Question 1
. Global products are most common in industries where there is
________.
Answer
. .
. little buyer convergence
. .
. low pressure to contain
costs
. .
.
significant price
competition
. .
.
high pressure for
localization
. 4 points
Question 2
. An excess money supply creates a borrowers market, forcing down
interest rates and the cost of borrowing.
Answer
True False 4 points
Question 3
. Foreign bonds issued in Japan are called ________.
Answer
. .
. bulldog
bonds
. .
. yankee
bonds
. .
.
dragon
bonds
. .
. samurai
bonds
. 4 points
Question 4
. A multinational strategy entails having a separate strategy for each nation
in which a company markets its products. Answer
True False 4 points
Question 5
. The worldwide product division structure:
Answer
. .
. is weak in local responsiveness.
. .
. inhibits the realization of experience curve economies.
. .
. inhibits the realization of location economies.
. .
. limits the transfer of core competencies between areas.
. 4 points
Question 6
. The international monetary system based on fixed exchange rates ended
in ________.
Answer
. .
. 1
9
.
.
.
.
.
.
.
.
.
7
3
1
9
8
3
1
9
9
3
2
0
0
3
. 4 points
Question 7
. ________ is financing obtained from investors who believe the borrower will
experience rapid growth and who receive equity (part ownership) in return
for their investment.
Answer
. .
. Internal
funding . .
.
Venture
capital
. .
. GDR
funding
. .
.
Eurobond
capital
. 4 points
Question 8
. Beanstalk International is rapidly growing. The company wants to follow
a strategy of adapting its products and marketing in each national market to
suit local preferences. Beanstalk is intent on creating value for its customers.
The strategy that Beanstalk would most likely want to follow is called a
________ strategy.
Answer
. .
.
multina
tional
. .
.
retrenc
hment
. .
.
global
. .
.
stabilit
y
. 4 points
Question 9
. Which of the following is an argument that supports global
advertising?
Answer
. .
. Standardized advertising lowers the costs of value creation by s
advertisements over many countries.
. .
. Even though there are cultural differences between nations, a si
can be easily developed.
. .
. Standardized advertising may be implemented even in the face o
. .
. Because of concerns about the scarcity of creative talent, some f
than one large effort to develop a campaign.
. 4 points
Question 10
. If a computer contains a microprocessor from one company based in Costa
Rica and a hard disk drive from another company based in the Philippines,
the computer manufacturer most likely uses which of the
following?
Answer
. .
. Expor
ting
. .
. Franc
hising
. .
. Outso
urcin
g
. .
. Licen
sing
. 4 points
Question 11
. Suppose the exchange rate at the beginning of the year between the Indian
Rupee (R) and U.S. dollar is R43.125/$. The annual inflation rate in India is
19 percent whereas inflation in the United States is 3 percent. What would be
the new exchange rate at the end of the year?
Answer
. .
.
R49.
8224
/$
. .
. R37.3
27/$
. .
. R0.02
67/$
. .
. $37.3
27/R
. 4 points
Question 12
. One way a company can eliminate the exposure of assets to political risk
in other countries is by refusing to invest in plants and equipment
abroad.
Answer
True False 4 points
Question 13
. Cultures that score low on uncertainty avoidance tend to be more open to
change and new ideas.
Answer
True False 4 points
Question 14
. The rate at which one currency is exchanged for another depends on the
size of the transaction, the trader conducting it, and general economic
conditions.
Answer
True False 4 points
Question 15
. Which of the following denotes a stock market with no central geographic
location? Answer
. .
.
Cybermarket
. .
. Foreign exchange
market
. .
.
Bond market
. .
.
Capital market
. 4 points
Question 16
. A system in which currencies float against one another, with governments
intervening to stabilize their currencies at particular target exchange rates is
called a ________.
Answer
. .
. managed float system
. .
. Bretton Woods system
. .
. free float system
. .
.
fixed exchange-rate
system
. 4 points
Question 17
. Companies usually decide to divest when a market is experiencing rapid
growth.
Answer
True False 4 points
Question 18
. What is the most important factor in determining the elasticity of demand
for a product in a given country?
Answer
. .
. Personal
selling
. .
. Income level
. .
. Operating
revenue
Logistics
. .
.
. 4 points
Question 19
. Today's international monetary system is considered a
________.
Answer
. .
.
fixed system
. .
.
managed float
system
. .
.
floating system
. .
.
mixed system
. 4 points
Question 20
. Which of the following is not an advantage of strategic
alliances?
Answer
. .
. It allows firms to share the fixed costs of developing new produc
. .
. It gives a firm tight control over operations in different countrie
. .
. It will help the firm establish technological standards for the ind
. .
. It is a way to bring together complementary skills and assets tha
own.
. 4 points
Question 21
. Which of the following occurs when a company sells its products to
intermediaries who then resell to buyers in a target market?
Answer
. .
. Indirect
exporting
. .
. Investment
entry
. .
.
Direct
exporting
. .
.
Strategic
alliance
. 4 points
Question 22
. Discuss the challenges China faces as it continues its experiment in
"socialism with Chinese characteristics."
Answer
.
. . NormalHeading 1Heading 2Heading 3Heading 4Heading 5AddressFormatted
1234567
AntiquaCentury GothicComic SansCourier NewGaramondGeorgiaTahomaTimes New RomanV
. .
.
.
Path:body
.
. . 4 points
Question 23
. Offering the same products using the same marketing strategy in all
national markets is referred to as a ________ strategy.
Answer
. .
. global
. .
. multinati
onal
. .
.
retrench
ment
. .
.
multido
mestic
. 4 points
Question 24
. Discuss the disadvantages of an ethnocentric staffing policy, and explain
how bonuses, tax incentives, and cultural and social expectations can
contribute to high personnel costs.
Answer
.
. . NormalHeading 1Heading 2Heading 3Heading 4Heading 5AddressFormatted
1234567
AntiquaCentury GothicComic SansCourier NewGaramondGeorgiaTahomaTimes New RomanV
. .
. .
Path:body
.
. . 4 points
Question 25
. Which of these refers to the price charged for products sold between a
company's divisions or subsidiaries?
Answer
. .
. Dual price
. .
.
Transfer
price
.
.
.
.
.
.
Worldwide
price
Arm's length
price