IBA Test 2

A(n) ________ is a group of official organizations that create a government.

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Part 1

A.

common law

B.

market economy

C.

legal system

D.

extraterritoriality

E.

political system

political system

Which term refers to understanding and administering​ laws, regulations, and rules that are used to establish standards for​ conduct?

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Part 1

A.

Political system

B.

Mixed economy

C.

Legal system

D.

Totalitarianism

legal system

________ is a governmental system that attempts to control most aspects of its​ citizens' conduct both publicly and​ privately, including their values and beliefs.

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Part 1

A.

Socialism

B.

Authoritarianism

C.

Democracy

D.

A market economy

E.

A mixed system

Authortatianism

A​ ________ depends on the interactions of supply and demand in order to determine prices for products and services.

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Part 1

A.

mixed economy

B.

market economy

C.

socialist society

D.

totalitarian economy

E.

command economy

market economy

________ refers to a legal system where rules are​ clarified, publicly​ revealed, justly​ applied, and valued by all.

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Part 1

A.

Civil law

B.

Rule of law

C.

Common law

D.

Religious law

E.

A mixed system

rule of law

Which legal system is based on a comprehensive structure where laws are clearly​ written, accessible, and divided into three​ categories: commercial,​ civil, and​ criminal?

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Part 1

A.

Rule of law

B.

Religious law

C.

Civil law

D.

Mixed system

E.

Common law

civil law

Which of the following includes organizations like​ NAFTA, the​ EU, and​ ASEAN?

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Part 1

A.

International organizations

B.

Special interest groups

C.

Regional trade organizations

D.

Governments

E.

Competing firms

regional trade organization

________ include establishments such as OPEC and OECD that work to improve the development of specific communities.

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Part 1

A.

International organizations

B.

Governments

C.

Special interest groups

D.

Regional trade organizations

E.

Competing firms

special interest groups

________ is the seizure of company assets with compensation.

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Part 1

A.

Nationalization

B.

Expropriation

C.

Conciliation

D.

Arbitration

E.

Confiscation

Expropriation

Which type of country risk produced by a governmental system involves threats or use of force or violence in order to attain some kind of political​ goal?

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Part 1

A.

Terrorism

B.

Embargo

C.

Boycott against a business

D.

Sanctions

E.

Government seizure of company assets

Terrorism

Applying​ home-country laws to people and situations abroad is a practice known as​ ________.

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Part 1

A.

transparency

B.

mixed system

C.

socialism

D.

extraterritoriality

E.

rule of law

extraterritoriality

​________ is the degree to which organizations disclose substantial information about their financial position and accounting measures.

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Part 1

A.

Transparency

B.

Expropriation

C.

Rule of law

D.

Arbitration

E.

Extraterritoriality

Transparency

Which of the following represents a method of negotiation in which the objective is to settle any disagreements in a pleasant​ manner?

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Part 1

A.

Conciliation

B.

Nationalization

C.

Arbitration

D.

Litigation

E.

Confiscation

Conciliation

________ is a process in which an unbiased third party listens to both sides of a case and makes a decision in favor of one party or the​ other, based on an impartial analysis of facts.

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Part 1

A.

Conciliation

B.

Litigation

C.

Nationalization

D.

Arbitration

E.

Confiscation

Arbitration

________ are taxes placed on imported goods that increase the final purchase price for consumers.

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Part 1

A.

Quotas

B.

Nontariff trade barriers

C.

Subsidies

D.

Tariffs

E.

Export controls

Tariffs

​________ represent locations at the ports of entry in each country where government authorities inspect imported products and levy tariffs.

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Part 1

A.

Regional economic blocs

B.

Maquiladoras

C.

Export trade zones

D.

Customs

E.

Foreign trade zones

Customs

​________ imposes limitations on the expenditure or outflow of tangible currency from a certain nation or on the influx​ of foreign currencies.

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Part 1

A.

A quota

B.

A nontariff trade barrier

C.

Export control

D.

Currency control

E.

A countervailing duty

Currency Control

Which term refers to exported goods being priced lower than their typical value whether in​ home-country markets or foreign​ markets?

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Part 1

A.

Subsidizing

B.

Countervailing duties

C.

Dumping

D.

Nontariff trade barriers

E.

Export controls

Dumping

Which of the following primarily focuses on ensuring the reduction of tariffs among certain countries and settling trade​ disagreements?

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Part 1

A.

United Nations

B.

World Bank

C.

European Union

D.

General Agreement on Tariffs and Trade

E.

​Smoot-Hawley Tariff Act

General Agreement on Tariffs and Trade

Government intervention and trade barriers imposed by developed countries raise​ ______ for developing economies that supply them because tariffs are often disproportionately high.

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Part 1

A.

economic freedom levels

B.

subsidies

C.

ethical concerns

D.

export controls

E.

quotas

Ethical Concerns

A specific region that is located within a nation is treated as if it were outside the​ nation's borders. This region is designated to receive imported products that are not subject to tariffs and that are intended for assembly and subsequent​ re-export. Which term best describes this​ region?

