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51.The reasons a government may nationalize a firm include: A. to extract

    51.The reasons a government may nationalize a firm include:    A. to extract more money from the firm.   B. to increase the firm's profitability.   C. to preserve jobs.   D. all of the above.   E. two of A, B, and C.     52.The reasons a government may nationalize a firm include:    A. to get government contracts.   B. to promote the ideology of capitalism.   C. to preserve jobs.   D. all of the above.   E. two.
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51.The reasons a government may nationalize a firm include: A. to extract
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61.The three characteristics of evolving sustainable business practices are: A. local, global,

    61.The three characteristics of evolving sustainable business practices are:    A. local, global, and improving quality of life.   B. environmental sustainability, quality-of-life sustainability, and triple-bottom-line accounting.   C. limits, interdependence, and equity.   D. none of the above.     62.Sam Palmisano, CEO of IBM, has described a new way of doing business that goes to equity of distribution by observing that:    A. profit sharing will.
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61.The three characteristics of evolving sustainable business practices are: A. local, global,
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11.Paying ransom makes sense because a life saved and the

    11.Paying ransom makes sense because a life is saved and the payments can be traced.  True    False   12.To hedge the terrorism risk, there are insurance, antiterrorist schools, and even companies to handle negotiations.  True    False   13.Kidnap, ransom, and extortion are techniques often used by terrorists against which no insurance is available.  True    False   14.Businesses favor unstable governments because they.
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11.Paying ransom makes sense because a life saved and the
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91.Running afoul of miscellaneous laws in a foreign country is: A. easily

    91.Running afoul of miscellaneous laws in a foreign country is:    A. easily understood and forgiven by foreign police.   B. a serious error, so the local law should be known.   C. not a major issue, since the embassy can work out your release.   D. not a serious issue because your country and company stand behind you.   E. none of the above.     92.The.
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91.Running afoul of miscellaneous laws in a foreign country is: A. easily
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81.Official prices ensure that: A. imported goods will be sold at minimum

    81.Official prices ensure that:    A. imported goods will be sold at minimum prices, to avoid dumping.   B. a black market will be healthy and available for imported goods.   C. low-priced invoices to avoid tariffs will not be successful.   D. two of the above.   E. none of A, B, and C.     82.Import duties can be set to encourage:    A. increased imports based on sales.
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81.Official prices ensure that: A. imported goods will be sold at minimum
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11.Every coast between 20 and 30 degrees of the equator

    11.Every coast between 20 and 30 degrees of the equator (north or south) is dry.  True    False   12.Bodies of water, much like deserts and mountains, also serve as barriers to trade.  True    False   13.Climate differences explain differences in human and economic development because the less temperate climates limit mental powers.  True    False   14.Nonrenewable energy sources include coal, fossil fuels,.
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11.Every coast between 20 and 30 degrees of the equator
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71.Dumping is: A. selling a product abroad for less than its production

    71.Dumping is:    A. selling a product abroad for less than its production cost in the importing nation.   B. selling a product abroad for less than the market price in the export nation.   C. exporting a product to a third country without correct documentation.   D. two of the above.   E. all of A, B, and C.     72.The United States became one of.
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71.Dumping is: A. selling a product abroad for less than its production
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81.Instead of declining, this nonrenewable energy source, because of its

    81.Instead of declining, this nonrenewable energy source, because of its lack of pollution and the rising price of oil, has seen significant growth:    A. wind power.   B. nuclear power.   C. geothermal power.   D. petroleum.     82.Although it pollutes heavily, this energy source is on the rise everywhere, especially in China:    A. natural gas.   B. coal.   C. nuclear.   D. diesel.     83.This is the only industrialized country that has not ratified.
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81.Instead of declining, this nonrenewable energy source, because of its
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31.Environmental sustainability about maintaining the environment, and it both local

    31.Environmental sustainability is about maintaining the environment, and it is both local and global.  True    False   32.Environmentally sustainable businesses need to consider the economic and ecological systems in which they function, but not the social.  True    False   33.Sustainable business practices have three characteristics: limits, interdependence, and equity.  True    False     Multiple Choice Questions  34.The relationships among ecological, social, and economic systems.
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31.Environmental sustainability about maintaining the environment, and it both local
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51.World Bank studies have shown that underdevelopment often due to: A. factors

