Shoprite Superstore Guide

Chapter 1
1.
What is the name of the superstore which exists in South Africa and other countries and is
considered to be the next Wal-Mart?
a.
South-Mart
b.
African-Store
c.
World-Mart
d.
Shoprite
Answer: D
Factual, International Business, p. 5
2.
Companies are no longer limited by their domestic boundaries and may conduct any business
activity anywhere in the world; these companies are more likely to compete anywhere
because of
a.
Technology
b.
Globalization
c.
Free trade system
d.
Business strategy
Answer: B
Conceptual, International Business, p. 6
3.
Multinational companies or MNCs are
a.
Small companies that have some form of international business
b.
Large companies that have some form of international business
c.
All companies that have some form of international business
d.
None of the above
Answer: C
Conceptual, International Business, p. 6
4.
The study of international business helps prepare you
a.
To deal with the evolving economy
b.
To develop the necessary skills to succeed in business
c.
To make a business survive
d.
(a) and (b)
Answer: D
Conceptual, Nature of International Business, p. 7
5.
Which of the following three statements about multinationals is NOT true?
a.
The largest multinationals are often privately owned
b.
The smallest multinationals are often privately owned
c.
The largest multinationals are often public corporations
d.
All of the above are true
Answer: A
Conceptual, Nature of International Business, p. 7
6.
Developed economies have
a.
Mature economies with substantial per capita GDPs and international trade and
investments
b.
A trend to expand beyond local boundaries
c.
Money flowing more freely across countries
d.
Reduced government trade protection
Answer: A
Conceptual, Types of Economies in the Global Marketplace, p. 11
7.
Transition economies are
a.
Found in Hong Kong, Singapore, South Korea, and Taiwan
b.
Countries that have changed from government-controlled, mostly communist
economic systems to market or capitalistic systems
c.
Useful in order to look at some commonly used classifications of the worlds
businesses
d.
None of the above
Answer: B
8.
What is the definition of low-cost countries (LCC)?

a.
The poorest nations with unstable political regimes, high unemployment, and
unskilled workers
b.
Countries with cheap labor that are becoming the manufacturing and service
providers for multinational companies
c.
Nations that have substantial per capita GDP and international trade
d.
Countries where the companies are converted to private ownership
Answer: B
Factual, Types of Economies in the Global Marketplace, p. 11
9.
Developing economies
a.
Have mature economies with substantial per capita GDPs and international trade and
investments
b.
Follow the trend to expand beyond local boundaries
c.
Have money flowing more freely across countries
d.
Have grown extensively over the past two decades but have sometimes struggled
Answer: D
10. Examples of developing economies include
a.
Czech Republic, Hungary, and Poland
b.
USA, UK, and France
c.
Indonesia, Malaysia, and the Philippines
d.
None of the above
Answer: C
11.
The Czech Republic, Hungary, Poland, and Russia are all examples of
a.
Developed economies
b.
Low-cost countries
c.
Transition economies
d.
Least developed countries

Answer: C
12. What key trends drive the globalization phenomenon?
a.
Population rate, environmental pollution, climate change
b.
National taxes, literacy rates, technology, international trade
c.
Falling borders, rise of global products and global customers, growing use of Internet
d.
Peoples attitudes, international relationships, peoples role in environment
Answer: C
Conceptual, Globalization Drivers, p. 13
13.
Regional trade agreements help
a.
To provide undeveloped businesses with new technology so that the business can
develop
b.
To provide ownership and new strategy in business
c.
Companies to engage in business functions across borders
d.
To reduce tariffs and develop technical and economic standards
Answer: C
Conceptual, Lowering the Barriers of National Borders, p. 14
14. By what percentage did foreign direct investment increase between 1996 and 2000?
a.
34%
b.
35%
c.
36%
d.
37%
Answer: C
Factual, Locate and Sell Anywhere to Anybody, p. 15
15. Which of the following statements regarding foreign direct investment (FDI) is NOT TRUE?
a.
FDI occurs when a multinational company from one country owns an organizational
unit in another country
b.
FDI can occur through mergers and acquisitions
c.
FDI has grown by 36% between 1996 and 2000
d.
FDI is only a small source of revenue for multinationals
Answer: D
Conceptual, Locate and Sell Anywhere to Anybody, p. 16
16.
Rapidly developing economies (RDEs)
a.
Have over 55 million employees and stock values of over 7 trillion
b.
Provide low cost production sites and have an expanding market for multinational
sales
c.
Do not have to pay tariffs on the goods exported into the international market
d.
Cause expensive foreign goods
Answer: B
Conceptual, Rise of Low-cost Countries, p. 19
17. Examples of rapidly developing economies include
a.
The USA and Germany
b.
The Czech Republic, Hungary, and Poland
c.
China, India, Brazil, and Russia
d.
South Africa, Nigeria, and Botswana
Answer: C
Factual, Rise of Low-cost Countries, p. 19
18. International outsourcing is
a.
When a company in one country moves a business function such as manufacturing to
another country, usually to take advantage of lower costs
b.
When a company in one country contracts with a company in another country to
perform some business function
c.
Potentially harmful to the givers and receivers
d.
None of the above
Answer: B
19.
Offshoring is
a.
When a company in one country moves a business function such as manufacturing to
another country, usually to take advantage of lower costs
b.
When a company in one country contracts with a company in another country to
perform some business function
c.
Potentially harmful to the givers and receivers
d.
None of the above
Answer: A
20.
When a company in one country moves a business function such as manufacturing to another
country, usually to take advantage of lower costs, it is commonly referred to as
a.
Outsourcing
b.
Offshoring
c.
Insourcing
d.
None of the above
Answer: B
21.
When companies can sell the same product or deliver the same service regardless of the
nationality of the customer, the industry has
a.
Global customers
b.
Global business
c.
Global products
d.
Global recognition
Answer: C
Conceptual, Increasing Global Products, Services, and Customers, p. 24
22.
Which of the following three statements about global customers is NOT true?
a.
Global customers are looking for products and services and ignore national
boundaries
b.
Companies making industrial purchases are less likely to be global customers
compared to individuals
c.
Information technology is making it easier to become global customers
d.
All of the above statements are true

Answer: B
Conceptual, Increasing Global Products, Services, and Customers, p. 24
23.
According to the International Organization for Standardization (ISO), ISO 9000 and ISO
14000 are for
a.
Quality in manufacturing and environmental management respectively
b.
Environmental management and quality in manufacturing respectively
c.
Quality in education and environmental management respectively
d.
Environmental management and quality in education respectively
Answer: A
Conceptual, Need for Global Standards, pp. 2526
24. Which of the following technical standards developed by the International Organization for
Standardization (ISO) is relevant specifically to environmental management?
a.
ISO 9000
b.
ISO 14000
c.
Both ISO 9000 and ISO 14000
d.
None of the above
Answer: B
Factual, Need for Global Standards, pp. 2526
25. Sustainable practices
a.
Consist of practices where companies learn how to engage in international trade
b.
Help in the formulation and design of management practices to take advantage of
international opportunities
c.
Are business practices that minimize the impact of business operations on the earths
environment, thereby enhancing the earths ecosystem
d.
Are a source of cheaper labor in the form of lower wage levels
Answer: C
Factual, Environmental Sustainability and Responsibility, p. 26
Chapter 2
1.When a company decides to de-emphasize local differences and locate
their operations
anywhere in the world where it is advantageous, they adopt what is known

as
a. A local responsiveness strategy
b. IB strategic insights
c. Small business insights
d. A global integration strategy
Answer: D
2. When a company decides to focus on meeting customer needs based on
national and
regional differences, it is adopting a(n)
a. Local responsiveness strategy
b. IB strategic insight
c. Small business insight
d. Global integration strategy
Answer: A
3. Which of the following three statements is NOT TRUE about a local
responsiveness
strategy?
a. A company pursuing a local responsiveness strategy de-emphasizes local
and
regional differences to locate around the world
b. A company focusing on satisfying local customer needs is pursuing a local
responsiveness strategy
c. A company that focuses on local customer tastes because of cultural
differences is
using a local responsiveness strategy
d. All of the above are true
Answer: A
4.Global dilemma is
a. The challenge of deciding in which country to open a new business
b. The problem of choosing a strategic orientation
c. Choosing a price for a product
d. Caused when people in the company are not focused on the company goal
Answer: B
5.Primary activities involve
a. Physical actions of creating, selling, and after-sale service of products
b. Getting necessary raw materials through production to sales
c. Understanding the real world of international business
d. Strategic implications for international businesses
Answer: A
6.Value-chain activities such as sales and dealing with distribution channels
are called
a. Upstream activities
b. Downstream activities
c. Support activities
d. None of the above
Answer: B
7.Activities such as R&D and managing the supply chain are known as
a. Upstream activities
b. Downstream activities
c. Support activities
d. Supply-chain activities
Answer: A
8.The more inclusive version of global integration is known as
a. IB strategic insights
b. Local responsiveness strategy
c. Transnational strategy
d. Global integration strategy
Answer: C
9.A global platform is a country
a. Where firms can outperform competitors in some of their value-chain
activities
b. That exports goods and builds global networks through production and
sales
c. That has low wage platforms for high-tech assembly and facilitates the
transfer of
technology
d. That performs research on the environment and recommends sustainable
practices for
companies
Answer: A
10. Absolute advantage refers to
a. Advantages of nations over other nations
b. Advantages of individual firms over other firms
c. Advantages of outsourcing over offshoring
d. Advantages of production and better service
Answer: A
11. Companies pursuing which strategies take a compromised approach to
the globallocal
dilemma?
a. International strategies
b. Local responsiveness strategies
c. Global integration strategies

