Question 1

United States farmers are the biggest producers of corn.China's demand for corn has increased.The U.S.is a corn ____.

Accepted Answer

A) importer 
B) direct investor 
C) global sourcer 
D) exporter 
E) joint venturer 
A) importer 
B) direct investor 
C) global sourcer 
D) exporter 
E) joint venturer

Question 2

A tariff

Accepted Answer

A) cannot be collected by the exporting country. 
B) can be collected only by the importing country. 
C) can be collected by countries through which goods pass. 
D) cannot be used to raise money for a government. 
E) cannot be used to increase the cost of foreign goods. 
A) cannot be collected by the exporting country. 
B) can be collected only by the importing country. 
C) can be collected by countries through which goods pass. 
D) cannot be used to raise money for a government. 
E) cannot be used to increase the cost of foreign goods.

Question 3

The U.S.government limits how many automobiles can be imported into the United States annually.This is a(n)

Accepted Answer

A) export restraint agreement. 
B) import tariff. 
C) embargo. 
D) quota. 
E) boycott. 
A) export restraint agreement. 
B) import tariff. 
C) embargo. 
D) quota. 
E) boycott.

Question 4

Which of the following is NOT a potential disadvantage associated with an import/export operation?

Accepted Answer

A) Some products are restricted and cannot be imported or exported. 
B) Products may miss the needs of a large segment of the market because they are not adapted to local conditions. 
C) There is a great deal of risk involved compared to other strategic alternatives. 
D) Imports/exports are subject to taxes, tariffs, and higher transportation expenses. 
E) All of these choices 
A) Some products are restricted and cannot be imported or exported. 
B) Products may miss the needs of a large segment of the market because they are not adapted to local conditions. 
C) There is a great deal of risk involved compared to other strategic alternatives. 
D) Imports/exports are subject to taxes, tariffs, and higher transportation expenses. 
E) All of these choices

Question 5

High-potential/high-growth economies have been relatively underdeveloped and immature and,until recently,were characterized by weak industry,weak currency,and relatively wealthy consumers.

Accepted Answer

A) True 
 B)False

Question 6

American Eagle is a regional airline that flies in the United States and Canada.It is an example of a(n)____ business.

Accepted Answer

A) international 
B) domestic 
C) multinational 
D) intercontinental 
E) global 
A) international 
B) domestic 
C) multinational 
D) intercontinental 
E) global

Question 7

The firm for which you work was recently acquired by a large multinational corporation.You were lucky that your job was spared,but your job responsibilities have changed greatly.Your new title is director of international marketing.What things must you now be concerned with that you did not think about when you were simply a regional marketing manager?

Accepted Answer

Most responses will center on the cultur

Question 8

When a local manager is given autonomy and responsibility in dealing with job design,he or she has freedom in global

Accepted Answer

A) planning and decision making. 
B) organizing. 
C) leading. 
D) controlling. 
E) None of these choices 
A) planning and decision making. 
B) organizing. 
C) leading. 
D) controlling. 
E) None of these choices

Question 9

Top executives at BBT Corporation set the strategic direction for the firm at corporate headquarters.BBT's local managers are then informed of these strategies and given complete freedom to implement them.Which of the following management functions best describes the freedom provided local managers?

Accepted Answer

A) Planning 
B) Organizing 
C) Decision making 
D) Leading 
E) Controlling 
A) Planning 
B) Organizing 
C) Decision making 
D) Leading 
E) Controlling

Question 10

Which of the following describes what has occurred in international business from 1960-2000?

Accepted Answer

A) Although still increasing, international trade has grown at a slower rate since 1980. 
B) The volume of international trade increased more than 3000 percent. 
C) U.S.investment overseas has been on the decline for the past two decades. 
D) The majority of the world's largest firms are firms with headquarters inside the United States. 
E) All U.S.firms still earn the majority of their sales and profits in the United States. 
A) Although still increasing, international trade has grown at a slower rate since 1980. 
B) The volume of international trade increased more than 3000 percent. 
C) U.S.investment overseas has been on the decline for the past two decades. 
D) The majority of the world's largest firms are firms with headquarters inside the United States. 
E) All U.S.firms still earn the majority of their sales and profits in the United States.

Question 11

Geert Hofstede identified five fundamental differences that can be used to characterize people in different cultures.They are time,power,age,race,and gender.

Accepted Answer

A) True 
 B)False

Question 12

With whom is the United States involved in a mature market system?

Accepted Answer

A) The European Union 
B) The Latin American Integration Association 
C) The Caribbean Common Market 
D) Canada and Mexico 
E) Pacific Asia 
A) The European Union 
B) The Latin American Integration Association 
C) The Caribbean Common Market 
D) Canada and Mexico 
E) Pacific Asia

Question 13

Licensing is the easiest way of entering a new market.

