Worksheetshehehe
Total questions: 100
Worksheet time: 1hrs 15mins
Which of the following is an example of an ad valorem tariff?
A. only licensed importers can import automobiles
B. 20% on imported automobiles
C. $300 tariff on each imported computer
D. 25% of automobile must be manufactured domestically
Two of the first industries targeted for reform by the WTO with a view to encompass regulations governing foreign direct investment were:
A. global telecommunication and financial services industries
B. scientific research and defense sector
C. pharmaceuticals and heavy metal industry
D. agriculture and biotechnology
Which of the following illustrates the costs associated with regional economic integration?
Select one:
A. The Andean Pact was largely based on the EU model, but was far less successful at achieving its stated goals
B. Due to the establishment of NAFTA, Canadian workers in the textile industry lost their jobs as Canadian firms moved production to Mexico
C. Americans suffer job losses when technology support work is outsourced to cheaper locations to countries like India
D. The euro is now used by 16 of the 27 member states of the European Union, with some countries opting to retain their national currencies
Which of the following are not criteria for entry into the Euro Zone?
Select one:
A. High national debt
B. Sound fiscal situation
C. High degree of price stability
D. Converged long term interest rates
In the US, which branch of government has the ability to impose antidumping duties?
A. Judiciary
B. House of Representatives
C. Senate
D. President
Which of the following are not factors that led to the collapse of Bretton Woods?
A. role of US dollar in the system
B. US macroeconomic policy
C. US began importing more than it was exporting
D. speculative attack on the Japanese Yen
Which of the following are not considered political reasons for economic integration?
Select one:
A. economic integration creates incentives for political cooperation
B. economic integration allows countries to enhance their political weight in the world
C. economic integration allows countries to eliminate nationalism and patriotism
D. economic integration reduces potential for violent conflict
In a _____ staffing approach, host country nationals have limited opportunities to gain experience outside their own country.
Select one:
A. Geocentric
B. Ethnocentric
C. Transnational
D. Polycentric
Which of the following observations is true?
Select one:
A. Countries adopting the euro have to give up control over monetary policy
B. Countries adopting the euro need not give up their own currencies
C. Countries adopting the euro need only to satisfy the criteria of being democratic in nature
D. Countries agreeing to the euro allow their exchange rates to float against each other
Which of the following are not reasons the radical view of FDI is in retreat:
Select one:
A. poor economic performance of countries that embraced this view
B. collapse of communism in Eastern Europe
C. strengthening US dollar all around the world
D. strong economic performance of countries that embraced capitalism
Which of the following trade agreements was abandoned by President Trump?
A. US-Korea FTA
B. WTO
C. USMCA
D. TPP
Which of the following would be a likely action motivated by the desire of governments to protect their consumers from unsafe products?
A. Outlawing importation, sale, or use of genetically modified organisms by Austria and Luxembourg
B. Placing tariffs on imports of foreign steel, by the Trump administration in 2017
C. Passing legislations such as the D'Amato Act and the Helms-Burton Act targeting products from Libya, Iran, and Cuba
D. Threatening 100 percent tariffs on a range of Chinese products violating intellectual property laws
Which of the following Chinese companies operates an automotive glass factory in Ohio, USA?
Select one:
A. SAIC
B. Fuyao
C. Geely
D. Huawei
One benefit of longer distribution channels is:
Select one:
A. Lower product prices
B. Decreased profit margins
C. Greater market access
D. Lower mark-ups
Which of the following is not a reason why FDI has grown more rapidly than world trade and world output?
Select one:
A. Fear of terrorism dampens consumer demand
B. Shift toward free market economies encourages FDI
C. Firms still fear protectionist policies
D. Globalization means firms want to produce closer to their customer
The biggest trade dispute between the United States and the European Union surrounds the issue of:
A. Sugar
B. bananas
C. hormone treated beef
D. Dutch flowers
A _______ allowance compensates an expatriate for not having access to amenities they are used to having such as retail stores and comparable health care in their foreign country assignment.
A. Housing
B. Education
C. Hardship
D. Reciprocal
Which of the following is recognized as one of the founding fathers of Taiwan?
Select one:
A. Xi Jinping
B. Deng Xiaoping
C. Hu Jintao
D. Chiang Kai Shiek
FDI by Japanese auto companies in the United States has resulted in U.S.-owned auto companies losing market share to their Japanese competitors. This forms the basis for critics of employment benefits of FDI to argue that:
Select one:
A. majority of employees of an MNE in a host-country migrate to more developed countries, thereby bringing down the net employment statistics
B. jobs created by this FDI have been more than offset by the jobs lost in U.S. auto firms
C. direct employment effects of FDI are far larger than the indirect effects
D. most jobs in MNEs are of a contract nature and hence, cannot be counted as actual employment statistics.
Which of the following are typically not considered a cost for countries receiving FDI?