d. Multidomestic strategies
Answer: A
12. Which of the following three statements about international strategies is
NOT TRUE?
a. Companies using international strategies attempt to sell global products
b. Companies using international strategies limit adaptation to local customs
and
culture
c. Companies using international strategies locate value-chain activities
anywhere in
the world
d. All of the above are true
Answer: C
13. Regional strategy attempts
a. To de-emphasize local differences and locate operations anywhere in the
world where
it is advantageous
b. To gain some of the economic efficiency and location advantages of the
more global
strategies combined with some of the local adaptation advantages of the
multidomestic
strategy
c. To focus on meeting customer needs based on national and regional
differences they
adopt
Answer: B
14. A strategy whereby a multinational does business differently in each
country is
a. A regional strategy
b. A multidomestic strategy
c. A transnational strategy
d. An international strategy
Answer: B
15.Conditions in an industry that favor the more globally oriented
transnational or
international strategies over the more locally oriented multidomestic or
regional strategies
are called
a. Globalization
b. Globallocal dilemma
c. Multinational strategy
d. Globalization drivers
Answer: D
16. Global customers are
a. Non-profit organizations that play vital roles in achieving companies goals
b. Organizations or people who shop for goods anywhere in the world
c. Organizations or people who have ownership positions in the company
d. People who dont care how much they spend
Answer: B
17.If a key assumption of a multinational strategist is that centralizing key
activities such as
R&D reduces coordination costs and gives economies of scale, then which of
the following
strategies is most appropriate?
a. An international strategy
b. A transnational strategy
c. A global strategy
Answer: A
18. If the multinational manager believes that the benefits of dispersing
value-chain activities
worldwide offset the costs of coordinating a more complex organization, then
which of the
following strategies is most appropriate
a. An international strategy
b. A transnational strategy
c. A global strategy
d. All of the above
Answer: B
19. While globalizing the industry, the industry should
a. Look for undeveloped countries that are unaware of business strategy
b. Identify the opportunities or threats that globalization poses to a
companys position
c. Identify if countries economies have grown extensively over the past two
decades and
have sometimes struggled
d. All of the above
Answer: B
20. Multinational strategy is executed in a dynamic global context related to
relationships
among
a. Governments
b. Patterns of trade and investments

