Studied by 0 peopleThe economic system based upon the profit motive is the: A) socialist economy B) command economy C) market economy D) mixed economy
C) market economy
Global dependency exists when: A) countries count on financial aid from other parts of the world B) items that consumers need and want are created in other countries C) countries ban foreign trade D) a citizen from a country gives birth to a child in a foreign country
B) items that consumers need and want are created in other countries
___ are products sold in other countries. A) Domestic goods B) Imports C) Exports D) Foreign goods
C) Exports
Which is not a cultural and social factor that affects the international business environment? A) education B) language C) values and customs D) type of government
D) type of government
The host country A) is the country in which a multinational enterprise is headquartered B) is the country in which a multinational enterprise is a guest C) does not have influence on the operation of the international business D) is a democracy that allows the entrance of international businesses
B) is the country in which a multinational enterprise is a guest
Which country would have the greatest number of extended families? A) Mexico B) Canada C) Australia D) United States
A) Mexico
____ are people who live and work outside of their native countries. A) Parentcountry nationals
B) foreign employees
C) Expatriates
D) Third
Expatriates
The __ uses managers from various countries with the geographic region of a business. A) polycentric approach B) geocentric approach C) regiocentric approach D) ethnocentric approach
C) regiocentric approach
Employers for multinational companies do not hire employees based on A) adaptability B) competence C) ethnocentrism D) personal characteristics
C) ethnocentrism
Managers and families moving to other parts of the world take part in ___ to understand the local culture. A) repatriation training B) spousal employment counseling C) global orientation D) cross
cultural training
Which of the following is an international firm? A) Sunrise Computer Systems B) Gary's Gas Station C) Buer's Brewers D) Walmart Inc.
D) Walmart Inc.
Of the following statements, the one that does not describe a multinational company is that A) it maintains both an international and local perspective. B) it maintains only a local perspective to simplify processes. C) its strength is that it offers a different product in each market. D) coordination between international and local representation is crucial.
C) its strength is that it offers a different product in each market.
An economy that allows an individual to personally own a business with little or no interference from the government is a: A) command economy B) mixed economy C) market economy D) communist economy
C) market economy
One of the most troubled economies in the world is: A) Japan B) Greenland C) Australia D) Germany
A) Japan
The United States is__________ percent of the world's population. A) 10 B) 3 C) 5 D) 7
C) 5
A U.S. toy company allows a Chinese company to create clothing and school supplies with one of the U.S. company's doll characters on the products. This is an example of: A) direct exporting B) franchising C) licensing D) indirect exporting
C) licensing
The ___ brings together resources for a company to get started and operate successfully. A) wholesaler B) entrepreneur C) CEO D) retailer
B) entrepreneur
Global corporations focus on: A) product and pricing sameness worldwide. B) creating products that are universally accepted or standardized. C) cultural diversity in all company
owned enterprises. D) ethnocentricity for all employees.
