QUESTION 1Arbitration is a private solution that is:
often preferred by foreign litigants because it is perceived as fairer, faster, cheaper, and more confidential than are the courts.
favored by international unions.
recommended by the UN for international companies facing litigation in developing countries.
QUESTION 2Laws governing transactions of individuals and companies that cross international borders are:
private international law.
product liability law.
public international law.
customary law.
QUESTION 3Punitive damages in product liability cases can be awarded in:
Japan.
Japan and the EU.
the UK.
the United States.
QUESTION 4Trademarks can be:
a color.
a sound.
a design.
all of the above.
QUESTION 5Copyrights are protected under:
The Paris Treaty.
the International Convention for the Protection of Industrial Property.
The Berne Convention of 1886.
the Treaty of Rome.
QUESTION 6The main source(s) of international law is(are):
the UN International Court of Justice.
the U.S. Supreme Court and the EU Court of Justice.
bilateral and multilateral treaties, along with customary law.
nonexistent.
QUESTION 7Usually, it is reasonable to assume that foreign law:
will be similar to U.S. law.
will differ from U.S. law and must be understood.
won't matter because you and your trading partner will agree to arbitrate.
will be biased against the foreigner.
QUESTION 8A patent gives the inventor:
property rights for 10 years.
the right to use the invention until development costs are recouped.
exclusive rights to manufacture, exploit, use, and sell the invention for a given time period.
the right to keep the patented process but not the product for five years.
QUESTION 9Antitrust law is intended to:
challenge successful businesses to allow proper levels of competition.
prevent large concentrations of economic power, such as monopolies.
create a more trusting business environment.
allow socialism to flourish.
QUESTION 10The EU applies its competition policy:
extraterritorially.
only within the EU.
within the EU and applicant states.
within the EU and other European nations.
QUESTION 11Intellectual property:
excludes intangibles, which is why it is a difficult area.
includes thoughts and ideas, but not tangible products.
includes anything that is a result of a creative process that does not have material qualities.
includes anything that is the result of things created using someone's intellect.
QUESTION 12The United States and the EU:
both apply antitrust law extraterritorially.
both oppose the Japanese Anti-Monopoly Law.
share a commitment to the per se concept in law.
None of the above.
QUESTION 13U.S. antitrust law is applied:
to all firms based in the United States, but not others.
to all firms, including extraterritorially.
only to U.S.-owned firms with assets in the United States.
to all firms, as long as they have assets in the United States.
QUESTION 14Patent treatment is standardized thanks to:
the WTO.
the UN Commission on Patents.
domestic laws in various nations.
the Paris Union.
QUESTION 15The Foreign Corrupt Practices Act is U.S. legislation that:
outlines bribery practices that are allowed abroad but not in the United States.
prohibits bribery by American companies abroad.
allows bribery in foreign dealings when culturally sanctioned.
outlines and prohibits foreign bribery practices by foreign nationals in foreign nations.
QUESTION 16Extraterritoriality is:
a nation's attempt to enforce its law beyond its borders.
added territory as a result of dispute settlements in wars, such as the Sakalin Islands.
a citizen's claim to government assistance in a foreign environment.
a taxable condition most international firms attempt to avoid.
QUESTION 17According to the text, the tendency toward an international integration of goods, technology, information, labor, and capital, or the process of making this integration happen, is called:
internationalization.
international business.
economic globalization.
multinationalization.
QUESTION 18According to supporters of the globalization of trade and investment, free trade:
creates more and better jobs.
benefits all nations and workers.
does not cause the loss of high-paying jobs.
all of the above.
QUESTION 19Examples of the kinds of uncontrollable forces listed in the text are:
marketing.
production.
personnel.
All of the above.
QUESTION 20Opponents of globalization argue that globalization has produced:
exploitation of resources by multinational companies in less developed nations.
deleterious effects on labor and labor standards.
uneven results across nations and people.
all of the above.
QUESTION 21A global company is:
a business whose activities involve crossing national borders.
the domestic operations within a foreign country.
an organization with multicountry affiliates.
an organization that attempts to standardize operations worldwide.
