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
Points Received: 0 of 1
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