Select one:
A. positive effect on domestic employment
B. adverse effect on balance of payments
C. adverse effect on domestic competitors
D. loss of economic independence
Swedish car company Volvo is owned by
Select one:
A. BYD
B. Fiat
C. Ford
D. Geely
Which free trade area was created by countries in Southeast Asia?
Select one:
A. ANDEAN
B. AFTA
C. MERCOSUR
D. APEC
Assume that the currency of Country A falls sharply in value against the currency of Country B. Which of the following will be a consequence of this exchange rate movement?
Select one:
A.
Country B's products will become more competitive
B. Country A's exports to Country B will increase
C.
Country B's products will become less expensive in Country A
D. There will be no difference in the volume or direction of trade
Which of the following is a drawback to ISO9000 certification?
Select one:
A. It’s ineffective in improving processes.
B. It’s impossible to achieve
C. It’s bureaucratic and expensive.
D. It’s losing importance in global business.
Which of the following are not typically considered part of a company's primary activities?
Select one:
A. Production
B. Customer Service
C. Marketing & Sales
D. Information systems
Which of the following is not considered a benefit of the Euro?
Select one:
A. lose control of monetary policy
B. creates larger market for capital
C. makes it easier to travel and engage in tourism
D. makes it easier to compare prices across countries
Equipment that reduces setup time is an example of which type of manufacturing?
Select one:
A. Lean production
B. JIT
C. TQM
D. Six Sigma
Which of the following are not reasons governments impose tariffs?
Select one:
A. Increase government revenues
B. Force consumers to pay more for certain imports
C. Protects domestic producers
D. To facilitate the free flow of goods and services
If a company with operations in multiple countries adopts a policy that assigns management positions with managers and executives from the home country only, it has adopted what type of staffing policy?
Select one:
A. Transnational
B. Polycentric
C. Geocentric
D. Ethnocentric
Until the 1980s, Japan perceived direct entry of foreign (especially U.S.) firms with ample managerial resources into the Japanese markets as detrimental to the development and growth of their own industry and technology, leading Japan to block the majority of applications to invest in Japan. However, there were always exceptions to this policy, where, from the perspective of the Japanese government, the benefits of FDI outweighed the perceived costs. From this, it can be inferred that, Japan adopted the _____ view of FDI.
A. eclectic
B. radical
C. pragmatic nationalist
D. free market
Which of the following are not typically part of the benefits associated with a country receiving inward FDI?
Select one:
A. strengthening currency benefits
B. employment benefits
C. resource transfer benefits
D. competitive growth benefits
Which of the following are not reasons why firms may want to limit licensing?
Select one:
A. a firm may give away valuable know-how
B. a firm can avoid major capital expenses by asking another firm to take on manufacturing its products
C. a firm may give away control of manufacturing
D. a firm's capabilities are not amenable to licensing
Which of the following should be produced in many different locations to lower the costs of transportation?
Select one:
A.
Electronics
B. Petroleum products
C.
Magazines
D.
Books
_____ is the amount of other messages that compete for a consumer’s attention:
A. Source effects
B. Logistics
C. Noise
D. Standardized advertising
Why are local content requirements frowned upon in the WTO but permitted in regional economic integration?
Select one:
A. They are unnecessary for trade creation.
B. They are required to prevent transshipment through an FTA country just to get duty free treatment.
C. They are required to allow greatest location externalities.
D. They are unnecessary for trade diversion.
When demand is _____, a large change in price results in a small change in demand
Select one:
A. Consistent
B. Flexible
C. Elastic
D. Inelastic
Which of the following are not arguments made by critics of the Euro
Select one:
A. the ECB is not free of political pressure
B. printing Euro notes will make it easier to counterfeit currency
C. the ECB is focused on inflation not growth
D. the EU is not an optimal currency area
Which of the following are not part of life-cycle support?
Select one:
A. Product recall
B. Inventory responsiveness
C. Reverse logistics
D. Recycling
According to the product life-cycle theory, pioneering firms shift production to _____ countries when product standardization and market saturation give rise to price competition and cost pressures
Select one:
A. free market
B. other advanced countries
C. industrialized
D. developing
A _____ is used to centrally store products and provide a location where customization can be facilitated
Select one:
A. Acquisition
B. Distribution center
C. Wholesaler
D. Franchisee
R.L. Tung’s survey found that ____ expatriate managers may fail an overseas assignment due to the inability to cope with larger overseas responsibilities.