c. Foreign exchange markets
d. All of the above
Answer: D
21.Porter divides the value chain into
a. Primary and secondary activities
b. Primary and service activities
c. Primary and support activities
d. Secondary and tertiary activities
Answer: C
22. Value-chain activities such as human resource management, information
technology, and
organizational design and control are known as
a. Primary activities
b. Secondary activities
c. Upstream activities
d. Support activities
Answer: D
23.When a company decides to focus on meeting customer needs based on
national and
regional differences, they adopt a
a. Global integration strategy
b. Local responsiveness strategy
c. Differentiation strategy
d. Multidomestic strategy
Answer: B
24.Which of the following strategies top priorities are seeking location
advantages and
gaining economic efficiencies while operating worldwide?
a. Global integration strategy
b. Transnational strategy
c. Differentiation strategy
d. Multidomestic strategy
Answer: B
Conceptual, Multidomestic and Regional Strategies, pp. 4446
25.Locating manufacturing subunits near sources of high quality or low cost
labor is an
example of
a. Differentiation strategic activities
b. Globalization strategic activities
c. Transnational strategic activities
d. Manufacturing strategic activities
Answer: C
Chapter3
1.
Accordingtotheprincipleofnondiscrimination,whentwonationssigntradeagreements,
towhomelsedoestheagreementapply?
a.
ToallGATTsigners
b.
Thenationwheretheproductisbeingimported
c.
Thenationfromwheretheproductisbeingexported
d.
Noneoftheabove
Answer:A
Conceptual,DroppingBarrierstoWorldTrade,p.64
2.
Buynationalpoliciescanrequire
a.
Governmentstoprocuresuppliersfromtheirowncountryandencouragecitizenstobuy
local
b.
Peopletostartbuyingproducts
c.
Countriestoimportgoodsfromothernationsatacheapprice
d.
Theoutsourcingofbusiness
Answer:A
Conceptual,DroppingBarrierstoWorldTrade,p.65
3.
Whichofthefollowingstatementsmostaccuratelyreflectsthedifferencebetweenthe
GeneralAgreementonTariffsandTrade(GATT)andtheWorldTradeOrganization(WTO)?
a.
TheGATTisamoreformalorganizationalstructureforcontinuednegotiations
b.
TheGATThasmoremembernationsthantheWTO
c.
TheWTOisamoreformalorganizationalstructureforcontinuednegotiationcompared
totheGATT
d.
Noneoftheabove
Answer:C
Conceptual,DroppingBarrierstoWorldTrade,pp.6466
4.
Whatareregionaltradeagreements(RTAs)?
a.
Agreementsamonggroupsofnationstoreducetariffsanddevelopsimilartechnicaland
economicstandards
b.
Agreementstoproduceonegoodandtogivetheopportunitytoproduceanothergood
c.
Agreementstoproducestandardizedproductsandintegrateintotheglobaleconomy
d.
Agreementstoproduceproductsinlargeamountsandtradetheexcessproductionbeyond
thedomesticneedstoothercountries
Answer:A
Factual,RegionalTradeAgreements,pp.7072
5.
Agreementsamonggroupsofnationstoreducetariffsanddevelopsimilartechnicaland
economicstandardsareknownas
a.
Nationaltradeagreements
b.
Worldtradeagreements
CRegionaltradeagreements
d.
Noneoftheabove
Answer:C
6.
Whatisthenameforagreementsbywhichnationsgrantpreferentialtradetoagroupof
nations?
a.
Tradedeflectionagreements
b.
Regionaltradeagreements
c.
Preferentialtradeagreements
d.
Freetradeagreements
Answer:C
7.
Freetradeareasare
a.
Agreementstobenefitonlytradegroupmembers,withlossesforthepoorernations
b.
Reciprocalagreementsamongagroupofnations,usuallyfromoneregionoftheworld,
toremovetariffsandothertradebarriersaffectingtradewitheachother
toremovetariffsandothertradebarriersaffectingtradewitheachother
c.
Agreementstoproduceproductsinlargeamountsandtradetheexcessproductionbeyond
thedomesticneedstoothercountries
d.
Agreementstoproducegoodsusingcheaperlaborandexportthematcheaperprices
Answer:B
8.
Areciprocalagreementamongagroupofnations,usuallyfromoneregionoftheworld,
toremovetariffsandothertradebarriersaffectingtradewitheachotherisknownasa
a.
Tradedeflectionagreement
b.
Regionaltradeagreement
c.
Preferentialtradeagreement
d.
Freetradeagreement
Answer:D
9.
Determininghowmuchofaproductscreationoraddedvaluemustbeproducedina
countrytocountasmadeinthatcountryisdonethrough
a.
Rulesoforigin
b.
Tradedeflection
c.
Commonmarkets
d.
Noneoftheabove
Answer:A
10.
WhichoneoftheseisNOTaWTOobjective?
a.
Cooperatingwithotherinternationalorganizations
b.
Adjudicatingtradedisputes
c.
Monitoringchildlaborandlaborwages
d.
AdministeringtradeagreementsbasedonGATT
Answer:C
Conceptual,GATTandtheWTO,p.64
11.
_______allowfreemovementoflabor,capital,andtechnologybetweenmember
nationsborders
a.
Streetmarkets
b.
Commonmarkets
c.
Nationalmarkets
d.
Freemarkets
Answer:B
Conceptual,RegionalTradeAgreements,pp.7273
12.
Whataretwoeffectsthatexistinregionaltradeagreements?
a.
Tradecreationandtradediversion
b.
Tradesituationandtradeenvironment
c.
Tradedestructionandtradeloss
d.
Tradedisagreementandtradeconflict
Answer:A
Conceptual,MotivationsforRegionalTradeAgreements,pp.7374
13.
Whencompaniesfromnonmembercountriesenterafreetradeareathroughamember
countrywithlowtradebarriers,thesecompaniesarebenefitingfromwhichweakness?
a.
Rulesoforigin
b.
Freetradeareas
c.
Tradedeflection
d.
Noneoftheabove
Answer:C
Conceptual,TypesofRegionalTradeAgreements,pp.7072
14.
WhichoneofthefollowingcountriesisnotpartoftheEuropeanUnion(EU)?
a.
Belgium
b.
Poland
c.
Turkey
d.
Germany
Answer:C
Factual,EuropeanUnion,p.78
15.
Oneweaknessofafreetradeareais
a.
Tradecreation
b.
Tradedeflection
c.
Tradediversion
d.
Tradedisagreement
Answer:B
Conceptual,RegionalTradeAgreements,p.72
16.
WhichagreementlinkstheUnitedStates,Canada,andMexicoinaneconomicblocthat
allowsfreerexchangeofgoodsandservices?
a.NorthAmericanFreeTradeAgreement
b.
UCMFreeTradeAgreement
c.
RegionalTradeAgreement
d.
TheBigThreeTradeAgreement
Answer:A
Factual,NAFTA,p.83
17.
Atpresent,howmanynationsarepartoftheWorldTradeOrganization(WTO)?
a.
141
b.
147
c.
171
d.
134
Answer:B
Factual,GATTandtheWTO,p.64
18.
ThedaytodaymanagementofNAFTAisdoneby
a.
TheNAFTASecretariat
b.
TheNAFTAexecutivebody
c.
TheNAFTAcoordinators
d.
TheNAFTAlegislativebranch
Answer:C
Factual,NAFTA,p.83
19.
WhichofthefollowingEUbodiesimplementsEUpoliciesandbudgetsandenforces
Europeanlaw?
a.
EuropeanParliament
b.
EuropeanCouncil
c.
EuropeanCommission
d.
Noneoftheabove
Answer:C
20.
WhichcountriesarethenewestmembersoftheEuropeanUnion?
a.
Bulgaria,Romania,andTurkey
b.
NorwayandSwitzerland
c.
France,Germany,andGreece
d.
Poland,CzechRepublic,Hungary,andSlovakia
Answer:D
21.
WhichofthefollowingisNOTamotivationforcountriestojoinregionaltrade
agreements?
a.
Tohaveaccesstolargermarkets
b.
Tohaveaccesstomoreforeigninvestments
c.
Tostrengthenrelationshipsamongcountriestoenhancenationalsecurity
d.
Alloftheabovearemotivationsforcountriestojoinregionaltradeagreements
Answer:D
Conceptual,RegionalTradeAgreements,p.74
22.
Whataretheworldsthreelargestfreetradegroups?
a.
EuropeanUnion,NAFTA,andEuropeanMonetaryUnit
b.
MastrichtTreaty,EuropeanUnion,andMercosur
c.
EuropeanUnion,NAFTA,andAsiaPacificEconomicCooperation
d.
Noneoftheabove
Answer:C
Factual,RegionalTradeAgreements,p.74
23.
WhatisthenameofNAFTAsdisputeresolutionbody?
a.
NAFTASecretariat
b.
FreeTradeCommission
c.
NAFTAcoordinates
d.
NAFTACEO
Answer:A
1. _________pertaintobehaviorsoractionsthataffectpeopleandtheirwelfare
a.Ethics
b.Roles
c.Rules
d.Principles
Answer:A
Factual,InternationalEthicsandSocialResponsibility,p.452
2.Theideathatbusinesseshavearesponsibilitytosocietybeyondmakingprofitsisknownas
a.Ethicalresponsibility
b.Corporatesocialresponsibility
c.Organizationresponsibility
d.Internationalorganizationresponsibility
Answer:B
Factual,InternationalEthicsandSocialResponsibility,p.454
3.Whichoneofthefollowingisnotanimportantglobalethicsissue?
a.Laborrights
b.Illegaltransactions
c.Environmentalpollution
d.Corruption/bribery
Answer:B
Conceptual,KeyGlobalEthicsIssues,p.454
4.________aretypicallyplantswhereworkersworkveryhardinverypoorworking
environments,oftenforlonghours
a.Contingentworkers
b.Reliantworkshops
c.Sweatshops
d.Workingplants
Answer:C
Conceptual,LaborRights,pp.454456
5.Themisuseofentrustedpowerforprivategainisknownas
a.Illegalethicalconduct
b.Transactionalrelationship
c.Bribery
d.Corruption
Answer:D
Conceptual,CorruptionandBribery,pp.457462
6.Makinggiftsorpaymentstosomeonetoexpediteagovernmentactionortogainsome
businessadvantagesconstitutes
a.Bribery
b.Corruption
c.Illegalethicalconduct
d.Transactionalrelationship
Answer:A
Factual,CorruptionandBribery,pp.457462
7._________providesanunderstandingofthedegreetowhichcorruptionexistsamong
politiciansandpublicofficials
a.TransparencyInternationalCorruptionandBriberyPerceptionindex
b.TransparencyInternationalCorruptionPerceptionsindex
c.TransparencyIllegalMisconductPerceptionsindex
d.TransparencyInternationalBriberyPerceptionsindex
Answer:B
8.TheUnitedNationsConventionagainstCorruptionwasadoptedin
a.2003
b.2001
c.2002
d.2004
Answer:A
9. ___________forbidsUScompaniesfrommakingorofferingpaymentsorgiftstoforeign
governmentofficialsforthesakeofgainingorretainingbusiness
a.TheForeignCorruptPracticesAct
b.TheUnitedStatesForeignCorruptPracticesAct
c.TheUnitedStatesInternationalCorruptionAct
d.TheInternationalCorruptionPracticesAct
Answer:A
Factual,CorruptionandBribery,pp.457462
10.Apersonisconsideredknowingif
a.Thepersonactuallyknowsanillegalbribewillbegiven
b.Thepersonknowsthatthecircumstancessurroundingthesituationmakeitlikely
thatanillegalbribewillbegiven
c.Apersonisawareofthehighprobabilitythatanillegalactwilloccur
d.Alloftheabove
Answer:D
11.Thestandpointwherebyamultinationalmanagerconsiderseachsocietysviewofethics
aslegitimateandethicalisknownas
a.Ethicalrightsandlegal
b.Ethicaluniversalism
c.Ethicalrelativism
d.Convenientrelativism
Answer:C
Conceptual,MultinationalApproachtoGlobalEthics,pp.462464
12._________occurswhencompaniesusethelogicofethicalrelativismtobehaveinanyway
thattheyplease,usingtheexcuseofdifferencesincultures
a.Convenientrelativism
b.Ethicaluniversalism
c.Ethicalrelativism
d.Ethicalrights
Answer:A
13.__________describethebasicwaysthatpeoplethinkaboutethicaldecisionsandexplain
theirethicalchoices
a.Moralviews
b.Morallanguages
c.Moralknowledge
d.Moralethics
Answer:B
14._______includethosewhoaredirectlylinkedtoacompanyssurvivalandhavean
importantinfluenceonthemultinationalsstrategy
a.Secondarystakeholders
b.Tertiarystakeholders
c.Primarystakeholders
d.Stakeholders
Answer:C
Conceptual,StakeholderAnalysis,pp.464466
15._________beginswithanappropriateidentificationofstakeholders
a.Stakeholderanalysis
b.Stakeholderreview
c.Primarystakeholderrule
d.Stakeholderethics
Answer:A
Conceptual,StakeholderAnalysis,pp.464466
16._________specifyappropriatebehaviorsforemployees,whilealsodefiningthe
multinationalsresponsibilitiesandapproachesintermsofitsinteractionswithits
stakeholders
a.Codesofbehavior
b.Organizationrulesandbehaviors
c.Organizationethics
d.Codesofconduct
Answer:D
Factual,CodeofConduct,pp.466467
17.Formalmethods
a.Includeusingvariousmeansofcontroltoensurethatthemultinationalbehaves
ethically
b.Includespecificmechanismstoruntheorganization
c.Informanorganizationsemployeeshowtoshareinformationwiththeir
subordinates
d.Helpemployeesincreasetheirtechnicalandcommercialskills
Answer:A
Conceptual,SuccessfulImplementationofCodesofConduct,pp.468469
18.Whichoneoftheseisnotakeyelementtobuildasociallyresponsiblemultinational?
a.Investingfinancialresources
b.Involvingallemployees
c.Makingethicspartofthemultinationalsstrategy
d.Alloftheabove
Answer:A
Conceptual,BuildingtheSociallyResponsibleCompany,p.464
19.Thestudyof__________providessomeimportantinsightsintotheareasthatmost
multinationalscodesofconductcover
a.Kaptein
b.Quran
c.Geeta
d.Codesofethics
Answer:D
Conceptual,CodeofConduct,p.466
20.SocialAccountabilityInternationalandtheFairLaborAssociationareexamplesof
a.Organizationswithgoodethicalvalues
b.Transformationalorganizational
c.Laborrightsorganizations
d.Sociallyresponsibleorganizations
Answer:C
Conceptual,LaborRights,pp.454456
21.The__________provisionmeansthatafirmisliableforbribesorquestionable
paymentsmadebyagentshiredbythefirm
a.Reasontoknow
b.Knowing
c.Organizationsliability
d.Individualsafety
Answer:A
22. ___________ mean multinationals should engage in business practices that
avoid
negative consequences to stakeholders
a. Multinational rules and regulations
b. Organizational agreements
c. Multinational moral ethics
d. Prescriptive ethics for multinationals
Answer: D
Conceptual, Pressures Supporting Ethical Universalism, p. 463
23. Any group or entity that is affected by a multinationals decisions or
actions is known as a
a. Broker
b. Stakeholder
c. Union group
d. Command group
Answer: B
Conceptual, Stakeholder Analysis, pp. 464466
24. _________ is a crucial tool to inform employees of appropriate ways to
deal with
stakeholders
a. Education
b. Email
c. Training
d. Observation
Answer: C
Conceptual, Stakeholder Analysis, pp. 464466
25. Communication is one of the steps
a. To build a socially responsible multinational

