International Management Culture, Strategy, and Behavior Luthans 9th Edition Test Bank
International Management Culture, Strategy, and Behavior Luthans Doh 9th Edition Test Bank
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Name: International Management Culture, Strategy, and Behavior
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International Management Culture, Strategy, and Behavior Test Bank
International Management Culture, Strategy, and Behavior Luthans Doh 9th Edition Test Bank ISBN: 0077862449
Globalization and International Linkages
True / False Questions
1. Despite claims by Facebook, social media has not significantly connected people across the globe.
2. The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments is called international management.
3. Multinational corporations can be defined as firms having operations in more than one country, international sales, and a nationality mix of nationalities among managers and owners.
4. Internationalization is the vision of creating one world unit, a single market entity.
5. Nongovernmental organizations believe that everyone benefits from globalization, as evidenced in lower prices, greater availability of goods, better jobs and access to technology.
6. Procter & Gamble (P&G) has strategically leveraged social media to improve its long-term brand image.
7. Marketers must be responsive to social networks.
8. NAFTA is a free trade agreement among the United States, Canada, and Mexico that has in essence removed all barriers to trade and investment among the three nations.
9. NAFTA is better integrated as a single market than the EU or the allied Asian countries.
10. The countries of the Association of Southeast Asian nations are challenging China’s position as destinations for low-cost production and export.
11. Foreign direct investment fell dramatically over the last decade in most regions of the world.
12. United States multinationals have more foreign direct investment in Germany than any other country.
13. In recent years, Canadian firms have begun investing heavily in the United States.
14. Mexico believes that the United States is its most important market and that little effort should go into expanding trade with Europe and Asia at least for now.
15. One of the ways that Russia is attempting to get its economy going is by removing many administered prices and subsidies and letting free market forces take over.
16. The ultimate objective of the EU is to eliminate all trade barriers among member countries.
17. Like most South American economies, Brazil’s economy is faced with grave economic problems. Its GDP through 2011 continued to fall, and inflation and unemployment increased.
18. The report of the Goldman Sachs global economics team estimated that the economies of the four BRIC nations will surpass the collective economies of the G7 nations by 2032.
19. As a result of some continuing problems, the international business climate in Poland has not done well.
20. Emerging markets are developing economies that exhibit sustained economic reform and growth.
Multiple Choice Questions
21. Which form of social media is not known for significantly changing how consumers search for products and services?
22. Which of the following statements about social media is untrue?
A. Social networks have rapidly diffused from the United States and Europe to every region of the world.
B. Social media networks have accelerated technological integration among the nations of the world.
C. Social media such as Facebook are powerful, but they cannot leverage networks to achieve greater success.
D. Social networks serve as inexpensive, effective means of marketing directly to businesses’ target audiences.
23. The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments is:
A. Strategic management
D. International management
24. To qualify as a multinational corporation, a firm must meet all of the following criteria except:
A. Operations in more than one country
B. International sales
C. A nationality mix of managers and owners
D. Sales of at least one million dollars per year
A. Is the growth of interstate trade, spurred on by the progress toward free-market policies
B. Is the subcontracting of activities to endogenous organizations that had previously been performed within the firm
C. Is the process of social, political, economic, cultural, and technological integration among countries around the world
D. Is the process of a business crossing national and cultural borders
26. Identify the statement that is false of globalization.
A. It can be defined as the process of social, political, economic, cultural, and technological integration among countries around the world
B. It is the process of a business crossing national and cultural borders
C. Evidence of globalization can be seen in increased levels of trade, capital flows, and migration
D. It has been facilitated by technological advances in transnational communications, transport, and travel
27. The subcontracting or contracting out of activities to external organizations that had previously been performed by the firm is called:
28. The process by which companies undertake some activities at offshore locations instead of in their countries of origin is:
29. Antiglobalization activists:
A. Contend that even within the developing world, it is protectionist policies, not trade and investment liberalization, that result in environmental and social damage
B. Believe globalization will force higher-polluting countries such as China and Russia into an integrated global community that takes responsible measures to protect the environment
C. Assert that if corporations are free to locate anywhere in the world, the world’s poorest countries will relax or eliminate environmental standards and social services in order to attract first-world investment and the jobs and wealth that come with it
D. Believe that industrialization will create wealth that will enable new industries to employ more modern, environmentally friendly technology
30. The global organization of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition and subsidies is the:
31. A free-trade agreement among the United States, Canada, and Mexico that has removed most barriers to trade and investment is:
32. The World Trade Organization (WTO) meeting in Cancún in September of 2003 was led by:
A. India and Brazil
B. The U.S. and Japan
C. The U.K. and France
D. EU members
33. The World Trade Organization (WTO) meeting in Doha in November of 2001 was referred to as:
A. The “Annecy Round”
B. The “Development Round”
C. The “Tokyo Round”
D. The “Torquay Round”
34. The United States, Canada and Mexico make up the _____, which in essence has removed all barriers to trade between these countries and created a huge North American market.
A. General Agreement on Tariffs and Trade
B. North American Common Market
C. North American Free Trade Agreement
D. North American Trade Union
35. Agreements like NAFTA and CAFTA:
A. Not only reduce barriers to trade but also require additional domestic legal and business reforms in developing nations to protect property rights
B. Do not include supplemental commitments on labor and the environment to encourage countries to upgrade their working conditions and environmental protections like the FTAA
C. Rely exclusively on MNCs exporting or setting up operations locally rather than buying out a domestic firm
D. Provide firms with enough security so they cannot go out of business, which simply encourages a lack of efficiency or incentive to monitor costs
36. The NAFTA agreement and the CAFTA-DR agreement are examples of:
A. Defunct bilateral agreements
B. Regional trade agreements
C. Plurilateral agreements
D. Proposed bilateral agreements
37. Due to the stalled progress with the WTO and FTAA, the United States has pursued _____ with a range of countries, including, Australia, Bahrain, Chile, Colombia, Israel, Jordan, Malaysia, Morocco, Oman, Panama, Peru, and Singapore.
A. Plurilateral trade agreements
B. Multilateral trade agreements
C. Bilateral trade agreements
D. Regional trade agreements
38. The Asian economic block, made up of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand, Cambodia, Myanmar, and Vietnam is referred to as:
A. Association of Southeast Asian Nations (ASEAN)
B. Southeast Asia Free Trade Agreement (SWAFTA)
C. Southeast Asia Common Market
D. Asian Economic Union
39. A method which adjusts GDP to account for different prices in countries is called:
A. Cumulative distribution function
B. Nominal GDP
C. Current currency exchange rate
D. Purchasing power parity
40. The following are characteristics of the BRIC economies except:
A. Demand for higher priced goods is expected to continue to be low in the future
B. The BRIC economies share of world growth is expected to rise to about 40 percent by 2025
C. Per capita income in the BRIC countries is rising
D. Demand for basic goods will be strong
41. The Goldman Sachs global economics team:
A. Estimates that Chile will occupy a dominant role in the global economic system and will surpass the United States in output by 2035
B. Reports that the economic potential of Brazil, Russia, India, and China is such that they may constitute four of the top five most dominant economies by the year 2050
C. Estimates that the BRIC economies’ share of world growth could rise from 40 percent in 2000 to more than 70 percent in 2025
D. Reports that Germany, followed by India a decade later, will overtake the United States as the world’s largest car market