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Part 1

A.

Economic union

B.

Common market

C.

Free trade area

D.

Foreign trade zone

E.

Regional economic integration

Foreign Trade Zone

Which of the following BEST defines​ maquiladoras?

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Part 1

A.

Transfer payments made directly to foreign firms

B.

Areas within a country that receive imported goods for assembly

C.

​Export-assembly plants

D.

Taxes imposed on products that will be dumped

E.

Tariffs imposed on products imported into a country

Export-Assembly Plants

Which of the following is a stage of regional integration in which member countries decide to remove tariffs and other barriers to trade within the​ bloc, but maintain trade barriers with nonmember​ countries?

Question content area bottom

Part 1

A.

Common market

B.

Economic union

C.

Foreign trade zone

D.

Customs union

E.

Free trade area

Free Trade area

n​ a(n) ________, barriers to trade within a participating country are reduced or​ eliminated, shared external barriers are​ established, and unrestricted movement of​ goods, services, and factors of production is permitted.

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Part 1

A.

overseas trade region

B.

free trade area

C.

customs union

D.

unrestricted trade location

E.

common market

Common Market

Which of the following is the​ world's most advanced and largest regional economic​ bloc?

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Part 1

A.

Association of Southeast Asian Nations

B.

Asia Pacific Economic Cooperation

C.

North American Free Trade Agreement

D.

European Union

E.

MERCOSUR

European Union

Which of the following was formed by three countries to increase market​ entrance, remove barriers to​ trade, establish investment​ standards, and encourage bidding on government contracts within the three countries participating in​ it?

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Part 1

A.

MERCOSUR

B.

European Union​ (EU)

C.

Association of Southeast Asian Nations

D.

Asia Pacific Economic Cooperation

E.

North American Free Trade Agreement​ (NAFTA)

NAFTA- North American Free Trade Agreement

Due to the larger market size of an economic​ bloc, member country firms are able to reduce their product prices because they can​ ________.

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Part 1

A.

attain economies of scale

B.

implement a different organizational structure

C.

gain political support

D.

seek investments from external sources

E.

impose duties on block members

Attention economies of scale

Regional integration enables member countries to gain bargaining power in world affairs by​ ________.

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Part 1

A.

attracting direct investment from outside the bloc

B.

expanding the market size of member country firms

C.

helping member country firms to achieve economies of scale

D.

enhancing the productivity of member countries

E.

establishing a stronger political position as a united bloc

establishing a stronger political position as united bloc

Which of the following comprise the largest group of countries and include Bangladesh and​ Zaire?

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Part 1

A.

Developing economies

B.

Emerging economies

C.

Transition economies

D.

Centrally planned economies

E.

Advanced economies

Developing Economies

​________ include countries that have attained significant​ modernization, industrialization, and rapid economic growth since the 1980s.

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Part 1

A.

Centrally planned economies

B.

Advanced economies

C.

Developing markets

D.

Emerging economies

E.

Developed economies

Emerging Economies

Which term refers to acquiring certain​ value-chain activities, including the production of finished products from independent​ suppliers?

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Part 1

A.

Conglomeration

B.

Microfinancing

C.

Purchasing power

D.

Outsourcing

E.

Privatization

Outsourcing

In which of the following industries have​ Brazil's manufacturing firms enjoyed considerable success producing for foreign​ clients?

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Part 1

A.

Textile machinery

B.

Iron ore and processed food

C.

Personal computers

D.

Cars and consumer electronics

E.

Diamonds and mining

Iron ore and processing food

________ represents cost alterations that indicate the amount of products that customers are able to purchase in their own​ country, using their own monetary​ system, in accordance with their standard of living.

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Part 1

A.

Purchasing power parity

B.

Offshoring

C.

Tenders

D.

Privatization

E.

Outsourcing

Purchasing power parity

Which of the following is used by managers to analyze data to estimate market potential in a certain​ location?

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Part 1

A.

Intellectual property protection

B.

Physical infrastructure

C.

Political stability

D.

Purchasing power parity

E.

Size of the​ lower-class society

Purchasing power parity

Which challenge of emerging markets is associated with corruption and weak legal frameworks that discourage business​ investments?

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Part 1

A.

Dominance of family conglomerates

B.

Lack of qualified local partners

C.

Political instability

D.

Lack of physical infrastructure

E.

Excessive bureaucracy

politcal instability

Which term describes family conglomerates in South​ Korea?

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Chaebols

In emerging​ markets, why do successful firms develop close community​ relationships?

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Part 1

A.

To collaborate with family conglomerates

B.

To locate quality and accessible business partners

C.

To better understand local​ conditions, and earn customer respect and loyalty

D.

To target political systems in developing markets

E.