    51.World Bank studies have shown that underdevelopment is often due to:    A. factors such as parasites and viruses that are a part of tropical climates and expand unchecked because of the lack of winter temperatures.   B. mental slowness in people of the climates around the equator.   C. socialist political regimes.   D. lack of government investment in education.     52.Petroleum, a.
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51.World Bank studies have shown that underdevelopment often due to: A. factors
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41.With factor conditions, Porter's diamond model distinguishes between basicfactors, those

    41.With factor conditions, Porter's diamond model distinguishes between basicfactors, those a country inherits, and    A. importedfactors, those it brings in from abroad.   B. demandconditions, the aggregate demand in the economy.   C. climateconditions, the basic influence on business options in the specific location.   D. advancedfactors, those a country can mold: labor and infrastructure.     42.Swiss exports are concentrated, high-density products that.
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41.With factor conditions, Porter's diamond model distinguishes between basicfactors, those
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21.Trademarks can include a shape, a color, or a sound. True False 22.The

    21.Trademarks can include a shape, a color, or a sound.  True    False   22.The European Patent Organization makes filing for a patent in all 27 EU member-states more difficult than it was previously.  True    False   23.The World Intellectual Property Organization is a UN agency that administers 24 intellectual property treaties.  True    False   24.Many smaller and developing nations want to reduce.
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21.Trademarks can include a shape, a color, or a sound. True False 22.The
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21.Because it a high polluter, coal the decline as an

    21.Because it is a high polluter, coal is on the decline as an energy source.  True    False   22.Biomass is a category of renewable energy fuels based on their heavy weight.  True    False   23.Sustainable approaches in business usually involve trade-offs such as lower profits compensated by reduced marketing costs and improved image/reputation.  True    False   24.Limits, interdependence, and equity are characteristics.
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21.Because it a high polluter, coal the decline as an
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97.Briefly review the appeal of the gold standard, and comment

  97.Briefly review the appeal of the gold standard, and comment on why it is not presently in use.            98.What are currency exchange controls, why are they used, and how might they influence the international manager located in an exchange-controlled environment?                .
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97.Briefly review the appeal of the gold standard, and comment
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91.Hawalas make currency exchange and: A. avoid the international currency exchange markets. B. offer

    91.Hawalas make currency exchange and:    A. avoid the international currency exchange markets.   B. offer their clients nearly untraceable transactions.   C. transfer funds through the established banking system.   D. A and B.     92.The Triffin paradox suggests that:    A. reserve currencies can never run deficits.   B. eventually, reserve currencies will run deficits, which will lead to lack of confidence in the currency.   C. the more a currency.
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91.Hawalas make currency exchange and: A. avoid the international currency exchange markets. B. offer
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41.Many U.S. laws affect activities of international firms, and their

    41.Many U.S. laws affect activities of international firms, and their impacts have been coordinated.  True    False   42.The Foreign Corrupt Practices Act (FCPA) clearly stipulates terminology and behavior that is illegal on the part of U.S. businesses and of foreign businesses operating in the United States  True    False   43.Discussion of bribery and transparency has generally not come.
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41.Many U.S. laws affect activities of international firms, and their
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11.A central reserve asset a holding that has value that

    11.A central reserve asset is a holding that has value that is held by private banks in case of a liquidity crisis.  True    False   12.If freely floating currencies are allowed to fluctuate against one another, at times the fluctuations might be quite large.  True    False   13.The exchange rate for today for delivery within two days is.
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11.A central reserve asset a holding that has value that
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81.With increasing inflation, borrowing becomes: A. more attractive because repayment can be

    81.With increasing inflation, borrowing becomes:    A. more attractive because repayment can be made with cheaper money.   B. less attractive because repayment is made with dearer money.   C. impossible because money has lost its value.   D. a mute issue because of liquidity issues.     82.World interest rates tend to vary across a small range because:    A. the IMF has been successful at promoting.
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81.With increasing inflation, borrowing becomes: A. more attractive because repayment can be
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31.Allied and Axis governments met in Bretton Woods in the

    31.Allied and Axis governments met in Bretton Woods in the final days of World War II.  True    False   32.The Bretton Woods system worked until the late 1960s.  True    False   33.One exchange arrangement is to have no separate legal tender.  True    False   34.The Bank for International Settlements is like a central bank for central bankers.  True    False   35.Currencies float because they are allowed.
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31.Allied and Axis governments met in Bretton Woods in the
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91.Rare earths a group of elements used in: A. jewelry. B. technology applications.

