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Global Business > Pre-Assessment > Flashcards

Pre-Assessment Flashcards

1
Q 
Which of the following is a characteristic of globalization?
A. Tax Law
B. Trade Negotiations
C. Culture
D. Transparency
A

C. Culture

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2
Q

How do major international facilitate globalization?
A. By raising trade barriers.
B. By creating an international monetary system.
C. By placing tariffs on imported goods.
D. By enacting stringent labor laws.
E. By weakening their currencies.

A

B. By creating an international monetary system.

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3
Q 
What do countries with politicians that sustain transparency in global competition tend to have?
A. Firms that resist globalization.
B. A slow free enterprise system.
C. A competitive market structure.
D. A system of poor checks and balances.
A

C. A competitive market structure.

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4
Q 
What makes globalization sustainable?
A. Transparency in government policy.
B. Rising shipping price.
C. Restrictive laws.
D. Limited intellectual property laws.
A

A. Transparency in government policy.

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5
Q

What do property rights enable buyers and sellers to do?
A. Conduct transactions with the high degree of trust.
B. Name buildings after them.
C. Improve their quality of life.
D. Increase currency taxes.

A

A. Conduct transactions with the high degree of trust.

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6
Q

How has technology bridged the global digital divide?
A. By limiting who has access to the Internet.
B. By decreasing communication cost.
C. By increasing stagnant wages.
D. By causing job loss.

A

B. By decreasing communication cost.

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7
Q

Economists have argued that national policies should be implemented to help retrain and educate workers.
How might these efforts affect the displaced workers?
A. By increasing productivity.
B. By capping the level of competitiveness.
C. By increasing unemployment.
D. By reducing wages.

A

A. By increasing productivity.

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8
Q 
What is one argument against globalization?
A. Economic control increase.
B. Collaborative trading will occur.
C. Jobs will be lost.
D. New industries will develop.
A

C. Jobs will be lost.

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9
Q

Which of the following may lead to an increase in the standard of living, according to free-trade theory?
A. The right to import and export goods freely.
B. Increased taxes on goods and services.
C. Increased inflation.
D. Laws against importing and exporting goods.

A

A. The right to import and export goods freely.

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10
Q

How does foreign direct (FDI) create jobs and enhance skills of workers?
A. By generating losses from capital.
B. By selling companies.
C. By increasing tax policies.
D. By creating inflows of capital from abroad.

A

D. By creating inflows of capital from abroad.

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11
Q 
Workers from Poland are free to work in the United Kingdom to fill shortages there. 
What is the scenario an example of?
A. Comparative Advantage.
B. Absolute surplus.
C. Specialization.
D. Trade surplus.
E. Factor price equalization.
A

A. Comparative Advantage.

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12
Q

What does trade policy have a direct impact on?
A. The value of volume of a country’s imports and exports.
B. The level of inequality in society.
C. Infrastructure of large cities.
D. A country’s consumer debt.

A

A. The value of volume of a country’s imports and exports.

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13
Q 
What is not a rationale for managing trade?
A. Countertrade.
B. Mercantilism.
C. Infant industry argument.
D. National security.
E. Export cartels.
A

B. Mercantilism.

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14
Q

What must countries do to create regional economic integration?
A. Have individualized regional strategies.
B. Have special transformation.
C. Disallow geography distribution of economic activities among countries.
D. Develop indépendant operations.

A

B. Have special transformation.

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15
Q

Which aspects of economic geography affect international trade?
A. Advantage of location.
B. Higher economic barriers.
C. Closed interaction between emerging markets.
D. Reduced specialization of products.
E. Size of the countries involved.

A

A. Advantage of location, D. Reduced specialization of products.

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16
Q 
How does regional integration affect countries?
A. Enhance social welfare.
B. Decrease sustainable development.
C. Decrease job development.
D. Less international drug trafficking.
A

A. Enhance social welfare.

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17
Q 
Which regional bloc is dedicated to South America?
A. MERSCOSUR
B. NAFTA
C. CEFTA
D. APEC
A

A. MERSCOSUR

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18
Q 
What statement of account summarizes all transactions between one country and the rest of the world for a given period of time?
A. Trade Account
B. Balance of payments.
C. Income balance.
D. Flow of funds.
A

B. Balance of payments.

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19
Q 
What is a component of the forward market?
A. Past rates
B. Forward rates
C. Spot rates
D. Managed rates
E. Non-hedge rates
A

B. Forward rates.

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20
Q

Which example is considered a primary source that can be used to learn about foreign countries’ cultures?
A. Reading Price Waterhouse Coopers Doing Business in 118 Countries.
B. Talking to employees who have lived or abroad.
C. Referring to the U.S. Department of Commerce Country Commercial Guide.
D. Consulting encyclopedias for information.