A. British
B. Japanese
C. Dutch
D. American
Which of the following are not considered drivers of globalization?
Select one:
A. Transportation technology.
B. Increasing trade barriers.
C. The internet.
D. Technological advancement.
The Foreign Corrupt Practices Act (FCPA) applies to:
Select one:
A. US companies
B. US persons
C. Persons who work for US companies
D. All of the above
Which of the following are reasons why India has a comparative advantage in software engineering?
Select one:
A. Cheap and abundant labor
B. The time difference allows engineers to work while American customers are sleeping
C. English language capability
D.
All of the above
If Apple won an order to sell 500 of its new minicomputers to Australia, but the Australian government stipulated that 20 percent of the component parts of the minicomputers that it purchased must be produced in Australia, that stipulation would be an example of a(n):
A. administrative policy
B. voluntary export restraint
C. local content requirement
D. import quota
Which of the following is true of a free trade area?
Select one:
A. Factors of production are allowed to move freely between member nations
B. Member nations are not required to have a common external trade policy
C. Member nations are required to have a common monetary and fiscal policy
D. Member nations are required to have a common currency
A ______ program is one that prepares expatriates to return to work at their home office location.
Select one:
A.
Standardization
B. Inpatriation
C. Localization
D. Repatriation
Which of the following are not reasons firms undertake acquisitions as a form of FDI?
A.
Quicker than greenfield
B.
Easier and less risky to acquire established business
C.
Firms believe they can increase efficiency of the acquired unit
D. None; all of the above are reasons
Which of the following statements did former President Trump make regarding globalization?
Select one:
A. We reject globalism and embrace patriotism
B. We embrace the new globalization driven by Trump hotels
C. We embrace globalization only by Western countries
D. We reject globalism and reject any attempts to divide close allies
Which of the following statements is true regarding Boeing’s approach to production?
Select one:
A. Boeing designs commercial aircraft with engines manufactured by itself.
B. Boeing designs, manufactures, and sells commercial aircraft without any outside suppliers (vertical integration).
C. Boeing designs and sells commercial aircraft, and assembles aircraft from components sourced from suppliers.
D. Boeing designs and sells commercial aircraft, with all production outsourced to suppliers.
IKEA’s first entry into which market was not successful until it localized products such as bed sizes and kitchens?
Select one:
A. United Kingdom
B. Norway
C. India
D. United States
Americans pay more for _____ than citizens in other countries do, due to federal government policies that restrict imports and support domestic producers
Select one:
A. Catfish
B. Motorcycles
C. flowering plants
D. Sugar
The average price of a Big Mac in the United States is $3.58. If the "Big Mac Index" is an accurate indicator, which of the following currencies would be the most overvalued?
Select one:
A. South Africa; average price of a Big Mac equals $2.46
B. Norway; average price of a Big Mac equals $7.02
C. Japan; average price of a Big Mac equals $3.50
D. China; average price of a Big Mac equals $1.83
Which economist is closely associated with the product life-cycle theory?
Select one:
A. Dunning
B. Vernon
C. Knickerbocker
D. Ricardo
Which of the following accurately depicts the levels of economic integration, from least integrated to most integrated?
Select one:
A. Common market, economic union, political union, free trade area, and customs union
B. Economic union, common market, free trade area, political union, and customs union
C. Political union, free trade area, common market, customs union, and economic union
D. Free trade area, customs union, common market, economic union, and political union
A country's currency is said to be _____ when the country's government allows both residents and nonresidents to purchase unlimited amounts of a foreign currency with it.
Select one:
A. externally convertible
B. freely convertible
C. internally convertible
D. nonconvertible
When Uber enters foreign markets it looks for accelerants, which do not include which of the following?
Select one:
A. Holidays and events
B. Nightlife and restaurants
C. Inclement weather
D. Extensive supply of taxicabs
Which of the following indicates a company that relies on advertising media?
Select one:
A. Direct selling
B. Pull
C. Push
D. Personal selling
IKEA’s store strategy is roughly the same around the world, and includes features except which of the following?
Select one:
A. Café with Swedish food
B. Store layout
C. Flat packed furniture
D. Custom-made furniture
Suppose Country A and Country B imposed tariffs on imports from all countries, and then they set up a free trade area, scrapping all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Country A began to import sugar from Country B. Country A had previously been producing sugar at a higher cost. Which of the following has occurred?
