MCQS

Question 6 : Which of the following factors is LEAST affected by the transportation mode selected for a product's distribution?
A. inventory costs

B.
C.
D.

market share data
product's useful shelf life
product's exposure to damage

Question 7 : A voluntary export control is most likely used to ________.
A. punish political enemies

B.
C.
D.

appeal to domestic politicians
avoid trade conflicts with friendly trade partners
comply with strict product and testing standards

Question 8 : Boeing controls the overall operation of its strategic alliance with Fuji, Mitsubishi, and Kawasaki. This is an example of a(n)
A. shared management agreement

B.
C.
D.

assigned arrangement
delegated arrangement
consensual arrangement

Question 9 : Executives at Ass-wipes Manufacturing, an MNE, are considering the implementation of a market pricing policy. Which of
the following is NOT a potential risk to Ass-wipe of this type of policy?
A. inability to assess marginal costs

B.
C.
D.

damage to the firm's brand name
development of a gray market
complaints about dumping

Question 10 : The EU believes that Boeing has benefited from unfair trade practices because ________.
A. Boeing had developed new technologies through U.S. Defense Department contracts

B.
C.
D.

the U.S. has forgiven significant government loans to Boeing
Boeing controls the small aircraft market because of U.S. defense contracts
the WTO has overlooked direct subsidies from the U.S. government

Question 11 : FedEx provided Lewis Exporters with a document that serves as a contract for transporting twenty boxes from Boston to
Paris. Which term best describes this document?
A. sight draft

B.
C.
D.

bill of lading
bill of exchange
trade acceptance

Question 12 : All of the following are internal sources of investment capital for international businesses EXCEPT ________.
A. adjusted transfer prices

B.
C.
D.

operation profits
subsidiary loans
managed floats

Question 13 : Which term refers to the facts or impressions the advertiser wants to convey to potential customers?
A. medium

B.
C.
D.

message
copy
graphic

Question 14 : After five years working as a manager at Water Sound Enterprises, Jeff has decided to quit. On his last day at work, Jeff is
interviewed by the HR manager and asked his reasons for leaving Water Sound. Jeff is likely participating in a(n) ________ interview.
A. outsourcing

B.

selection

C.
D.

screening

B.
C.
D.

enable retention assessment

exit
Question 15 : What is a benefit of using customized training programs?
A. keep costs to a minimum
specify essential information
monitor cultural effectiveness

Question 16 : Which of the following is an advantage of using personal selling in international marketing?
A. low-cost market entry strategy

B.
C.
D.

access to local market information
standardization of promotion mix
enhancement of firm's reputation

Question 17 : The ________ acts as a foreign sales department for domestic producers by selling those firms' goods in foreign markets.
A. manufacturers' agent

B.
C.
D.

export and import broker
freight forwarder
manufacturers' export agent

Question 18 : Which of the following is not one of the elements of the promotion mix?
A. advertising

B.
C.
D.

e-commerce
sales promotion
public relations

Question 19 : What is the primary risk an exporter faces with documentary collection?
A. bank changing terms

B.
C.
D.

importer defaulting
issuing bank defaulting
importer failing to pay account balance

Question 20 : What control function is Ford primarily using to ensure the firm increases its global automobile sales?
A. regulations

B.
C.
D.

annual goals
accounting systems
performance appraisals

Question 21 : An accepted time draft is called a ________.
A. sight draft

B.
C.
D.

bill of lading
bill of exchange
trade acceptance

Question 22 : What document serves as a title to the goods in question under the document collection payment method?
A. sight draft

B.
C.
D.

bill of lading
bill of exchange
trade acceptance

Question 23 : Smith seeks to entice a manager to move oversees. The firm will need to offer a ________ to a manager's base salary.
A. cost-of-living allowance

B.

bonus

C.
D.

hardship premium
tax equalization adjustment

Question 24 : When British Petroleum ships oil from its storage facilities in Kuwait to its Australian subsidiary, ________ has occurred.
A. indirect exporting

B.
C.
D.

direct exporting
an intra-corporate transfer
an inter-corporate transfer

Question 25
What term refers to the number of stages in the distribution channel?
A. supply chain

B.
C.
D.

stage hierarchy
channel length
channel width

Question 26
A(n) ________ is an absolute ban on the exporting and importing of goods to a particular destination.
A. voluntary export restraint

B.
C.
D.

embargo
ad valorem tariff
tariff rate quota

Question 27
When paying via ________, the goods are shipped by the exporter and received by the importer prior to payment, and the exporter then
bills the importer for the goods, stipulating the amount, form, and time at which payment is expected.
A. payment in advance

B.
C.
D.

open account
letters of credit
countertrade

Question 28
The GATT rounds focused on decreasing ________.
A. dumping

B.
C.
D.

trade tariffs
preferential treatment
domestic industry subsidies

Question 29
Which term refers to instruction directed at enhancing specific job-related skills and abilities?
A. training

B.
C.
D.

development
screening
selection

Question 30
Megan, a financial manager at Price Manufacturing, an MNE, strives to minimize the firm's working capital balances. Why would this
most likely be important for Price Manufacturing?
A. Subsidiaries need working capital in host-country currencies.

