MGMT 4613 Final - Aime

is not an area where multinational firms are concerned about ethics?

Trade Regulations

All of the following except ____ contribute to unethical behavior by international managers.

National culture

According to _____, a company's home-country standards of ethics are the appropriate ones to follow in foreign countries.

the righteous moralist

_____ recognize that human beings have fundamental right and privileges which transcend national boundaries and cultures.

Rights theories

The ____ suggests that everyone is imagined to be ignorant of all his or her particular characteristics.

veil of ignorance

What is a company's formal statement of ethical priorities called?

Code of ethics

The shift toward a more integrated and interdependent world economy is referred to as ___.

globalization

The merging of historically distinct and separate national markets into one huge global market plan is known as ____.

the globalization of markets.

Firms that are involved in international business tend to be ___.

Large, small, and medium-sized.

Which of the following trends is true?

The share of world trade accounted for by developing countries is rising.

Which is not a factor of production?

trade

Abstract ideas about what a group believes to be good, right, and desirable are called ____.

values

The group is the primary unit of social organization in ______.

Japan

Which of the following is not characteristic of individualism?

low managerial mobility.

_____ focuses on how society deals with the fact that people are unequal in physical and intellectual capabilities

power distance

The sourcing of goods and services from around the world to take advantage of national differences int he cost and quality of factors of production is called _______.

the globalization of production.

Which organization is responsible for policing the world trading system?

The world Trade Organization

Which of these is not a concern of anti-globalization protesters?

Globalization raises consumer income.

A political system that stresses the primacy of collective goals over individual goals is called ____

Collectivism.

When tariffs are levied as a fixed charge for each unit of a good imported, they are called ___.

Specific tariffs

A ____ demands that some specific fraction of a good be produced domestically.

local content requirement

is not a political argument for government intervention?

protecting infant industries

What is the most common political reason for trade barriers?

to protect jobs

Which theory suggests that in cases where there may be important first-mover advantages, governments can help firms from their countries attain these advantages?

Strategic trade theory

The ____ is the rate at which one currency is converted into another.

Exchange rate

The ___ is the rate at which a foreign exchange dealer converts one currency into another currency on a particular day.

Spot rate

does not impact future exchange rate movements?

A country's arbitrage opportunities

When the government of a country allows both residents and non-residents to purchase unlimited amounts of foreign currency with the domestic currency, the currency is

freely convertible

The extent to which a firm's future international earning power is affected by changes in exchange rates is called

economic exposure

Firms that want to minimize transaction and translation exposure can do all the following except

have central control of exposure

What is the rate of return the firm makes on its invested capital?

Profitability

is not an example of a primary activity?

Logistics

What is created when different stages of a value chain are dispersed to locations where value added is maximized or where the costs of value creation are minimized?

A global web

Which of the following is not a pressure for local responsiveness?

Excess capacity

Which strategy tries to simultaneously achieve low costs through location economies, economies of scale, and learning effects, and differentiate the product offering across geographic markets to account for local differences?

Transitional

Which strategy makes sense when pressures are high for local responsiveness, but low for cost reductions?

Localization strategy

The normal and value systems that are shared among the employees of an organization are called

organizational culture

Which of the following is not an advantage of centralized decision-making?

it motivates employees

Most firms begin their international expansion with a(n) ____ structure.

international division

Which type of organization structure has a dual decision making system?

Matrix

Which is not one of the four types of control systems?

Input control

Which type of organizational structure is often associated with a transnational strategy?

Matrix

_____ refers to the time and effort spent learning the rules of a new market.

Pioneering costs

How do most firms begin their international expansion?

with exporting

What is the main disadvantage of wholly owned subsidiaries

the firm bears the full cost and risk of setting up overseas operations

If a firm wants the option of global strategic coordination, the firm should choose

a wholly owned subsidiary

All of the following are advantages of acquisitions except

it is easy to realize synergies by integrating the operations of the acquired entities

Which of the following is not important to a successful strategic alliance?

Establishing a 50:50 relationship with a partner

What allows firms to increase efficiency by improving capacity utilization and reducing work-in-progress?

flexible machine cells

Firms should produce in multiple locations when

fixed costs are low

All of the following are key factors that influence the decisions of where to produce except:

competitors factors

When _____, firms will favor decentralized production.

exchange rates are volatile

Concentrated production makes sense when:

minimum efficient scale is high

Which of the following is not an advantage of buying from independent suppliers?

it protects proprietary property