b. To learn about national and international business ethics
c. To learn about corruption and bribery
d. To understand a stakeholders responsibility
Answer: A
Conceptual, Building the Socially Responsible Company, p. 464
Chapter4
1.
________islikeatennismatch;whenonepersonwinsapoint,theotherpersonloses
a.
Zerosumgame
b.
Winlosegame
c.
Wimbledon
d.
Gainlossgame
Answer:A
Factual,Mercantilism,p.94
2.
Thephilosophyconcerningbetweencountrytradeinwhichonecountrywinsby
exportingmorethanisimportedisknownas
a.
Specieflowmechanism
b.
Mercantilism
c.
Absoluteadvantage
d.
Noneoftheabove
Answer:B
3.
Whenacountryhasasurplusofexportsoverimports,economistscallthis
a.
Specieflowmechanism
b.
Absoluteadvantage
c.
Comparativeadvantage
d.
Favorabletradebalance
Answer:D
4.
Specieflowmechanismiswhen
a.
Thesupplyoramountofmoneyinacountryincreases,sothepricesinthatcountrytend
togoupaswell
b.
Thesupplyoramountofmoneyinacountrydecreases,sothepricesinthatcountrytend
togoupaswell
c.
Thesupplyoramountofmoneyinacountryincreases,sothepricesinthatcountrytend
togodownaswell
d.
Thesupplyoramountofmoneyinacountrydecreases,sothepricesinthatcountrytend
togodownaswell
Answer:A
5.
AccordingtoSmith,fortheworldtobenefitfromabsoluteadvantages,acountryshould
producegoodsforwhichithas________advantageandimportthosegoodsinwhichithas
________disadvantage
a.
Absolute,none
b.
Absolute,unconfirmed
c.
Absolute,absolute
d.
No,no
Answer:C
Factual,AbsoluteAdvantage,p.97
6.
WhenittakesfewerunitsoflaborforcountryAtoproducethesamegoodascountryB,
countryAissaidtopossess________overcountryB
a.
b.
Mercantilismadvantage
c.
Locationadvantage
d.
Absoluteadvantage
Answer:D
Factual,AbsoluteAdvantage,p.97
7.
a.
Explainsthequotasthatlimittheamountofimportsorexports
b.
Explainsthefreemovementoflabor,capital,andtechnologybetweenmembernations
borders
c.
Explainshowrelativedifferenceswithincountriescanleadtobeneficialtradebetween
partners
d.
Explainstheintegrationmechanismsofacommonmarket
Answer:C
Conceptual,ComparativeAdvantage,p.99
8.
Whenyouchoosetoproduceonegood,whatdoyouhavetogiveuptoproduceanother
good?
a.
Opportunitycost
b.
Tariffcost
c.
Goodscost
d.
Productioncost
Answer:A
Conceptual,ComparativeAdvantage,p.99
9.
HeckscherOhlintheory
a.
Arguesthatanationscomparativeadvantagecomesfromtherelativeabundanceofits
factorendowments
b.
Referstofallingborders,riseofglobalproductsandglobalcustomers,growinguseof
theInternet
c.
Discussesbusinesspracticesthatminimizetheimpactofbusinessoperationsonthe
earthsenvironment,therebyenhancingtheearthsecosystemtostayhealthy
d.
Talksaboutwhenthesupplyoramountofmoneyinacountryincreases,thepricesin
thatcountrytendtogoupaswell
Answer:A
Conceptual,HeckscherOhlinTheory,p.102
10.ThesurprisingfindingthattheUSactuallyexportsmorelaborintensiveproductsand
importsmorecapitalintensiveproductsisknownas
a.
TheHeckscherOhlintheory
b.
Theproductlifecycle
c.
Theinnovationparadoxtheory
d.
TheLeontiefParadox
Answer:D
Conceptual,HeckscherOhlinTheory,pp.102104
11.Newtradetheorysuggeststhat
a.
Productsoftenfollowaproductlifecycle
b.
Majorindustrialeconomiesfocusonnewproductdevelopmentandinnovation
c.
Companiescantakeadvantageofeconomiesofscale
d.
Noneoftheabove
Answer:C
Conceptual,NewTradeTheory,p.109
12.Theloweringofcostsaseachadditionalunitisproducedcomparedtothepreviousunitis
knownas
a.
Economiesofscale
b.
Favorabletradebalance
c.
Specificflowmechanism
d.
Answer:A
Factual,NewTradeTheory,p.109
13.Industrialagglomeration
a.
Isthetendencyofcompaniesinanindustrytoclusterinonelocation
b.
Suggeststhatcountriesshouldspecializenotonlyinthoseproductsforwhichthey
haveabsoluteadvantagebutalsointhoseproductsforwhichtheyhavecomparative
advantage
c.
Showstherelativefactorendowmentsofselectedcountriesasapercentageofworld
totals
d.
Isthestateoflackoftrade;eachcountrywouldhavetoproduceandconsumeitsown
output
Answer:A
Factual,NewTradeTheory,p.109
14.WhichofthefollowingisNOTanecessaryconditionforanationtoleadcompetitive
companiesindifferentindustriesinternationally?
a.
Economiesofscale
b.
Firmstrategy,structure,andrivalry
c.
Demandconditions
d.
Factorendowments
Answer:A
Conceptual,MichaelPorterandtheCompetitiveAdvantageofNations,p.110
15.AccordingtoPorter,skilledlabor,capital,andacountrysinfrastructurearewhich
aspectsofthenationaldiamond?
a.
Demandconditions
b.
Firmstrategyandstructure
c.
Factorendowments
d.
Noneoftheabove
Answer:C
16.WhichofthefollowingisNOTafactorinPortersnationaldiamondoffactorsto
maintaincompetitivesuccess?
a.
Firmstrategyandstructure
b.
Supportingindustries
c.
Factorendowments
d.
Laborforce
Answer:D
17.Foreigndirectinvestment(FDI)meanshaving
a.
Ownershiporcontrolofatleast10percentormoreofanenterpriseinanother
country
b.
country
c.
country
d.
Answer:A
Factual,ForeignDirectInvestment,pp.118119
18.AneconomicviewofFDIthatarguesthatFDIshouldoccuronlywhenforeign
companieshaveuniquecompetitiveadvantagesoverlocalcompaniesis
a.
Internalizationtheory
b.
Monopolisticadvantagetheory
c.
Dunningseclectictheory
d.
HeckscherOhlintheory
Answer:B
Factual,ForeignDirectInvestment,pp.118119
19.WhichofthebelowisNOToneoftheadvantagesthatDunningseclectictheorypoints
out?
a.
Ownershipadvantage
b.
Internalizationadvantage
c.
Opportunityadvantage
d.
Locationadvantage
Answer:C
Conceptual,ForeignDirectInvestment,p.120
20.Whichoneofthefollowingisanargumentagainstfreetrade?
a.
Globalwarming
b.
Fairtrade
c.
Jobgain
d.
Economicgrowth
Answer:B
Conceptual,ArgumentsagainstFreeTrade,pp.115116
21.WhichofthefollowingisNOToneofthestagesoftheproductlifecycle?
a.
Introductionintohomemarket
b.
Foreignproductioninlowercostcountries
c.
Exportsalesareaddedtodomesticsales
d.
Alloftheabovearestages
Answer:D
Conceptual,ProductLifeCycle,pp.106107
22.Internalizationtheoryusestheconceptof________topointoutthatcontractsarenot
free
a.
Transactioncosts
b.
Opportunitycosts
c.
Investmentcosts
d.
Depositcosts
Answer:A
Conceptual,ForeignDirectInvestment,pp.118119
23.AccordingtotheHeckscherOhlintheory,whatarethetwotypesoffactorendowments?
a.
Capitalandlabor
b.
Capitalandinfrastructure
c.
Demandandsupply
d.
Noneoftheabove
Answer:A
Conceptual,HeckscherOhlinTheory,p.102
Chapter5
1.Theforeignexchangemarketis
a.Acombinationofnationalcentralbanks,privatebanks,andforeignexchangedealers
andbrokersthroughwhichpeopleandcompaniescansellorbuyforeigncurrencies
b.Largemultinationalfirmsthatalreadyhaveanexistingglobalpresence
c.Agroupofmarketsthatareinchargeoftrainingmanagersforexpatriateassignments
d.Aninternationalmarketwhereyoucanbuygoodsatacheaperprice
Answer:A
Factual,WhatistheForeignExchangeMarket?,p.130
2.Thepriceofforeigncurrencyintermsofothercurrenciesisrepresentedby
a.Dollars
b.Exchangerates
c.Poundssterling
d.Theforeignpricechart
Answer:B
3.Banksmakemoneybysellingcurrencyatahigherprice,_________andbybuyingat
oneprice,__________
a.Theaskprice,thebidprice
b.Thebuyingprice,thesellingprice
c.Thebidprice,theaskprice
d.Thebuyingrate,thesellingrate
Answer:A
4.Whenbankssellcurrencyatahigherprice,theyaresellingat
a.Exchangerates
b.Theaskprice
c.Thebidprice
d.Noneoftheabove
Answer:B
5.Thebidpriceis
a.Thepricebankspaytobuycurrency
b.Thepricebankssellcurrency
c.Thecurrentexchangerate
d.Noneoftheabove
Answer:A
6.Whenexaminingtheforeignexchangemarketsystem,thewholesaletierrefersto
a.Thepricebankspaytobuyforeigncurrency
b.Thegroupsofagentsbuyingandsellingforeigncurrency
c.Thecommercialbanksthatservebusinessesandindividualswhowanttobuyforeign
currency
d.Noneoftheabove
Answer:C
Factual,WhatistheForeignExchangeMarket?,pp.131132
7.Immediatetransactionataspecificexchangerateisknownas
a.Spottransaction
b.Forwardtransaction
c.Currencyswap
d.Noneoftheabove
Answer:A
Conceptual,TypesofForeignExchangeTransactions,p.133
8.Spottransactionsoccurwhen
a.Twobanksagreetoexchangeforeigncurrencyatasetexchangerate