    91.Rare earths are a group of elements used in:    A. jewelry.   B. technology applications.   C. farming.   D. solar applications.     92.Which country controls the export market of rare earths?    A. Brazil   B. Russia   C. the United States   D. China     93.Why are rare earths a concern in industrialized economies?    A. Although they are relatively common, they do not occur in concentrated form often.   B. They are very rare.   C. They are used in the smelting process.   D. They.
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91.Rare earths a group of elements used in: A. jewelry. B. technology applications.

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41.A variable levy confers benefit the domestic producer, as with

    41.A variable levy confers benefit on the domestic producer, as with the EU variable levy on grain.  True    False   42.Duties may be used to encourage local input.  True    False   43.Nuisance tariffs require importers to go through the administrative paperwork connected to paying tariffs, even though the payment itself might be quite small.  True    False   44.The Multi-Fiber Arrangement (MFA) was.
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41.A variable levy confers benefit the domestic producer, as with
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41.Historically, gold has been used as a way for people

    41.Historically, gold has been used as a way for people to store value because of its:    A. purity and scarcity.   B. high transportation and security costs.   C. lack of interest-earning ability.   D. all of the above.     42.Sir Isaac Newton put England on the gold standard when he:    A. declared, as master of the English mint, that he would sell gold for.
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41.Historically, gold has been used as a way for people
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71.Trademarks can be: A. a color. B. a sound. C. a design.

    71.Trademarks can be:    A. a color.   B. a sound.   C. a design.   D. two of the above.   E. all of A, B, and C.     72.Trade names are protected under:    A. national laws in all UN member countries.   B. the International Convention for the Protection of Industrial Property.   C. many local laws in most countries, so illegal trademark use is a local issue.   D. long-standing convention, but no legal agreements.   E. the.
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71.Trademarks can be: A. a color. B. a sound. C. a design.

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61.The balance-of-payments account a record of: A. the total tangible trade flows

    61.The balance-of-payments account is a record of:    A. the total tangible trade flows of a country over a five-year period.   B. a country's transactions with the rest of the world.   C. a country's total debt service payments during a one-year period.   D. the outstanding balance of a country's debt payments for the fiscal year.     62.The balance-of-payments account is divided.
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61.The balance-of-payments account a record of: A. the total tangible trade flows
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61.International business can be a powerful political force, in part

    61.International business can be a powerful political force, in part because:    A. a recent Supreme Court ruling in the United States allows corporate contributions to political races.   B. many top management team members are willing to accept roles with national security agencies.   C. about half the world's 100 largest economic units are firms.   D. business is all about.
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61.International business can be a powerful political force, in part
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21.The types of information a firm will need to judge

    21.The types of information a firm will need to judge country risks vary according to the nature of its business and the amount of money invested.  True    False   22.The length of the investment in a foreign country has no impact on the risk assessment for that investment. What matters is the economic and.
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21.The types of information a firm will need to judge
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98.Explain the concept of sustainability as applied to business, using

    98.Explain the concept of sustainability as applied to business, using examples.            99.Why do nations care about having outlets to the ocean? Are landlocked nations at a disadvantage?            100.How does the notion of sustainable business compare to Milton Friedman's assertion that the focus of business should be only on the bottom line?              .
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98.Explain the concept of sustainability as applied to business, using
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31.A comparison based hourly wages a reasonable guide to a

    31.A comparison based on hourly wages is a reasonable guide to a need to protect domestic jobs.  True    False   32.Fair competition is a strong rationale for trade barriers.  True    False   33.Retaliatory trade restrictions are not made for dumping because price competition is protected by the WTO.  True    False   34.One way that the WTO defines dumping is the selling of.
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31.A comparison based hourly wages a reasonable guide to a
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31.Japanese cultural values suggest that in Japan, antitrust law against

