international MANAGEMENTWEEK-8 "FINAL EXAM"

There are three types of economic integration, namely: global, regional, and local.

True

False

4 points   

1. Purchasing power parity is the price of one currency in terms of another.

     

   True

     

   False

   4 points   

   QUESTION 3

   1. When the United States sells products to China, US exporters often demand that they be paid in the Chinese yuan.

        

      True

        

      False

      4 points   

      QUESTION 4

      1. Three EU members—Britain, Denmark and Sweden—do not use the euro as their currency.

           

         True

           

         False

         4 points   

         QUESTION 5

         1. NAFTA is an example of a common market.

              

            True

              

            False

            4 points   

            QUESTION 6

            1. Which of the following is NOT an advantage of a strong US dollar?

                 

               US consumers benefit from low prices on imports.

                 

               US tourists benefit from lower prices when traveling abroad.

                 

               Lower prices on foreign goods help keep US prices level and inflation low.

                 

               US firms in import-competing industries face more low-cost imports.

               4 points   

               QUESTION 7

               1. Which does “ASEAN” stand for?

                    

                  Assembly of Southeast Asian Nations

                    

                  Assembly of South American Nations

                    

                  Association of Southeast Asian Nations

                    

                  Association of South American Nations

                  4 points   

                  QUESTION 8

                  1. In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan?

                       

                     More people demand the yuan domestically in China, so it is not used for imports and exports.

                       

                     The dollar is the common transaction currency between the two countries.

                       

                     The yuan is pegged to the US dollar.

                       

                     Formal institutions and regulations demand the trade be conducted in the dollar.

                     4 points   

                     QUESTION 9

                     1. Why was the US dollar chosen as the currency to which other currencies would be pegged?

                          

                        The US had high levels of productivity.

                          

                        The US was experiencing a large trade surplus.

                          

                        The US contributed approximately 70% of the global GDP.

                          

                        All of these answers

                        4 points   

                        QUESTION 10

                        1. Non-MNE firms can also do business abroad by:

                             

                           Licensing and franchising

                             

                           Outsourcing and engaging in FDI

                             

                            Exporting and importing

                             

                           All of these answers

                           4 points   

                           QUESTION 11

                           1. The motto of international business is location, location, location.

                                

                              True

                                

                              False

                              4 points   

                              QUESTION 12

                              1. Owners, managers, and employees at entrepreneurial firms tend to be more innovative and take more risks than those at large firms.

                                   

                                 True

                                   

                                 False

                                 4 points   

                                 QUESTION 13

                                 1. Late movers face greater technological and market uncertainties.

                                      

                                    True

                                      

                                    False

                                    4 points QUESTION 14

                                    Sometimes foreign firms are discriminated against:

                                      

                                    Formally

                                      

                                    Informally

                                      

                                    Randomly

                                      

                                    Both formally and informally

                                    4 points   

                                    QUESTION 15

                                    1. First-mover advantages include:

                                         

                                       Opportunity to free ride on first-mover investments

                                         

                                       Resolution of technological and market uncertainties

                                         

                                       Difficulty to adapt to market changes

                                         

                                       Avoidance of a clash with dominant firms at home

                                       4 points   

                                       1. QUESTION 16

                                          Which item is not a late-mover advantage?

                                            

                                          Avoidance of a clash with a dominant firm at home

                                            

                                          Opportunity to free ride on first mover investments

                                            

                                          Resolution of technological and market uncertainty

                                            

                                          First mover’s difficulty to adapt to market changes

                                          4 points   

                                          QUESTION 17

                                          1. Licensing/franchising agreements refer to:

                                               

                                             Outsourcing agreements in R&D firms

                                               

                                             A new corporate entity given birth to and jointly owned by two or more companies

                                               

                                             Efforts among a number of firms to jointly market their products and services

                                               

                                             The licensor/franchiser selling the rights to intellectual property

                                             4 points   

                                             QUESTION 18

                                             1. ____ perform an important "middleman" function by linking sellers and buyers overseas.

                                                  

                                                Export intermediaries

                                                  

                                                Indirect exporters

                                                  

                                                Sporadic exporters

                                                  

                                                Alliance partners

                                                4 points   

                                                QUESTION 19

                                                1. Foreign firms crack new markets by:

                                                     

                                                   Undertaking actions deemed legitimate and appropriate by governing institutions

                                                     

                                                   Bribing government officials

                                                     

                                                   Hiring locals to manage the new entity

                                                     

                                                   Outsourcing production

                                                   4 points   

                                                   QUESTION 20

                                                   1. In a(n) ____, members coordinate and harmonize monetary, fiscal, and taxation policies.

                                                        

                                                      Monetary union

                                                        

                                                      Political union

                                                        

                                                       Economic union

                                                        

                                                      Custom union

                                                      4 points   

                                                      QUESTION 21

                                                      1. Non-native employees who work and reside in a foreign country are known as:

                                                           

                                                         Host-country nationals

                                                           

                                                         Expatriates

                                                           

                                                         Multinationals

                                                           

                                                         Repatriates

                                                         4 points   

                                                         QUESTION 22

                                                         1. ___ is leading the world in managerial compensation.

                                                              

                                                             United States

                                                              

                                                            Britain

                                                              

                                                            Japan

                                                              

                                                            Germany

                                                            4 points   

                                                            QUESTION 23

                                                            1. In home replication strategy, knowledge flow is multidirectional, while in transnational strategy, it is one-way.

                                                                 

                                                               True

                                                                 

                                                               False

                                                               4 points   

                                                               QUESTION 24

                                                               1. The phrase “think global, act local” is a winning formula when it comes to leveraging multinational presence.

                                                                    

                                                                  True

                                                                    

                                                                  False

                                                                  4 points   

                                                                  QUESTION 25

                                                                  1. Which of the following is NOT one of the four strategic choices for MNEs?

                                                                       

                                                                     Localization

                                                                       

                                                                     Global standardization

                                                                       

                                                                     Home replication