b.Amultinationalbuysaspecifiedamountofforeignexchangeatanagreedexchange
rateaheadoftime
c.Animmediatetransactionoccursatthesetexchangerate
d.Noneoftheabove
Answer:B
Conceptual,TypesofForeignExchangeTransactions,p.133
9.Therulethatcountriescanusetogovernthevalueoftheircurrenciesrelativetothe
valuesofothernationscurrenciesiscalled
a.Exchangeratesystem
b.Exchangecurrencysystem
c.Foreignexchangebidsystem
d.Exchangerulesystem
Answer:A
Factual,HistoryofExchangerateSystems,p.134
10.Whencountriesagreetofixthevalueoftheircurrenciestogold,theyareusingthe
a.Fixedexchangerate
b.Fluctuatingexchangerate
c.Peggedexchangerate
d.Noneoftheabove
Answer:D
Conceptual,BrettonWoodsAgreement,p.135
11.TheInternationalMonetaryFundis
a.Amultinationorganizationthathelpsmanageinternationalmoneyexchange
b.Anorganizationwhichprovidesfundsinternationallyduringenvironmentaldisasters
c.Anorganizationwhichtaxesthegoodsexportedfromeachcountryandusesthat
moneyincaseofneed
d.Anorganizationwhichdeterminesforeigntransactionrates
Answer:A
Factual,BrettonWoodsAgreement,p.135
12.Whenacountryisallowedtousemarketforcestodeterminethevalueofitscurrency,it
isusingthe
a.Floatingratesystem
b.Peggedratesystem
c.Exchangeratesystem
d.Noneoftheabove
Answer:A
Conceptual,BrettonWoodsAgreement,p.135
13.Asystemthathelpstoadjusteconomicdifferencesbetweencountriesisknowsasa
a.Crawlingpegsystem
b.Controlpegsystem
c.Maintainpegsystem
d.Commandpegsystem
Answer:A
Conceptual,OtherCurrencyExchangerateSystems,p.136
14.Whenacountryadoptsthecurrencyofanothercountryasitsown,itisusingwhich
exchangeratesystem?
a.Crawlingpegsystem
b.Floatingratesystem
c.Peggedexchangeratesystem
d.Dollarizationsystem
Answer:D
Conceptual,OtherCurrencyExchangerateSystems,pp.136138
15.Ignoringtaxdifferences,transportationcosts,andtraderestrictions,theprocessbywhich
goodsandservicesinanytwocountriesareconvertedfromeachoftheircurrenciesintoa
commoncurrencyisknownas
a.Purchasingpowerparity
b.Dollarization
c.Forwardtransaction
d.BretonWoodsAgreement
Answer:A
Factual,Purchasing
PowerParity,p.138
16.Thedemandforacurrencyisbasedon
a.Exchangedemand
b.Deriveddemand
c.Currencydemand
d.Supplydemand
Answer:B
Conceptual,MarketFactors,p.141
17.Theapproachwhichsomenationstakebychoosingtopegtheircurrenciestoanaverage
ofseveralcurrencies,usuallysixorless,isknownas
a.Currencybasketpeg
b.Dollarization
c.Exchangepeggedpractice
d.Forwardtransaction
Answer:A
Conceptual,OtherCurrencyExchangerateSystems,p.136
18.TheBigMacIndexis
a.Anindexofcurrencyovervaluationandundervaluationbasedonthepriceofa
McDonaldsBigMac
b.Acomprehensivelicensingagreementwherethefranchisorgrantstothefranchisee
theuseofthewholebusinessoperation
c.AcountryspeggingofitscurrencytotheBigMac
d.Thephysicaldistancebetweenanorganizationscultureandthelocalnationalculture
Answer:A
Factual,PurchasingPowerParity,pp.138141
19.Risinginterestratesincrease________andrisinginflationratesincrease________
a.Prices,demandforcurrency
b.Demand,supply
c.Demandforcurrency,prices
d.Inflation,interest
Answer:C
Conceptual,EffectsofOtherFactorsonExchangeRates,p.143
20.Therealinterestrateis
a.Interestrateinflationrate
b.Inflationrateinterestrate
c.Interestrateexchangerate
d.Noneoftheabove
Answer:A
Conceptual,EffectsofOtherFactorsonExchangeRates,pp.143144
21.Transactionexposureoccurs
a.Whenthemultinationalcompanyagreestoatransactioninaforeigncurrency,selling
orbuyinginthefuture
b.Whenthemultinationalcompanyrefusesatransactioninaforeigncurrency,selling
Whenthemultinationalcompanyrefusesatransactioninaforeigncurrency,selling
orbuyinginthefuture
c.Whenthemultinationalcompanyagreestoatransactioninaforeigncurrency,selling
orbuyingatpresent
d.Whenthemultinationalcompanyrefusesatransactioninaforeigncurrency,selling
orbuyingatpresent
Answer:A
Factual,ExchangerateRisksandHedging,pp.145146
22.Anagreementtopurchaseaforeigncurrencyinthefutureataspecifiedexchangerateis
knownasa
a.Currencyfuturecontract
b.Forwardexchangecontract
c.Transactioncontract
d.Hypotheticalcontract
Answer:B
23.Transactionexposureis
a.Theriskamultinationalfacesasitsfinancialstatementsaretranslatedintomany
currencies
b.Theuncertaintyamultinationalfacesbecauseofcontinuouslychangingexchangerates
c.Similartotranslationexposure
d.Noneoftheabove
Answer:B
24.Whatistherealinterestrate?
a.Theinterestrateadjustedfortherelativeinterestrate
b.Theinterestrateadjustedfortheexchangerate
c.Theinterestrateadjustedforpricelevels
d.Theinterestrateadjustedforinflation
Answer:D
Conceptual,EffectsofOtherFactorsonExchangeRates,pp.143144
25.Bidaskmarginisequalto
a.Askpricebidprice/askprice*100
b.Bidpriceaskprice/askprice*100
c.Askpricebidprice/bidprice*100
d.Askpriceaskprice/bidprice*100
Answer:A
Chapter6
1.Amarketinwhichindividuals,governments,andbusinessesthatdonothavean
immediateusefortheirmoneytransferthatmoneytoindividuals,governments,
andbusinessesthathaveaneedanduseforthatmoneyisa
a.Capitalmarket
b.Bondmarket
c.Foreignexchangemarket
d.Freemarket
Answer:A
Factual,WhatareCapitalMarkets?,p.156
2.Abondissuerisa_______,abondholderisa______andacouponisa
________
a.Borrower,lender,interestrate
b.Lender,borrower,interestrate
c.Borrower,lender,ticket
d.borrower,interestrate,lender
Answer:A
Factual,BondMarket,p.157
3.Thebondissuerisusuallythe
a.Borrower
b.Lender
c.Interestrate
d.Inflationrate
Answer:A
4.WhichofthefollowingthreestatementsaboutthebondmarketisNOTTRUE?
a.Bondsareformsofdebt
b.Thebondholderisusuallytheborrowerofthemoney
c.Bondholderscancomefromalargegroupofinvestors
d.Alloftheabovearetrue
Answer:B
5.Astockmarket
a.Iswherecompaniescanpurchasebonds
b.Isafinancialmarketwherecompaniescansellsharesofownershipand
investorscantradetheseshareswithotherinvestors
c.Ignoresthedifferencesinneedsbetweennationsandappliesthemodels
uniformly
d.Isacombinationofnationalcentralbanks,privatebanks,andforeignexchange
dealersandbrokersthroughwhichpeopleandcompaniescansellorbuyforeign
currencies
Answer:B
Factual,StockMarket,p.158
6.Whenacompanymakesprofits,itsharesacertainpercentageoftheprofitswith
theowners(stockholders)intheformof
a.Interest
b.Marketshares
c.Stockrate
d.Dividends
Answer:D
7.Themostcommoncurrencyusedbybanksoutsideofthecountryoforiginisthe
USdollarknownas
a.Eurodollars
b.Dollarization
c.Poundsterling
d.Rupees
Answer:A
Factual,GlobalBanking,pp.159160
8.Themarketforgettingloansinacurrencyotherthanthatofthelendingbanks
homecurrencyiscalled
a.Eurodollars
b.Dollarcurrency
c.Stockmarket
d.Eurocurrencymarket
Answer:D
Factual,GlobalBanking,pp.159160
9.WhichoneofthefollowingisnotaEurocurrenciescharacteristic?
a.Noprofitrateregulations
b.Nodisclosurerequirements
c.Noreserverequirements
d.Nodepositinsurancerequirements
Answer:A
Factual,GlobalBanking,p.160
10.WhichofthefollowingthreestatementsregardingEurocurrenciesisNOT
TRUE?
a.TheEurocurrencyisthemarketforgettingloansinacurrencythatisdifferent
fromthelendingbankshomecurrency
b.TheEurocurrencyactuallyexistedbeforetheEuro
c.TheEurocurrencyissimilartotheEuro
Answer:C
11.TheinterestratesthatLondonbanksarewillingtochargeotherbanksforloans
inEurocurrenciesisthe
a.LondonInterbankOfferRate
b.LondonInterbankBidRate
c.LondonInterbankAskRate
d.LondonInterbankUseRate
Answer:A
12.TheinterestratesthatLondonbanksarewillingtopayotherbankstomake
depositsinEurocurrenciesisthe
a.LondonInterbankOfferRate
b.LondonInterbankBidRate
c.LondonInterbankAskRate
d.LondonInterbankUseRate
Answer:B
13.Whenaforeigncompanyissuesbondsinthelocalcurrency,thesebondsare
knownas
a.Foreignbonds
b.Eurobonds
c.Globalbonds
d.Exchangebonds
Answer:A
Factual,InternationalBondMarket,p.162
14.IfaUScompanyissuesbondsinJapaninJapaneseyen,suchabondisknown
asa
a.Globalbond
b.Yenbond
c.Foreignbond
d.Noneoftheabove
Answer:C
Factual,InternationalBondMarket,p.162
15.Bondsthatareissuedinseveralcurrenciesatonceareknownas
a.Eurobonds
