Thẻ ghi nhớ: IBI101 - NEW SU26 | Quizlet

Firms may prefer acquisitions to greenfield investments for all of the following reasons except: (soạn độc quyền bởi Thủy Tiên)

A. they allow companies to completely sidestep government regulations on investment.

B. they are quick to execute.

C. they enable the firm to preempt competitors.

D. managers believe acquisitions are less risky.

A.

Many economists, politicians, and business leaders believe that the shift toward a more integrated and interdependent global economy is a positive trend.

A. True

B. False

A

This is an Islamic banking method where banks lend money to a business, and rather than charging that business interest on the loan, they take a share in the profits that are derived from the investment.

A. Mudarabah

B. Murabaha

C. Maysir

D. Mudarib

A

Safety standards to which a product must adhere are set by:

A. safety certifications.

B. the government standards department.

C. product safety laws.

D. product liability laws.

C

Which of the following statements about small-scale entry is true?

A. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages.

B. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale.

C. By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry.

D. Small-scale entry limits a firms ability to learn about a foreign market thereby also limiting the firm's exposure to that market.

B

The basic strategy paradigm suggests that to maximize its profitability, a firm should do all of the following, except:

A. choose, according to strategy, any position on the efficiency frontier as all positions are viable.

B. pick a position on the efficiency frontier that is viable in the sense that there is enough demand to support that choice.

C. configure its internal operations so that they support the position on the efficiency frontier.

D. make sure that the right organization structure is in place to execute the strategy.

A

A currency is said to be freely convertible when:

A. the country's government allows both residents and nonresidents to purchase unlimited amounts of a foreign currency with it.

B. only nonresidents may convert it into a foreign currency without any limitations.

C. neither residents nor nonresidents are allowed to convert it into a foreign currency.

D. only residents may convert it internally into a foreign currency.

A

Which of the following is a characteristic of predatory behavior in dumping?

A. Firms selling at a loss in the foreign market to drive competitors out, and then raising prices later

B. Firms collaborating with competitors to set higher prices in foreign markets

C. Firms selling their goods in the home market at a higher price than in foreign markets

D. Firms using profits from their home market to fund production for foreign markets

A

Which among the following is seen as the final link in an integrated, circular process that connects good selection and cross-cultural training of expatriate managers with completion of their term abroad and reintegration into their national organization?

A. Residency

B. Visitation

C. Repatriation

D. Homecoming

C

Which among the following should be done in order to reduce bias in the performance appraisal process for expatriates?

A. More weight should be given to an off-site manager's appraisal than to an on-site manager's appraisal.

B. The on-site manager should be of a different nationality as the expatriate manager.

C. When the policy is for foreign on-site managers to write performance evaluations, home-office managers should be consulted before an on-site manager completes a formal termination evaluation.

D. A former expatriates who served in the same location as a current expatriate should not be allowed to participate in the appraisal.

C

The ability to understand why people of other countries behave the way they do is perceptual ability.

A. True

B. False

A

Which of the following is the most common approach to expatriate pay?

A. Balance sheet approach

B. Net-to-net approach

C. Host-country approach

D. Higher of host or home

A

What is the main difference in the way international businesses approach international labor relations?

A. The degree to which organized labor can limit the choices of an international business

B. The way work is organized within a plant

C. The degree to which labor relations activities are centralized or decentralized

D. The way staffing, management development, and compensation activities are organized

C

Integration mechanisms are:

A. the formal division of the organization into subunits.

B. the mechanisms that enable each subunit to operate independently.

C. the mechanisms for coordinating subunits.

D. the location of decision making responsibilities within a structure.

C

The costs of control can be defined as the amount of time top management must devote to monitoring and evaluating subunits' performance.

A. True

B. False

A

The function creates value by ensuring the company has the right mix of people to perform activities effectively.

A. information systems

B. company infrastructure

C. human resources

D. logistics

C

Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is ¥120 = $1, and the New York yen/dollar exchange rate at the same time is ¥125 = $1. A dealer makes a profit by buying a currency low and selling it high. The dealer has engaged in a(n):

A. currency swap.

B. arbitrage.

C. backwardation.

D. straddle.

B

A common hybrid of a quota and a rent is known as a quota rent.

A. True

B. False

B

A firm with R&D centers in the U.S., Japan, and Germany demonstrates:

A. Centralized research coordination

B. Product standardization

C. Global R&D capability

D. Technical product focus

C

A company with strong management know-how is most likely to favor which entry mode?