A

B. Talking to employees who have lived or abroad.

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21
Q

Which of the following should take place in an effort to successfully conduct business in China?
A. Maintaining a level of dominance and superiority throughout a business dealing.
B. Attending to relationships between subordinates and superiors (Guanx).
C. Developing personal relationship with high-level business executives.
D. Focusing on equal relationship exchanges.

A

B. Attending to relationships between subordinates and superiors (Guanx).

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22
Q 
What is an economic ideology in which the government or state plays a strong role in the economy, may own stakes in certain businesses, but does NOT aspire to be classless?
A. Capitalism
B. Socialism
C. Communism
D. Totalitarianism
A

B. Socialism

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23
Q 
Which risk occurs with a change in political governance?
A. Terrorism
B. Private corruption
C. Economic
D. Macropolitical
A

D. Macropolitical

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24
Q

Why is intellectual property protection critical in today’s global business environment?
A. To continue encouraging innovation, creativity and investment.
B. To maintain the current level of innovation.
C. To reduce inequality in society.
D. To provide jobs for the unskilled.

A

A. To continue encouraging innovation, creativity and investment.

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25
Q 
What is the result if a large online retailer does NOT secure customer's financial information?
A. Increase in federal regulations.
B. Decrease in public trust.
C. Decrease in corporate responsibility.
D. Decrease in internal controls.
A

B. Decrease in public trust.

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26
Q

What is the goal of corporate social responsibility?
A. To follow personal intuition.
B. To fulfill federal mandates.
C. To create a balance between private profits and public goods.
D. To apply the informal policy of the company.

A

C. To create a balance between private profits and public goods.

27
Q 
Which scandal included improperly adjusting accounting reserves to met earning?
A. Parmalat
B. Vivendi
C. Enron
D. WorldCom
E. Overton
A

D. WorldCom

28
Q 
What can internal controls protect honest employees from?
A. Accidentally making errors.
B. Harassment by coworkers.
C. Discrimination in the workplace.
D. Accusations of impropriety.
A

A. Accidentally making errors.

29
Q 
Which entry strategy generally requires a large capital investment and is associated with a high degree of risk?
A. Wholly-owned foreign subsidiary.
B. Licensing
C. Joint Venture
D. Strategic Alliance
A

A. Wholly-owned foreign subsidiary.

30
Q 
A parent firm provides startup cost, promotional materials, and pricing to its subsidiary firm. Which strategy is this firm using for entering emerging markets?
A. Licensing
B. Export-import business.
C. Franchising
D. Wholly-owned subsidiary.
A

C. Franchising

31
Q 
What is the primary intention when multinational enterprises (MNEs) invest internationally?
A. To identify new market structures.
B. To gain competitive advantage.
C. To diversify their workplace.
D. To utilize Dunning's eclectic theory.
A

C. To diversify their workplace.

32
Q 
What might government entities use tax revenue generated by foreign direct investment (FDIs) for?
A. To increase tax rates.
B. To slow economic development.
C. To decrease domestic competition.
D. To reduce poverty.
A

D. To reduce poverty.

33
Q

Mr. Chavez bannes U.S. oil company operations in Venezuela.
Which cost of foreign direct investment (FDI) is this an example of?
A. Prevention of human capital development.
B. Unfair political interference.
C. Lack of corporate social responsibility.
D. Tarnishing of the country’s image.q

A

B. Unfair political interference.

34
Q

How does the government of a country with a good investment climate attract foreign direct investment (FDI)?
A. By supporting monopolistic competition.
B. By passing tariffs that protect domestic markets.
C. By implementing transparent governance structures.
D. By maximizing shareholder wealth.

A

C. By implementing transparent governance structures.

35
Q 
What do companies use as a blueprint in their strategy, formulation and control functions?
A. Stockholder Plan
B. Mission Statement
C. Vision Statement
D. Shareholder Model
E. Statement of Goals
A

B. Mission Statement

36
Q

Which arrangement best outlines Miles and Snows four basic types of longer-term strategy implication?
A. Analyzers, prospectors, defenders, and reactors.
B. Coordinators, reactors, defenders, and prospectors.
C. Prospectors, expansionists, analyzers, and defenders.
D. Reactors, coordinators, defenders and prospectors.
E. Defenders, prospectors, analyzers and expansionists.

