Question 1 Multiple Choice 0 of 1 point(s)
The _______ was a multilateral agreement whose objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like.
Your Answer: World Trade Supervisory Authority
Correct Answer: General Agreement of Tariffs and Trade
Feedback: Difficulty: EasyPage: 195
Question 2 Multiple Choice 1 of 1 point(s)
Local content requirements benefit the _____ of component parts, but they raise prices of imported components, which hurts ______.
Your Answer: producers, consumers
Correct Answer: producers, consumers
Feedback: Difficulty: HardPage: 185
Question 3 True/False 1 of 1 point(s)
Governments typically pay for subsidies by taxing individuals.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 183
Question 4 Multiple Choice 1 of 1 point(s)
A __________ is a tax levied on imports.
Your Answer: tariff
Correct Answer: tariff
Feedback: Difficulty: EasyPage: 181
Question 5 Multiple Choice 1 of 1 point(s)
According to _______, subsidies can help a firm achieve a first-mover advantage in an emerging industry.
Your Answer: strategic trade policy
Correct Answer: strategic trade policy
Feedback: Difficulty: HardPage: 183
Question 6 Multiple Choice 1 of 1 point(s)
__________ are the oldest and simplest instrument of trade policy.
Your Answer: Tariffs
Correct Answer: Tariffs
Feedback: Difficulty: MediumPage: 180
Question 7 Multiple Choice 0 of 1 point(s)
Which of the following sets of strategies exploits (takes advantage of) experience-curve effects?
Your Answer: All of the above
Correct Answer: Global and Transnational
Question 8 Multiple Choice 1 of 1 point(s)
The most rapid growth of MTV viewers comes from _______, even though the U.S. still leads in number of households.
Your Answer: Asia
Correct Answer: Asia
Feedback: Difficulty: MediumPage: 409
Question 9 Multiple Choice 1 of 1 point(s)
All of the following are distinct advantages Mexico has over many Asian countries as a location for value creation activities, except:
Your Answer: more hard workers are found in Mexico than in Asia.
Correct Answer: more hard workers are found in Mexico than in Asia.
Feedback: Difficulty: MediumPage: 418
Question 10 Multiple Choice 1 of 1 point(s)
__________ is a ratio or rate of return concept.
Your Answer: Profitability
Correct Answer: Profitability
Feedback: Difficulty: EasyPage: 411
Question 11 Multiple Choice 1 of 1 point(s)
_______ is the difference between total revenues and total costs.
Your Answer: Profit
Correct Answer: Profit
Feedback: Difficulty: EasyPage: 411
Question 12 Multiple Choice 1 of 1 point(s)
A company creates _______ by converting inputs that cost C into a product on which consumers place a value of V.
Your Answer: value
Correct Answer: value
Feedback: Difficulty: MediumPage: 412
Question 13 True/False 1 of 1 point(s)
F.T. Knickerbocker looked at the relationship between FDI and rivalry in oligopolistic industries.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 226
Question 14 True/False 1 of 1 point(s)
FDI is growing more rapidly than world trade but not more rapidly than world output.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: HardPage: 215
Question 15 Multiple Choice 1 of 1 point(s)
If General Electric, a U.S. based corporation, purchased a 50% interest in a company in Italy, that purchase would be an example of
Your Answer: foreign direct investment.
Correct Answer: foreign direct investment.
Feedback: Difficulty: MediumPage: 214
Question 16 Multiple Choice 1 of 1 point(s)
The flow of foreign direct investment out of a country is
Your Answer: outflow of FDI.
Correct Answer: outflow of FDI.
Feedback: Difficulty: EasyPage: 215
Question 17 Multiple Choice 0 of 1 point(s)
If 3M, an American firm, produces adhesive tape in St. Paul, Minnesota, and ships the tape to South Korea to be sold, that is an example of:
Your Answer: cross-boarder investing.
Correct Answer: exporting.
