international MANAGEMENTWEEK-8 "FINAL EXAM"

1.  

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

   		True
   		False

   
   

    

1.  

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

   		True
   		False

   
   

    

1.  

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

   		True
   		False

   
   

    

1.  

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

   		True
   		False

   
   

    

1.  

   NAFTA is an example of a common market.

   		True
   		False

   
   

    

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.

   
   

    

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

   
   

    

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.

   
   

    

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

   
   

    

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

   
   

    

1.  

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

   		True
   		False

   
   

    

1.  

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

   		True
   		False

   
   

    

1.  

   Late movers face greater technological and market uncertainties.

   		True
   		False

   
   

    

Sometimes foreign firms are discriminated against:

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

   
   

    

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

   
   

    

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

    

    

1.  

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

   		Export intermediaries
   		Indirect exporters
   		Sporadic exporters
   		Alliance partners

    

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

   
   

    

1.  

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

   		Monetary union
   		Political union
   		Economic union
   		Custom union

   
   

    

1.  

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

   		Host-country nationals
   		Expatriates
   		Multinationals
   		Repatriates

   
   

    

1.  

   ___ is leading the world in managerial compensation.

   		United States
   		Britain
   		Japan
   		Germany

   
   

    

1.  

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

   		True
   		False

   
   

    

1.  

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

   		True
   		False

   
   

    

1.  

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

   		Localization
   		Global standardization
   		Home replication