To challenge developing market rivals

To better understand local​ conditions, and earn customer respect and loyalty

Which term refers to official propositions prepared by a purchaser to procure specific goods or​ services?

Question content area bottom

Part 1

A.

Privatization

B.

Purchasing power

C.

Outsourcing

D.

Offshoring

E.

Tenders

tenders

Companies help address poverty around the world in many ways. If a foreign firm in an emerging market modernizes local roads and bridges and creates jobs for workers in the​ community, the firm is​ ________.

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Part 1

A.

engaging in microfinancing activities

B.

encouraging economic growth

C.

partnering with family conglomerates

D.

customizing products to meet local needs

E.

engaging in global sourcing

encouraging economic growth

How did Muhammad Yunus help address poverty in South​ Asia?

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Part 1

A.

He sold Sunsilk and Pantene shampoo for 2 cents per​ mini-sachet in Bangladesh.

B.

He sold health insurance for less than 20 cents per person per month to millions of customers.

C.

He founded the Grameen Bank that has provided micro loans to millions of people.

D.

He built a cell phone infrastructure that provides telephone coverage to the people of Bangladesh.

E.

He established a grocery store chain that sells affordable food for the local population.

He founded the Grameen Bank that has provided micro loans to millions of people.

Which term refers to a​ company's ability to lower the cost of operation throughout its value​ chain?

A.

Efficiency

B.

Learning

C.

Strategy

D.

Flexibility

E.

Organizational culture

Efficiency

In order to become globally​ competitive, your company is making changes in its manufacturing process to make it more standardized and significantly cheaper. For which of Bartlett and​ Ghoshal's objectives is your company striving with these​ changes?

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Part 1

A.

Decentralization

B.

Learning

C.

Efficiency

D.

Local responsiveness

E.

Flexibility

Efficiency

Top managers who provide inspirational direction and motivation to employees in an attempt to take a company to a better future are exhibiting​ ________.

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Part 1

A.

discipline

B.

efficiency

C.

visionary leadership

D.

technical skills

E.

flexibility

Visionary leadership

Ten years​ ago, Jenessa started a clothing company dedicated to creating upscale workout clothes for the​ trend-setting college student. From the start of the​ company, Jenessa would tell all her employees that the goal was to have the clothes featured at universities around the world. Jenessa is exhibiting which trait of visionary​ leadership?

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Part 1

A.

Embracing diversity

B.

Communicating a strategic vision

C.

Sharing cosmopolitan values

D.

Investing in human resources

E.

Having an international​ mind-set

Communicating a strategic vision

________ is the process of bringing together an​ organization's value-chain activities across different countries to realize global efficiency and synergy to benefit from similarities between countries.

A.

Visionary leadership

B.

Global sourcing

C.

Countertrade

D.

Global integration

E.

Local responsiveness

Global Integration

Which of the following is a driving factor for companies to focus on local​ responsiveness?

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Part 1

A.

Accommodating variances in distribution channels

B.

Taking advantage of media that reaches buyers in different markets

C.

Pursuing cost savings through scale economies

D.

Conducting worldwide sourcing of​ resources, components, and energy

E.

Offering uniform service to global customers

Accommodating variances in distribution channels

n which of the following approaches does an organization give a lot of autonomy to its subsidiaries to manage the​ business?

A.

Home replication strategy

B.

Countertrade strategy

C.

Global strategy

D.

Transnational strategy

E.

Multidomestic strategy

Multidomestic strategy

You work at an international company that is headquartered in California. Your​ company's R&D and manufacturing activities take place near the company headquarters. The managers at the California location are responsible for company operations​ worldwide, and they view the entire world as one large marketplace. As a​ result, your company sells the same products on six continents. Which of the following strategies is being used by your​ company?

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Part 1

A.

A transnational strategy

B.

A multidomestic strategy

C.

A global strategy

D.

A countertrade strategy

E.

A home replication strategy

A global strategy

Which of the following identifies the reporting relationships in an​ organization?

Question content area bottom

Part 1

A.

Local responsiveness

B.

Organizational structure

C.

Home replication strategy

D.

Organizational culture

E.

Visionary leadership

Organizational Structure

Purevelon, a manufacturer of soaps and beauty​ products, controls all business decisions globally from its headquarters in Kansas​ City, Missouri. Purevelon has​ a__________.

A.

centralized structure

B.

geographic area structure

C.

decentralized structure

D.

multidomestic approach

E.

transnational strategy

Centralized Structure

Which term defines the business transactions where payments are made in kind instead of in​ cash?

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Part 1

A.

Importing

B.

Home replication

C.

Countertrade

D.

Exporting

E.

Global sourcing

Countertrade

Raul works for an Argentinian company that buys goods from China and sells them in Argentina. What internationalization strategy is​ Raul's company​ using?

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Part 1

A.

Exporting

B.

Franchising

C.

Global sourcing

D.

Licensing

E.

Global strategy

Global Sourcing