Multiple choice questions:
Question 1
Global products are most common in industries where there is ________???Answer
little buyer convergence?
low pressure to contain costs
significant price competition
high pressure for localization
Question 2
An excess money supply creates a borrowers market, forcing down interest rates and the cost of borrowing??Answer?True False
Question 3
Foreign bonds issued in Japan are called ________??Answer
bulldog bonds
yankee bonds
dragon bonds
samurai bonds
Question 4
A multinational strategy entails having a separate strategy for each nation in which a company markets its products ???Answer?True False
Question 5
The worldwide product division structure:
is weak in local responsiveness
inhibits the realization of experience curve economies
inhibits the realization of location economies
limits the transfer of core competencies between areas
Question 6
The international monetary system based on fixed exchange rates ended in ________???Answer
1973?
1983
1993
2003
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
Internal funding ?
Venture capital
GDR funding
Eurobond capital
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
multinational
retrenchment
global
stability
Question 9
Which of the following is an argument that supports global advertising???Answer
Standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries
Even though there are cultural differences between nations, a single advertising theme that is effective worldwide can be easily developed
Standardized advertising may be implemented even in the face of advertising regulations
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
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
Exporting
Franchising
Outsourcing
Licensing
Question 11
Suppose the exchange rate at the beginning of the year between the Indian Rupee (R) and US dollar is R43125/$ 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
R498224/$
R37327/$
R00267/$
$37327/R
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 ??
Question 13
Cultures that score low on uncertainty avoidance tend to be more open to change and new ideas??Answer?True False ??
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 ??
Question 15
Which of the following denotes a stock market with no central geographic location? ????Answer
Cybermarket?
Foreign exchange market
Bond market
Capital market
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
managed float system?
Bretton Woods system?
free float system
fixed exchange-rate system?
Question 17
Companies usually decide to divest when a market is experiencing rapid growth??Answer?True False ??
Question 18
What is the most important factor in determining the elasticity of demand for a product in a given country???Answer
Personal selling
Income level
Operating revenue
Logistics
Question 19
Today's international monetary system is considered a ________???Answer
fixed system
managed float system
floating system
mixed system
Question 20
Which of the following is not an advantage of strategic alliances???Answer
It allows firms to share the fixed costs of developing new products or processes
It gives a firm tight control over operations in different countries
It will help the firm establish technological standards for the industry that will benefit the firm
It is a way to bring together complementary skills and assets that neither company could easily develop on its own
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
Indirect exporting?
Investment entry?
Direct exporting
Strategic alliance
Question 22
Discuss the challenges China faces as it continues its experiment in "socialism with Chinese characteristics"??Answer
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Question 23
Offering the same products using the same marketing strategy in all national markets is referred to as a ________ strategy????Answer
global??
multinational??
retrenchment?
multidomestic
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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Question 25
Which of these refers to the price charged for products sold between a company's divisions or subsidiaries?????Answer
Dual price?
Transfer price
Worldwide price?
Arm's length price