Feedback: Difficulty: EasyPage: 223
Question 18 Multiple Choice 1 of 1 point(s)
The advantage claimed for licensing over FDI is that the licensor:
Your Answer: does not have to pay for opening a foreign market
Correct Answer: does not have to pay for opening a foreign market
Feedback: Difficulty: MediumPage: 215
Question 19 True/False 1 of 1 point(s)
Most FDI has been directed at the developed nations of the world as firms based in advanced countries invested in the others' markets.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 217
Question 20 Multiple Choice 1 of 1 point(s)
__________, an expert on cross-cultural differences and management, defined culture as “the collective programming of the mind which distinguishes the members of one human group from another.”
Your Answer: Geert Hofstede
Correct Answer: Geert Hofstede
Feedback: Difficulty: MediumPage: 91
Question 21 Multiple Choice 1 of 1 point(s)
A __________ is a group of people who share a common set of values and norms.
Your Answer: society
Correct Answer: society
Feedback: Difficulty: EasyPage: 92
Question 22 Multiple Choice 1 of 1 point(s)
Most of the world's ethical systems are the product of
Your Answer: religions.
Correct Answer: religions.
Feedback: Difficulty: MediumPage: 98
Question 23 Multiple Choice 1 of 1 point(s)
The country in which Islamic fundamentalists have achieved the most political power is _______.
Your Answer: Iran
Correct Answer: Iran
Feedback: Difficulty: MediumPage: 102
Question 24 Multiple Choice 0 of 1 point(s)
Beth Green, a manager at InSync Corporation, believes in empowerment, upward mobility and motivating her employees. This describes her
Your Answer: norms.
Correct Answer: values.
Feedback: Difficulty: MediumPage: 91
Question 25 Multiple Choice 1 of 1 point(s)
The system of shared beliefs and rituals that are concerned with the realm of the sacred is referred to as __________.
Your Answer: religion
Correct Answer: religion
Feedback: Difficulty: EasyPage: 98
Question 26 Multiple Choice 1 of 1 point(s)
The theory of __________ was advanced by Adam Smith.
Your Answer: absolute advantage
Correct Answer: absolute advantage
Feedback: Difficulty: Easy
Page: 144
Question 27 Multiple Choice 0 of 1 point(s)
In his 1776 landmark book, The Wealth of Nations, __________ attacked the mercantilist assumption that trade is a zero-sum game.
Your Answer: Geert Hofstede
Correct Answer: Adam Smith
Feedback: Difficulty: Easy
Page: 148
Question 28 Multiple Choice 1 of 1 point(s)
Which theory predicts that countries will export those goods that make intensive use of those factors that are locally abundant, while importing goods that make intensive use of factors that are locally scarce?
Your Answer: Hecksher-Olin
Correct Answer: Hecksher-Olin
Feedback: Difficulty: Medium
Page: 158
Question 29 True/False 0 of 1 point(s)
When a movement toward a free trade regime occurs, the pain is a long-term phenomenon, while the gains from trade once the transition has been made, and are both insignificant and short-term.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: Medium
Page: 154
Question 30 Multiple Choice 0 of 1 point(s)
Which theory of international trade directly explains why there are only two to three producers of airlines in the world today?
Your Answer: Comparative advantage
Correct Answer: New trade
Feedback: Difficulty: Medium
Page: 163
Question 31 True/False 1 of 1 point(s)
Because it makes fewer simplifying assumptions, and it has been subjected to many empirical tests, most economists prefer the Heckscher-Ohlin theory to Ricardo's theory.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: Medium
Page: 158
Question 32 Multiple Choice 1 of 1 point(s)
The Japanese government has insisted in the past that technology be transferred to Japan through __________, rather than FDI.