A

A. Analyzers, prospectors, defenders, and reactors.

37
Q

How do knowledge management and systems overcome impediments to strategic implication?
A. By allowing for the Jubilee stake.
B. By allowing for in-person supervision.
C. By allowing for the ability to write things down.
D. By allowing for wider dissemination of tacit and explicit knowledge.

A

D. By allowing for wider dissemination of tacit and explicit knowledge.

38
Q

How do interpersonal control systems help manage global business?
A. By using Six Sigma initiatives.
B. By having executives engage in personal contact with subordinates.
C. by outlining a system of rules and procedures.
D. By controlling profit and market share with output controls and measurement.

A

B. By having executives engage in personal contact with subordinates.

39
Q 
Small-town Times newspaper has a norm of "highest quality in journalism." In this context, the newspaper's reporters require close supervision to do a great journalist work.
A. Organizational Background
B. Organizational Traditions
C. Organizational Customs
D. Organizational Culture
A

D. Organizational Culture

40
Q

What are stateless corporations?
A. Corporations who set up operations in other countries, but maintain ties to a home country.
B. Corporations that source work wherever it is most efficient and transcend international boundaries.
C. Corporations that establish foreign subsidiaries to handle export from their home country.
D. Corporations that produce good in one country and export them to other countries.

A

B. Corporations that source work wherever it is most efficient and transcend international boundaries.

41
Q 
What will an organization structure which inhibits people from clearly knowing if they have decision making authority most likely to do?
A. Decrease organizational structure.
B. Increase quality.
C. Increase innovation.
D. Prohibit innovation.
E. Prohibit employee breaks.
A

D. Prohibit innovation.

42
Q

Which issue can result from creating international divisions in global business?
A. Call option.
B. Creation of company unity.
C. Conflict between domestic and international operations.
D. Employees considering themselves first-class citizens.

A

C. Conflict between domestic and international operations.

43
Q 
What is the name for an organizational structure in which people are grouped simultaneously by function and by division?
A. Market
B. Divisional
C. Hybrid
D. Matrix
E. Functional
A

D. Matrix

44
Q 
What is NOT an issue for a business considering outsourcing and offshoring?
A. Costs structure comparison.
B. Available technology concerns.
C. Wage equality concerns.
D. Quality of product comparison.
A

C. Wage equality concerns.

45
Q 
What is needed when a U.S. company sent an employee to work in a foreign country for several years?
A. Third country nationals.
B. Host country nationals.
C. Training in the foreign language.
D. Heavy reassignment cost.
A

C. Training in the foreign language.

46
Q

Which issues are associated with expatriate compensation?
A. Language barriers.
B. Major corporations presence.
C. Collective performance appraisals.
D. Variability in taxes between countries.

A

D. Variability in taxes between countries.

47
Q

Which issue was discussed as a concern during the establishment of North American Free Trade Agreement (NAFTA)?
A. The exclusion of Mexico from the agreement.
B. The exclusion of Canada from the agreement.
C. A fear that companies would move American manufacturing jobs to Mexico.
D. Uncertainty about whether or not profit for companies would increase.

A

C. A fear that companies would move American manufacturing jobs to Mexico.

48
Q

What is one factor that distinguishes market intelligence systems from marketing research?
A. Collecting information regularly over time.
B. Collection information of women by country.
C. Collection information in France.
D. Collection information in the United States.

A

A. Collection information regularly over time.

49
Q

How are standardizations strategies defined?
A. Approaches in which marketing strategies used in international operations will be different that those used domestically.
B. Approaches that compromise marketing strategies.
C. Approaches in which global products are developed.
D. Approaches in which marking strategies used in international operations will be the same as those being used domestically.
E. Approaches in which concept testing is delivered to the whole market.

A

D. Approaches in which marking strategies used in international operations will be the same as those being used domestically.

50
Q

Which appropriate set of steps should companies follow when developing new products for overseas markets?
A. Business analysis, evaluation of new product ideas, development, and commercialization.
B. Concept testing, business analysis, marketing testing and commercialization.
C. Identification of sources of new product ideas, evaluation of new product ideas, concept testing, business analysis, development, market testing and commercialization.
D. Identification of sources of new products, evaluation of new product ideas, development, business analysis.

