International Business Multiple Choice Questions 2015

Question 1

If you're conducting international business in a foreign country that allows you access to mass media and Internet for advertising and a long distribution channel for selling consumer goods, which strategy would you use?

a. pull strategy

b. predatory pricing strategy

c. push strategy

d. multipoint pricing strategy

Question 2

In case there are buyer defaults or political losses, companies can cover their potential risk with

FDIC

b. Eximbank

c. Foreign credit insurance (FCIA)

d. OPIC

Question 3

In order to economize on inventory holding costs, a firm may choose to use

a. decentralized production

b. lean production

c. just in time technology production

d. concentrated production

Question 4

When pricing in one market impacts a rival's pricing strategy in another market, the pricing strategy being used is

a. experience curve pricing

b. predatory pricing

c. antidumping pricing

d. multipoint pricing

Question 5

When firms are divided into subunits, that is called

a. vertical differentiation

b. horizontal differentiation

c. global matrix structure

d. worldwide area structure

Question 6

Price inflation growth is created when a country's money supply growth rate is faster than

a. the country's balance of payment current account

b. the change in its foreign currency exchange rate

c. both A and B above

d. growth in its output from manufacturing, produced goods, and services

Question 7

The inability to get firms to change their culture by freezing, changing, and re-freezing is due to …

a. Organizational inertia

b. Lack of understanding cultural differences among countries

c. Lack of management planning

d. All of the above

Question 8

When a country only allows non-residents of the country to convert their currency, it is functioning with a(n)

a. fully convertible currency

b. externally convertible currency

c. non-convertible currency

d. non-resident convertible currency

Question 9

When a loss of confidence occurs in the banking system, the result is a

a. banking crisis

b. dollar crisis

c. foreign debt crisis

d. currency crisis

Question 10

When a country fixes the value of its currency to a reference country, it is applying

a. fixed exchange rate

b. free float rate

c. pegged exchange rate

d. currency board rate

Question 11

What is untrue when developing your crisis and emergency management program?

Question 12

Lack of appropriate managerial control that doesn’t indicate which international unit is not performing up to standards leads to …

a. performance ambiguity

b. staff getting fired

c. need for cultural controls

d. all of the above

Question 13

When applying the 6 Sigma approach for quality, the higher the number of sigmas (standard deviations), the

a. smaller the number of errors

b. more the product serves universal needs

c. more hidden costs appear

d. better the management process

Question 14

When a few retailers supply most of the market in a foreign country, the retail system is _________ and the channel length is _________.

a. fragmented, short

b. concentrated, short

c. fragmented, long

d. concentrated, long

Question 15

A Eurocurrency is any currency

a. banked outside of the country of origin

b. originating from the European Union

c. denominated in euros

d. none of the above

Question 16

The primary reason for failure (i.e., returning to the home country prior to completion of the expatriate assignment) among U.S. and European expatriates is generally

a. the spouse's failure to adjust

b. lack of sufficient pay to withstand any hardships

c. a global mind-set

d. the expatriate's inability to cope with larger overseas responsibilities

Question 17

If you have proprietary production technology that you want to protect, which type of outsourcing production decision would be best?

a. a "buy" decision

b. global learning decision

c. a "make" decision

d. none of the above

Question 18

Absence of regulatory interference, less stringent disclosure requirements, and having favorable tax status are some of the reasons why the ______ is selected rather than investing in the domestic bond market.

a. eurobond market

b. eurocurrency market

c. global equity market

d. diversification market

Question 19

When people or countries behave recklessly with their money, because they know that they'll be saved if things go wrong, it is referred to as

a. moral dilemma

b. moral hazard

c. subsidy

d. currency crisis

Question 20

The Big Mac Index is an indicator of

a. the Triple Bottom Line

b. CSR

c. currency exchange

d. PPP

Question 21

When a country has non-convertible currency, using _____ is advantageous for trade.

a. cross-licensing agreement

b. currency speculation

c. countervailing duties

d. countertrade

Question 22

If a business selling fast food (burgers, pizza, chicken, etc.) is interested in gaining knowledge of the local culture quickly and wants to share development costs and risks, it should enter a foreign market through

a. licensing agreements

b. joint ventures

c. turnkey contracts

d. wholly owned subsidiaries

Question 23

Wal-Mart forces its suppliers to charge less due to the massive amount of products that it buys from them for its stores. This is an example of

a. economies of scale

b. learning effects

c. location economies

d. subsidiary skills

Question 24

The most common approach to expatriate pay is the

a. "cafeteria" of extra benefits approach

b. balance sheet approach

c. base salary approach

d. direct hazard pay approach

Question 25

Increasing value and decreasing production materials in the process of producing a product is defined as

Production