1. The benefits of offshore financial centers include
A. advantageous accounting practices.
B. high interest and low fees.
C. low taxes and few banking regulations.
D. fluctuating currency exchange rates.

2. Reasons for global standardization of manufacturing systems include
A. greater market adjustments.
B. producing significant cost savings.
C. increased nonstandardization of data among plants.
D. adding attractive complexities to draw new customers.

3. _______ are responsible for a shift in power from manufacturers to retailers.
A. Public brands
B. Internet advertisers
C. Foreign environmental forces
D. Private brands

4. The Sarbanes-Oxley Act was passed by Congress in response to
A. product liability lawsuits.
B. an international demand for antitrust protection.
C. the Enron scandal.
D. a need to protect U.S. citizens from foreign laws.

5. Of all the promotional mix elements, _______ may be the one with the greatest similarities worldwide.
A. public relations
B. sales promotion
C. personal selling
D. advertising

6. _______ exposure is a currency exchange risk resulting from exposure during the consolidation of
subsidiary financial statements.
A. Translation
B. Temporal
C. Derivative
D. Parallel

7. Which of the following is not a part of the total product?
A. Accessories
B. Warranty
C. Package
D. Integration

8. Which of the following adds 3-5 percent to the quoted price of a product, due to the costs of importing?
A. Customhouse broker's fees
B. Invoice charges
C. B2B costs
D. Export duties

9. A middle ground between an ad campaign that's standardized worldwide and an entirely local ad campaign is called a/an _______ approach.
A. programmed-management
B. shared-management
C. hybrid advertising
D. computerized-management

10. Including such items as maintenance, repair, operating supplies, office equipment, and other services and supplies, indirect procurement can account for as much as _______ percent of the total purchasing
expenditures in companies.
A. 80
B. 50
C. 70
D. 25

11. Control of quality in the production of goods overseas is most easily accomplished when
A. raw materials come from just one supplier.
B. production equipment overseas is similar to that used in the United States.
C. workers have advanced language skills.
D. components of the machinery are made in the United States.

12. Swedish safety requirements for machinery operators
A. are stricter than those imposed by the U.S. Occupational Safety and Health Act.
B. make exporting U.S. machines to Sweden very easy.
C. are difficult to pin down because they vary from one machine to another.
D. make imports of Swedish products popular in the U.S.

13. When a company's future cash flow could be affected by unanticipated movement in monetary
exchange rates, the company is experiencing
A. currency exposure.
B. translation exposure.
C. economic exposure.
D. potential bankruptcy.

14. A _______ tax is paid not by the person whose labor generates the income but by the business that
makes the payment for the labor.
A. withholding
B. swap
C. excise
D. money market

15. Applying a total systems approach to managing the flow of materials, information, finances, and
services in a value chain is called
A. luxury brand development.
B. information and technology management.
C. organizational realignment.
D. supply chain management.

16. The attitudes of governments toward transfer pricing is
A. encouragement.
B. academic interest.
C. suspicion.
D. indifference.

17. Global retailing requires that the company pay particular attention to _______ in distribution strategies.
A. native company competition
B. product loyalty
C. localization
D. use of animal skins in products

18. The type of debt nearly always repaid in full by the borrower, with a repayment rate of 97 percent, is _______ loans.
A. federally guaranteed
B. micro
C. parallel
D. company-to-company

19. When companies report on environmental and social, as well as financial results, it's called
A. triple bottom line.
B. parallel management.
C. global edge.
D. convergence.

20. Relocating activities a company used to do in-house to another country is called
A. outsourcing.
B. immigration.
C. offshoring.
D. emigration.