• 05 JUL 19
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    Boeing controls the overall operation of its strategic alliance with Fuji, Mitsubishi, and Kawasaki

    Question 6 : Which of the following factors is LEAST affected by the transportation mode selected for a product’s distribution?
    A. inventory costs

    B.
    C.
    D.

    market share data
    product’s useful shelf life
    product’s exposure to damage

    Question 7 : A voluntary export control is most likely used to ________.
    A. punish political enemies

    B.
    C.
    D.

    appeal to domestic politicians
    avoid trade conflicts with friendly trade partners
    comply with strict product and testing standards

    Question 8 : Boeing controls the overall operation of its strategic alliance with Fuji, Mitsubishi, and Kawasaki. This is an example of a(n)
    A. shared management agreement

    B.
    C.
    D.

    assigned arrangement
    delegated arrangement
    consensual arrangement

    Question 9 : Executives at Ass-wipes Manufacturing, an MNE, are considering the implementation of a market pricing policy. Which of
    the following is NOT a potential risk to Ass-wipe of this type of policy?
    A. inability to assess marginal costs

    B.
    C.
    D.

    damage to the firm’s brand name
    development of a gray market
    complaints about dumping

    Question 10 : The EU believes that Boeing has benefited from unfair trade practices because ________.
    A. Boeing had developed new technologies through U.S. Defense Department contracts

    B.
    C.
    D.

    the U.S. has forgiven significant government loans to Boeing
    Boeing controls the small aircraft market because of U.S. defense contracts
    the WTO has overlooked direct subsidies from the U.S. government

    Question 11 : FedEx provided Lewis Exporters with a document that serves as a contract for transporting twenty boxes from Boston to
    Paris. Which term best describes this document?
    A. sight draft

    B.
    C.
    D.

    bill of lading
    bill of exchange
    trade acceptance

    Question 12 : All of the following are internal sources of investment capital for international businesses EXCEPT ________.
    A. adjusted transfer prices

    B.
    C.
    D.

    operation profits
    subsidiary loans
    managed floats

    Question 13 : Which term refers to the facts or impressions the advertiser wants to convey to potential customers?
    A. medium

    B.
    C.
    D.

    message
    copy
    graphic

    Question 14 : After five years working as a manager at Water Sound Enterprises, Jeff has decided to quit. On his last day at work, Jeff is
    interviewed by the HR manager and asked his reasons for leaving Water Sound. Jeff is likely participating in a(n) ________ interview.
    A. outsourcing

    B.

    selection

    C.
    D.

    screening

    B.
    C.
    D.

    enable retention assessment

    exit
    Question 15 : What is a benefit of using customized training programs?
    A. keep costs to a minimum
    specify essential information
    monitor cultural effectiveness

    Question 16 : Which of the following is an advantage of using personal selling in international marketing?
    A. low-cost market entry strategy

    B.
    C.
    D.

    access to local market information
    standardization of promotion mix
    enhancement of firm’s reputation

    Question 17 : The ________ acts as a foreign sales department for domestic producers by selling those firms’ goods in foreign markets.
    A. manufacturers’ agent

    B.
    C.
    D.

    export and import broker
    freight forwarder
    manufacturers’ export agent

    Question 18 : Which of the following is not one of the elements of the promotion mix?
    A. advertising

    B.
    C.
    D.

    e-commerce
    sales promotion
    public relations

    Question 19 : What is the primary risk an exporter faces with documentary collection?
    A. bank changing terms

    B.
    C.
    D.

    importer defaulting
    issuing bank defaulting
    importer failing to pay account balance

    Question 20 : What control function is Ford primarily using to ensure the firm increases its global automobile sales?
    A. regulations

    B.
    C.
    D.

    annual goals
    accounting systems
    performance appraisals

    Question 21 : An accepted time draft is called a ________.
    A. sight draft

    B.
    C.
    D.

    bill of lading
    bill of exchange
    trade acceptance

    Question 22 : What document serves as a title to the goods in question under the document collection payment method?
    A. sight draft

    B.
    C.
    D.

    bill of lading
    bill of exchange
    trade acceptance

    Question 23 : Smith seeks to entice a manager to move oversees. The firm will need to offer a ________ to a manager’s base salary.
    A. cost-of-living allowance

    B.

    bonus

    C.
    D.

    hardship premium
    tax equalization adjustment

    Question 24 : When British Petroleum ships oil from its storage facilities in Kuwait to its Australian subsidiary, ________ has occurred.
    A. indirect exporting

    B.
    C.
    D.

    direct exporting
    an intra-corporate transfer
    an inter-corporate transfer

    Question 25
    What term refers to the number of stages in the distribution channel?
    A. supply chain

    B.
    C.
    D.

    stage hierarchy
    channel length
    channel width

    Question 26
    A(n) ________ is an absolute ban on the exporting and importing of goods to a particular destination.
    A. voluntary export restraint

    B.
    C.
    D.

    embargo
    ad valorem tariff
    tariff rate quota

    Question 27
    When paying via ________, the goods are shipped by the exporter and received by the importer prior to payment, and the exporter then
    bills the importer for the goods, stipulating the amount, form, and time at which payment is expected.
    A. payment in advance

    B.
    C.
    D.

    open account
    letters of credit
    countertrade

    Question 28
    The GATT rounds focused on decreasing ________.
    A. dumping

    B.
    C.
    D.

    trade tariffs
    preferential treatment
    domestic industry subsidies

    Question 29
    Which term refers to instruction directed at enhancing specific job-related skills and abilities?
    A. training

    B.
    C.
    D.

    development
    screening
    selection

    Question 30
    Megan, a financial manager at Price Manufacturing, an MNE, strives to minimize the firm’s working capital balances. Why would this
    most likely be important for Price Manufacturing?
    A. Subsidiaries need working capital in host-country currencies.