A. Joint venture

B. Exporting

C. Franchising

D. Turnkey project

D

A firm that enters a market with a greenfield investment:

A. Buys a local competitor

B. Partners with a foreign firm

C. Builds operations from scratch

D. Licenses technology to locals

C

A manager wants to enter a new market but faces local content requirements. What strategic action should they consider?

A. continue exporting without any production adjustment

B. outsource production to cheaper locations

C. establish local production facilities

D. engage in dumping practices

C

Risks caused by earthquakes and volcanic eruptions are insured under the following conditions (choose all

that apply)

A. ICC (A)

B. ICC (B)

C. ICC (C)

D. FPA

AB

What is the tragedy of the commons?

A. When private firms avoid paying taxes

B. When publicly owned firms misuse their assets

C. When common resources are overused and degraded by individuals

D. When businesses avoid fair wages

C

What is an important factor in niche marketing?

A. Wide market reach

B. Cost reduction

C. Focus on quality

D. Mass production

C

What does HDI stand for?

A. Human Development Index

B. Human Development Indicator

C. Human Demographic Index

D. High Development Index

A

What was the primary goal of the Havana Conference in 1948?

A. To establish GATT

B. To create the International Trade Organization (ITO)

C. To form the European Union

D. To reduce tariffs globally

B

The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation.

A. True

B. False

B

If a service firm wants to build a global presence quickly and at a relatively low cost and risk, makes sense.

A. a wholly owned subsidiary

B. exporting

C. a turnkey project

D. franchising

D

What does the stock of FDI represent?

A. The annual amount of FDI undertaken globally

B. The total accumulated value of foreign-owned assets at a given time

C. The difference between inflows and outflows of FDI

D. The profits generated by FDI projects in a year

B

If a country is characterized as having a single homogenous culture, then its national culture also is homogenous and not a mosaic of subcultures.

A. True

B. False

B

What influences a firm's pricing strategy in global markets?

A. Currency exchange rates and market demand

B. Cultural preferences for product attributes

C. Geographic proximity of production sites

D. Logistics optimization

A

Critics of globalization maintain that the apparent decline in real wage rates of unskilled workers

A. owes far more to a technology-induced shift within advanced economies toward jobs that require significant education and skills.

B. is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers.

C. has been impacted most by technological change.

D. can be checked by increasing society's investment in education to reduce the supply of unskilled workers.

B

Which of the following statements is false?

A. The lesser the number of competitors, the higher the elasticity of demand.

B. When competitors are limited, consumers' bargaining power is weaker.

C. A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense.

D. When there is high elasticity of demand and a firm raises its prices above those of its competitors, consumers will switch to the competitors' products.

A

Which factor is critical when selecting production locations?

A. Proximity to tourist attractions

B. Local currency appreciation trends

C. Availability of skilled labor and supporting industries

D. Regional climate conditions

C

What is translation exposure in foreign exchange risk?

A. The risk of adverse changes in exchange rates affecting reported financial results

B. The risk of losing money on international investments

C. The exposure of local firms to global markets

D. The cost of converting one currency to another

A

What is a drawback of late market entry?

A. Fewer competitors in the market

B. Higher costs of gaining market share

C. Unclear consumer demand

D. Over-reliance on domestic strategies

B

In 1991, Argentina, Brazil, Paraguay, and Uruguay implemented an agreement known as:

A. NAFTA.

B. MERCOSUR.

C. APEC.

D. FTAA.

B

Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as:

A. norms.

B. values.

C. culture.

D. society.

A

Firms should build a strong corporate culture and an informal management network for transmitting information and knowledge within the organization if they are pursuing a(n):

A. transnational strategy.

B. localization strategy.

C. global standardization strategy.

D. international strategy.

A

Which of the following statements about values and norms of a culture is not true?

A. The values and norms of a society do not emerge fully formed

B. They are the evolutionary product of a number of factors

C. They are influenced by religion

D. They do not influence social structure

D

All of the following are reasons why economic integration has never been easy to achieve or sustain except:

A. even though it aids the majority, it has its costs.

B. a nation as a whole may benefit significantly, but certain groups may lose.

C. there are concerns over loss of national sovereignty.

D. linking neighboring economies makes them increasingly dependent on each other.

D

What is a benefit of configuring the marketing mix globally?

A. Standardizing all products globally

B. Eliminating competition from local markets

C. Reducing market segmentation efforts

D. Enhancing efficiency in resource allocation

D

What is a key benefit of acquisitions as a market entry mode?

