Question: When managers in an international business consider market segmentation in foreign countries, they need to be cognizant of the differences between countries in the structure of market segments and existence of market segments that

AIn the home country

BTranscend national borders

CAre divided by gender

DAre based on home market models
Question: The letter of credit

AStates that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documents

BIs an order written by an exporter instructing an importer to pay a specified amount of money at a specified time

CServes as a receipt, a contract, and a document of title

DIndicates that the carrier has received the merchandise described on the face of the document
Question: Which of the following strategies is most compatible with a polycentric staffing policy?

AInternational strategy

BGlobal standardization strategy

CLocalization strategy

DTransnational strategy
Question: Pull strategies tend to be emphasized for

AComplex new products

BConsumer goods

CIndustrial goods

DServices
Question: International businesses increasingly are using management development as a strategic tool; this is particularly true in firms pursuing a(n) _____ strategy as such firms need a strong unifying corporate culture and informal management networks to assist in coordination and control.

ALocalization

BInternational

CTransnational

DGlobal standardization
Question: Many firms pay foreign service premiums as a percentage of base salary, ranging from _____ percent after tax.

A50 to 60

B5 to 15

C30 to 50

D10 to 30
Question: Occidental Petroleum negotiated a deal with Russia under which Occidental would build several ammonia plants in Russia and as partial payment receive ammonia over a 20-year period. This is an example of

ASwitch trading

BA buyback

CA counterpurchase

DAn offset
Question: Albania offered such items as spring water, tomato juice, and chrome ore in exchange for a $60 million fertilizer and methanol complex. Which type of countertrade is this?

AOffset

BSwitch trading

CBuyback

DBarter
Question: Which of the following is true of price discrimination?

AIt exists whenever consumers in different countries are charged different prices for different products

BIt involves charging whatever the market will bear

CIt can help a company minimize its costs

DIt is against economic sense to charge different prices in different countries
Question: 3M has built its export success on all of the following principles except

AAdding additional product lines once export operation is successful

BGetting into a market first and then learning about the country

CHiring locals to promote the firm’s products

DEntering on a small scale to reduce risks
Question: Which of the following is a drawback of adopting a polycentric staffing approach?

AIt is expensive to implement

BThe higher pay enjoyed by managers placed on an international fast track may be a source of resentment within the firm

CIt limits advancement opportunities for host-country nationals

DThe gap that can form between host-country managers and parent-country managers
Question: The TQM philosophy was developed by a number of American consultants. Which of the following individuals is one of them?

AJoseph Juran

BPhilip Kotler

CPaul Harmon

DÉmile Durkheim
Question: The global corporation

AConsiders the world to consist of distinct and unique entities

BOperates at low relative costs

COperates from any one country

DAdjusts its products and practices to each country
Question: Because of formal and informal trade barriers and the uncertainties of the world’s current floating exchange rate regime, several automobile companies have established top-to-bottom manufacturing operations in three major regional markets. Which of the following is one of them?

AAustralia

BAfrica

CSouth America

DWestern Europe
Question: A _____ is issued to the exporter by the common carrier transporting the merchandise and it serves as a receipt, a contract, and a document of title.

ABill of lading

BCollateral

CDraft

DLetter of credit
Question: Which of the following is a drawback of relying on an EMC?

AThey do not provide references and have no antecedents

BThe exporting company can fail to develop its own exporting capabilities

CThey typically add little value to the exporting company

DThey typically lack knowledge about the local business regulations
Question: _____, or reductions in unit costs as plant output expands, are achieved because of greater utilization of capital equipment and the productivity gains that come with specialization of employees within the plant.

AMinimum efficient scale

BProduction cost curve

CMaximum efficient scale

DEconomies of scale
Question: The mission of the _____ is to provide financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries.

ASogo shosha

BWorld Bank

COverseas Commercial Service

DEx-Im Bank
Question: Which of the following is an advantage related to both a relatively low level of fixed costs and to a low minimum efficient scale?
NOT SURE ON THIS ONE…

AA firm can hedge against potential adverse moves in currencies

BProducts can be standardized across different national markets

CFirms can operate entirely out of their home countries

DProduct manufacturing can be limited to a single location
Question: Which of the following is an advantage of a geocentric approach to staffing for international businesses?

AIt permits better corporate center control

BIt is inexpensive to implement

CIt helps build a strong culture

DIt helps transfer core competencies
Question: A citizen of Japan who moves to the United States to work at Microsoft would be classified as a(n)

AExpatriate

BInpatriate

CThird-country national

DHost-country national
Question: When should an exporter get export credit insurance?

AWhen the exporter is facing a situation where the importer may default on payment

BWhen the exporter is dealing with a country that has a nonconvertible currency

CWhen he is unable to obtain any pre-export financing

DWhen the exporter has received a letter of credit from the importer’s bank
Question: Re-entry of expatriate managers into their home-country organization is termed _____.

AInpatriation

BNesting

CRepatriation

DHoming
Question: Historically, most outsourcing decisions have involved

AThe manufacture of physical products

BThe procurement of agricultural products

CThe mining of precious resources

DThe provision services
Question: In an international context, _____ exists whenever consumers in different countries are charged different prices for the same product.

AStandardized pricing

BGlobal pricing

CPredatory pricing

DPrice discrimination