Final FITB

Question 1

WTO stands for

Answer 1

World Trade Organization

Question 2

IMF stands for

Answer 2

International Monetary Fund

Question 3

FDI stands for

Answer 3

Foreign Direct Investment

Question 4

International ___ occurs when a firm exports goods or services to consumers in another
country.

Answer 4

trade

Question 5

_____ totalitarianism is found in the states where political power is monopolized by
a party, group, or individual that governs according to religious principles.

Answer 5

Theocratic

Question 6

In a _____ economy, the government plans the goods and services that a country
produces, the quantity in which they are produced, and the prices at which they are sold

Answer 6

command

Question 7

FCPA stands for

Answer 7

Foreign Corrupt Practice Act

Question 8

_____ risk is the likelihood that political forces will cause drastic changes in a
country’s business environment that adversely affect the profit and other goals of a
business enterprise.

Answer 8

Political

Question 9

_____ involves removing legal restrictions to the free play of markets, the
establishment of private enterprises, and the manner in which private enterprises operate

Answer 9

Deregulation

Question 10

GDP stands for

Answer 10

Gross Domestic Product

Question 11

OECD stands for

Answer 11

Organization for Economic Cooperation and Development

Question 12

In the opening case of chapter 5 (Ethics, Corporate Responsibility, and Sustainability),
Gucci was founded in

Answer 12

Florence

Question 13

A firm’s _____ are individuals or groups that have an interest, claim, or stake in
the company, in what it does, and in how well it performs.

Answer 13

stakeholders

Question 14

Abstract ideas about what a group believes to be good, right, and desirable is called

Answer 14

values

Question 15

_____ is the official ethical system of China

Answer 15

Confucianism

Question 16

the most widely spoken language in the world is

Answer 16

English

Question 17

The most widely practiced religion in the world with some 2.20 billion followers is

Answer 17

Christianity

Question 18

trade refers to a situation in which a government does not attempt to influence
through quotas or duties what its citizens can buy form another country or what they can
produce and sell to another country.

Answer 18

free

Question 19

According to the chapter 6 (International Trade Theory), a country has an _____ _____ in the production of a product when it is more efficient than any other
country at producing it.

Answer 19

absolute advantage

Question 20

When unit costs reductions associated with a large scale of output happens, it is called

Answer 20

economies of scale

Question 21

ASEAN is

Answer 21

Association of Southeast Asian Nations

Question 22

A currency _____ totally involves the short-term movement of funds from one
currency to another in the hopes of profiting from shifts in exchange rates. move freely
among members.

Answer 22

speculation

Question 23

_____ exposure is the extent to which a firm’s future international earning power is
affected by changes in exchange rates

Answer 23

economic

Question 24

_____ exposure is the extent to which the income from individual transactions is
affected by fluctuations in foreign exchange values.

Answer 24

transaction

Question 25

A _____ market has no barriers to trade among member countries, includes a common external trade policy and allows factors of production to move freely among members.

Answer 25

common

Question 26

The role of the IMF is to avoid the repetition of a global economic chaos through a combination of _____ and _____

Answer 26

digital, flexibility

Question 27

A _____ crisis refers to a loss confidence in the banking system that leads to a run on banks, as individuals and companies withdraw their deposits

Answer 27

banking

Question 28

A _____ crisis is a situation in which a country cannot service its foreign debt obligations, whether private-sector or government debt

Answer 28

foreign debt

Question 29

Falling demand for U.S. dollars and rising demand for euros translated into a _____ in the value of the dollar against the euro.

Answer 29

fall

Question 30

A _____ exchange rate happens when the value of the currency is fixed relative to a reference currency.

Answer 30

pegged

Question 31

_____ effects refer to cost savings that come from learning by doing.

Answer 31

learning

Question 32

firms pursuing a _____ _____ strategy try not to customize their product offering and marketing strategy to local conditions because customization involves shorter production runs and the duplication of functions, which tend to raise costs

Answer 32

global standardization

Question 33

firms pursuing an _____ strategy take products first produced for their domestic market and then sell them internationally with only minimal local customization.

Answer 33

international

Question 34

the _____ supply chain includes all of the organizations (e.g., suppliers) and resources that are involved in the portion of the supply chain from raw materials to the production facility.

Answer 34

upstream

Question 35

According to the opening case of chapter 15, Uber faced intense competition from Didi, a homegrown ride-for-hire operator. Didi was from the country of _____

Answer 35

China

Question 36

One disadvantage of_____ is that it does not give a firm the tight control over manufacturing marketing, and strategy that is required for realizing experience curve and location economies.

Answer 36

licensing

Question 37

A factory that is viewed as an intelligence-gathering unit is called a _____ factory

Answer 37

outpost

Question 38

_____ was the airline company featured in the opening case of chapter 13.

Answer 38

Emirates

Question 39

one advantage of _____ _____ is that the firm benefits from a local partner’s knowledge of the host country’s competitive conditions, culture, language, political systems, and business

Answer 39

joint venture

Question 40

the most important disadvantage of _____ _____ _____ is that it is generally the most costly method of serving a foreign market from a capital investment standpoint.

Answer 40

wholly owned subsidiary

Question 41

According to the opening case of chapter 18, Airbnb’s percentage of total bookings was _____

Answer 41

12.7%

Question 42

_____ _____ is a technique financial managers use to try to quantify the benefits, costs, and risk of an investment.

Answer 42

capital budgeting

Question 43

a _____ staffing policy requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters.

Answer 43

polycentric

Question 44

an _____ staffing policy is one in which all key management positions are filled by parent-country nations.

Answer 44

ethnocentric

Question 45

_____ _____ refers to identifying distinct groups of consumers whose needs, wants, and purchasing behavior differ from others in important ways.

Answer 45

market segmentation

Question 46

channel _____ refers to the expertise, competencies, and skills of established retailers in a nation and their ability to sell and support the products of international businesses.

Answer 46

quality

Question 47

_____ pricing is the use of price as a competitive weapon to drive weaker competitors out of a national market.

Answer 47

predatory

Question 48

Out of the four samples of prominent international market research firms, this firm, _____ is headquartered in London.

Answer 48

Kantar

Question 49

In the opening case of chapter 20, Ireland’s corporate income tax was _____

Answer 49

12.5%

Question 50

_____ costs are the cost of exchange.

Answer 50

transaction