b.Foreignbonds
c.Globalbonds
d.Noneoftheabove
Answer:C
Conceptual,InternationalBondMarket,p.162
16.WhichofthefollowingwouldnotqualifyasEurodollars?
a.USdollarsheldbyaJapanesebank
b.USdollarsheldbyaBritishbank
c.USdollarsheldbyaUSbank
d.Noneoftheabove
Answer:C
17.WhichofthefollowingthreestatementsregardingglobalbondsisNOT
TRUE?
a.GlobalbondsaresimilartoEurobonds
b.Globalbondsareissuedinseveralcurrenciesatonce
c.Globalbondsareonlyofferedinonecurrency
Answer:C
Conceptual,InternationalBondMarket,p.162
18.Adepositoryreceiptisacertificateissuedbyabankcalleda
a.Depositorybank
b.Depositoryreceiptbank
c.Foreignexchangebank
d.AmericanDepositoryReceipt
Answer:A
Conceptual,AlternativeWaytoListonaForeignExchange,pp.164165
19.Amarketwherecompaniestakeondebtusingabondisknownasthe
a.Stockmarket
b.Globalmarket
c.Bondmarket
d.Financialmarket
Answer:C
20.AmericanDepositoryReceipt
a.Allowsforeigncompaniestoselltheirstocksindirectlyandraisecapitalinthe
US
b.AllowsforeigncompaniestodepositstocksintheUSandhelpraisecapitalin
theUS
c.AllowsforeigncompaniestoselltheirstocksdirectlyandraisecapitalintheUS
d.DoesnotallowforeigncompaniestobuystocksotherthanfromtheUS
Answer:A
21.IndividualsharesofaforeigncompanyrepresentedbyanAmericanDepositoryReceiptare
knownas
a.Depositoryreceipts
b.Globaldepositoryreceipts
c.Americandepositoryexchanges
d.Americandepositoryshares
Answer:D
22.Themajorbenefitofseekingneededcapitaloutsideofthehomecountryisthatthereoftenis
_______fortheborrower
a.Alowercostofcapital
b.Ahighercostofcapital
c.Lesstrouble
d.Ahigherprofit
Answer:A
Factual,WhatareCapitalMarkets?,p.156
23.Thefirststockofferingbyacompanyiscalledan
a.Initialstockoffering
b.Initialpublicoffering
c.Initialexchangerateoffering
d.Initialownershipoffering
Answer:B
24.GDRstandsfor
a.GlobalDepositoryReceipt
b.GlobalDepositoryRate
c.GlobalDemandRate
d.GlobalDominatedRaise
Answer:A
Conceptual,AlternativeWaytoListonaForeignExchange,p.166
25.AccordingtoastudybyAMRResearchinBoston,theSarbanesOxleyActisestimatedto
costUScompaniesabout
a.$6billionayear
b.$1billionayear
c.$2billionayear
d.$5billionayear
Answer:A
Chapter8
1.
Aneconomicsystemwhereproductionactivitiesaredecentralizedtoprivateproperty
rightsholderswhocarryouttheseactivitiesforthepurposeofmakingprofitsina
competitivemarketisknownas
a.Capitalist
b.Socialist
c.Mixedeconomy
d.Commandeconomy
Answer:A
Conceptual,TypesofEconomicSystems,p.216
2.Inwhicheconomicsystemareproductionresourcesownedbythestateandproduction
decisionscentrallycoordinated?
a.Capitalist
b.Command
c.Mixed
d.Noneoftheabove
Answer:B
3.Transitioneconomiesarethose
a.Societiesthataremovingfromacapitalisttoasocialistbasedsystem
b.Societiesthataremovingtoamixedeconomybasedsystem
c.Societiesthataremovingfromsocialismtoamoremarketbasedsystem
d.Controlledbygovernmentandbasedoncentralplannedeconomies
Answer:C
Conceptual,TypesofEconomicSystems,pp.216218
4.Economiesthatcombineaspectsofbothcapitalismandsocialismareknownas
a.Transitioneconomies
b.Capitalisteconomies
c.Socialisteconomies
d.Noneoftheabove
Answer:D
Conceptual,TypesofEconomicSystems,pp.216218
5.Theuniquesystemofregulations,laws,andrulesthataffectthechoicesmadeby
individualsinanysocietyandthatgovernthewaystheseindividualsareresponsiblefor
theirdecisionsandactionsisknownasa(n)
a.Economicfreedomsystem
b.Legalsystem
c.Internationalbusinesssystem
d.Capitalistsystem
Answer:B
Factual,LegalSystems,pp.220222
6._________isbasedonaverydetailedsetofrulesandregulationsthatformspartofa
countryslegalcode
a.Civillaw
b.Commonlaw
c.Islamiclaw
d.Nationallaw
Answer:A
7.Whichtypeoflawisbasedontheconceptofprecedentwherethelawisappliedafteran
examinationofpastcases?
a.Civillaw
b.Commonlaw
c.Islamiclaw
d.Nationallaw
Answer:B
8.Inwhichlegalsystemarejudgesneutralandlawyersexpectedtodemonstratetheir
cases?
a.Civillaw
b.Islamiclaw
c.Commonlaw
d.Nationallaw
Answer:C
9.CountriessuchastheUS,UK,andAustraliahavewhichtypeoflaw?
a.Civillaw
b.Commonlaw
c.Islamiclaw
d.Nationallaw
Answer:B
10.CountriessuchasBelgium,France,andPortugalhavewhichtypeoflaw?
a.Civillaw
b.Commonlaw
c.Islamiclaw
d.Nationallaw
Answer:A
11.Thethreatthatsocial,political,oreconomicfactorsinaforeigncountrymayaffectthe
feasibilityandprofitabilityofanorganizationsglobaloperationsisknownas
a.Politicalrisk
b.Socialrisk
c.Nationalrisk
d.Economicrisk
Answer:A
Conceptual,PoliticalRisk,p.226
12.Thebroadandmultifacetedreligioustraditionthatfocusesprimarilyontherealityof
worldlysufferingandonthewaysonecanbefreedfromsuchsufferingisknownas
a.Judaism
b.Confucianism
c.Buddhism
d.Hinduism
Answer:C
Factual,Religion,pp.229234
13._______hasnosinglefounderorleaderandrepresentsthefamilyofreligioustraditions
associatedwithJewishpeople
a.Judaism
b.Confucianism
c.Hinduism
d.Christianity
Answer:A
14.Whichreligionisclearlythereligionmostpracticedaroundtheworld?
a.Judaism
b.Confucianism
c.Islam
d.Christianity
Answer:D
15.Whichreligionprescribesthatitsadherentsshouldliveaccordingtothefivepillarsof
confession,prayer,almsgiving,fasting,andpilgrimage?
a.Judaism
b.Confucianism
c.Islam
d.Christianity
Answer:C
16.Whatisthesecondlargestreligionintheworld?
a.Christianity
b.Confucianism
c.Hinduism
d.Noneoftheabove
Answer:D
17.ThenetworkofrelationshipslinkingindividualswithfamiliesandclansinChinais
knownas
a.Guanxi
b.Quran
c.Talmud
d.Geeta
Answer:A
18.Whichreligionstrictlyprohibitsreceivingorgivinginterest?
a.Hinduism
b.Buddhism
c.Taoism
d.Noneoftheabove
Answer:D
19.Acomplexofpositions,roles,norms,andvalueslodgedinparticulartypesofsocial
structuresandorganizedinrelativelystablepatternsofhumanresourceswithrespectto
fundamentalproblemsinsustainingviablesocietalstructureswithinagivenenvironment
isknownasa(n)
a.Economicsystem
b.Mixedeconomy
c.Socialinstitution
d.Socialist
Answer:C
Factual,SocialInstitutions,p.214
20.CountriessuchasSweden,France,Denmark,Italy,andIndiaareexamplesofa
a.Mixedeconomy
b.Socialisteconomy
c.Capitalisteconomy
d.Commandeconomy
Answer:A
21.Whichoneoftheseisacategoryofeconomicfreedom?
a.Economy
b.Repressed
c.Law
d.Religion
Answer:B
Factual,InternationalBusinessImplicationsofEconomicSystems,pp.216219
22.Inwhichlegalsystemisthejudgethekeyelementofcases,takingontheroleoflawyer
indecidingwhatinformationistobepresentedindecidingacourse?
a.Commonlaw
b.Islamiclaw
c.Civillaw
d.Economiclaw
Answer:C
23.WhatdoesOECDstandfor?
a.OrganizationforEconomicCooperationandDistribution
b.OrganizationforEnvironment,Culture,andDiversity
c.OrganizationforEnforcingContradiction
d.OrganizationforEconomicCooperationandDevelopment
Answer:D
Factual,OtherAspectsoftheLegalEnvironment,p.222223
24.Asharedsetofbeliefs,activities,andinstitutionsbasedonfaithinsupernaturalforcesis
knownas
a.Culture
b.Religion
c.Beliefs
d.Norms
Answer:B
25.WhichreligiondealswithVedicscripturesandthesocialclassstructurewithitsspecial
respectforBrahmans?
a.
Hinduism
b.
Buddhism
c.
Judaism
d.
Islam
Answer:A
Chapter7
1.Nationalcultureisthe
a.Pervasiveandsharedvalues,beliefs,andnormsthatguidelifeinanysociety
b.Norms,values,beliefs,andexpectedwaysofbehavingofpeopleinthesame
occupationalgroup
c.Beliefthattwoormorecountrieshavesimilarvalues,beliefs,andnorms
d.Mosteffectivewaytomeasurehowdevelopedeachcountryis
Answer:A
Conceptual,NationalCulture,pp.180181
2.Asharedunderstandingofwhatpeoplecandoandwhattheycannotdois
a.Culturalsymbols,stories,andrituals
b.Culturalnorms
c.Culturalbeliefs
d.Nationalculture
Answer:B
3.Behaviorsorhabitsthatarepassedonthroughgenerationsandappropriateindifferent
situationsareknownas
a.Culturalbeliefs
b.Culturalnorms
c.Customs
d.Culturalrituals
Answer:C
4.Peoplesperceptionofwhatistrueinasocietyisknownas
a.Culturalcustoms
b.Culturalsymbols
c.Culturalrituals
d.Culturalbeliefs
Answer:D
5.Thedegreetowhichsocietiesacceptpowerdifferencesandauthorityinsocietyisknownas
a.Powerculture
