Question 1: The sale of government-owned economic resources to private operators is called _______.
- the price mechanism
- laissez-faire economics
- privatization
- guanxi
Question 2: In most failed centrally planned economies ________.
- market conditions helped determine who produced various goods
- prices of products were a function of supply and demand
- central planning agencies specified production goals and decided prices
- central planners paid attention to efficiency improvement
Question 3: The practice of mercantilism rested upon each of the following except ________.
- enhanced trade deficits
- government intervention
- colonialism
- trade surpluses
Question 4: Who proposed the theory of absolute advantage?
- David Ricardo
- Adam Smith
- Bertil Ohlin
- Raymond Vernon
Question 5: Comparative advantage theory focuses on which of the following?
- Maximization of production and consumption
- Logistics planning
- Resource assessment
- Creation of trade surpluses
Question 6: The focus of factor proportions theory is on the ________.
- productivity of the production process
- cost-effectiveness of the production process
- use of abundant production factors
- use of expensive production factors
Question 7: Which element of national competitive advantage theory divides resources into two groups, basic and advanced?
- Demand conditions
- Factor conditions
- Related and supporting industries
- Firm, strategy, structure, and rivalry
Question 8: Which of the following is not a problem associated with the infant industry argument?
- It can cause domestic companies to become overly innovative.
- Once protection of an industry is given, it can be politically difficult to eliminate.
- Protection can do more economic harm than good.
- Governments might have difficulty identifying the industries worth protecting.
Question 9: Which of the following is not an example of an instrument that government uses to promote trade?
- Tariffs
- Subsidies
- Export financing
- Foreign trade zones
Question 10: Which of the following adds to the cost of an imported product by levying an additional tax upon it?
- Tariffs
- Quotas
- Local content requirements
- Embargoes
Question 11: The ________ altered U.S. trade policy from a stance of free trade to one of protectionism.
- General Agreement on Trade and Tariffs
- Multi-Fibre Arrangement
- Normalized Trade Relations Act
- Smoot-Hawley Act
Question 12: Which of the following are main drivers of foreign direct investment?
- Diversity and telecommunications
- Telecommunications and transportation
- Globalization and mergers and acquisitions (M&A)
- Diversity and globalization
Question 13: A market that is said to operate at peak efficiency and where goods are readily and easily available is said to be a(n) ________.
- perfect market
- eclectic market
- imperfect market
- greenfield market
Question 14: The main difference between a free-trade area and a customs union is that the members of a customs union ________.
- agree to treat trade with all nonmember nations in a similar manner
- agree to the free movement of all factors of production
- harmonize their tax, monetary, and fiscal policies and create a common currency
- accept a common stance on economic and political policies regarding nonmember nations
Question 15: The strategy formulation process involves both ________.
- planning and strategy
- strategy and structure
- planning and marketing
- strategy and production
Question 16: Which of these strategies are appropriate for companies in industries where buyer preferences do not converge across national borders?
- Retrenchment
- Global
- Multinational
- Stability
Question 17: A ________ strategy can cause a company to overlook important differences in buyer preferences from one market to another.
- global
- retrenchment
- multidomestic
- multinational
Question 18: Collection and analysis of information used to assist managers in making informed decisions is known as ________.
- data collection
- market research
- secondary market research
- market analysis
Question 19: Which of the following is not a difficulty associated with conducting international market research?
- Availability of data
- Comparability of data
- Cultural differences
- Economic differences
Question 20: The process of obtaining information that already exists within the company or that can be obtained from outside sources is called ________.
- secondary market research
- logistics management
- primary market research
- invalid market research
Question 21: When an exporter ships merchandise and later bills the importer for its value, it is using a(n) ________ type of export/import financing.
- advance payment
- open account
- letter of credit
- documentary collection
Question 22: Which of the following is not a form of investment entry?
- Strategic alliance
- Wholly owned subsidiary
- Joint venture
- Turnkey project
Question 23: Brand names are central to a product's ________.
- personality
- raw materials
- reproducibility
- inventory planning
Question 24: Countries that top the list for the portion of their markets comprised of counterfeits include each of the following except ________.
- China
- India
- Russia
- United Kingdom
Question 25: Which of the following is a promotional strategy designed to pressure channel members to carry a product and promote it to final users?
- Pull strategy
- Adaptive channel strategy
- Push strategy
- End distribution strategy
Question 26: Examples of pull strategies include each of the following except ________.
- mass media advertising
- direct marketing techniques
- free trial packages
- encouraging good retail visibility
Question 27: The physical path a product follows on its way to customers is called a ________.
- distribution channel
- promotional mix path
- value density
- just-in-time path
Question 28: The process of assessing a company's ability to produce enough output to satisfy market demand is called ________.
- location economics
- capacity planning
- process planning
- facilities layout planning
Question 29: The psychological process of readapting to one's home culture is called ________.
- culture shock
- reverse recruitment
- reverse culture shock
- expatriate failure
Question 30: The senior manager recommends that Hafstrom obtain auto parts from a country where production activity generates more value than it could generate elsewhere. He is recommending taking advantage of which of the following?
- Just-in-time manufacturing processes
- Japanese manufacturing precision
- German auto technology
- Location economies