A. Rapid market entry

B. Reduced financial risk

C. Minimal integration challenges

D. Standardized global operations

A

What is the function of the European Court of Justice?

A. To pass new laws for the EU

B. To debate legislation proposed by the Commission

C. To be the supreme appeals court for EU law

D. To control the EU's foreign policy

C

What is a characteristic of centralized production?

A. Greater flexibility in adapting to local markets

B. Increased logistics complexity

C. Lower dependency on technology

D. High fixed costs and economies of scale

D

A _______ system is based on a very detailed set of laws organized into codes.

A. democratic law

B. theocratic law

C. civil law

D. common law

C

What are the two primary activities in a value chain?

A. Primary and support activities

B. Research and development

C. Marketing and financial reporting

D. Inventory and supply management

A

Which of the following factors does NOT influence exchange rates?

A. Interest rates

B. Price inflation

C. Cultural values

D. Market psychology

C

What is one of the benefits of international trade?

A. Reduced foreign exchange reserves

B. Decreased employment

C. Access to advanced technical methods

D. Lower wages

C

What are business ethics?

A. Strategies used by organizations to maximize profits

B. Accepted principles of right or wrong governing the conduct of business people

C. Rules for managing employee performance

D. Legal standards for international trade

B

The reduction in the average tariff rates on manufactured products since 1950 implies all of the following except that

A. firms are dispersing parts of their production process to global locations to drive down production costs and increase product quality.

B. the economies of the world's nation states are becoming more intertwined.

C. nations are becoming increasingly independent of each other for important goods and services.

D. the world has become significantly wealthier since 1950.

C

What are the main objectives of the Doha Round of WTO negotiations?

A. Industrial reform in developed nations

B. Reduction of agricultural subsidies and trade barriers

C. Enhancing trade between Europe and Asia

D. Addressing environmental standards

B

Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing a(n)_____ strategy.

A. localization

B. global standardization

C. transnational

D. international

C

Which of the following is not an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?

A. Reduced transportation costs.

B. Government regulations.

C. Issues associated with economic and political risk.

D. Barriers to foreign direct investment.

A

What is a tariff rate quota?

A. A system that bans imports entirely

B. A tariff structure where a lower tariff applies to imports within the quota and a higher tariff applies to those exceeding the quota

C. A quota system that requires special government permits for all imports

D. A system that ensures equal tariffs regardless of import volume

B

What is the marketing mix?

A. The combination of product, pricing, place, and promotion strategies

B. The mix of global supply chains and logistics

C. The mix of international trade laws and agreements

D. The financial components of pricing strategies

A

Identify the incorrect statement pertaining to intellectual property rights.

A. Its violation cost personal computer software firms revenues equal to $48 billion in 2007.

B. The protection of intellectual property rights is more or less the same in all countries.

C. The enforcement of its regulations has often been lax.

D. Its violation has been very bad in China, where the piracy rate in 2007 ran at 82 percent.

B

What is one reason small countries are more dependent on international trade?

A. They produce everything they need

B. They have more capital

C. They are less able to produce everything they need

D. They have more access to technology

C

What is the main objective of a firm's global strategy?

A. To achieve profitability and profit growth

B. To reduce competition in the global market

C. To regulate global trade policies

D. To establish financial stability

A

Which factor contributes to the shift of FDI toward services?

A. A decrease in demand for services in developed countries

B. The need for many services to be produced where they are consumed

C. A decline in global telecommunications infrastructure

D. Increasing restrictions on FDI in services

B

What is one key implication of trade barriers for managers?

A. They can reduce the costs of exporting products

B. They may limit a firm's ability to export products to certain countries

C. They allow firms to operate freely in all international markets

D. They reduce the need for production activities in foreign markets

B

What is the primary purpose of the foreign exchange market?

A. To convert currencies and provide insurance against exchange rate risks

B. To regulate international trade

C. To establish global interest rates

D. To enforce trade laws globally

A

Which of the following is a common ethical issue in business?

A. Marketing strategies

B. Environmental regulations

C. Pricing models

D. Technological upgrades

A

Which of the following statements regarding cross-border trade and investment is not true?

A. "Protection" from foreign competitors has been, at times, demanded by the United States.

B. Forecasts indicate a return to the restrictive trade policies of the 1920s and 30s.

C. If trade barriers decline no further they will put a brake upon the globalization of both markets and production.

D. It is not clear whether the political majority in the industrialized world favors further reductions in trade barriers.

