Question 1: The sale of government-owned economic resources to private operators is called _______.

• the price mechanism
• laissez-faire economics
• privatization
• guanxi

Question 2: In most failed centrally planned economies ________.

• market conditions helped determine who produced various goods
• prices of products were a function of supply and demand
• central planning agencies specified production goals and decided prices
• central planners paid attention to efficiency improvement

Question 3: The practice of mercantilism rested upon each of the following except ________.

• enhanced trade deficits
• government intervention
• colonialism
• trade surpluses

Question 4: Who proposed the theory of absolute advantage?

• David Ricardo
• Adam Smith
• Bertil Ohlin
• Raymond Vernon

Question 5: Comparative advantage theory focuses on which of the following?

• Maximization of production and consumption
• Logistics planning
• Resource assessment
• Creation of trade surpluses

Question 6: The focus of factor proportions theory is on the ________.

• productivity of the production process
• cost-effectiveness of the production process
• use of abundant production factors
• use of expensive production factors

Question 7: Which element of national competitive advantage theory divides resources into two groups, basic and advanced?

• Demand conditions
• Factor conditions
• Related and supporting industries
• Firm, strategy, structure, and rivalry

Question 8: Which of the following is not a problem associated with the infant industry argument?

• It can cause domestic companies to become overly innovative.
• Once protection of an industry is given, it can be politically difficult to eliminate.
• Protection can do more economic harm than good.
• Governments might have difficulty identifying the industries worth protecting.

Question 9: Which of the following is not an example of an instrument that government uses to promote trade?

• Tariffs
• Subsidies
• Export financing
• Foreign trade zones

Question 10: Which of the following adds to the cost of an imported product by levying an additional tax upon it?

• Tariffs
• Quotas
• Local content requirements
• Embargoes

Question 11: The ________ altered U.S. trade policy from a stance of free trade to one of protectionism.

• General Agreement on Trade and Tariffs
• Multi-Fibre Arrangement
• Normalized Trade Relations Act
• Smoot-Hawley Act

Question 12: Which of the following are main drivers of foreign direct investment?

• Diversity and telecommunications
• Telecommunications and transportation
• Globalization and mergers and acquisitions (M&A)
• Diversity and globalization

Question 13: A market that is said to operate at peak efficiency and where goods are readily and easily available is said to be a(n) ________.

• perfect market
• eclectic market
• imperfect market
• greenfield market

Question 14: The main difference between a free-trade area and a customs union is that the members of a customs union ________.

• agree to treat trade with all nonmember nations in a similar manner
• agree to the free movement of all factors of production
• harmonize their tax, monetary, and fiscal policies and create a common currency
• accept a common stance on economic and political policies regarding nonmember nations

Question 15: The strategy formulation process involves both ________.

• planning and strategy
• strategy and structure
• planning and marketing
• strategy and production

Question 16: Which of these strategies are appropriate for companies in industries where buyer preferences do not converge across national borders?

• Retrenchment
• Global
• Multinational
• Stability

Question 17: A ________ strategy can cause a company to overlook important differences in buyer preferences from one market to another.

• global
• retrenchment
• multidomestic
• multinational

Question 18: Collection and analysis of information used to assist managers in making informed decisions is known as ________.

• data collection
• market research
• secondary market research
• market analysis

Question 19: Which of the following is not a difficulty associated with conducting international market research?

• Availability of data
• Comparability of data
• Cultural differences
• Economic differences

Question 20: The process of obtaining information that already exists within the company or that can be obtained from outside sources is called ________.

• secondary market research
• logistics management
• primary market research
• invalid market research

Question 21: When an exporter ships merchandise and later bills the importer for its value, it is using a(n) ________ type of export/import financing.

• advance payment
• open account
• letter of credit
• documentary collection

Question 22: Which of the following is not a form of investment entry?

• Strategic alliance
• Wholly owned subsidiary
• Joint venture
• Turnkey project

Question 23: Brand names are central to a product's ________.

• personality
• raw materials
• reproducibility
• inventory planning

Question 24: Countries that top the list for the portion of their markets comprised of counterfeits include each of the following except  ________.

• China
• India
• Russia
• United Kingdom

Question 25: Which of the following is a promotional strategy designed to pressure channel members to carry a product and promote it to final users?

• Pull strategy
• Adaptive channel strategy
• Push strategy
• End distribution strategy

Question 26: Examples of pull strategies include each of the following except ________.

• mass media advertising
• direct marketing techniques
• free trial packages
• encouraging good retail visibility

Question 27: The physical path a product follows on its way to customers is called a ________.

• distribution channel
• promotional mix path
• value density
• just-in-time path

Question 28: The process of assessing a company's ability to produce enough output to satisfy market demand is called ________.

• location economics
• capacity planning
• process planning
• facilities layout planning

Question 29: The psychological process of readapting to one's home culture is called ________.

• culture shock
• reverse recruitment
• reverse culture shock
• expatriate failure

Question 30: The senior manager recommends that Hafstrom obtain auto parts from a country where production activity generates more value than it could generate elsewhere. He is recommending taking advantage of which of the following?

• Just-in-time manufacturing processes
• Japanese manufacturing precision
• German auto technology
• Location economies