A

C. Identification of sources of new product ideas, evaluation of new product ideas, concept testing, business analysis, development, market testing and commercialization.

51
Q 
Which marketing method uses contests and sweepstakes as the most widely-used promotional technique in foreign markets?
A. Advertising
B. Perception.
C. Direct Mail.
D. Sales Promotion.
E. Personal Selling.
A

D. Sales Promotion.

52
Q

Match physical distribution channel method descriptions with their appropriate one.
A. Shipments placed in trailer-sized containers which can be moved from one type of transportation to another without unloading and reloading.
B. Moves large quantities of products to international buyers at low per unit costs.
C. Moving from one transportation to another.
D. Agents who ship or ducts to international consumer.

A

A. Containerizaiton.
B. Physical Distribution.
C. Intermodel Transport.
D. Freight Forwarder.

53
Q 
What are international pricing objectives that keep competitors out of a foreign market with low prices?
A. Prevention.
B. Maintenance.
C. Performance.
D. Gray Marketing.
A

D. Gray Marketing.

54
Q

What should a smart company do regarding customer complaints to improve the company’s customer service in the future?
A. Make customer complaint policies as clear as possible before purchases are made.
B. Reward customers who provide positive feedback.
C. Welcome customer complaint to use as feedback.
D. Seek out dissatisfied customers through social media outlets.

A

C. Welcome customer complaint to use as feedback.

55
Q 
Why may companies outsource?
A. To increase their competition.
B. To learn a new business.
C. To control the supply chain.
D. To focus on non-value-added inputs.
E. To take advantage of lower wages.
A

E. To take advantage of lower wages.

56
Q

What is most likely to happen if a competed company decided to own and operate its own fleet of trucks instead of using shipping companies to deliver its computers?
A. The computer company would produce incentives to make its computers better.
B. The computer company would decrease its expertise in supply chain matters.
C. The computer company would be able to compete in international markets.
D. The computer company would be increasing the complexity of its process.

A

D. The computer company would be increasing the complexity of its process.

57
Q

A successful shoe manufacturer has long been subcontracting production of their shoes to countries such a Vietnam.
Which of the following concepts was likely considered when selecting production in this country?
A. Contract Law.
B. Political Uproar.
C. Value-to-weight ratio.
D. Integrity.
E. Comparative advantage of labor.

A

A. Contract Law.

58
Q

How do option contract exchange rate risk?
A. Be requiring investors to make small commitments to purchase future contract.
B. By giving an investor the right to buy or sell a specified amount of currency at a a future date at a predetermined price.
C. By giving investors the flexibility of future contract that are market-to-market daily.
D. By investors buying a currency in future option.
E. By allowing investors the ability to exchange a specified amount of currency at a previously agreed exchange rate.

A

B. By giving an investor the right to buy or sell a specified amount of currency at a a future date at a predetermined price.

59
Q 
What are tow short term effects of currency movement?
A. Translation risk.
B. Consolidation accounting statements.
C. Accounting risk.
D. Transaction risk.
E. Economic risk.
F. Exchange rate fluctuation.
A

A. Translation Risk, D. Transaction Risk

60
Q 
Which source of funds to financing international trade and investment is the International Monetary Fund (IMF) a part of?
A. Private funding.
B. International stock market.
C. International bond markets.
D. The International Bank.
E. Government financing.
A

E. Government financing.

61
Q

Which of the following best illustrates a function of generally accepted accounting principles?
A. Supplying private Company B with guidance in preparing financial statements.
B. Supplying domestic, publicly traded Company B with guidance in preparing financial statements.
C. Supplying private Company B with International Accounting Standards Board (ASB) requirements.
D. Supplying domestic Company B with International Accounting Standards Board (ASB) requirements.

A

B. Supplying domestic, publicly traded Company B with guidance in preparing financial statements.

62
Q

What is the goal of the International Accounting Standards Board (IASB)?
A. To achieve globally recognized or harmonized standards of accounting and reporting.
B. To achieve domestically recognized accounting and reporting standards.
C. To distinguish the financial statements from one country to another.
D. To increase the reporting requirements for multinational corporations (MNCs).

A

A. To achieve globally recognized or harmonized standards of accounting and reporting.

63
Q 
What is NOT a tax issue that multinational corporations (MNCs) face?
A. Sales Tax.
B. Payroll Tax.
C. Property Tax.
D. Cultue Tax.
E. Corporate Income Tax.
A

D. Culture Tax.

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