B

What is one method governments use to restrict inward FDI?

A. By offering tax incentives to foreign firms

B. By using ownership restraints and performance requirements

C. By promoting resource-transfer effects

D. By providing insurance against foreign investment risks

B

What is a defining characteristic of a political union?

A. The elimination of all trade barriers

B. A centralized political apparatus coordinating economic, social, and foreign policy

C. A harmonized monetary and fiscal policy without a common currency

D. Complete autonomy of member states

B

Identify the incorrect statement pertaining to the European Union.

A . Its member states have launched a single currency, the euro.

B . It has expanded to 27 countries in 2007.

C . In 1993, it formally removed many barriers to doing business across borders within the EU.

D . It was joined by two countries Switzerland and Norway, in 2007.

D

Which of these terms means the totality of a firm's organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people?

A . Organizational ethics

B . Organizational hierarchy

C . Organizational architecture

D . Organizational norms

C

Organizational structure means all of the following, except:

A . the location of decision-making responsibilities with a structure.

B . the establishment of integrating mechanisms to coordinate the activities of subunits.

C . the formal division of the organization into subunits such as product divisions and functions.

D . the manner in which decisions are made and work is performed by individuals.

D

A firm's _____ determines where in its hierarchy the decision-making power is concentrated.

A . knowledge network

B . integrating mechanism

C . horizontal differentiation

D . vertical differentiation

D

Labor unions generally try to get better pay, greater job security, and better working conditions for their members through _____ with management.

A . expert determination

B . conciliation

C . arbitration

D . collective bargaining

D

Currency fluctuations can make seemingly profitable trade and investment deals unprofitable and vice versa.

A . True

B . False

A

Identify the incorrect statement about environmental regulations.

A . Developed nations have substantial regulations governing the emission of pollutants, the dumping of toxic chemicals, etc.

B . Environmental regulations are similar across developed and developing nations.

C . Environmental regulations are often lacking in developing nations.

D . Inferior environmental regulations in host nations, as compared to home nation, can lead to ethical issues.

B

Food and detergents giant Unilever had foreign subsidiaries that had evolved into quasi-autonomous operations, each with its own strong national identity. They objected strenuously to corporate headquarters' attempts to limit their autonomy. Thus, Unilever found it very difficult to shift from a strategic posture that emphasized localization to a transnational posture because of:

A . difficulty in achieving the coordination required to pursue experience curve and location economies.

B . expensive implementation and increased costs of value creation.

C . the federation that resulted from a polycentric approach.

D . the difficulty in achieving coordination required to transfer core competencies.

C

Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of

A . licensing agreements.

B . intangible property.

C . tangible property.

D . franchising agreements.

B

What is the most important advantage of using a geocentric staffing policy?

A . The higher pay managers on an international fast track enjoy is a source of inspiration within a firm.

B . It involves no costs of training and relocation when transferring managers from country to country.

C . It enables the firm to build a cadre of international executives who feel at home working in a number of cultures.

D . It may be less expensive to implement than other policies, reducing the costs of value creation.

C

According to some researchers, which of the following is a fundamental attribute of a global manager and is characterized by cognitive complexity and a cosmopolitan outlook?

A . Perceptual ability

B . A global mind-set

C . High self-esteem

D . Cultural toughness

B

The ______ occurs when a resource is shared by all, but owned by no one, is overused by individuals, resulting in its degradation.

A. tragedy of the commons

B. noblesse oblige

C. ethical dilemma

D. Friedman system

A

Cultural relativism suggests that:

A. ethics are nothing more than the reflection of culture and that a firm should adopt the ethics of the culture in which it is operating.

B. the only social responsibility of business is to increase profits.

C. managers of a firm should not make decisions regarding social investments.

D. a multinational's home-country standards of ethics are always appropriate to follow in foreign countries.

A

The EU's Common Agricultural Policy is an example of a tax policy designed to benefit:

A. consumers.

B. taxpayers.

C. special-interest politics.

D. free trade in developed countries.

C

Firms that lack the capital necessary to develop foreign operations may choose............... as a means of expanding internationally.

A. turnkey projects

B. licensing

C. greenfield investments

D. acquisitions

B

Many expatriate managers believe that headquarters management evaluates them unfairly and does not fully appreciate the value of their skills and experience.

A. True

B. False

A

If lots of people want euros and euros are in short supply, and a few people want Japanese yen and yen are in plentiful supply, the euro is likely to ........... against the yen.