    31.Japanese cultural values suggest that in Japan, antitrust law against cartels would be strictly enforced.  True    False   32.The United States at times applies antitrust law extraterritorially.  True    False   33.The EU does not apply its competition policy beyond the EU.  True    False   34.Microsoft is an example of how a company can avoid multiple antitrust laws in multiple jurisdictions, thanks to.
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31.Japanese cultural values suggest that in Japan, antitrust law against
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97.One danger of using the frameworks in this chapter that

      97.One danger of using the frameworks in this chapter is that if they are applied prescriptively, they may well lead to a sophisticated form of stereotyping. Explain this danger and suggest ways to avoid it.            98.Explain Trompenaars' achievement-ascription dimension, and comment on its usefulness in an international business setting.            .
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97.One danger of using the frameworks in this chapter that
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21.The value-added tax (VAT) can be rebated to exporters, according

    21.The value-added tax (VAT) can be rebated to exporters, according to WTO rules.  True    False   22.Brazil, India, and the United States are among the highest corporate tax locations.  True    False   23.Inflated currencies tend to weaken.  True    False   24.As global financial markets become more integrated, we can expect countries' inflation rates to vary over a small range.  True    False   25.The balance of payments.
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21.The value-added tax (VAT) can be rebated to exporters, according
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True / False Questions 1.Sir Isaac Newton established the price of

True / False Questions  1.Sir Isaac Newton established the price of gold in 1717 and de facto put England on the gold standard.  True    False   2.The complexity of the gold standard was a part of its appeal.  True    False   3.The Bretton Woods meeting in 1944 established a fixed-rate exchange system among Allied governments that was imposed on.
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True / False Questions 1.Sir Isaac Newton established the price of
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91.The most common form of direct government participation in trade

    91.The most common form of direct government participation in trade is:    A. the subsidy.   B. shipping on national vessels.   C. import duties.   D. a combination of the above.   E. none of the above.     92.Customs procedures in many countries often:    A. are transparent and fair.   B. discriminate against imports and favor exports.   C. are online and impersonal.   D. two of the above.   E. all of A, B, and C.     93.Standards are a way.
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91.The most common form of direct government participation in trade
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61.Intellectual property: A. excludes intangibles, which why it a difficult area. B. includes thoughts

    61.Intellectual property:    A. excludes intangibles, which is why it is a difficult area.   B. includes thoughts and ideas, but not tangible products.   C. includes anything that is a result of a creative process that does not have material qualities.   D. includes anything that is the result of things created using someone's intellect.   E. excludes things found in nature, such as.
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61.Intellectual property: A. excludes intangibles, which why it a difficult area. B. includes thoughts
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True / False Questions 1.Unlike the topography, the political climate of

True / False Questions  1.Unlike the topography, the political climate of a country has relatively little influence on its exports.  True    False   2.Only in communist countries do governments own the factors of production.  True    False   3.The only reason firms are nationalized is to spread a socialist-communist ideology.  True    False   4.One example of nationalization of private companies is the nationalization of.
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True / False Questions 1.Unlike the topography, the political climate of
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99.Why should international managers study the religion of the country

    99.Why should international managers study the religion of the country they are planning to work in even if they are not especially interested in the general area of religion?            100.What two aspects of the culture frameworks would you share with a colleague leaving on her first foreign assignment, and why?              .
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99.Why should international managers study the religion of the country
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51.The Alien Tort Statute allows foreigners to: A. sue in U.S. courts

    51.The Alien Tort Statute allows foreigners to:    A. sue in U.S. courts for residency in the United States.   B. file claims in U.S. courts for violations of international law that may have occurred beyond U.S. borders.   C. file claims in U.S. courts for alleged violations of foreign laws.   D. file claims against other foreign nationals for violations of.
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51.The Alien Tort Statute allows foreigners to: A. sue in U.S. courts
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True / False Questions 1.Switzerland exports cheese and chocolate because one

