Question: The global corporation

A Considers the world to consist of distinct and unique entities

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B Operates at low relative costs

C Operates from any one country

D Adjusts its products and practices to each country

Question: Because of formal and informal trade barriers and the uncertainties of the world’s current floating exchange rate regime, several automobile companies have established top-to-bottom manufacturing operations in three major regional markets. Which of the following is one of them?

A Australia

B Africa

C South America

D Western Europe

Question: A _____ is issued to the exporter by the common carrier transporting the merchandise and it serves as a receipt, a contract, and a document of title.

A Bill of lading

B Collateral

C Draft

D Letter of credit


Question: Which of the following is a drawback of relying on an EMC?

A They do not provide references and have no antecedents

B The exporting company can fail to develop its own exporting capabilities

C They typically add little value to the exporting company

D They typically lack knowledge about the local business regulations

Question: _____, or reductions in unit costs as plant output expands, are achieved because of greater utilization of capital equipment and the productivity gains that come with specialization of employees within the plant.

A Minimum efficient scale

B Production cost curve

C Maximum efficient scale

D Economies of scale

Question: The mission of the _____ is to provide financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries.

A Sogo shosha

B World Bank

C Overseas Commercial Service

D Ex-Im Bank

Question: Which of the following is an advantage related to both a relatively low level of fixed costs and to a low minimum efficient scale?
A A firm can hedge against potential adverse moves in currencies

B Products can be standardized across different national markets

C Firms can operate entirely out of their home countries

D Product manufacturing can be limited to a single location

Question: Which of the following is an advantage of a geocentric approach to staffing for international businesses?

A It permits better corporate center control

B It is inexpensive to implement

C It helps build a strong culture

D It helps transfer core competencies

Question: A citizen of Japan who moves to the United States to work at Microsoft would be classified as a(n)

A Expatriate

B Inpatriate

C Third-country national

D Host-country national

Question: When should an exporter get export credit insurance?

A When the exporter is facing a situation where the importer may default on payment

B When the exporter is dealing with a country that has a nonconvertible currency

C When he is unable to obtain any pre-export financing

D When the exporter has received a letter of credit from the importer’s bank

Question: Re-entry of expatriate managers into their home-country organization is termed _____.

A Inpatriation

B Nesting

C Repatriation

D Homing

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