International Business

Front 1

Which of the following statements is true regarding the potentials economic effects of MNE's.

Back 1

The effects of MNES on growth and employment are not a zero sum game and--- Both countries benefit

Front 2

Which of the following is a business object for pursing ethical behavior

Back 2

Increase competitive advangates

Front 3

Which of the following is an example of extraterritoriality

Back 3

A US subsidiary operating China that is forced to follow some US laws, even though China has no comparable laws

Front 4

Why should managers in int business understand international trade theories

Back 4

countires trade policies, based on trade theories, influences which products companies might export to given countries

Front 5

In Adam Smith theory of absoulate advantage he reasoned that specialization would allow countries to increase their efficiencies for excepts which of the following reasons

Back 5

transportation cost could be lower by producing closer to markets

Front 6

According to Product Life Cycle (PLC), in the introductory stage of the product life cycle the production and sales are primarily in the same country becuase

Back 6

There is a need to produce close to consumers in order to get quick feedback on needed product alternations

Front 7

All of the following are conditions of the porter Diamond except

Back 7

strategic trade policies

Front 8

The term protections when applied to international trade refers to blank

Back 8

government restrictions in competitive support actions to affect trade flows

Front 9

The rational for the infante industry argument

Back 9

it takes time for an industry to become competitive in world markets, so protection is needed to help this industry pass through the critical period

Front 10

Terms of trade refers to

Back 10

The quantity of imports that a given quantity of a countries exports can buy

Front 11

Which of types of companies are most likely to lose from increase global protectist measures

Back 11

Companies that have intergraded production and supply chains internationally

Front 12

the european union is an example of __________ integration

Back 12

regional

Front 13

Trade agreements whether regional, bilateral, or global, help companies__________

Back 13

by opening up markets in countries that are part of the agreements

Front 14

Because the size of the market increases when trade barriers fall, companies can increase their production, which will result in lower costs per unit. This phenomenon is known an ____________.

Back 14

Economies of scale

Front 15

The rationale for NAFTA is ________.

Back 15

geographic proxinity and trading importance

Front 16

A _________ is the price of a currency.

Back 16

exchange rate

Front 17

_________ involve the exchange of currency the second day after the date on which the two foreign exchange traders agree to the transaction.

Back 17

spot transaction

Front 18

Why is London the top market for trading foreign exchange?

Back 18

London is uniquely positioned geographically in terms of time zones.

Front 19

An irrevocable letter of credit ________.

Back 19

can be amended only if all parities agree.

Front 20

The IMF's major objectives include _______ .

Back 20

Promoting exchange rate stability.

Front 21

The SDR is __________.

Back 21

An international reserve asset created to supplement member's existing reserve asset.

Front 22

Currencies that float freely respond to __________.

Back 22

Supply and demand and conditions free gov. intervention.

Front 23

A central bank is responsible for ____.

Back 23

The policies affecting the current value of its currency.

Front 24

If a Big Mac cost $3.40 in the US and $2.67 in Argentina which of the following is true.

Back 24

The dollar is overvalued against the peso.

Front 25

Chapter one's opening case on the globalization of sports, the owner of the US football team and the owner of a Canadian hockey team bought a British soccer team. This is an example of _____.

Back 25

Joint venture

Front 26

In the opening case of the Java Lounge in Saudi Arabia, people in the port city of Jedah were less culturally conservative than people in the interior of the country. The most likely reason for this is that ____.

Back 26

People in the port cities have more contact with foreigners.

Front 27

In the case entitled Meet the BRICS. The BRICs are made up of

Back 27

Brazil, Russia, India, and China.

Front 28

Costa Rica's recent economic transformation to dependence on high manufacturing is largely due to its adoption of ______ trade policy.

Back 28

Strategic

Front 29

People who are argue for lifting the US embargo on Cuba claim all the following except which one.

Back 29

Cuba has largely become a market economy.

Front 30

In order to compete with Wal*Mart in Mexico, comeri, a local Mexican retailer is doing which of the following?

Back 30

Joining forces with two other Mexican retailers to enter into purchasing contracts with suppliers and get lower prices than it would have been able to on its own.

Front 31

The currency of El Salvador is _____.

Back 31

The U.S. dollar

Front 32

Which of the following best defines international business?

Back 32

It includes all business transactions involving two or more countries, whether the transactions are conducted by private or governmental organizations.

Front 33

Costa Rica's recent economic transformation to dependence on high manufacturing is largely due to its adoption of ______ trade policy.

Back 33

Strategic

Front 34

People who are argue for lifting the US embargo on Cuba claim all the following except which one.

Back 34

Cuba has largely become a market economy.

Front 35

In order to compete with Wal*Mart in Mexico, comeri, a local Mexican retailer is doing which of the following?

Back 35

Joining forces with two other Mexican retailers to enter into purchasing contracts with suppliers and get lower prices than it would have been able to on its own.

Front 36

The currency of El Salvador is _____.

Back 36

The U.S. dollar

Front 37

Which of the following best defines international business?

Back 37

It includes all business transactions involving two or more countries, whether the transactions are conducted by private or governmental organizations.

Front 38

Because of global events and competition affect almost all companies, a student of business needs to_______?

Back 38

Gain some understanding of international business.

Front 39

All of the following statements are true about the increase and expansion of technology except which one

Back 39

Most analysts agree that the development of new products will de-excellerate in the future.

Front 40

The same automobile company produces Fiats and Feraris. The company built an engine plant in China with low productions costs for Fiats but not Feraris. The probable reason that______.

Back 40

Fiat competes mainly on a mass market strategy, whereas Ferari competes mainly on a focused strategy.

Front 41

______ consists of specific learned norms based on attitudes, values, and beliefs of a group of people.

Back 41

Culture

Front 42

A problem of using the nation as a reference point for culture is that _____.

Back 42

Variations tend to be great within a country.

Front 43

Which of the following is an example of an aquired group membership

Back 43

Religion

Front 44

In societies where trust is high, _____.

Back 44

The cost of doing business tends to be lower.

Front 45

American hamburgers, Japanese sushi, Italian pizza, Mexican tacos and middle eastern pita bread are now commonly found in most countries. This supports the argument that _______.

Back 45

Culture hybridization, not culture imperialism, is occuring

Front 46

Political systems based on the ____ paradigm such as those of Japan and China, promotes the principle that government may intervene to ensure that business practices benefit society

Back 46

Collectivistic

Front 47

The system primarily used to integrate the different facets of society into a workable, functioning unit is the _____.

Back 47

Political system

Front 48

______ is the chance that political fores may change a countries business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower than projected rate of return

Back 48

Political risk

Front 49

Types of legal systems include all of the following except ______ law.

Back 49

Secular

Front 50

International economic analysis is an important topic to citizens, managers, policy makers, and institutions given the growing need to ______

Back 50

Understand the implication of country's economic development

Front 51

In computing GNI, the value of a Ford car that is manufactured in Mexico using capital from the US would ______.

Back 51

Be added to the GNI of the US but NOT the GNI of Mexico.

Front 52

A worrisome outcome of inflation is that it tends to _______

Back 52

Erode confidence in a country's currency.

Front 53

The statement that summarizes all economic transactions between a country and the rest of the world during a given period of time is the ______.

Back 53

Balance of Payments

Front 54

In general, transition towards a free market economy involves all of the following except which one?

Back 54

Increasing government subsidies to protect locally owned and operated enterprises

Front 55

Which of the following statements about foreign direct investment is true?

Back 55

Home and host governments are often under pressure from various groups to adopt policies to regulate the activities of MNE's as FDI grows worldwide