Accepted Answer

A) True 
 B)False

Question 14

Labor unions in the United States would like to see Congress pass domestic content laws that would require,for example,that all automobiles sold in the United States contain at least a specified percentage of parts that were manufactured in the United States.Such laws would fall under the heading of

Accepted Answer

A) import tariffs. 
B) buy national legislation. 
C) quotas. 
D) export tariffs. 
E) economic disincentives. 
A) import tariffs. 
B) buy national legislation. 
C) quotas. 
D) export tariffs. 
E) economic disincentives.

Question 15

Maquiladoras face competition in China.

Accepted Answer

A) True 
 B)False

Question 16

An example of the cultural system in China is

Accepted Answer

A) all postings on Qiangguo, the largest Internet bulletin board in China, are censored. 
B) Bowling is the latest fad in China, with a new bowling alley opening weekly. 
C) China has budgeted 240 million Yuan ($29 million) to clean up the public toilets. 
D) One of China's greatest natural resources is its labor pool. 
E) The Chinese government has a one-child population control. 
A) all postings on Qiangguo, the largest Internet bulletin board in China, are censored. 
B) Bowling is the latest fad in China, with a new bowling alley opening weekly. 
C) China has budgeted 240 million Yuan ($29 million) to clean up the public toilets. 
D) One of China's greatest natural resources is its labor pool. 
E) The Chinese government has a one-child population control.

Question 17

A(n)____ strategy involves a partnership with a long-term commitment that can be used to acquire new technology and information.

Accepted Answer

A) direct investment 
B) joint venture 
C) licensing 
D) importing/exporting 
E) pure domestic 
A) direct investment 
B) joint venture 
C) licensing 
D) importing/exporting 
E) pure domestic

Question 18

Which of the following statements about medium-sized international business organizations is TRUE?

Accepted Answer

A) Many are still primarily domestic organizations. 
B) They are much more selective about the markets they enter than are MNCs. 
C) They depend more on international specialists to help them manage their foreign operations than do MNCs. 
D) They tend to compete with foreign businesses in their own domestic market. 
E) All of these choices 
A) Many are still primarily domestic organizations. 
B) They are much more selective about the markets they enter than are MNCs. 
C) They depend more on international specialists to help them manage their foreign operations than do MNCs. 
D) They tend to compete with foreign businesses in their own domestic market. 
E) All of these choices

Question 19

As a manufacturing firm builds a plant in Bolivia,it also has to build an airstrip so that it can get the building supplies and the component parts it needs for operation to the Bolivian facility.The building of the airstrip was necessary because Bolivia has

Accepted Answer

A) limited natural resources. 
B) an underdeveloped infrastructure. 
C) too many competing airports. 
D) no international trade incentives. 
E) None of these choices 
A) limited natural resources. 
B) an underdeveloped infrastructure. 
C) too many competing airports. 
D) no international trade incentives. 
E) None of these choices

Question 20

A(n)____ business transcends national boundaries and is not committed to a single home country.

Accepted Answer

A) international 
B) domestic 
C) multinational 
D) intercontinental 
E) global 
A) international 
B) domestic 
C) multinational 
D) intercontinental 
E) global

Exam 5: The Global Environment

United States farmers are the biggest producers of corn.China's demand for corn has increased.The U.S.is a corn ____.

A tariff

The U.S.government limits how many automobiles can be imported into the United States annually.This is a(n)

Which of the following is NOT a potential disadvantage associated with an import/export operation?

High-potential/high-growth economies have been relatively underdeveloped and immature and,until recently,were characterized by weak industry,weak currency,and relatively wealthy consumers.

American Eagle is a regional airline that flies in the United States and Canada.It is an example of a(n)____ business.

When a local manager is given autonomy and responsibility in dealing with job design,he or she has freedom in global

Which of the following describes what has occurred in international business from 1960-2000?

Geert Hofstede identified five fundamental differences that can be used to characterize people in different cultures.They are time,power,age,race,and gender.

With whom is the United States involved in a mature market system?

Licensing is the easiest way of entering a new market.

Maquiladoras face competition in China.

An example of the cultural system in China is

A(n)____ strategy involves a partnership with a long-term commitment that can be used to acquire new technology and information.

Which of the following statements about medium-sized international business organizations is TRUE?

As a manufacturing firm builds a plant in Bolivia,it also has to build an airstrip so that it can get the building supplies and the component parts it needs for operation to the Bolivian facility.The building of the airstrip was necessary because Bolivia has

A(n)____ business transcends national boundaries and is not committed to a single home country.

Managing and the Managers Job

Traditional and Contemporary Issues and Challenges

The Environment and Culture of Organizations

The Ethical and Social Environment

The Multicultural Environment

Basic Elements of Planning and Decision Making

Managing Strategy and Strategic Planning

Managing Decision Making and Problem Solving

Managing New Venture Formation and Entrepreneurship

Basic Elements of Organizing

Managing Organization Design

Managing Organization Change and Innovation

Managing Human Resources in Organizations

Basic Elements of Individual Behavior in Organizations

Managing Employee Motivation and Performance

Managing Leadership and Influence Processes

Managing Interpersonal Relations and Communication

Managing Work Groups and Teams

Basic Elements of Control

Managing Operations, Quality, and Productivity

Managing Information and Information Technology

Filters