Question 1

Multinational corporations face unique and diverse risks, which include all of the following EXCEPT

Accepted Answer

A)   favorable foreign court interpretations of contracts and agreements.
B)   currency losses through exchange rate fluctuations.
C)   social/political disturbances.
D)   import/export restrictions.
E)   tariffs.

Question 2

In South Korea, activities involve concern for ________, or harmony based on respect of hierarchical relationships, including obedience to authority.

Accepted Answer

A)   guanxi
B)   inhwa
C)   feng shui
D)   nemaswashio
E)   Wa

Question 3

The need to amortize massive R&D investments over many markets is a major reason why the aircraft manufacturing industry became global.

Accepted Answer

A) True 
 B)False

Question 4

Foreign revenue as a percentage of total company revenues is approaching 20 percent for Colgate-Palmolive.

Accepted Answer

A) True 
 B)False

Question 5

The strategic-management process for multinational firms is ________ for purely domestic firms, and the process is ________ for international firms.

Accepted Answer

A)   conceptually the same as; more simple
B)   conceptually the same as; more complex
C)   conceptually different than; more simple
D)   conceptually different than; more complex
E)   conceptually the same; less important

Question 6

The lowest cost source for precision machinery is

Accepted Answer

A)   Japan.
B)   Sri Lanka.
C)   Malaysia.
D)   Europe.
E)   Mexico.

Question 7

The strategic-management process is more complex for international firms due to more variables and relationships.

Accepted Answer

A) True 
 B)False

Question 8

In Mexico, business associates usually entertain each other at their homes.

Accepted Answer

A) True 
 B)False

Question 9

In the three Nordic countries of Denmark, Sweden, and Finland about 70 percent of all employees are in unions.

Accepted Answer

A) True 
 B)False

Question 10

What percent of the world's population lives outside the United States?

Accepted Answer

A)   55
B)   65
C)   75
D)   85
E)   95

Question 11

________ recently cut its corporate tax rate by five percentage points, leaving ________ with the highest corporate tax rate among all the nations in the world.

Accepted Answer

A)   The USA; Brazil
B)   Brazil; Japan
C)   Japan; Brazil
D)   Brazil; the USA
E)   Japan; the USA

Question 12

In today's global climate, many companies may find it difficult to survive by relying solely on domestic markets.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a potential advantage of conducting international operations?

Accepted Answer

A)   Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets.
B)   Dealing with two or more monetary systems can complicate international business operations.
C)   Differing language, culture, and value systems can make communication difficult.
D)   Gaining an understanding of regional organizations is difficult but is often required in doing business internationally.
E)   All of the above

Question 14

What percent of the world's population lives in the United States?

Accepted Answer

A)   5
B)   10
C)   15
D)   85
E)   95

Question 15

Which of the following statements is NOT true?

Accepted Answer

A)   America's economy is becoming much less American.
B)   A world economy and monetary system are emerging.
C)   Corporations in every corner of the globe are taking advantage of the opportunity to obtain customers globally.
D)   Markets are shifting slowly and in many cases diverging in tastes, trends, and prices.
E)   Innovative transport systems are accelerating the transfer of technology.

Question 16

Investors are now looking closely at Africa in the wake of low interest rates and slow growth elsewhere on the planet.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is NOT a typical characteristic of most Japanese managers?

Accepted Answer

A)   Reserved
B)   Quiet
C)   Distant
D)   Impulsive
E)   Introspective

Question 18

Foreign revenue as a percentage of total company revenues ________ in hundreds of U.S. firms, including ExxonMobil, Gillette, and Citicorp.

Accepted Answer

A)   is almost 10 percent
B)   approaches 20 percent
C)   is 25 percent
D)   exceeds 50 percent
E)   is at least 70 percent

Question 19

Before entering international markets, firms should do research to try and diminish the risk of doing business in new markets.

Accepted Answer

A) True 
 B)False

Question 20

The ________ opportunities and threats that face a multinational corporation are almost limitless.

Accepted Answer

A)   social
B)   cultural
C)   environmental
D)   political
E)   all of the above

Exam 11: Global and International Issues

The strategic-management process is more complex for international firms due to more variables and relationships.

Correct AnswerverifiedShow Answer

The lowest cost source for precision machinery is

Correct AnswerverifiedShow Answer

Which of the following is NOT a typical characteristic of most Japanese managers?

Correct AnswerverifiedShow Answer

Before entering international markets, firms should do research to try and diminish the risk of doing business in new markets.

Correct AnswerverifiedShow Answer

________ recently cut its corporate tax rate by five percentage points, leaving ________ with the highest corporate tax rate among all the nations in the world.

Correct AnswerverifiedShow Answer

In Mexico, business associates usually entertain each other at their homes.

Correct AnswerverifiedShow Answer

Which of the following statements is NOT true?

Correct AnswerverifiedShow Answer

Which of the following is a potential advantage of conducting international operations?

Correct AnswerverifiedShow Answer

Foreign revenue as a percentage of total company revenues is approaching 20 percent for Colgate-Palmolive.

Correct AnswerverifiedShow Answer

Multinational corporations face unique and diverse risks, which include all of the following EXCEPT

Correct AnswerverifiedShow Answer

Investors are now looking closely at Africa in the wake of low interest rates and slow growth elsewhere on the planet.

Correct AnswerverifiedShow Answer

What percent of the world's population lives outside the United States?

Correct AnswerverifiedShow Answer

The ________ opportunities and threats that face a multinational corporation are almost limitless.

Correct AnswerverifiedShow Answer

What percent of the world's population lives in the United States?

Correct AnswerverifiedShow Answer

Foreign revenue as a percentage of total company revenues ________ in hundreds of U.S. firms, including ExxonMobil, Gillette, and Citicorp.

Correct AnswerverifiedShow Answer

In the three Nordic countries of Denmark, Sweden, and Finland about 70 percent of all employees are in unions.

Correct AnswerverifiedShow Answer

The strategic-management process for multinational firms is ________ for purely domestic firms, and the process is ________ for international firms.

Correct AnswerverifiedShow Answer

The need to amortize massive R&D investments over many markets is a major reason why the aircraft manufacturing industry became global.

Correct AnswerverifiedShow Answer

In South Korea, activities involve concern for ________, or harmony based on respect of hierarchical relationships, including obedience to authority.

Correct AnswerverifiedShow Answer

In today's global climate, many companies may find it difficult to survive by relying solely on domestic markets.

Correct AnswerverifiedShow Answer

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recently cut its corporate tax rate by five percentage points, leaving with the highest corporate tax rate among all the nations in the world.

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The strategic-management process for multinational firms is for purely domestic firms, and the process is for international firms.

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