A. depreciate

B. appreciate

C. devalue

D. stabilize

B

According to the .............. in competitive markets free of transportation costs and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency.

A. law of one price

B. principle of consistent pricing

C. model of fair pricing

D. principle of equitable pricing

A

Which of the following is a drawback of the polycentric approach to staffing?

A. Firms are likely to suffer from cultural myopia.

B. Host-country nationals are vulnerable to cultural misunderstandings.

C. This approach increases the cost of value creation.

D. Hot-country nationals have limited opportunities for advancement beyond senior positions in their subsidiary.

D

A political benefit of economic integration is that:

A. it enables participants to achieve gains from the free flow of trade.

B. it enables participants to achieve gains from the free flow of investment.

C. it allow countries to specialize in the production of goods and services that they can produce most efficiently.

D. linking neighboring economies creates incentives for cooperation between the neighboring states and reduces the potential for violent conflict.

D

A firm's organizational culture refers to the formal organizational structure of the company, the control systems and incentives in place, and the human resources component.

A. True

B. False

B

Which of the following statements is true regarding management development?

A. Management development programs attempt to increase skill levels by focusing mainly on providing management education.

B. Management development programs help build a unifying corporate culture by socializing new managers into the norms and value systems of the firm.

C. Rotating managers through different jobs in several countries as a part of management development programs leads to adaptation problems.

D. Management development programs can be used to foster esprit de corps but is rarely used for developing technical competencies.

B

According to the text, superior enterprise profitability requires all of the following conditions to be fulfilled except:

A. the different elements of a firm's organizational architecture must be internally consistent.

B. the organizational architecture must match the strategy of the firm.

C. the strategy and architecture of the firm must not only be consistent with each other, but also consistent with the competitive environment of the firm.

D. the firm's formal organizational structure must revolve around the indigenous population in each subunit.

D

What is the long-term goal of international trade secretariats (ITSs)?

A. To reduce the competition between national unions.

B. To be able to bargain transnationally with multinational firms.

C. To reduce the ideological gap between union leaders in different countries.

D. To get national and international bodies to regulate multinationals.

B

Which of the following, in a business setting, is taken to mean benevolent behavior that is the responsibility of successful enterprises?

A. Sullivan's principles

B. Ethical dilemma

C. Tragedy of the commons

D. Noblesse oblige

D

The main types of control systems used in MNEs include all of the following, except:

A. personal controls.

B. bureaucratic controls.

C. input controls.

D- cultural controls.

C

Centralization:

A. gives top management time to focus on critical issues by delegating more routine issues to lower-level managers.

B. can give top-level managers the means to bring about needed major organizational changes by concentrating power and authority in one individual or a management team.

C. permits greater flexibility because decisions do not have to be "referred up the hierarchy"

D. unless they are exceptional in nature.

E. can be used to establish relatively autonomous, self-contained subunits within an organization.

B

Which of the following statements about price discrimination is true?

A. It exists whenever consumers in a country are charged different prices for the same product.

B. It involves charging whatever the market will bear.

C. It is the use of price as a competitive weapon to drive weaker competitors out of a national market.

D. It makes economic sense to charge the same prices across countries

B

Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in:

A. politically unstable developing nations that operate with a mixed or command economy.

B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt.

C. politically stable developed and developing nations that have free market systems.

D. developing nations where speculative financial bubbles have led to excess borrowing.

C

Mendenhall and Oddou identified cultural toughness as one of the dimensions in their study on dimensions that predict success in foreign jobs postings. This dimension refers to:

A. the expatriate's self-esteem, self-confidence, and mental well-being.

B. the expatriate's ability to interact effectively with host-country nationals.

C. the expatriate's ability to understand why people of other countries behave the way they do.

D. the relationship between the country of the assignment and how well an expatriate adjusts to a particular posting.

D

Which of the following is not a reason why WTO is being criticized by those opposing free trade?

A. Its trade laws allow imports from low-wage countries and result in a loss of jobs in high-wage countries.

B. Its rules outlawing the ability of nations to stop imports from countries where working conditions are hazardous.

C. The adverse impact that some of its rulings have had on environmental policies.

D. Its lack of ability to force any member nation to take an action to which it is opposed.

D

Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as:

A. factor economies.

B. production economies.

C. location economies.

D. value creation economies.

C

Import tariffs:

A. reduce the price of foreign goods.

B. reduce the overall efficiency of the world economy.

C. create efficient utilization of resources.

D. are unambiguously pro-consumer and anti-producer.

B