Question 1. Question : 

The sale of government-owned economic resources to private operators is called ________.

the price mechanism

laissez-faire economics

privatization

guanxi

Question 2. Question : 

In most failed centrally planned economies ________.

market conditions helped determine who produced various goods

prices of products were a function of supply and demand

central planning agencies specified production goals and decided prices

central planners paid attention to efficiency improvement

Question 3. Question : 

The practice of mercantilism rested upon each of the following except ________.

enhanced trade deficits

government intervention

colonialism

trade surpluses

Question 4. Question : 

Who proposed the theory of absolute advantage?

David Ricardo

Adam Smith

Bertil Ohlin

Raymond Vernon

Question 5. Question : 

Comparative advantage theory focuses on which of the following?

Maximization of production and consumption

Logistics planning

Resource assessment

Creation of trade surpluses

Question 6. Question : 

The focus of factor proportions theory is on the ________.

productivity of the production process

cost-effectiveness of the production process

use of abundant production factors

use of expensive production factors

Question 7. Question : 

Which element of national competitive advantage theory divides resources into two groups, basic and advanced?

Demand conditions

Factor conditions

Related and supporting industries

Firm, strategy, structure, and rivalry

Question 8. Question : 

Which of the following is not a problem associated with the infant industry argument?

It can cause domestic companies to become overly innovative.

Once protection of an industry is given, it can be politically difficult to eliminate.

Protection can do more economic harm than good.

Governments might have difficulty identifying the industries worth protecting.

Question 9. Question : 

Which of the following is not an example of an instrument that government uses to promote trade?

Tariffs

Subsidies

Export financing

Foreign trade zones

Question 10. Question : 

Which of the following adds to the cost of an imported product by levying an additional tax upon it?

Tariffs

Quotas

Local content requirements

Embargoes

Question 11. Question : 

The ________ altered U.S. trade policy from a stance of free trade to one of protectionism.

General Agreement on Trade and Tariffs

Multi-Fibre Arrangement

Normalized Trade Relations Act

Smoot-Hawley Act

Question 12. Question : 

Which of the following are main drivers of foreign direct investment?

Diversity and telecommunications

Telecommunications and transportation

Globalization and mergers and acquisitions (M&A)

Diversity and globalization

Question 13. Question : 

A market that is said to operate at peak efficiency and where goods are readily and easily available is said to be a(n) ________.

perfect market

eclectic market

imperfect market

greenfield market

Question 14. Question : 

The main difference between a free-trade area and a customs union is that the members of a customs union ________.

agree to treat trade with all nonmember nations in a similar manner

agree to the free movement of all factors of production

harmonize their tax, monetary, and fiscal policies and create a common currency

accept a common stance on economic and political policies regarding nonmember nations

Question 15. Question : 

The strategy formulation process involves both ________.

planning and strategy

strategy and structure

planning and marketing

strategy and production

Question 16. Question : 

Which of these strategies are appropriate for companies in industries where buyer preferences do not converge across national borders?

Retrenchment

Global

Multinational

Stability

Question 17. Question : 

A ________ strategy can cause a company to overlook important differences in buyer preferences from one market to another.

global

retrenchment

multidomestic

multinational

Question 18. Question : 

Collection and analysis of information used to assist managers in making informed decisions is known as ________.

data collection

market research

secondary market research

market analysis

Question 19. Question : 

Which of the following is not a difficulty associated with conducting international market research?

Availability of data

Comparability of data

Cultural differences

Economic differences

Question 20. Question : 

The process of obtaining information that already exists within the company or that can be obtained from outside sources is called ________.

secondary market research

logistics management

primary market research

invalid market research

Question 21. Question : 

When an exporter ships merchandise and later bills the importer for its value, it is using a(n) ________ type of export/import financing.

advance payment

open account

letter of credit

documentary collection

Question 22. Question : 

Which of the following is not a form of investment entry?

Strategic alliance

Wholly owned subsidiary

Joint venture

Turnkey project

Question 23. Question : 

Brand names are central to a product’s ________.

personality

raw materials

reproducibility

inventory planning

Question 24. Question : 

Countries that top the list for the portion of their markets comprised of counterfeits include each of the following except ________.

China

India

Russia

United Kingdom

Question 25. Question : 

Which of the following is a promotional strategy designed to pressure channel members to carry a product and promote it to final users?

Pull strategy

Adaptive channel strategy

Push strategy

End distribution strategy

Question 26. Question : 

Examples of pull strategies include each of the following except ________.

mass media advertising

direct marketing techniques

free trial packages

encouraging good retail visibility

Question 27. Question : 

The physical path a product follows on its way to customers is called a ________.

distribution channel

promotional mix path

value density

just-in-time path

Question 28. Question : 

The process of assessing a company’s ability to produce enough output to satisfy market demand is called ________.

location economics

capacity planning

process planning

facilities layout planning

Question 29. Question : 

The psychological process of readapting to one’s home culture is called ________.

culture shock

reverse recruitment

reverse culture shock

expatriate failure

Points Received: 0 of 1

Question 30. Question : 

The senior manager recommends that Hafstrom obtain auto parts from a country where production activity generates more value than it could generate elsewhere. He is recommending taking advantage of which of the following?

Just-in-time manufacturing processes

Japanese manufacturing precision

German auto technology

Location economies