Question 1

More companies are moving away from _______ strategy to globalization.

Accepted Answer

A)  personalization
B)  customization
C)  standardization
D)  tailored
E)  individualizedF) A) and E)
G) None of the above

Question 2

Even when products are standardized,_____ often has to be modified internationally.

Accepted Answer

A)  formulas
B)  fragrances
C)  advertising
D)  key ingredients
E)  products can never be standardizedF) A) and C)
G) A) and B)

Question 3

A specific amount of money levied on each unit of a product brought into the country is a(n)

Accepted Answer

A)  ad valorem tariff.
B)  value-added tariff.
C)  fixed tariff.
D)  protective tariff.
E)  duty-free tariff.F) A) and C)
G) B) and C)

Question 4

The translation of product names can be crucial in the success of a foreign marketing effort because of

Accepted Answer

A)  political barriers.
B)  cultural barriers.
C)  legal barriers.
D)  export quotas.
E)  body language.F) A) and E)
G) A) and B)

Question 5

A major advantage of utilizing an export agent is that the company does not have to deal with

Accepted Answer

A)  a middleman.
B)  raising prices.
C)  foreign currencies and red tape.
D)  discounts.
E)  increasing volume.F) A) and E)
G) A) and D)

Question 6

The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of

Accepted Answer

A)  contract manufacturing.
B)  a direct investment.
C)  a trading company.
D)  licensing.
E)  exporting.F) A) and B)
G) C) and E)

Question 7

Explain the different levels of organizational involvement in international trade.

Accepted Answer

Exporting occurs when a company sells it...

Question 8

International business involves the buying,selling,and trading of goods and services across national boundaries.

Accepted Answer

A) True 
 B)False

Question 9

Coca-Cola allows a Mexican firm to use its name,formula,and brands in return for a royalty.This arrangement is known as

Accepted Answer

A)  exporting.
B)  licensing.
C)  direct investment.
D)  contract manufacturing.
E)  a joint venture.F) B) and E)
G) A) and D)

Question 10

Because Colombia can produce coffee so much more efficiently than other items produced there,it has which of the following advantages?

Accepted Answer

A)  Absolute
B)  Positive
C)  Negative
D)  Marginal
E)  ComparativeF) B) and C)
G) B) and D)

Question 11

Because it virtually controls the world's deposits of gem-quality diamonds,DeBeers Consolidated Mines,Ltd.has a(n)

Accepted Answer

A)  absolute advantage.
B)  comparative advantage.
C)  advantage based on efficient production.
D)  trade deficit.
E)  balance of payment.F) All of the above
G) None of the above

Question 12

What is the primary reason that the owners of Audiotech are considering global expansion?

Accepted Answer

A)  No local interest in the company's products
B)  Stagnating growth
C)  The family is moving abroad
D)  Cheaper labor
E)  Declining salesF) D) and E)
G) A) and D)

Question 13

Not all countries trading in international markets package goods in the same units.Unlike the United States,most countries rely on

Accepted Answer

A)  currency.
B)  gold.
C)  the metric system.
D)  daylight savings.
E)  color coding.F) D) and E)
G) B) and E)

Question 14

Customizing products,promotion,and distribution according to cultural,technological,and national differences indicates a

Accepted Answer

A)  globalization strategy.
B)  multinational strategy.
C)  strategic alliance.
D)  multinational corporation.
E)  joint venture.F) B) and C)
G) A) and E)

Question 15

Political considerations change slowly,while laws change rapidly.

Accepted Answer

A) True 
 B)False

Question 16

When Madison flies to Italy from the United States on a British airline,stays in Italian hotels,and buys clothing in Milan to bring home after her trip,she

Accepted Answer

A)  decreases the trade deficit.
B)  is disloyal and unpatriotic.
C)  contributes to the negative balance of payments.
D)  buys American-made goods.
E)  does all of the above.F) None of the above
G) A) and B)

Question 17

Only small firms are mobile enough to engage in international business.

Accepted Answer

A) True 
 B)False

Question 18

If Peru wants to purchase machine parts from a German company but does not have any euros,it will probably borrow the euros from which of the following institutions?

Accepted Answer

A)  International Monetary Fund
B)  World Bank
C)  Citicorp Bank
D)  International Bank
E)  EximbankF) A) and E)
G) A) and D)

Question 19

What cultural issues should a manager consider before doing business in a foreign country?

Accepted Answer

It is important for the manager to under...

Question 20

What does Audiotech electronics produce?

Accepted Answer

A)  Car stereos
B)  Widgets
C)  Control consoles
D)  Surround sound systems
E)  SmartphonesF) A) and B)
G) B) and D)

Exam 3: Business in a Borderless World

The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of

Correct AnswerverifiedShow Answer

What is the primary reason that the owners of Audiotech are considering global expansion?

Correct AnswerverifiedShow Answer

A specific amount of money levied on each unit of a product brought into the country is a(n)

Correct AnswerverifiedShow Answer

What cultural issues should a manager consider before doing business in a foreign country?

Correct AnswerverifiedIt is important for the manager to under...View AnswerShow Answer

The translation of product names can be crucial in the success of a foreign marketing effort because of

Correct AnswerverifiedShow Answer

If Peru wants to purchase machine parts from a German company but does not have any euros,it will probably borrow the euros from which of the following institutions?

Correct AnswerverifiedShow Answer

International business involves the buying,selling,and trading of goods and services across national boundaries.

Correct AnswerverifiedShow Answer

When Madison flies to Italy from the United States on a British airline,stays in Italian hotels,and buys clothing in Milan to bring home after her trip,she

Correct AnswerverifiedShow Answer

Explain the different levels of organizational involvement in international trade.

Correct AnswerverifiedExporting occurs when a company sells it...View AnswerShow Answer

Because Colombia can produce coffee so much more efficiently than other items produced there,it has which of the following advantages?

Correct AnswerverifiedShow Answer

What does Audiotech electronics produce?

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Customizing products,promotion,and distribution according to cultural,technological,and national differences indicates a

Correct AnswerverifiedShow Answer

Coca-Cola allows a Mexican firm to use its name,formula,and brands in return for a royalty.This arrangement is known as

Correct AnswerverifiedShow Answer

Because it virtually controls the world's deposits of gem-quality diamonds,DeBeers Consolidated Mines,Ltd.has a(n)

Correct AnswerverifiedShow Answer

A major advantage of utilizing an export agent is that the company does not have to deal with

Correct AnswerverifiedShow Answer

Political considerations change slowly,while laws change rapidly.

Correct AnswerverifiedShow Answer

Even when products are standardized,_____ often has to be modified internationally.

Correct AnswerverifiedShow Answer

Not all countries trading in international markets package goods in the same units.Unlike the United States,most countries rely on

Correct AnswerverifiedShow Answer

Only small firms are mobile enough to engage in international business.

Correct AnswerverifiedShow Answer

More companies are moving away from _______ strategy to globalization.

Correct AnswerverifiedShow Answer

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It is important for the manager to under...
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Exporting occurs when a company sells it...
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