b.Powerdifferences
c.Powerdistance
d.Powersociety
Answer:C
Factual,HofstedesModelofNationalCulture,pp.182189
6.Hofstededevelopedhismodelbasedondifferencesin_________and______regardingwork
goals
a.Normsandrituals
b.Valuesandbeliefs
c.Cultureandcustoms
d.Symbolsandstories
Answer:B
7.Thedegreetowhichasocietyemphasizesmasculineculturalcharacteristicssuchas
emphasisonadvancementandearningsisknownas
a.Masculinity
b.Individualism
c.Poweruncertainty
d.Futureorientation
Answer:A
8.Thedegreetowhichsocietyfocusesontherelationshipoftheindividualtothegroupis
knownas
a.Powerdistance
b.Uncertaintyavoidance
c.Masculinity
d.Individualism
Answer:D
9.Uncertaintyavoidancerefersto
a.Thedegreetowhichsocietyfocusesontherelationshipoftheindividualtothegroup
b.Thedegreetowhichthesocietyencouragessocietalmemberstoinnovate,toimprove
theirperformance,andtostriveforexcellencetheirperformance,andtostriveforexcellence
c.Thedegreetowhichasocietyemphasizesmasculineculturalcharacteristicssuchas
emphasisonadvancementandearnings
d.Noneoftheabove
Answer:D
10.Futureorientationdealswith
a.Thedegreetowhichindividualsbelievethattheircurrentbehaviorwillimpacttheir
future
b.Thedegreetowhichthesocietyencouragessocietalmemberstoinnovate,toimprove
theirperformance,andtostriveforexcellence
c.Thedegreetowhichpeoplewithinasocietyareexpectedtobefriendly,generous,
andcaring
d.Thedegreetowhichpeopletendtoworryaboutqualityoflife
Answer:A
Factual,GLOBE,pp.189193
11.Thedegreetowhichasocietyencouragesitsmemberstoinnovateandtostrivefor
excellenceisknownas
a.Futureorientation
b.Masculinity
c.Performanceorientation
d.Humaneorientation
Answer:C
12.Groupsofcountrieswithroughlysimilarculturalpatternsareknownas
a.Countryclusters
b.Countrygroups
c.Roughcountries
d.Countrypatterns
Answer:A
13.WhichofthefollowingcountriesisNOTincludedintheGlobalLeadershipand
OrganizationalBehaviorStudiesGermanicEuropecluster?
a.Austria
b.Denmark
c.Switzerland
d.Germany
Answer:B
14.WhichofthefollowingcountriesisNOTincludedintheGlobalLeadershipand
OrganizationalBehaviorStudiesNordicEuropecluster?
a.Finland
b.Denmark
c.Sweden
d.Germany
Answer:D
15.Therangeofexpectedacceptableandunacceptablebehaviorswhendoingbusinessis
knownas
a.Businessetiquette
b.Businessculture
c.Businessnorms
d.Businessbeliefs
Answer:A
Conceptual,NationalCultureandBusinessCulture,pp.196199
16.Languagesinwhichpeoplestatethingsdirectlyandexplicitlyarecalled
a.Highcontext
b.Lowcontext
c.Midcontext
d.Directcontext
Answer:B
Factual,NationalCultureandBusinessCulture,pp.196199
17.Languagesinwhichpeoplestatethingsindirectlyandimplicitlyarecalled
a.Highcontext
b.Lowcontext
c.Midcontext
d.Directcontext
Answer:A
18.WhichofthefollowinglanguagesisNOTanexampleofahighcontextlanguage?
a.German
b.Japanese
c.Korean
d.Arabic
Answer:A
19.WhichofthefollowinglanguagesisNOTanexampleofalowcontextlanguage?
a.German
b.Japanese
c.English
d.Danish
Answer:B
20.Thebeliefthatonescultureissuperiortoothersisknownas
a.Ethnocentricity
b.Stereotyping
c.Subcultures
d.Superiorbelief
Answer:A
Conceptual,NationalCulture:SomeCautionsandCaveats,p.199
21.Simulationstendbeof_______inwhichparticipantsareofferedtheopportunityto
experiencetheforeignculturethroughroleplayingandotherprogrammedinstruction
a.Lowrigor
b.Highrigor
c.Lowcontext
d.Highcontext
Answer:A
Factual,CultureTrainingMethods,p.202
22.Whenobservationsofaculturecontradictculturalexpectationsforthatculture,such
observationsreflect
a.Stereotyping
b.Ethnocentricity
c.Culturalparadoxes
d.Noneoftheabove
Answer:C
23.Thewayoflifeofgroupsofpeoplewithinacultureisknownas
a.Subcultures
b.Stereotyping
c.Norms
d.Culturaldifferences
Answer:A
Chapter9
1.In_________exporting,intermediaryorgobetweencompaniesprovidetheknowledgeand
contactsnecessarytohelpacompanysellinternationally
a.Indirect
b.Passive
c.Active
d.Direct
Answer:A
Factual,Exporting,pp.244248
2.Whenacompanyusesan__________,itisoutsourcingthefunctionsthatthecompany
wouldotherwisedointernallythroughexportsorinternationalsales
a.Exporttradingcompany
b.Exportdirectsales
c.Exportmanagementcompany
d.Exportinternationalsales
Answer:C
3.In________exporting,theeffortcaninvolveaslittleastreatingandfillingoverseasorders
likedomesticorders
a.Active
b.Passive
c.Direct
d.Indirect
Answer:B
4.Whenacompanyexportsdirectlyandusesforeignrepresentativestosellitsproduct,itis
usingwhichformofexporting?
a.Indirect
b.Exportdirectsales
c.Passive
d.Noneoftheabove
Answer:D
Conceptual,Exporting,pp.244248
5.Whichofthefollowingthreestatementsregardingtheexportmanagementcompany(EMC)is
FALSE?
a.TheEMCpromotesthecompanysproductstointernationalbuyersanddistributors
b.EMCscanconductbusinessinthenameoftheproducer
c.EMCsbuythegoodsfromtheexporterandthenresellthemoverseas
Answer:C
6.WhichofthefollowingisNOTatypicalfunctionofanexportmanagementcompany?
a.Buyingproductsfromtheexporterforresale
b.Attendingtradeshowstopromotetheexportersproducts
c.Adaptingpackagingforlocaltastes
d.Findingoverseasrepresentativesanddistributors
Answer:A
7.Aformofcomprehensivelicensingagreementisrepresentedby
a.Internationalfranchising
b.Internationallicensing
c.Internationalcontract
d.Foreigncontract
Answer:A
Factual,LicensingandFranchising,pp.249254
8.Whichofthesefactorsshouldacompanytakeintoaccountwhenconsideringinternational
licensing?
a.Product
b.Characteristicsofthetargetcompany
c.Natureofthecompany
d.Alloftheabove
Answer:D
9.Whenacompanygrantsanothercompanytheuseofawholebusinessmodel,includingthe
trademarketc.,itisusingwhichformofinternationalentry?
a.Internationalalliance
b.Internationalfranchising
c.Indirectexporting
d.Noneoftheabove
Answer:B
10.WhichofthefollowingthreestatementsregardinglicensingisFALSE?
a.Licensingisoneoftheeasiestandleastriskywaystogointernational
b.Licensingisonlyforsmallcompanieswithlimitedcapital
c.Licensingworkswellforbothsmallandlargemultinationals
Answer:B
Conceptual,LicensingandFranchising,pp.249254
11.InwhichofthefollowingcircumstancesshouldacompanyNOTconsiderlicensing?
a.Whenthecompanyhasanewinnovationthathasimportantpotential
b.Whenacompanyfaceslocalmarketconditionsthatmakeexportingdifficult
c.Whentransportationcostsarehigh
d.Alloftheabovearereasonstolicense
Answer:A
12.WhichoneoftheseisanEMCfunction?
a.Encouragingtechnicalandeconomiccooperationamongthecountriesoftheregionand
promotingtheuseofregionalandnationalinstitutions
b.Adaptingpackagingforlocaltastes
c.Controllingthecompanyssocialenvironment
d.Addingsignificantcostsbetweentwotransportationcountries
Answer:B
13.Whichoneofthesecharacteristicsisnotlikelytomakeacompanyagoodcandidate
forinternationalfranchising?
a.Systemsthatareeasilycopiedandcanbereplicatedmanytimes
b.Brandsthatarehardtoidentifyanddonttravelwellcrossculturally
c.Welldevelopedandsystematicoperatingsystemsandproceduresthatareeasytotrain
crossculturally
d.Ahighdegreeofcontrolovertheproductsorservicesmustbepossible
Answer:B
14.WhichoneoftheseisNOTadisadvantageoflicensingandfranchising?
a.Thereisapotentialthatlicensingorfranchisingcangiveupcontrol
b.Licensingorfranchisingmayresultinlowerprofitsforthelicenseeorfranchisor
c.Companyworkersmightusethelicensingorfranchisingforpersonalbenefits
d.Thereareopportunitycoststolicensingorfranchising
Answer:C
15.Agreementsbetweentwoormorefirmsfromdifferentcountriestoparticipateinbusiness
activitiesare
a.Internationalstrategicalliances
b.Internationaljointventures
c.Internationalcooperativealliances
d.Internationalmultinationalfirms
Answer:A
Conceptual,InternationalStrategicAlliances,pp.254257
16.AccordingtoChapter9,whataresomeofthereasonsforformingalliances?
a.Economydifferences
b.Sharingculture
c.Governmentrequirements
d.Sharingbusiness
Answer:C
17.Thelicensingagreementorcontractprovidesthelegalspecificationsoftherelationship
betweenthe
a.Licenseeandthelicensor
b.Buyerandseller
c.Companyandcustomers
