governments to share information about tax-payers and cooperate in tax law enforcement

25.

1 point

A vehicle currency is used:

To intervene in the foreign currency exchange markets

To exchange non-U.S. currencies

For international trade or investment

To seek inflation buffers

26.

1 point

Direct marketing is:

when a firm sells to the end-user

when a firm uses a distributor to reach consumers

when a firm uses internet resources to advertise to the desired demographic

print advertising, usually magazines and newspapers

27.

1 point

Trend analysis is a statistical technique that involves analysis of successive observations of a factor’s variables at regular time intervals to establish ________?

Length

Differential

Patterns

Odd figures

28.

1 point

Socialism as actually practiced:

advocates nationalizing all major business

operates the same in every country with a socialist government

varies considerably from country to country

is disappearing

29.

1 point

According to the book which of the following is NOT a Market Indicator used during the second screening of financial and economic forces?

Market Growth Rate

E-commerce readiness

Market Size

Exchange Rate

30.

1 point

The Bretton Woods system

Set up fixed exchange rates for currencies based on gold and the U.S. Dollar

Ended the U.S. policy of exchanging dollars for gold

Prohibited member nations from exchanging national currency for gold

All of the above

31.

1 point

According to the International Labor Organization, what fraction of the world’s children age 5 to 17 work under conditions that fail to meet their basic needs and that are considered exploitative, hazardous, or illegal?

1/2

1/4

1/7

1/8

32.

1 point

If ALL decisions are made at HQ, managers:

can lose incentive, prestige, face with their employees and the community

can lose their parking spaces, personal assistants and expense accounts

may become hostile and disloyal

both a and c

all of the above

33.

1 point

Which of the following is not an example of a perk?

Private pension plan

life insurance

kidnapping insurance

overtime

34.

1 point

The currency arrangement currently used by many countries including the United States, Japan, and the United Kingdom is

Currency board arrangements

the Gold Standard

Independently floating exchange rates

Managed floating exchange rates

35.

1 point

Indirect procurement items such as maintenance, repair, operating supplies, office equipment, and other services and supplies can account for as much as what percent of the total purchasing expenditures in companies?

50 percent

60 percent

70 percent

80 percent

90 percent

36.

1 point

You can find international currency exchange quotations in:

On-line trading currency sites

The business section of most major newspapers

The Financial Times

All of the above

37.

1 point

Common law developed in what country?

The U.S.

Austria

England

Germany

38.

1 point

With regards to International Standardization which country chose to opt out of door-to-door selling due to safety and fraudulent concerns?

Japan

United States

China

Canada

39.

1 point

Entry barriers refer to?

Import restrictions, local participation requirements, local content restrictions, government-owned competition

Political climate, government stability, public unrest

Undue restrictions on the repatriation of earnings, limits to FDI, inability to provide foreign exchange

All of the above

40.

1 point

Racial conflicts and discrimination are:

found only in South Africa

worse in the U.S. than South Africa

worldwide in most, if not all, races

fading away

41.

1 point

What is the biggest reason for employees to ask to go home early from foreign posting?

Poor working conditions

Health issues

Unhappy spouse

Poor compensation

42.

1 point

Two basic types of overseas middlemen are:

foreign market associations, exporter financing firms

cooperative exporters , subsidiary agents

manufacturers' agents, retailers

union representatives and distributors

43.

1 point

Banking solvency and stability is:

the major cause of privatization

improved by privatization

unaffected by privatization

damaged by privatization

44.

1 point

The Iraqi invasion of Kuwait was probably motivated by Iraq's desire for:

control of the Kuwaiti people

economic and political power

control of the land of Kuwait

chairmanship of the Arab League

45.

1 point

Country risk assessment

is a service provided to business by country governments

helps companies decide where to conduct business and for which risks to insure

is the focus of econometricians

indicates that there is very little regulation of businesses and professions

46.

1 point

Which of the following is NOT a potential effect of high inflation rates?

Discourages lending

Falling interest rates

Encourages borrowing

Capital expenditure planning becomes more difficult

47.

1 point

The Trade Union Advisory Committee to OECD:

is responsible for union start-ups

advises OECD on union negotiations

helps OECD work against unions

ensures that union and labor matters are considered in global markets

48.

1 point

Laws to prevent price fixing, market sharing, and business monopolies are ___________.

Antitrust laws

Competition policy

Accounting laws

Torts

49.

1 point

Which of the following is a function of the Global Function Form?

Marketing

Corporate Staff

Latin American Division

Worldwide Product Division A

50.

1 point

The trend of union membership in most industrialized nations is:

increasing

decreasing

stable

unknown

51.

