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| 1 | |
The term ______ characterizes the effects of changes in the competitive landscape prompted by competitive forces and influences that are worldwide. |
| | A) | ethnocentric |
| | B) | global shift |
| | C) | geocentric |
| | D) | turnkey |
| | E) | culture shock |
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| 2 | |
Of the following, which one is not considered to be a major change in the world output and trade picture that has taken place within the last decade? |
| | A) | The global economy has become more knowledge intensive |
| | B) | Communist economies have become accessible to Western businesses |
| | C) | The U.S. multinational organizations no longer dominate international business |
| | D) | The U.S. no longer dominates the world economy |
| | E) | The global economy has become more labor intensive |
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| 3 | |
In previous years, many industrialized countries imposed significant tariffs on the importation of many foreign goods. The best rationale to explain why this took place is _________. |
| | A) | it halted receipt of unusable products |
| | B) | it prevented border disputes between countries |
| | C) | it protected domestic producers |
| | D) | it increased the demand for labor within these countries |
| | E) | it generated substantial revenue for the countries receiving the tariffs |
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| 4 | |
All of the following would be considered primary objectives of economic integration except ________. |
| | A) | elimination of barriers to free trade |
| | B) | reduction in barriers impeding free flow of services |
| | C) | elimination of barriers to the inputs of production |
| | D) | reduction in the labor supply |
| | E) | reduction in barriers to capital acquisition |
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| 5 | |
Based on comparative statistics from the 1950s, tariff rates imposed by various countries now in the 2000s are generally _________ to __________ times lower than before. |
| | A) | 1, 2 |
| | B) | 3, 4 |
| | C) | 4, 5 |
| | D) | 2, 3 |
| | E) | 3, 5 |
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| 6 | |
Which of the following countries is not a member of the European Union? |
| | A) | Spain |
| | B) | Bulgaria |
| | C) | Estonia |
| | D) | Poland |
| | E) | Malta |
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| 7 | |
The convergence of consumer tastes and preferences worldwide has been assisted by all but which one of the following items? |
| | A) | Presence of mass media |
| | B) | Customization of goods for local conditions |
| | C) | Increased technology utilization |
| | D) | Greater exposure to domestic goods |
| | E) | Standardization of products |
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| 8 | |
Businesses wishing to conduct operations in foreign countries face various risks. Of the following list, which one is not considered a source of risk these organizations must be prepared to face? |
| | A) | Significant adherence to copyright laws |
| | B) | Governmental corruption |
| | C) | Monetary value fluctuations |
| | D) | Social unrest |
| | E) | Inadequate intellectual property rights protection |
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| 9 | |
________ law relies on a comprehensive set of rules that form part of a highly structured code and the enforcement and interpretation of laws are made in reference to this specified code. |
| | A) | Muslim |
| | B) | Tort |
| | C) | Contract |
| | D) | Civil |
| | E) | Common |
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| 10 | |
Amit has accepted a position in Pakistan. He is so overwhelmed by the different values and traditions of this foreign land that he is seriously considering resigning his position with the organization. Amit is most probably experiencing __________. |
| | A) | culture shock |
| | B) | uncertainty avoidance |
| | C) | individualism |
| | D) | short-term orientation distress |
| | E) | depression |
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| 11 | |
Which one of the following items best reflects the dimension of different cultures that exemplifies the extent to which individuals expect a hierarchical structure? |
| | A) | Uncertainty avoidance |
| | B) | Individualism |
| | C) | Power distance |
| | D) | Masculinity/femininity |
| | E) | Long-term/short-term orientation |
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| 12 | |
Which one of the following items best reflects the extent to which a society places a high value on reducing risk and instability? |
| | A) | Uncertainty avoidance |
| | B) | Individualism |
| | C) | Power distance |
| | D) | Masculinity/femininity |
| | E) | Long-term/short-term orientation |
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| 13 | |
Which of the following is not a dimension of Hofstede's five dimensions to summarize different cultures? |
| | A) | Power distance |
| | B) | Individualism |
| | C) | Religion orientation |
| | D) | Masculinity/femininity |
| | E) | Long-term/short-term orientation |
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| 14 | |
The Generic Corporation is contemplating expanding its operations into the foreign marketplace. Which one of the following items would not be a primary decision facing this organization? |
| | A) | Which country to enter? |
| | B) | What scale of foreign involvement is desired? |
| | C) | How is the country's market entered? |
| | D) | When is the best time to enter the foreign market? |
| | E) | What are the various religions within the country? |
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| 15 | |
The timing executed by an organization for entering into the foreign marketplace is of primary importance. Being the first to make a move into a foreign market provides a/an ________ advantage to the firm. |
| | A) | pioneering |
| | B) | global efficiency |
| | C) | first-mover |
| | D) | scale of involvement |
| | E) | exporting |
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| 16 | |
Which one of the following is not considered to be an effective way for a firm to enter a foreign market? |
| | A) | Turnover projects |
| | B) | Licensing |
| | C) | Franchising |
| | D) | Joint ventures |
| | E) | Exporting |
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| 17 | |
Which of the following responses is not considered an advantage for a wholly owned subsidiary? |
| | A) | Greater strategic flexibility |
| | B) | Maximum control over proprietary knowledge |
| | C) | Increased power distance |
| | D) | Efficiencies of global production system |
| | E) | All of these are advantages of wholly owned subsidiary. |
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| 18 | |
Which one of the following terms is best described as two or more firms forming a separate firm whose shares are typically owned equally by the original firms? |
| | A) | Strategic alliance |
| | B) | Joint venture |
| | C) | Turnkey project |
| | D) | Franchise |
| | E) | Wholly owned subsidiary |
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| 19 | |
Which of the following responses is considered an advantage of strategic alliance? |
| | A) | Benefit from complimentary skills and assets |
| | B) | Quick expansion |
| | C) | Lower political risk |
| | D) | Greater strategic flexibility |
| | E) | Efficiencies of global production system |
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| 20 | |
When an international subsidiary strives to fill its key positions with the best talent available from around the globe, it is utilizing the _____ approach to managing its operations. |
| | A) | ethnocentric |
| | B) | polycentric |
| | C) | expatriate |
| | D) | geocentric |
| | E) | third country nationals |
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| 21 | |
Of the following, which is not considered a vital criterion to the successful selection of an expatriate? |
| | A) | Candidate's spouse and family are adaptable |
| | B) | Candidate possesses cultural sensitivity |
| | C) | The selection board has expatriates on it |
| | D) | Candidate has previous international experience |
| | E) | Candidate's spouse is employed by the firm |
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| 22 | |
When a company utilizes local talent to staff its international subsidiary there are many advantages achieved. Which one of the following items is not considered an advantage of hiring locals? |
| | A) | Lower labor costs |
| | B) | Increases community acceptance of the firm |
| | C) | High transfer and salary costs |
| | D) | Leads to local recognition for the company |
| | E) | Maximizes options available in the local environment |
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| 23 | |
All of the following are considered primary reasons why international assignments result in failure except _______. |
| | A) | culture shock |
| | B) | extensive cross-cultural training is provided prior to departure |
| | C) | unwillingness of spouse and family to adapt to the new culture |
| | D) | career blockage |
| | E) | used as a means to rid the organization of a troublesome employee |
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| 24 | |
Which approach to cross-cultural training is characterized by area and cultural briefings, survival-level language training, and use of interpreters? |
| | A) | Reflective approach |
| | B) | Bureaucratic approach |
| | C) | Impression approach |
| | D) | Information-giving approach |
| | E) | Affective approach |
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