True / False Questions  1.Switzerland exports cheese and chocolate because one of its factor endowments is lots of rich agricultural land.  True    False   2.Porter's diamond can be used to explain the importance of the environment and natural resources.  True    False   3.Porter's diamond model suggests that Switzerland should not be competitively successful.  True    False   4.Porter suggests that adverse conditions can motivate.
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True / False Questions 1.Switzerland exports cheese and chocolate because one
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81.The United States and the EU: A. both apply antitrust law extraterritorially. B. both

    81.The United States and the EU:    A. both apply antitrust law extraterritorially.   B. both oppose the Japanese Anti-Monopoly Law.   C. share a commitment to the per se concept in law.   D. two of the above.   E. all of A, B, and C.     82.The U.S. antitrust law contains both civil and criminal penalties:    A. neither of which can be applied outside the United States.   B. and.
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81.The United States and the EU: A. both apply antitrust law extraterritorially. B. both
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71.Every continent has inland waterways that provide inexpensive access to

    71.Every continent has inland waterways that provide inexpensive access to interior markets except:    A. Russia.   B. North Africa.   C. Australia.   D. North America.     72.The North-South divide uses climatic differences to explain:    A. population differences.   B. trade patterns.   C. differences in human development.   D. cultural differences.     73.Studies conducted by the World Bank indicate that tropical climates allow for:    A. the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites.   B. lack.
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71.Every continent has inland waterways that provide inexpensive access to
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True / False Questions 1.According to the World Health Organization, about

True / False Questions  1.According to the World Health Organization, about one-quarter of all drugs sold through "questionable" Internet pharmacies are estimated to be counterfeit.  True    False   2.The degree to which a country's legal system is based on the rule of law makes no difference; it is personal relationships that matter in foreign environments.  True    False   3.Publicinternationallaw.
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True / False Questions 1.According to the World Health Organization, about
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51.When the law of one price applied to interest rates,

    51.When the law of one price is applied to interest rates, it suggests that:    A. interest rates do not differ much across national borders.   B. inflation is not affected by interest rates.   C. inflation and interest rates do not follow the law of one price.   D. varying interest rates take into account anticipated differences in inflation rates.     52.The international.
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51.When the law of one price applied to interest rates,
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11.A choice-of-law clause specifies where a dispute will be settled. True False 12.Where

    11.A choice-of-law clause specifies where a dispute will be settled.  True    False   12.Where litigation should occur has to do with the location of the problem and is usually clear to both the defendant and the plaintiff.  True    False   13.By UN regulation, contracts cannot contain choice-of-law and choice-of-forum clauses.  True    False   14.No worldwide court has the power to enforce its.
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11.A choice-of-law clause specifies where a dispute will be settled. True False 12.Where
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91.The characteristics of Hofstede's long-term orientation include: A. social order and hierarchical

    91.The characteristics of Hofstede's long-term orientation include:    A. social order and hierarchical relationships.   B. perseverance, pragmatism, and hierarchy.   C. the centrality of spending.   D. planning in the medium-short term.     92.Latin and Asian countries' scores on Hofstede's power distance dimension are relatively large and relatively low on:    A. the individualism dimension.   B. transparency.   C. masculinity.   D. femininity.     93.The Trompenaars dimension that describes a society whose rules regulate behaviors for.
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91.The characteristics of Hofstede's long-term orientation include: A. social order and hierarchical
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71.One attribute of the U.S. tariff schedule is: A. that it printed

    71.One attribute of the U.S. tariff schedule is:    A. that it is printed in both Arabic and Hebrew.   B. how specific it is.   C. that its categories are quite general and easy to apply.   D. that its harmonized version can be accessed via cell phone and iPad.     72.Fixed-rate relationships among currencies could not stay fixed, according to Obstfeld and.
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71.One attribute of the U.S. tariff schedule is: A. that it printed
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True / False Questions 1.Scenario planning helps to emphasize that the

True / False Questions  1.Scenario planning helps to emphasize that the business environment is predictable and helps to emphasize the application of traditional perspectives when solving problems.  True    False   2.Scenarios are forecasts that extrapolate from past data to make predictions.  True    False   3.International strategy helps firms to make choices about how to deploy scarce resources in order.
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True / False Questions 1.Scenario planning helps to emphasize that the
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