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    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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    81.Plans for the best-or worst-case scenarios or for critical events that could have a severe impact on the firm are known as:    A. scenario plans.   B. strategic plans.   C. contingency plans.   D. emergency plans.   E. none of the above.     82.Tactical plans:    A. are operational plans.   B. are broad, operational plans on which strategic plans are based.   C. are specific and short-term compared to strategic plans.   D. all of the.
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    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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    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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    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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    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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    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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    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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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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    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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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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    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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    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.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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    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.According to the text, the strategic planning process provides a formal structure in which managers will:    A. analyze the company's external and internal environments.   B. define the company's business and mission.   C. formulate scenarios.   D. all of the above.   E. two of A, B, and C.     62.According to the text, the strategic planning process provides a formal structure in which managers.
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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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    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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    51.Which of the following is incorrect about scenario analyses?    A. The objective of the process is to force executives to question their assumptions about the environment.   B. The process attempts to incorporate the uncertainty and potential changes that might impact strategic and operational performance.   C. Managers develop scenarios and use them for discussion.   D. All of the above.
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    91.In the new strategic planning process:    A. top management is assigning strategic planning to teams of line and staff managers from the same business.   B. interaction with important customers and suppliers should be included.   C. governments and other stakeholdersshould be direct participants.   D. all of the above.   E. two of A, B, and C.     92.The new directions in planning:    A. two of B,.
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    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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    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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    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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    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.A broad statement that defines the organization's scope is the mission statement.  True    False   22.Objectives direct the firm's course of action, maintain it within the boundaries of the stated mission, and ensure its continuing existence.  True    False   23.Objectives must be quantified in order to be useful.  True    False   24.When developing and assessing strategic alternatives, it is important to remember.
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    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.Procedures are broad guidelines issued by upper management for the purpose of assisting lower-level managers in handling nonrecurring problems.  True    False   42.Companies need to consider two types of measures when assessing strategic performance: (1) measures of the company's success in obtaining and applying required resources, such as financial, technological, and human resources, and.
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    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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    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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    71.In response to China's requirement to censor Internet searches:    A. two of B, C, and D.   B. Google chose not to enter that country.   C. Google refused to engage in censorship, including a disclosure on its site that no censorship had occurred.   D. Google provided users of its Chinese site with a hot link to its uncensored U.S..
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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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    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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    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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    11.The ultimate managers of strategic planning and strategy making are the executive board of a corporation.  True    False   12.The first step in the process of strategic planning is to define the company's business and mission.  True    False   13.According to a study by McKinsey & Company, most executives worldwide agree that environmental, social, and business trends are.
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    31.Historically, more aspects of marketing have been standardized and coordinated worldwide by companies than has been the case for other value chain activities such as research and development and manufacturing.  True    False   32.Scenarios are multiple, plausible stories for probable futures.  True    False   33.Scenario analysis can help managers to break away from their existing view of the.
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    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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    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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    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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  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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    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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    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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True / False Questions  1.A company's organizational structure helps to determine where formal power and authority will be located within the organization.  True    False   2.Organizationalchange refers to the way that an organization formally arranges its various domestic and international units and activities and the relationships among these various organizational components.  True    False   3.Organizational structure deals with how.
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    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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