B.
C.
D.

Working capital has an increased foreign-exchange risk.
Working capital earns a very low rate of return.
Working capital is highly taxed overseas.

Question 31

In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers
to the movement of the factors of production.
A. free trade area

B.
C.
D.

customs union
common market
economic union

Question 32
Under the ________ price policy, firms can set higher prices where markets will tolerate them and lower prices where necessary to
remain competitive.
A. standard

B.
C.
D.

two-tiered
market
global

Question 33
The ethnocentric approach to management is most likely used by firms that ________.
A. operate internationally the same way they do domestically

B.
C.
D.

customize their operations for each foreign market in which they serve
analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve
adapt their marketing strategies for foreign markets, but not their finance strategies

Question 34
Firms using a(n) ________ primarily use parent country nationals to staff higher-level foreign positions.
A. ethnocentric staffing model

B.
C.
D.

polycentric staffing model
geocentric staffing model
monocentric staffing model

Question 35
A(n) ________ eliminates trade barriers among member countries.
A. free trade area

B.
C.
D.

customs union
common market
economic union

Question 36
________ is the most common form of international business activity.
A. Exporting

B.
C.
D.

Licensing
Greenfield strategy
Management contract

Question 37
A(n) ________ confirms that the goods being shipped were produced in the exporting country.
A. export license

B.
C.
D.

certificate of product origin
inspection certificate
bill of lading

Question 38
A public-private venture is a joint venture that involves a partnership between a privately owned firm and a ________.
A. financial institution

B.
C.

rival corporation
board of directors

D.

government

Question 39
________ are those that pull a firm into foreign markets as a result of opportunities available there.
A. Reactive motivations

B.
C.
D.

Proactive motivations
Opportunity motivations
Avoidance motivations

Question 40
Country X treats foreign firms the same way it treats domestic firms. Country X most likely engages in ________.
A. trade balancing

B.
C.
D.

national treatment
mercantilism
foreign treatment

Question 41
Burger King has established a franchise agreement with an individual in Tokyo. Burger King will most likely provide the Japanese
franchisee with all of the following EXCEPT ________.
A. . intellectual property

B.
C.
D.

operating systems
financial capital
training

Question 42
What type of tariff is assessed as a percentage of the market value of the imported good?
A. transit tariff

B.
C.
D.

ad valorem tariff
specific tariff
compound tariff

Question 43
What Japanese organization is entrusted with setting industrial policy?
A. Ministry of International Trade and Industry

B.
C.
D.

Industrial Policy Ministry
Office of Strategic Trade
Ministry of Industry Development

Question 44
When adopting a(n) ________ approach, a firm applies the domestic marketing mix abroad.
A. ethnocentric

B.
C.
D.

polycentric
geocentric
multidomestic

Question 45
Japan's Fukusuke Corporation sold 10 knitting machines and raw materials to Chinatex, a Shanghai-based clothing manufacturer in
exchange for one million pairs of underwear to be produced on the knitting machines. What form of countertrade is this?
A. buy-back

B.
C.
D.

parallel barter
offset purchase
clearinghouse accounts

Question 46
Which agency initially investigates complaints about unfair trade practices in the United States?
A. Overseas Private Investment Corporation

B.
C.
D.

Federal Trade Commission
International Trade Administration
World Trade Organization

Question 47
The polycentric approach to management is most likely used by firms that ________.
A. operate internationally the same way they do domestically

B.
C.
D.

customize their operations for each foreign market in which they serve
analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve
adapt their marketing strategies for foreign markets, but not their finance strategies

Question 48
Distribution channels consist of all of the following except ________.
A. manufacturer

B.
C.
D.

wholesaler
supplier
customer

Question 49
Pet Comfort Systems is a firm based in Chicago that has just started exporting a small number of pet beds to retail stores in London,
Tokyo, and Paris. The export department manager at Pet Comfort Systems is most likely from which country?
A. England

B.
C.
D.

Japan
France
U.S.

Question 50
How does the Star Alliance primarily benefit customers?
A. coordinating service inquiries

B.
C.
D.

supporting airport construction
facilitating airline transfers
easing government restrictions

Question 51
The __ is used when a firm serves different customers or groups, each with specific needs calling for special expertise or attention.
A. global area design

B.
C.
D.

global functional design
global matrix design
global customer design

Question 52
Eurozone participants have agreed to limit their annual government deficits to no more than ________ of their GDPs.
A. 3 percent

B.
C.
D.

5 percent
7 percent
9 percent

Question 53
Which term refers to a firm building and operating a facility before transferring ownership of the facility to another party?
A. FDI

B.
C.

B-O-T project
turnkey project

D.

greenfield strategy

Question 54
After training and development takes place, what comes next in the international human resource management process?
A. contribution to organizational effectiveness

B.
C.
D.

performance appraisal
compensation and benefits
labor relations