MGT448 Final

1.

1 point

The World Bank was created in 1944 to:

enhance socioeconomic development through nation building assistance

enhance economic development through grants--exclusively in Latin America

promote bilateral and multilateral financing of global business operations

enhance economic development through subsidized loans

enhance private sector development solely in Africa

2.

1 point

A country is in a balance of trade equilibrium when:

it has not had a reevaluation of its currency in over a year

the outflow of its currency is equal to the inflow of currency from other countries

the income its residents earn from exports is equal to the money paid to foreigners to purchase imports

the capital account and the current account sum to zero

its products can be sold overseas for the same price as they are sold domestically.

3.

1 point

1. Some of the advantages of using a ___________________ mode of entering a foreign market include the sharing of costs and risks as well as gaining local knowledge and political influence.

Joint Venture

Licensing

Wholly owned subsidiary

Turnkey project

Franchising

4.

1 point

This international trade theory emphasizes how factors of production (such as land, labor, and capital) affect a country's trade.

The Heckscher-Ohlin Theory

The theory of competitive advantage

The theory of absolute advantage

Porter's theory of national competitive advantage

The new trade theory

5.

1 point

Which of the following represents the 4-P's of marketing mix?

Product, price, politics, promotion

People, price, produce, place

Privacy, price, place, politics

Product, price, place, promotion

Packaging, price, place, power

6.

1 point

One of the two factors that seem to underlie the trend toward globalization is change in communication, information, and transportation technologies. The other factor is:

Influence of the United Nations

Declining trade barriers

Strength of the U.S. Dollar and Japanese Yen

Fewer international conflicts

Demise of communism in Russia

7.

1 point

In a market economy:

prices are free of controls, and private ownership is predominant

productive assets are owned by the state

central planners set prices, and private ownership is forbidden

business activity is regulated in accordance with national goals

the state plays a significant role in directing investment activities of private enterprise through industrial policy

8.

1 point

2. To build a competency in new product development, an international business must: (1) disperse Research and Development (R&D) activities to those countries where new product are being pioneered and (2) integrate marketing and manufacturing with the firm's R&D function.

True

False

9.

1 point

A _______________ staffing policy seeks the best person for key jobs throughout the multinational organization, regardless of their nationality.

Geocentric

Ethnocentric

Polycentric

Multicentric

Expatriate

10.

1 point

Which of the following is NOT an exit strategy?

Shutdown

Divestiture of assets

Joint venture

Handover