QUESTION 22Foreign environmental forces often operate differently than domestic environmental forces because:
they are complex.
force values are different.
changes are difficult to assess.
All of the above.
QUESTION 23International business differs from domestic business in that a firm operating across borders must deal with what environmental forces?
International
Technological
Political
Competitive
QUESTION 24A multidomestic company is:
a business whose activities involve crossing national borders.
the domestic operations within a foreign country.
an organization that attempts to standardize operations worldwide.
an organization with multicountry affiliates.
QUESTION 25The forces over which management does have some command are called:
internal.
external.
foreign.
None of the above.
QUESTION 26Unconscious reference to one's own cultural values when judging behavioral actions of others in a new and different environment is called:
self-reference culture.
self-reference values.
self-reference criterion.
self-reference customs.
QUESTION 27__________ refers to fear of unknown, unfamiliar, or foreign elements in oneâ s surrounding.
Ethnocentric
Geocentric
Xenophobia
Self-Reference Criterion
QUESTION 28When a firm produces air conditioners, it will look for countries with warm climates. This is an example of the _________ stage of the country screening process.
basic needs potential
sociocultural
economic/financial
Competitive
QUESTION 29Market research includes:
customized research.
general surveys.
nonprofit surveys.
all of the above.
QUESTION 30A statistical technique that divides objects into groups so that the objects within each group are similar is called:
trend analysis.
group classification analysis.
cluster analysis.
factor analysis.
QUESTION 31Before the final selection of new markets, amongst the recommended actions are:
field trip
trade mission
local research
all of the above
QUESTION 32Under the country screening process, in what order is the selection of foreign markets process presented in the textbook?
Basic needs, sociocultural, economic/financial, political, and competitive
Basic needs, economic/financial, political, sociocultural, and competitive
Basic needs, political, economic/financial, competitive, and sociocultural
None of the above
QUESTION 33Market size, market growth rate, and e-commerce indexes are all part of:
market factors.
trend analysis.
cluster analysis.
market indicators.
QUESTION 34Market screening is divided into:
environmental screening and country screening.
country screening and segment screening.
segment screening and environmental screening.
region screening and environmental screening.
QUESTION 35Which of the following are not identified in the text as being elements of the competitive forces that an analyst uses to examine markets?
Competitors' market shares
Competitors' marketing strategies
Competitors' staffing levels
Competitors' levels of after-sales service
QUESTION 36In __________ screening, needs and wants are important, not the political boundaries.
country
market
segment
cultural
QUESTION 37_____________ is used by management during the planning process to eliminate the less desirable markets.
Market screening
Environmental scanning
Country screening
Segment screening
QUESTION 38Entry barriers, profit remittance barriers, and policy stability are all part of the:
first screening.
second screening.
third screening.
fourth screening.
QUESTION 39There are several criteria for segmenting markets. Which of the following are criterion for segmenting?
Accessible, actionable, non-measureable
Accessible, actionable, irrelevant
Definable, accessible, actionable
Definable, Irrelevant, non-measurable
QUESTION 40Hall suggests that communication tends to be implicit and indirect in:
the United States.
high context (HC).
low context (LC).
Australia.
QUESTION 41According to Hofstede's cultural dimensions, the following nations have strongest feminist orientation in the world:
Denmark, Norway, Sweden, and Iceland
USA, Canada, Germany and Britain.
India, Pakistan, Bangladesh, and Malaysia
Nigeria, Kenya, Uganda, and Morocco.
QUESTION 42In high-context cultures, face-to-face relationships tend to be important and communication is indirect. This includes:
knowledge is situational.
decisions focus around personal relationships.
long term.
all of the above.
QUESTION 43Individualism-collectivism measures:
the degree to which people in the culture are integrated into groups.
the tendency to differentiate male roles.
the degree to which social inequality is tolerated.
none of the above.
QUESTION 44In low-context cultures communication is direct. This refers to:
there is subtlety and innuendo.
what you say tends to be what you mean, in that communication tends to be explicit.
indirection is prized because it recognizes the ability of the other.
leadership is mostly from behind, allowing the work group to self-direct.