    B.
    C.
    D.

    Working capital has an increased foreign-exchange risk.
    Working capital earns a very low rate of return.
    Working capital is highly taxed overseas.

    Question 31

    In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers
    to the movement of the factors of production.
    A. free trade area

    B.
    C.
    D.

    customs union
    common market
    economic union

    Question 32
    Under the ________ price policy, firms can set higher prices where markets will tolerate them and lower prices where necessary to
    remain competitive.
    A. standard

    B.
    C.
    D.

    two-tiered
    market
    global

    Question 33
    The ethnocentric approach to management is most likely used by firms that ________.
    A. operate internationally the same way they do domestically

    B.
    C.
    D.

    customize their operations for each foreign market in which they serve
    analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve
    adapt their marketing strategies for foreign markets, but not their finance strategies

    Question 34
    Firms using a(n) ________ primarily use parent country nationals to staff higher-level foreign positions.
    A. ethnocentric staffing model

    B.
    C.
    D.

    polycentric staffing model
    geocentric staffing model
    monocentric staffing model

    Question 35
    A(n) ________ eliminates trade barriers among member countries.
    A. free trade area

    B.
    C.
    D.

    customs union
    common market
    economic union

    Question 36
    ________ is the most common form of international business activity.
    A. Exporting

    B.
    C.
    D.

    Licensing
    Greenfield strategy
    Management contract

    Question 37
    A(n) ________ confirms that the goods being shipped were produced in the exporting country.
    A. export license

    B.
    C.
    D.

    certificate of product origin
    inspection certificate
    bill of lading

    Question 38
    A public-private venture is a joint venture that involves a partnership between a privately owned firm and a ________.
    A. financial institution

    B.
    C.

    rival corporation
    board of directors

    D.

    government

    Question 39
    ________ are those that pull a firm into foreign markets as a result of opportunities available there.
    A. Reactive motivations

    B.
    C.
    D.

    Proactive motivations
    Opportunity motivations
    Avoidance motivations

    Question 40
    Country X treats foreign firms the same way it treats domestic firms. Country X most likely engages in ________.
    A. trade balancing

    B.
    C.
    D.

    national treatment
    mercantilism
    foreign treatment

    Question 41
    Burger King has established a franchise agreement with an individual in Tokyo. Burger King will most likely provide the Japanese
    franchisee with all of the following EXCEPT ________.
    A. . intellectual property

    B.
    C.
    D.

    operating systems
    financial capital
    training

    Question 42
    What type of tariff is assessed as a percentage of the market value of the imported good?
    A. transit tariff

    B.
    C.
    D.

    ad valorem tariff
    specific tariff
    compound tariff

    Question 43
    What Japanese organization is entrusted with setting industrial policy?
    A. Ministry of International Trade and Industry

    B.
    C.
    D.

    Industrial Policy Ministry
    Office of Strategic Trade
    Ministry of Industry Development

    Question 44
    When adopting a(n) ________ approach, a firm applies the domestic marketing mix abroad.
    A. ethnocentric

    B.
    C.
    D.

    polycentric
    geocentric
    multidomestic

    Question 45
    Japan’s Fukusuke Corporation sold 10 knitting machines and raw materials to Chinatex, a Shanghai-based clothing manufacturer in
    exchange for one million pairs of underwear to be produced on the knitting machines. What form of countertrade is this?
    A. buy-back

    B.
    C.
    D.

    parallel barter
    offset purchase
    clearinghouse accounts

    Question 46
    Which agency initially investigates complaints about unfair trade practices in the United States?
    A. Overseas Private Investment Corporation

    B.
    C.
    D.

    Federal Trade Commission
    International Trade Administration
    World Trade Organization

    Question 47
    The polycentric approach to management is most likely used by firms that ________.
    A. operate internationally the same way they do domestically

    B.
    C.
    D.

    customize their operations for each foreign market in which they serve
    analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve
    adapt their marketing strategies for foreign markets, but not their finance strategies

    Question 48
    Distribution channels consist of all of the following except ________.
    A. manufacturer

    B.
    C.
    D.

    wholesaler
    supplier
    customer

    Question 49
    Pet Comfort Systems is a firm based in Chicago that has just started exporting a small number of pet beds to retail stores in London,
    Tokyo, and Paris. The export department manager at Pet Comfort Systems is most likely from which country?
    A. England

    B.
    C.
    D.

    Japan
    France
    U.S.

    Question 50
    How does the Star Alliance primarily benefit customers?
    A. coordinating service inquiries

    B.
    C.
    D.

    supporting airport construction
    facilitating airline transfers
    easing government restrictions

    Question 51
    The __ is used when a firm serves different customers or groups, each with specific needs calling for special expertise or attention.
    A. global area design

    B.
    C.
    D.

    global functional design
    global matrix design
    global customer design

    Question 52
    Eurozone participants have agreed to limit their annual government deficits to no more than ________ of their GDPs.
    A. 3 percent

    B.
    C.
    D.

    5 percent
    7 percent
    9 percent

    Question 53
    Which term refers to a firm building and operating a facility before transferring ownership of the facility to another party?
    A. FDI

    B.
    C.

    B-O-T project
    turnkey project

    D.

    greenfield strategy

    Question 54
    After training and development takes place, what comes next in the international human resource management process?
    A. contribution to organizational effectiveness

    B.
    C.
    D.

    performance appraisal
    compensation and benefits
    labor relations

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