A. Trade balancing
B. Trade synergy
C. Trade creation
D. Trade diversion
The prevalence of technology companies in Silicon Valley leads to knowledge sharing among workers known as:
Select one:
A. Experience curve
B. Externalities
C. High drivers
D. Learning effects
Which of these factors are not contributors to greater retail concentration?
Select one:
A. Increase in laptop ownership
B. Number of households with refrigerators and freezers
C. Increase in car ownership
D. Number of two-income households
Regional economic integration without a customs union can distort free trade because:
Select one:
A. One of participating countries can have lower tariffs for non-participating countries, distorting the most efficient location for production
B. One of the non-participating countries can have non-tariff barriers
C. One of the non-participating countries can have lower export tariffs
D. One of the participating countries could lobby firms to invest in their country
Three countries enter into an agreement to remove all tariffs and barriers for trade between them. They decide on a common trade policy with regard to nonmembers. Faced with political backlash, the countries stop short of allowing mobility of factors of production such as labor and capital. Which of the following best describes this arrangement?
Select one:
A. Customs union
B. Political union
C. economic union
D. Common market
In the context of dumping, predatory behavior can be described as foreign producers:
Select one:
A. eliminating competition by subsidizing prices in a foreign market with home market profits and eventually raising prices to earn substantial profits
B. attempting hostile takeovers of domestic firms and usurping the available resources for production
C. buying goods of competing domestic firms and hoarding them to create an artificial demand, and exporting those goods at higher prices
D. indiscriminately exploiting the natural resources of a foreign country to create a later demand that can be met only by imports
Which of following has caused creative destruction?
Select one:
A. Economies of scale
B. Governments
C. Tariffs and taxes
D. Technological change
Which of the following is not a reason countries seek automotive FDI?
Select one:
A. job creation capability
B. large capital investments
C. technology transfer potential
D. role in food security
_____ analytics uses statistics to identify and build models that can identify trends not readily observable in descriptive analyses.
Select one:
A. Prescriptive
B. Definitive
C. Directive
D. Predictive
Which of the following are not reasons Apple manufactures iPhones in China?
Select one:
A. Economies of scale
B. Availability of engineers
C. Strong supply chain
D. Strong record of human rights protection
Which of the following are not part of the UN’s charter?
Select one:
A.
Develop friendly relations among nations.
B.
Promote cooperation to solve international problems.
C.
Promote respect for human rights
D.
None of the above.
Which of the following describes shoe tariffs in the United States?
Select one:
A. Consumers pay close attention to shoe tariffs
B. Shoe tariffs protect domestic shoe producers today
C. The more expensive the shoe, the less the tariff
D. The more expensive the shoe, the more the tariff
Which of the following statements regarding GATT is true?
Select one:
A. The GATT attempted to liberalize trade restrictions in one go
B. GATT regulations failed as they were enforced by an unshared monitoring mechanism
C. Tariff reductions through negotiations were spread over eight rounds
D. In its early years, GATT was unsuccessful and hence was superseded by the WTO
It is very expensive and time-consuming, and often difficult, to get a visa to work in the United States. This hurts firms that pursue a _____ staffing approach.
Select one:
A. Transnational
B. Ethnocentric
C. Polycentric
D. Geocentric
The relationship between the number of "sigmas" and the number of errors in the Six Sigma approach is best described as
Select one:
A. the higher the number of "sigmas," the smaller the number of errors.
B. the number of "sigmas" is independent of the number of errors.
C. the higher the number of "sigmas," the greater the number of errors.
D. if the number of "sigmas" is a positive value, then the number of errors is always a negative value.
XYZ Inc. converted 1 million dollars into euros when the exchange rate was $1 = E0.75. The company converts this back into dollars after three months when the exchange rate is $1 = E0.80. Which of the following is true of the outcome of this transaction?
Select one:
A. Loss of $66,667
B. Gain of $62,500
C. Loss of $62,500
D. Gain of $50,000
Which of the following instruments is considered a “loophole” for raising tariffs?
Select one:
A. Voluntary export restraints
B. Antidumping
C. Administrative barriers
D. Subsidies
Which of the following are not part of a firm’s marketing mix?
Select one:
A. Pricing Strategy
B. Distribution Strategy
C. Product recalls
D. Product attributes
Regional economic integration allows companies to do which of the following?