Your Answer: licensing
Correct Answer: licensing
Feedback: Difficulty: MediumPage: 245
Question 33 Multiple Choice 0 of 1 point(s)
The most common performance requirements that are intended to restrict inward FDI are related to local content, exports, local participation in top management, and:
Your Answer: product offerings
Correct Answer: technology transfer
Feedback: Difficulty: MediumPage: 256
Question 34 Multiple Choice 0 of 1 point(s)
In practice, many countries have adopted neither a radical policy nor a free market policy toward FDI, but instead a policy that can best be described as:
Your Answer: inward protectionism
Correct Answer: pragmatic nationalism
Feedback: Difficulty: MediumPage: 242
Question 35 Multiple Choice 1 of 1 point(s)
In the area of FDI, the thrust of the World Trade Organization's efforts has been to:
Your Answer: push for the liberalization of regulations governing FDI
Correct Answer: push for the liberalization of regulations governing FDI
Feedback: Difficulty: MediumPage: 256
Question 36 Multiple Choice 1 of 1 point(s)
The MNE is seen as an instrument for dispersing the production of goods and services to those locations around the globe where they can be produced most efficiently, according to the _______ view.
Your Answer: free market
Correct Answer: free market
Feedback: Difficulty: MediumPage: 241
Question 37 True/False 0 of 1 point(s)
The three main costs of FDI that concern host countries are: possible adverse effects on competition within the host country, adverse effects on the balance of payments, and the perceived loss of national sovereignty and autonomy.
Your Answer: false
Correct Answer: true
Feedback: Difficulty: MediumPage: 251
Question 38 Multiple Choice 1 of 1 point(s)
A __________ occurs when a country exports more goods, services, and income than it imports.
Your Answer: current account surplus
Correct Answer: current account surplus
Feedback: Difficulty: MediumPage: 248
Question 39 Multiple Choice 1 of 1 point(s)
__________ contact between subunit managers is the simplest integrating mechanism.
Your Answer: Direct
Correct Answer: Direct
Feedback: Difficulty: MediumPage: 455
Question 40 True/False 1 of 1 point(s)
A worldwide product division structure tends to be adopted by firms that are reasonably diversified.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 450
Question 41 True/False 0 of 1 point(s)
Output controls exist when employees "buy into" the norms and value systems of the firm.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 459
Question 42 Multiple Choice 0 of 1 point(s)
In terms of the organization of a firm, the need for coordination is lowest in __________ companies.
Your Answer: international
Correct Answer: multidomestic
Feedback: Difficulty: MediumPage: 454
Question 43 True/False 1 of 1 point(s)
A firm's vertical differentiation determines where in its hierarchy the decision-making power is concentrated.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 444
Question 44 Multiple Choice 0 of 1 point(s)
Which of the following selections correctly lists the formal integrating mechanisms from the highest level of complexity to the lowest?
Your Answer: Liaison roles, teams, direct contact, matrix structure
Correct Answer: Matrix structure, teams, liaison roles, direct contact
Feedback: Difficulty: HardPage: 455
Question 45 Multiple Choice 1 of 1 point(s)
In 1994, the European Community became the European Union following the ratification of the:
Your Answer: Maastricht Treaty
Correct Answer: Maastricht Treaty
Feedback: Difficulty: MediumPage: 274
Question 46 True/False 1 of 1 point(s)
Formed in 1967, ASEAN includes Brunei, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: HardPage: 290
Question 47 Multiple Choice 1 of 1 point(s)
In a _________, theoretically, there are no discriminatory tariffs, quotas, subsidies, or administrative impediments allowed to distort trade between members.
Your Answer: free trade area
Correct Answer: free trade area
Feedback: Difficulty: EasyPage: 269
Question 48 Multiple Choice 0 of 1 point(s)
The European Free Trade Association (EFTA) is
Your Answer: newest free trade area in the world.
Correct Answer: founded by Western European countries that were not initially part of the European Community.
Feedback: Difficulty: MediumPage: 270
Question 49 Multiple Choice 0 of 1 point(s)
With the signing of the _____ in 1957, the European Community was established.
Your Answer: Treaty of Paris
Correct Answer: Treaty of Rome
Feedback: Difficulty: HardPage: 274
Question 50 Multiple Choice 0 of 1 point(s)
By the mid-1980s, the Andean Pact had:
Your Answer: been dissolved
Correct Answer: all but collapsed
Feedback: Difficulty: MediumPage: 287
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