The World Trade Organization

Question 1

The World Trade Organization:

 

a.

Is a consulting group for companies who wish to engage in   international trade.

 

b.

Succeeded the GATT agreements.

 

c.

Collects duties for member countries.

 

d.

Is a major trading company.

Question 2

Major regional trade agreements include all of the following EXCEPT

 

a.

APEC.

 

b.

PROTEC.

 

c.

EU.

 

d.

NAFTA.

Question 3

Developing economies are

 

a.

Mature economies with substantial per capita GDP and international   trade.

 

b.

Hong Kong, Singapore, and Taiwan.

 

c.

Countries in the process of changing their economies from   government-controlled to a more free market capitalism.

 

d.

None of the above

Question 4

The free market reforms in emerging countries are creating a potential group of

 

a.

old competitors.

 

b.

new competitors.

 

c.

subsidized firms.

 

d.

government companies.

Question 5

Emerging markets are defined as those that are:

 

a.

Seen to have impact only sporadically.

 

b.

Enjoying a mature economy.

 

c.

Transitioning from a communist-controlled economy to capitalism.

 

d.

Growing rapidly.

Question 6

Environmentalists are concerned that free trade encourages large multinational corporations to​

 

a.

​overlook poor countries in their expansion of production.

 

b.

​concentrate environmental  damage in their home country   where they have influence.

 

c.

​become too concerned about the environment and overlook the   needs of the global economy.

 

d.

​move environmentally damaging production to poor countries.

Question 7

Which of the following statements about the Internet and Information Technology is true?

 

a.

The Internet is benefiting companies worldwide.

 

b.

Information technology does not allow the sharing of information   around the world.

 

c.

Electronic communications does not allow companies to   communicate with locations around the world.

 

d.

Information technology is not encouraging a borderless financial   market.

Question 8

On which of Hofstede’s value dimensions does the U.S. rank highest?

 

a.

Masculinity

 

b.

Power distance

 

c.

Patriotism

 

d.

Individualism

Question 9

According to research discussed in the text, which of the following may help managers become more culturally intelligent?

 

a.

Exposure to new cultural experiences in other countries

 

b.

Learning to  trust each people from individualistic   cultures

 

c.

Having a short term orientation

 

d.

All of the above are true

Question 10

US firms often outsource customer service to workers in a foreign country. To minimize difficulties, such workers receive cross-cultural training which may include:

 

a.

Training workers to reduce or eliminate an accent.

 

b.

Educating workers regarding US culture.

 

c.

Requiring workers to speak only English while on duty.

 

d.

All of the above

Question 11

​Hofstede’s concept of masculinity refers to

 

a.

​gender roles.

 

b.

​strength building.

 

c.

​the male percentage of population.

 

d.

​male  bonding.

Question 12

Training for conformity and obedience, with valuations based on compliance and trustworthiness characterize countries with

 

a.

Low power distance.

 

b.

Short term orientations.

 

c.

High individualism.

 

d.

High power distance.

Question 13

Which of the following statements is true regarding a future oriented society?

 

a.

People believe they can control nature.

 

b.

Organizational change is considered necessary and beneficial.

 

c.

Managers and workers do not necessarily believe that hard work   can lead to future success.

 

d.

Individuals cannot influence the future.

Question 14

Occupational cultures

 

a.

Are the norms, values, beliefs, and expected ways of behaving   for people in the same occupational group.

 

b.

Are the set of important understandings that members of an   organization share.

 

c.

Are the dominant cultures within a country.

 

d.

Are norms, values, and beliefs that pertain to all aspects of   doing business in a country.

Question 15

When a society expects that while men should work outside, and women ideally stay at home, this exhibits which of the following features?

 

a.

Growing levels of industrialization and economic development

 

b.

Open societies

 

c.

Strict division of society by gender

 

d.

Need for domestic products

Question 16

According to the text, all of the following statements regarding education and educational systems around the world are TRUE except

 

a.

Universal education enrolment is a goal of most countries.

 

b.

Educational levels give an indication of the skill and   productivity in any society.

 

c.

The focus of educational systems around the world are fairly   similar in terms of whether these systems emphasize academic or vocational   aspects.

 

d.

All of the above statements are true.

Question 17

A complex of positions, roles, norms, and values organizing relatively stable patterns of human resources to sustain viable social structures refers to which of the following?

 

a.

Social institutions

 

b.

Comparative advantage

 

c.

Entrepreneurship

 

d.

Strategy of the multinational company

Question 18

High rankings on the materialist index of some countries (e.g., Hungary, India, Brazil) suggest that individuals in these countries are

 

a.

Achievement oriented.

 

b.

Hinduism.

 

c.

Favor non material incentives.

 

d.

Motivated by non-monetary rewards.

Question 19

An example of cross-national distance involves

 

a.

​the geographic  size of various countries.

 

b.

​differences in importance of the financial sector.

 

c.

differences in transportation systems used around the world.

 

d.

​an opportunity for Google maps.

Question 20

Pre industrial societies tend to have

 

a.

Adequate infrastructure.

 

b.

Poor infrastructure and support.

 

c.

Favorable business conditions.

 

d.

Government support.

Question 21

Which of the following has important implications for multinationals?

 

a.

Religion

 

b.

Education and economic systems

 

c.

Industrialization and inequality

 

d.

All of the above

Question 22

In industrial societies, occupational placement is based on universalistic criteria such as

 

a.

Religion.

 

b.

Age.

 

c.

Achievement.

 

d.

Ascription.

Question 23

In the BCG matrix, the appropriate strategy for dogs should be

 

a.

Invest and Expand.

 

b.

Defend and Harvest.

 

c.

Divest.

 

d.

None of the above

Question 24

Porter’s five forces help a multinational manager understand

 

a.

The key success factors in an industry.

 

b.

How to assess its unrelated diversification efforts.

 

c.

How to assess the attractiveness of the industries a company is   involved in.

 

d.

The trends in its industry.

Question 25

Market size, ease of entry and exit, and economies of scale are all examples of

 

a.

Defensive strategies.

 

b.

Key success factors.

 

c.

Differentiation.

 

d.

Dominant economic characteristics.

Question 26

Which of the following more likely represents a threat to a multinational company like Toyota?

 

a.

Lower interest rates around the world that makes cars more affordable.

 

b.

Toyota’s bad image among teenagers.

 

c.

Higher prices charged by Toyota’s competitors.

 

d.

Kia and Hyundai’s entry in markets traditionally dominated by   Toyota.

Question 27

The value chain

 

a.

Represents a generic strategy.

 

b.

Represents all the activities that a firm uses to market and   deliver its products.

 

c.

Represents all the activities that a firm uses to design,   produce, market, deliver, and support its products.

 

d.

None of the above

Question 28

Competitive strategies

 

a.

Are examples of basic generic strategies.

 

b.

Are moves multinationals and other companies use to defeat   competitors.

 

c.

Can be low cost or differentiation.

 

d.

All of the above

Question 29

​A value chain involves

 

a.

​A and B above.

 

b.

​the values, beliefs, and convictions of countries where a firm   is doing business.

 

c.

​designing, producing, marketing, and delivering something of   value.

 

d.

​the chain or link between what is  of value  in an   economic sense and the human perspective.

Question 30

Sales and dealing with distribution channels refer to _________ activities in the value chain.

 

a.

Secondary

 

b.

Support

 

c.

Upstream

 

d.

Downstream