___ is when a company buys land or other resources in another country. A) A wholly
owned subsidiary B) Foreign direct investment C) Management contracting D) A joint venture
Which of the following is not advantage of operating a business as a sole proprietorship? A) limited risks B) owner is the boss C) freedom to make business decisions D) ease of starting
A) limited risks
Owners of a ____ do not have unlimited liability. A) sole proprietorship B) partnership C) cooperative D) corporation
D) corporation
____ occurs when the engine of an automobile is produced in Germany and the rest of the automobile is produced in the United States. A) Foreign direct investment B) Management contracting C) Licensing D) Franchising
B) Management contracting
____ is an agreement between two or more companies from different countries to share a business project. A) Joint venture B) Licensed agreement C) Franchise D) Independent contract
A) Joint venture
The United States has many sellers offering blue jeans. This is an example of A) an oligopoly B) a monopoly C) restricted imports D) pure competition
D) pure competition
___ refers to when a company avoids the risks related to international business by only selling products in its home country. A) Risk avoidance B) Risk sharing C) Risk assumption D) Risk reduction
A) Risk avoidance
Self insurance of ___ occurs when a company takes responsibility for losses from certain risks. A) Risk avoidance B) Risk reduction C) Risk assumption D) Risk sharing
C) Risk assumption
Property or risks not covered by an insurance policy are called A) endorsements B) deductions C) declarations D) exclusions
D) exclusions
The ____ is a certificate that adds to or changes the coverage of an insurance policy. A) exclusion B) rider C) condition D) endorsement
D) endorsement
When purchasing insurance, the first step is to A) implement a risk management program B) select a risk management method C) identify potential risks D) evaluate risks
C) identify potential risks
The multinational company does not have to comply with the home country's ___ mandates. A) social B) religious C) economic D) legal
B) religious
The only western European country that did not develop a comprehensive set of rules at one time is: A) Germany B) England C) Sweden D) France
B) England
A tax holiday is sometimes given to companies that invest in foreign countries. This means the corporation does not pay corporate income taxes if it invests in their country. These tax holidays may last for as long as ______ years. A) 20 B) 15 C) 10 D) 5
C) 10
When using the term "consideration" in regards to a contract, what does this generally mean? A) Something of value must be given by both parties. B) One party agrees to be considerate of each others' needs. C) Something of value must be given by only one party. D) One of the party offers valid terms, and the other party accepts them.
A) Something of value must be given by both parties.
___ is a legal system that relies on the accumulation of decisions made in prior cases. A) Precedent B) Corporate law C) Civil law D) Common law
D) Common law
____ protect the rights to inventions in the United States but may not be honored in other parts of the world. A) Copyrights B) Trademarks C) Patents D) Trade secrets
C) Patents
___ means that individuals carry their beliefs, values, and assumptions with them at all times. A) Subculture B) Ethnocentrism C) Egocentrism D) Cultural baggage
D) Cultural baggage
The language that has the greatest number of speakers throughout the world is A) Spanish B) English C) Chinese Mandarin D) Hindi
C) Chinese Mandarin
While white teeth are valued in the United States, blackened teeth are valued in A) Southeast Asia B) the Middle East C) Western Europe D) Canada
A) Southeast Asia
Wearing a cross
shaped necklace is illegal in A) China B) India C) Saudi Arabia D) Japan
Which of the following is not a positive impact of technology on global marketing? A) better distribution B) expanded communication C) faster production D) breached security
D) breached security
Changing demographics for a country A) diminishes the marketing opportunities B) increase production costs for businesses C) do not impact domestic trade D) open new marketing opportunities
D) open new marketing opportunities
Attitudes affect consumer behavior. Attitudes are classified as ___ factors. A) demographic B) psychographic C) geographic D) cultural
B) psychographic
_________________ is a term used to describe a policy which encourages exports, discourages imports, controls capital movement and centralizes currency decisions in the hands of a central government. A) Neomercantilism B) Mercantilism C) Factor proportions D) State sovereignty
A) Neomercantilism
When comparing countries for market potential, one can generally say that: A) per capita income is the best indicator to use B) labor costs are the most important C) population size is the best indicator D) companies must consider variables other than income and population when estimating potential demand
D) companies must consider variables other than income and population when estimating potential demand
The ____ ships goods to customers in other countries. A) export trading company B) wholesaler C) freight forwarder D) customs broker
C) freight forwarder
___ is not a service provided by retailers. A) Sales staff assistance B) Product selection C) Consumer convenience D) Storing and transportation of goods
D) Storing and transportation of goods
Slogans and trademarks A) may not have the same translation in different countries. B) stay the same for company recognition. C) should always stay the same for ease in marketing products. D) have no specific international purpose.
A) may not have the same translation in different countries.
