Global Business Test 1 Multiple Choice

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
c. National culture
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
c. indivual freedom; group consensus
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
d. Latin America
Bowing to show respect in Japan is an example of which of these cultural traits?
a. Tradition
b. Concept
c. Gesture
d. Material object
c. Gesture
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
d. Folk custom
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
c. caste system
Which of these religions is the world’s single largest religion?
a. Jewish
b. Christianity
c. Islamic
d. Confucianism
b. Christianity
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
a. Power distance
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
b. High power-distance countries
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.
d. franchising.
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
c. Speaking faster
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.
a. joint venture.
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
c. strategic alliance
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
d. Increased employment in the company licensing its brand or technology
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.
d. local manufacturing.
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.
a. increases.
The practice of international management is best approached from which of the following perspectives?
a. historical
b. Human relations
c. Contingency
d. Systems approach
c. Contingency
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.
d. individual countries and cultures.
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.
c. Overcome limited expansion opportunities at home
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
a. exporting
An MNC that is host-country oriented is called
a. ethnocentric.
b. polycentric.
c. geocentric.
d. localcentric.
b. polycentric.
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
d. new reality
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.
b. in groups.
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.
b. a company’s international sales force.
Which of the following best describes the global economy?
a. Trade
b. Diversity
c. Interdependency
d. Multinational corporation
c. Interdependency
_____ 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
b. Counterfeit goods
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
c. Western Europe, Asia, and North America
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.
b. experience continuous political upheaval.
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.
d. legal protection of brands.
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.
a. economic risk.
Which of these is essential to production in any country?
a. Availability of labor
b. Tariffs and quotas
c. Governmental control
d. Local financing
a. Availability of labor
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
d. Assess the national business environment
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.
c. raise prices on imports.
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.
c. quotas.
The use of the Internet raises difficult questions about
a. ownership of intellectual property.
b. taxation.
c. residence location.
d. all of the above.
d. all of the above.
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
b. Protecting jobs
Which of these industries is typically protected for national security reasons?
a. Agriculture
b. Textile
c. Cosmetic
d. Housing
a. Agriculture
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
a. transit
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.
a. embargo.
Fluctuations in _______ among the world’s currencies are of critical importance in global marketing.
a. immigration
b. reciprocity
c. exchange rates
d. equity
c. exchange rates
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
b. less
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
d. their domestic track record and technical expertise
Managers prefer that exchange rates be
a. stable.
b. freely floated.
c. volatile.
d. unpredictable.
a. stable.
Which is the final stage of the culture shock process?
a. Gradual adjustment
b. The honeymoon stage
c. Biculturalism
d. Irritation and hostility
c. Biculturalism
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
a. more expensive
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.
b. corporate strategy.
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
b. caused her husband loss of face.
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
d. Dumping
European nations are most likely to use which type of law?
a. Common
b. International
c. Statutory
d. Civil
d. Civil
Under what form of law are past court decisions used as precedents?
a. Religious law
b. Civil law
c. Common law
d. Statutory law
c. Common law
The modern Western system of _________ is technically illegal in Moslem nations.`
a. steel
b. consumer products
c. textiles
d. banking
d. banking
Seizure of assets falls into all of these categories except
a. confiscation.
b. local content requirements.
c. expropriation.
d. nationalization.
b. local content requirements.
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
b. Lobbying
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
c. bribing
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
a. patent
The Nike “Swoosh” is a
a. patent.
b. fad.
c. copyright.
d. trademark.
d. trademark.
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.
b. increase economic efficiency
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
a. To enforce antitrust laws
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.
b. monopoly.
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.
c. Stolichnaya Vodka.
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
d. cross-cultural analysis
The reverence that Japan shows towards its elderly is an example of the nation’s
a. values.
b. beliefs
c. customs.
d. religion.
a. values.
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.
a. cultural symbols.
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
b. back translation
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.
d. all of the above.
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
a. Extension
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.
b. among world’s high-income economies.
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.
b. World Trade Organization.
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
d. investment incentives
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
b. Trade incentive
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.
d. comparative advantage.
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.
a. It can cause domestic companies to become overly innovative.
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.
c. tariffs and nontariff barriers in trade in telecommunications were reduced significantly.
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.
a. normal trade relation.
Which form of entry into a foreign market requires the greatest commitment?
a. Direct exporting
b. Direct investment
c. Joint venture
d. Licensing
b. Direct investment
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.
d. Tokyo, London, and New York.
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
b. The international equity market
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
c. A mutual benefit bailment
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
c. caste system
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
d. income is unevenly distributed