to be answered
Question 1
· Global products are most common in industries where there is ________. Answer
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· little buyer convergence |
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· low pressure to contain costs |
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· significant price competition |
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· high pressure for localization |
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4 points
Question 2
· An excess money supply creates a borrowers market, forcing down interest rates and the cost of borrowing. Answer True False
4 points
Question 3
· Foreign bonds issued in Japan are called ________. Answer
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· bulldog bonds |
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· yankee bonds |
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· dragon bonds |
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· samurai bonds |
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4 points
Question 4
· A multinational strategy entails having a separate strategy for each nation in which a company markets its products. Answer True False
4 points
Question 5
· The worldwide product division structure: Answer
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· is weak in local responsiveness. |
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· inhibits the realization of experience curve economies. |
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· inhibits the realization of location economies. |
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· limits the transfer of core competencies between areas. |
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4 points
Question 6
· The international monetary system based on fixed exchange rates ended in ________. Answer
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· 1973 |
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· 1983 |
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· 1993 |
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· 2003 |
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4 points
Question 7
· ________ is financing obtained from investors who believe the borrower will experience rapid growth and who receive equity (part ownership) in return for their investment. Answer
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· Internal funding |
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· Venture capital |
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· GDR funding |
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· Eurobond capital |
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4 points
Question 8
· Beanstalk International is rapidly growing. The company wants to follow a strategy of adapting its products and marketing in each national market to suit local preferences. Beanstalk is intent on creating value for its customers. The strategy that Beanstalk would most likely want to follow is called a ________ strategy. Answer
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· multinational |
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· retrenchment |
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· global |
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· stability |
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4 points
Question 9
· Which of the following is an argument that supports global advertising? Answer
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· Standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries. |
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· Even though there are cultural differences between nations, a single advertising theme that is effective worldwide can be easily developed. |
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· Standardized advertising may be implemented even in the face of advertising regulations. |
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· Because of concerns about the scarcity of creative talent, some feel that smaller efforts will produce better results than one large effort to develop a campaign. |
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4 points
Question 10
· If a computer contains a microprocessor from one company based in Costa Rica and a hard disk drive from another company based in the Philippines, the computer manufacturer most likely uses which of the following? Answer
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· Exporting |
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· Franchising |
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· Outsourcing |
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· Licensing |
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4 points
Question 11
· Suppose the exchange rate at the beginning of the year between the Indian Rupee (R) and U.S. dollar is R43.125/$. The annual inflation rate in India is 19 percent whereas inflation in the United States is 3 percent. What would be the new exchange rate at the end of the year? Answer
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· R49.8224/$ |
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· R37.327/$ |
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· R0.0267/$ |
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· $37.327/R |
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4 points
Question 12
· One way a company can eliminate the exposure of assets to political risk in other countries is by refusing to invest in plants and equipment abroad. Answer True False
4 points
Question 13
· Cultures that score low on uncertainty avoidance tend to be more open to change and new ideas. Answer True False
4 points
Question 14
· The rate at which one currency is exchanged for another depends on the size of the transaction, the trader conducting it, and general economic conditions. Answer True False
4 points
Question 15
· Which of the following denotes a stock market with no central geographic location? Answer
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· Cybermarket |
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· Foreign exchange market |
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· Bond market |
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· Capital market |
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4 points
Question 16
· A system in which currencies float against one another, with governments intervening to stabilize their currencies at particular target exchange rates is called a ________. Answer
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· managed float system |
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· Bretton Woods system |
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· free float system |
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· fixed exchange-rate system |
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4 points
Question 17
· Companies usually decide to divest when a market is experiencing rapid growth. Answer True False
4 points
Question 18
· What is the most important factor in determining the elasticity of demand for a product in a given country? Answer
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· Personal selling |
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· Income level |
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· Operating revenue |
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· Logistics |
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4 points
Question 19
· Today's international monetary system is considered a ________. Answer
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· fixed system |
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· managed float system |
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· floating system |
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· mixed system |
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4 points
Question 20
· Which of the following is not an advantage of strategic alliances? Answer
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· It allows firms to share the fixed costs of developing new products or processes. |
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· It gives a firm tight control over operations in different countries. |
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· It will help the firm establish technological standards for the industry that will benefit the firm. |
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· It is a way to bring together complementary skills and assets that neither company could easily develop on its own. |
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4 points
Question 21
· Which of the following occurs when a company sells its products to intermediaries who then resell to buyers in a target market? Answer
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· Indirect exporting |
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· Investment entry |
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· Direct exporting |
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· Strategic alliance |
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4 points
Question 22
· Discuss the challenges China faces as it continues its experiment in "socialism with Chinese characteristics." Answer
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4 points
Question 23
· Offering the same products using the same marketing strategy in all national markets is referred to as a ________ strategy. Answer
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· global |
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· multinational |
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· retrenchment |
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· multidomestic |
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4 points
Question 24
· Discuss the disadvantages of an ethnocentric staffing policy, and explain how bonuses, tax incentives, and cultural and social expectations can contribute to high personnel costs. Answer
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4 points
Question 25
· Which of these refers to the price charged for products sold between a company's divisions or subsidiaries? Answer
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· Dual price |
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· Transfer price |
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· Worldwide price |
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· Arm's length price |