Changing demographics for a country will: A) not impact domestic trade B) open new marketing opportunities C) increase production costs for businesses D) diminish the marketing opportunities
B) open new marketing opportunities
The same marketing functions must be completed by businesses whether marketing nationally or internationally and include but aren't limited to: A) product/service management, selling, promotion, investment B) distribution, selling, financing, promotion C) culture, financing, subsidies, investments D) investments, manufacturing, culture, management
B) distribution, selling, financing, promotion
Which one of the following is not a positive impact of technology on global marketing? A) faster production B) expanded communication C) breached security D) better distribution
C) breached security
E
commerce A) has increased Wal
Marketing includes each of the following activities except A) manufacturing. B) advertising. C) packaging. D) promotion.
A) manufacturing.
____ are called intermediaries because they are links between products and sellers of products. A) Service companies B) Retailers C) Manufacturing companies D) Wholesalers
D) Wholesalers
____ involves buyers who purchase items for resale or additional production A) Consumer market B) Retail market C) Expanded market D) B2B
D) B2B
___ is not part of the marketing mix. A) Place B) Product C) Distribution D) Entrepreneurship
D) Entrepreneurship
Economic conditions and the currency for a country do not affect A) population trends B) profits on a product C) consumer demand D) selling price for a product
A) population trends
__ causes people to believe that a higher priced item is better quality than the exact same item at a lower price. A) Price lining B) Psychological pricing C) Prestige pricing D) Penetration pricing
C) Prestige pricing
____ is a duty that a government places on imported products. A) Tariff B) Sanction C) Quota D) Restriction
A) Tariff
____ occurs when the government takes control and ownership of foreign
owned assets and companies. A) Civil unrest B) Economic nationalism C) Trade sanctions D) Expropriation
Some countries offer companies a ____, meaning the corporation does not pay corporate income taxes if its invests in their country. A) tax hike B) tax break C) tax holiday D) tax incentive
C) tax holiday
The World Trade Organization has more than A) 200 members. B) 140 members. C) 240 members. D) 100 members.
B) 140 members.
Which of the following is not a method for a business to get involved in international business? A) franchising B) indirect importing C) licensing D) joint venture
B) indirect importing
The ____ allows a company to file a single patent application in which it names the countries in which it seeks patent coverage. A) World Trade Organization B) International Copyright Agreement C) World Intellectual Property Organization D) Patent Cooperation Treaty
D) Patent Cooperation Treaty
A ___ exists when a country buys more foreign goods than the number of goods they sell. A) trade surplus B) trade advantage C) balance of trade D) trade deficit
D) trade deficit
Individuals who want to export products to Japan, should not contact the ____. A) U.S. Department of Commerce International Trade Administration B) U.S. Small Business Administration C) Federal Trade Commission D) U.S. Customs Service
C) Federal Trade Commission
____ status allows a country to export into the granting country under the lowest customs duty rates. A) Common market B) Free
trade zone C) Free
The ___ provides capital and technical assistance to businesses in nations with limited resources. A) International Monetary Fund B) International Finance Corporation C) World Bank D) International Development Association
B) International Finance Corporation
The ___ is the currency used in Japan. A) pound B) yuan C) yen D) euro
C) yen
Money is not A) measure of value B) store of value C) political stability D) a medium of exchange
C) political stability
Travelers visiting other countries may pay more when using a credit card instead of cash or traveler's checks because A) interest rates on credit cards are high B) the foreign exchange rate on credit cards is not calculated until the charges reach the credit card office C) credit cards have annual fees D) credit cards always charge additional handling fees
B) the foreign exchange rate on credit cards is not calculated until the charges reach the credit card office
A ___ is a debt certificate issued by a multinational company or another corporate enterprise. A) over
the
Tax deferred investment means: A) income earned on the investment will be taxed at a later date B) tax breaks for foreign investors C) no taxes charged for the income earned on the investment D) double taxation on earnings from a foreign investment
A) income earned on the investment will be taxed at a later date
The ____ is a certificate that adds to or changes the coverage of an insurance policy. A) rider B) endorsement C) condition D) exclusion
B) endorsement
The annual earnings for an international investment are measured by the yield or annual: A) depreciation B) fluctuation C) rate of return D) appreciation