1 point

Which of the following are examples of nonequity-based modes of entry?

indirect export, direct export, contract manufacturing

joint venture; limited partnership, franchising

wholly owned subsidiary, mergers, acquisitions

majority stakeholder, major distributors, foreign trading companies

52.

1 point

Industrial product : consumer product

toupee : hat

tire : wheel

film : camera

cash register : t-shirt

53.

1 point

What is the loss by a country of its most intelligent and best-educated people called?

Education Exodus

Guest Workers

Working Abroad

Brain Drain

54.

1 point

____________ has been used for some time by managers during the planning process to provide information about world threats and opportunities.

Segment screening

Market screening

Environmental screening

Country screening

55.

1 point

The floating currency exchange rates can be defined by which of the following:

Rates that are that are determined by each bank client

Rates that are allowed to float against other currencies and are determined by market prices

A legislated commitment to exchange currency

A special drawing right for certain rates

56.

1 point

Treaties are defined as:

Legal relations between governments

Laws governing transactions of individuals and companies that cross international borders

Agreements between countries, which may be bilateral (between two countries) or multilateral (involving more than two countries)

Treaties between countries that bind the governments to share information about tax-payers and cooperate in tax law enforcement

57.

1 point

The transfer of public sector assets to the private sector.

Confiscation

Privatization

Expropriation

Capitalism

58.

1 point

What percentage of the U.S. population is foreign born?

over half

25 percent

12 percent

5 percent

59.

1 point

Pricing that is established for transactions between members of the enterprise is called:

Price and profit allocation

Currency controls

Transfer Pricing

60.

1 point

Which of the following best describes Trend Analysis?

a statistical technique that identifies groups so that the objects within each group are similar

a statistical technique that involves analysis of successive observations of a factor’s variables at regular time intervals to establish patterns

involves using a market factor in one country to estimate a potential country’s market demand

Both C and A

61.

1 point

Which is not a form of intellectual property?

Patents

Trade marks

Trade names

Trade frameworks

62.

1 point

What are allowances?

employee compensation payments added to basis salaries because of higher expense encountered when living abroad

employees are given money for living expenses

employee are given payment once a year depending on productivity

a percentage of the company’s profit given to each employee and the end of each 4thquarter

63.

1 point

The pool of available potential employees with the necessary skills within communicating distance form an employer is referred to as?

Labor Unions

Labor Pool

Labor Market

Job Pool

64.

1 point

Which is not a required report that an operating unit must provide to its headquarters’?

Financial

Market Opportunity

Agriculture

Technological

65.

1 point

Piggyback exporters are:

cooperative exporters that sell products of other companies in overseas markets along with their own

exporters involved in competing joint ventures attempting to capture complete markets

merchants who purchase products from a manufacturer and sell under their own name

exporters who act as financial middleman between investment firms

66.

1 point

When sourcing products from an international source which of the following potential additional costs must you consider?

freight costs incurred

Upgrading products to your market specifications

Import duties

All of the above

67.

1 point

In what approach are most decisions made at headquarters, using the home country’s frame of reference and the international company utilizes citizens of their own countries, or parent country nationals, in key foreign management or technical positions?

Regiocentric staffing policy

Ethnocentric staffing policy

Polycentric staffing policy

Geocentric staffing policy

68.

1 point

Biological and chemical terrorism

is of little interest to country risk assessors

has been used in the stable country of Japan

has been quickly and inexpensively ended

has been limited to the Western Hemisphere, to date

69.

1 point

Competence of Subsidiary management can depend on:

How far away the host country is

Understanding the host country conditions

Both A&B

70.

1 point

When Japanese manufacturing managers examined their production costs, they realized that:

inventory costs are a major factor

inventory is not a consideration

components’ defect rate should remain below 50%

machinery breakdowns do not play into the manufacturing process

71.

1 point

The final selection of new markets involves making personal visits to markets, which of the following was NOT a form of visit Dr. Parkers slides did not suggest?

Unhurried field trips

Government sponsored trade missions

Trade Fairs

Inexperienced people personal experience

72.

1 point

Public international law is defined as:

Legal relations between governments

Laws governing transactions of individuals and companies that cross international borders

Agreements between countries, which may be bilateral (between two countries) or multilateral (involving more than two countries)

Treaties between countries that bind the governments to share information about tax-payers and cooperate in tax law enforcement

73.

1 point

In traditional societies such as those in Turkey, East Africa, and Southeast Asia, outsiders may dominate which profession(s)?

Agriculture

Military

Banking/business

Politics

74.

1 point

When worldwide companies are called on to furnish technical assistance to firms what is it called?

partnership

associates

licensing

identify

75.

1 point

What is Language Trap?

a situation in which a person doing international business can speak only his or her own language

a situation in which a person doing international business can speak both parties language

a situation in which a person doing business is bi lingual

a language becomes a barrier in doing business