d.Stockholdersandcompanyworkers
Answer:A
18.Whentwoormorefirmsfromdifferentcountriesagreetocooperateinanyvaluechain
activity
a.Internationaljointventuresexist
b.Internationalcooperativealliancesexist
c.Internationalstrategicalliancesexist
d.Internationalmultinationalfirmsexist
Answer:B
19.Whentwoormorefirmsfromdifferentcountrieshaveanequitypositioninaseparate
company,thefollowingoccurs
a. International franchise
b. International cooperative alliance
c. Equity international joint venture
Answer: C
Conceptual, International Strategic Alliances, pp. 254257
20. When Ford and Renault agreed to cooperate in the design, production,
and sale of utility vans in the commercial market, they engaged in an
a. International cooperative alliance
b. International franchise
c. Equity international joint venture
Answer: A
Conceptual, International Strategic Alliances, pp. 254257
21. Which of the following should NOT be considered as strategic issues
when working out the formulation of an entry strategy?
a. Need for control
b. Local government regulations
c. The license or franchise of the company
d. Characteristics of the target product and market
Answer: C
Conceptual, Selecting the Entry Strategy, pp. 263267
22. Need for control is characterized by which of the following important
areas of concern?
a. (b) and (c)
b. Product price
c. After-market service
d. Business relationship
Answer: A
Conceptual, Selecting the Entry Strategy, pp. 263267
23. When a company sets up a company in another country from scratch, the
process is known as
a. Strategic alliance
b. Foreign green investment
c. Greenfield investment
Answer: C
Factual, Foreign Direct Investment, pp. 257259
24. The highest stage of internationalization is known as
a. Greenfield investment
b. Foreign direct investment
c. Strategic intent
d. Company capabilities
Answer: B
Factual, Foreign Direct Investment, pp. 257259
Chapter10
1.Whichoneofthesedoesnotfallundermarketingmix?
a.Businesscompetition
b.Distribution
c.Pricing
d.Productoffering
Answer:A
Conceptual,MarketResearch,p.276
2._________________isthesystematicgatheringofobjectiveinformationinandabout
foreignmarketsthatwillhelptheinternationalmanagerunderstandwhatthecustomer
wantsandneeds
a.Secondarydata
b.Primarydata
c.Internationalmarketingresearch
d.Noneoftheabove
Answer:C
Factual,MarketResearch,p.276
3._________aregatheredspecificallytoprovideinformationneededbytheinternational
managerthatdidnotpreviouslyexist
a.Primarydata
b.Businessreports
c.Marketdata
d.Businessrules
Answer:A
Factual,MarketResearch,p.276
4.Ifamultinationalexaminesincomelevelsfromgovernmentdatatoconsiderhowto
marketaproduct,itisusingwhichformofdata?
a.Primarydata
b.Marketingdata
c.Secondarydata
d.Noneoftheabove
Answer:C
Conceptual,MarketResearch,pp.276277
5.Whatkindofdataiscollectedbysurveyswherebyinternationalmanagerscanask
customershowsatisfiedtheyarewiththeproductandwhatservicestheyprefer?
a.Primarydata
b.Marketingdata
c.Secondarydata
d.Noneoftheabove
Answer:A
6.Whenaquestionnaireisrepeatedlytranslatedbackandforthbetweentwolanguagesuntilthe
questionnaireisconsistentbetweenbothlanguages,theinternationalmanageris
engagingin
a.Internationaltranslation
b.Forwardtranslation
c.Backtranslation
d.Noneoftheabove
Answer:C
7.Trainedprofessionalswhorunfocusgroups,showparticipantsadevice,andaskthemto
discussvariousfeaturesoraspectsoftheactualproductareknownas
a.Managers
b.Moderators
c.Stockholders
d.Businesstrainees
Answer:B
8.Segmentationisbasedonanycharacteristicassociatedwithhowaconsumerdecidesto
spendhisorher_________
a.Money
b.Time
c.Businesslogic
d.Stock
Answer:A
Factual,UnderstandingGlobalDemand,p.279
9.Theprocessofgroupingcustomersaccordingtotheirpreferencesandneedsisknownas
a.Categorization
b.Grouping
c.Segmentation
d.Noneoftheabove
Answer:C
Factual,UnderstandingGlobalDemand,p.279
10._________mayinvolveonlylanguagechangesonthelabelorinstructions
a.Directextension
b.Standardization
c.Segmentation
d.Labeling
Answer:A
Conceptual,ProductsandBrands,p.280
11.ThefactthatinmanymarketsitisnotevennecessaryforCoketochangeitslanguagein
productlabelingrepresents
a.Standardization
b.Uniformlabeling
c.Directextension
d.Noneoftheabove
Answer:B
12.WhichofthefollowingthreestatementsregardingglobalbrandsisFALSE?
a.Aglobalbrandhasaconsistentidentitywithallcustomersinallmarkets
b.Amajorpartoftheadvantageofglobalbrandscomesfromeconomiesofscale
c.Thereareaverylargenumberoftrulyglobalbrands
Answer:C
13.WhenaFrenchmultinationalcompanydecidestomakeabigdealoutofthefactthatthe
wineitproducesisFrench,itisrelyingon
a.Countryoforigineffect
b.Adaptationstrategy
c.Internationalstrategicalliances
d.Primarystrategy
Answer:A
Factual,GlobalandLocalBranding,p.285
14.ThephenomenonwherebyFrenchwinesareoftenthoughttobeofhighqualityisknownas
a.Globalbranding
b.Globaldistribution
c.Countryoforigineffect
d.Noneoftheabove
Answer:C
Factual,GlobalandLocalBranding,p.285
15.Largescaleretailingmultinationalcompaniesthathavelocationsthroughoutvarious
regionsoftheworldare
a.Internationalretailers
b.Globalretailers
c.Eretailers
d.Ecommerces
Answer:B
Factual,RetailinginGlobalMarkets,p.288
16.Whenacompanyactsasitsowndistributionchannelandsellsdirectlytotheconsumer,itis
engagingin
a.Distributionchannels
b.Globaldistribution
c.Indirectdistribution
d.Noneoftheabove
Answer:D
Factual,GlobalSupplychainManagement,p.289
17.Allthetasksandservicesthatconnecteverythingthathappenstoaproduct,fromraw
materialstotheconsumer,arecalled
a.Supplychains
b.Wholesaling
c.Ecommerce
d.Globalmarkets
Answer:A
Factual,GlobalSupplychainManagement,p.289
18.Agraymarketiscreatedwhen
a.Lowpricedproductsinonemarketareboughtupbyunauthorizeddistributorsatthe
lowerpriceandresoldinanothermarketatahigherprice
b.Lowpricedproductsinonemarketareboughtupbyauthorizeddistributorsatthe
lowerpriceandresoldinanothermarketatahigherprice
c.Lowpricedproductsinonemarketareboughtupbyunauthorizeddistributorsatthe
higherpriceandresoldinanothermarketatahigherprice
d.Lowpricedproductsinonemarketareboughtupbyauthorizeddistributorsatthe
lowerpriceandresoldinanothermarketatalowerprice
Answer:A
Factual,Pricing,p.294
19.Whatoccurswhenaforeigncompetitorsellsproductsinalocalmarketatpricesthatare
belowlocalproductcosts?
a.Businessloss
b.Dumping
c.Increaseinillegalproducts
d.Increaseinbusinessrevenue
Answer:B
Factual,Pricing,p.294
20.Anexpensivebutpowerfulcommunicationtoolthroughwhichamultinational
companysrepresentativeinteractsoneononewithcustomerstosellthemultinational
companysproductisknownas
a.Personalselling
b.Ecommerce
c.Globalbusiness
d.Internationalbusinessstrategy
Answer:A
Conceptual,TalkingtoCustomersacrosstheGlobe,p.297
21.Anythingthatthemultinationalcompanyusestoinformcustomersaboutitsproduct,
promoteitsproduct,andpersuadecustomerstobuyanduseitsproductisknownas
a.Globalmarketing
b.Advertising
c.Businessregulations
d.Communicationmix
Answer:D
Factual,TalkingtoCustomersacrosstheGlobe,p.295
22.Coupons,contests,orpointofpurchasedisplaysareexamplesof
a.Brand
b.Promotions
c.Graymarket
d.Secondarydata
Answer:B
23.WhichofthefollowingthreestatementsaboutpromotionisFALSE?
a.CountriessuchasGermanyandAustriahavelawsforbiddingtheuseofcoupons
b.InFranceandSweden,promotionaldevicesthatinvolvegamesofchancesuchas
lotteriesandsweepstakesareprohibited
c.Chineseconsumersareveryeagertousecoupons
Answer:C

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Chapter 1

What is the definition of low-cost countries (LCC)?

Least developed countries

All of the above statements are true

anywhere in the world where it is advantageous, they adopt what is known

c. Global integration strategies

b. Patterns of trade and investments

a. To build a socially responsible multinational

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