C) rate of return
____ capital is provided by a company's owners. A) Equity B) Unsecured C) Credit D) Debt
A) Equity
Which is not true about an insurable risk? A) common to many people B) able to calculate C) excessive in magnitude D) definite
C) excessive in magnitude
Governments can impose ___ against another country to protest that country's behavior. A) fines B) civil action C) trade sanctions D) penalties
C) trade sanctions
The ___ is a financial document issued by a bank for an importer in which the bank guarantees payment. A) letter of credit B) promissory note C) bill of exchange D) commercial invoice
A) letter of credit
____ capital is provided by a company's owners. A) Equity B) Unsecured C) Credit D) Debt
A) Equity
The ___ Stock Exchange is the largest in the world. A) Tokyo B) New York C) London D) Euronext
B) New York
A ___ is a debt certificate issued by a multinational company or another corporate enterprise. A) municipal bond B) corporate bond C) over
the
The annual earnings for an international investment are measured by the yield or annual _____. A) depreciation B) appreciation C) rate of return D) fluctuation
C) rate of return
Information on the current performance and the future of stocks and bonds is not published in A) Value Line B) Moody's Investors Service C) Standard and Poor's Reports D) American Bankers Association
D) American Bankers Association
Tax deferred investment means A) income earned on the investment will be taxed at a later date. B) tax breaks for foreign investors. C) no taxes charged for the income earned on the investment. D) double taxation on earnings from a foreign investment.
A) income earned on the investment will be taxed at a later date.
Which of the following is not true about an insurable risk? A) excessive in magnitude B) able to calculate C) common to many people D) definite
A) excessive in magnitude
Primary components of an expatriate's compensation package can include all of the following except: A) tax differentials B) extraordinary leisure allowances C) service premium D) base salary
B) extraordinary leisure allowances
The ____ uses natives of the parent country of a business to fill key positions at home and abroad. A) ethnocentric approach B) polycentric approach C) regiocentric approach D) geocentric approach
A) ethnocentric approach
The type of human resources approach that uses natives of the host country to manager operations within their country and parent
country natives to manage at headquarters is the: A) geocentric approach B) regional approach C) polycentric approach D) regioncentric approach
Employers for multinational companies do not hire employees based on which one of the following? A) adaptability B) ethnocentrism C) personal characteristics D) competence
B) ethnocentrism
Parent
country nationals do not fail due to which one of the following? A) increase non
Ethical Issues facing global corporations today include all of the following except: A) ecosystems B) natural disasters C) stock dividends D) global warming
C) stock dividends
Political instability of a country may cause the number of questionable ethic transactions to A) remain the same B) disappear C) decline D) rise
D) rise
When a farm ships fresh vegetables to the local supermarket, ___ has occurred. A) indirect distribution B) direct distribution C) exporting D) intermediate distribution
B) direct distribution
Which of the following is not a function of a wholesaler? A) maintaining warehouses and shipping capabilities B) communicating between manufacturers and retailers C) advertising and selling to retailers to help with retailer promotions D) selling directly to consumers
D) selling directly to consumers
The ___ brand is used worldwide and is recognized by people in many geographic areas. A) National B) Global C) Private D) Manufacturer
B) Global
Making, buying, and selling goods and services within a country is called A) global dependency B) international business C) domestic business D) foreign trade
C) domestic business
____ includes all business activities needed to create, ship, and sell goods and services across national borders. A) Domestic business B) International business C) Regional business D) Trade intervention
B) International business
Which of the following is not a geographic condition that affects the international business environment? A) language B) climate C) terrain D) natural resources
A) language
Individuals taking jobs in other parts of the world A) should wait to receive medical vaccinations when they arrive to their final destination B) do not have to worry about medical plagues since their company is insulated from the rest of the public C) should count on their employers to pay for required medical procedures D) should make sure that all medical vaccinations are up to date
D) should make sure that all medical vaccinations are up to date
The resume should not include A) experience B) a personal picture C) career objective D) education
B) a personal picture
Note
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