Select one:
A. serve multiple markets from a single location
B. establish single headquarters
C. rationalize manufacturing facilities
D. all of the above
The sovereign debt crisis in Greece has its roots in:
Select one:
A. the Greek government rewarding public employees with high pay and extensive benefits
B. the Greek government not spending enough on public services
C. the Greek government's overly aggressive tax collection practices
D. the Greek government's discounting of sovereign bonds
_____ teaches that defective and poor-quality products are not acceptable
Select one:
A. ISO 9000
B. Lean manufacturing
C. TQM
D. JIT
What is the reason that when companies do business overseas, they must first create a separate legal entity in that foreign country?
Select one:
A. To maximize learning effects
B. To avoid a permanent tax establishment
C. To create the highest level of quality
D. To avoid local labor laws
Why do automakers such as VW engage in CKD (complete knock down) manufacturing?
Select one:
A. Because it is a requirement for membership in the WTO
B. It is ethically a good idea to create job training opportunities.
C. Because tariffs on complete vehicles are too high to import vehicles.
D. It is efficient to send CKD kits to manufacturing facilities.
Which of the following are not reasons for the huge growth of FDI into China?
Select one:
A. Companies earn tax incentives
B. Companies wish to avoid tariffs
C. Companies wish to establish guanxi
D. Companies wish to avoid hiring local labor
Which of the following describes socks tariffs in the United States?
Select one:
A. There are no tariffs, so socks are rarely made in the United States anymore
B. There are no tariffs, so socks are only made in Alabama
C. There is a protective tariff, so textile mills are flourishing and jobs are returning
D. There is a protective tariff, so customers pay more for socks
Which of the following would be a good strategy to overcome inefficiencies in CKD manufacturing?
Select one:
A. Find new distribution channels as quickly as possible.
B. Find local suppliers as quick as possible.
C. Increase import capacity as quickly as possible.
D. Delay implementing six sigma as long as possible.
Being able to lock in the price of something many days or months into the future is known as:
Select one:
A. Transmitting
B. Inflation
C. Hedging
D. Deflation
Which aspect of organizational culture is the critical center that brings together all the other components?
Select one:
A. Structure
B. Processes
C. Culture
D. People
Which of the following is an example of reverse resource transfer effect?
Select one:
A. Ford learning from Mazda how to flexibly produce vehicles
B. Lenovo purchasing IBM
C. Geely purchasing Volvo
D. Fujitsu copying technology from Xerox in photocopiers
A ____ factory is one that is set up to overcome tariff barriers and has the same standard as its home factory
Select one:
A. Server
B. Outpost
C. Offshore
D. Source
Which of the following were not part of the steps China took to open up its economy?
Select one:
A. Privatized many state-owned enterprises
B. Adopted a radical view of FDI
C. Developed a stock market
D. Removed price controls
Tesco’s success of entering foreign markets cannot be attributed to which of the following?
Select one:
A. Lack of established foreign competitors in market.
B. Refusal to transfer core capabilities
C. Careful partner selection in Asia
D. Limiting number of foreign expatriates
You exchanged $1000 to 105,000 Yen for a trip to Japan. During your stay, you spent 50,000 Yen. Also, during this period the dollar weakened against the yen to 100 yen to a dollar. On your return, you went to the bank to exchange the remaining yen. How may dollars did you spend on the trip?
Select one:
A. $523
B. $450
C. $550
D. $600
One prominent trade dispute in NAFTA involved:
Select one:
A. the use of Mexican trucks on US highways
B. reciprocal law enforcement privileges
C. the use of English in Mexican schools
D. the use of the death penalty in the U.S
Which of the following does the US not have a free trade agreement with?
Select one:
A. Israel
B. Jordan
C. China
D. Singapore
A ___ factory is one where cutting-edge production takes place before it is implemented in other system factories.
Select one:
A. Contributor
B. Outpost
C. Lead
D. Server
Geely owns stakes in other car companies, except which of the following?
Select one:
A. Lotus
B. Daimler-Benz
C. Proton
D. Ford
General Motors' Geo Prizm automobile was produced in a joint venture with _____, that Japanese company's first manufacturing base in North America.
Select one:
A. Honda
B. Subaru
C. Nissan
D. Toyota
Pickup trucks sold in the US are made in North America because
Select one:
A. pickup trucks aren't part of the WTO
B. federal law requires it
C. pickup truck buyers don't buy imports
D. there is a 25% duty on imported trucks
Most economic theories of exchange rate movements agree that three factors have an important impact on future exchange rate movements in a country's currency. Which of the following is not one of these factors?
Select one:
A. The country's population
B. The country's interest rate
C. Market psychology
D. The country's price inflation
Which of the following are not arguments set forth by opponents of NAFTA in Mexico?
Select one:
A. loss of national sovereignty
B. Mexico will turn into low-cost assembly site
C. rising wages
D. domination by US firms