QUESTION 45The extent to which members of a society expect and accept that power is to be distributed unequally is termed by Hofstede as:
uncertainty avoidance.
feminist.
power distance.
nondemocratic.
QUESTION 46Hofstede's long-term orientation tends to be found in:
Asian cultures.
North American cultures.
Central American Cultures.
None of the above.
QUESTION 47An achievement culture is one in which members are:
rewarded with social status for who they are in a spiritual sense.
rewarded for what they do, what they have accomplished, and so what they are.
not rewarded at all because achievement is a doing mentality.
rewarded for their lineage.
QUESTION 48Monochronic cultures tend to be:
high context (HC).
low context (LC).
ethnocentric.
hierarchical.
QUESTION 49Hofstede's masculinity-femininity dimension suggests that, as an international manager, you might well:
avoid feminine cultures because their production levels will lag.
avoid very masculine cultures because they violate EEOC standards.
find men and women equally ready to assume leadership roles in a feminine culture.
find women too competitive in a feminine culture.
QUESTION 50The characteristics of Hofstede's long-term orientation include:
social order and hierarchical relationships.
perseverance, pragmatism, and hierarchy.
the centrality of spending.
planning in the medium-short term.
QUESTION 51The masculine-feminine dimension is about:
task vs. relationship.
the gap between men's and women's roles in the culture.
doing vs. being.
quality of work vs. quality of life.
QUESTION 52Uncertainty avoidance describes man's search for Truth, according to Hofstede, because:
truth is primary to our human value system; everything else depends upon it.
it describes how comfortable the culture's members feel in an unstructured situation.
once you have Truth, you can avoid change, which is always disruptive.
all of the above.
QUESTION 53An example of environmental dumping can be found in the:
maquiladora plants of Mexico, located near the U.S. border and operating at lower environmental standards than would be required in the United States.
nuclear waste shipments to developing nations.
garbage shipments from New Jersey to developing nations.
all of the above.
QUESTION 54The primary motivation of tariffs is to:
raise government revenue at the cost of importers.
raise the price of imports, to protect domestic goods.
punish countries over political issues.
encourage foreign consumption.
QUESTION 55Social dumping occurs when an exporting country:
imposes an export tax on domestic businesses that export, to compensate for the opportunity cost to the domestic market.
creates unfair competition based on lower costs, which undermines social support systems to the worker.
target-markets to specific vulnerable groups in the importing country.
exports goods that are not sellable in the domestic environment due to hazards and safety issues.
QUESTION 56Arguments for trade restrictions include:
national defense, infant industry, and job protection.
punishment of offending nations.
fair competition and retaliation.
all of the above.
QUESTION 57The voluntary export restraints and administrative fees are examples of:
tariffs.
non-tariffs.
punishment.
retaliation.
QUESTION 58Government stability is a characteristic of a government that:
makes sudden radical policy changes.
readily shifts alliances to maintain power.
maintains predictability in fiscal, monetary and political policies.
none of the above.
QUESTION 59________ is a fixed sum of money charged for a specified unit of the product.
Specific duty
Ad Valorem
Compound duty
Variable levy
QUESTION 60Dumping is:
selling a product abroad for less than its production cost in the importing nation.
selling a product abroad for less than the market price in the export nation.
exporting a product to a third country without correct documentation.
all of the above.
QUESTION 61Unlike quotas, voluntary export restraints (VERs) are imposed by the:
importing country's government.
exporting country's government.
either the importing or exporting country's government; what matters is that they are voluntary.
the importing company.
QUESTION 62The reasons a government may nationalize a firm include:
to get government contracts.
to promote the ideology of capitalism.
to preserve jobs.
all of the above.
QUESTION 63________ is an import duty as a percentage of the invoice value of the product.
Specific duty
Ad Valorem
Compound duty
Variable levy
QUESTION 64With privatization:
assets are transferred from the public sector to the private sector.
stock is bought back so that the company no longer has public shareholders.
private activities are moved into state management through contracts.
all of the above.
QUESTION 65Among the political risk assessment include:
war, coup, and elections.
labor conditions, terrorism, and currency fluctuations.
taxes, tariffs, and quotas.
none of the above.
