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Q:
Who, along with representatives from the European Union and the European Central Bank, represent the 19 largest economies in the world on the G20?
A.Finance ministers and central bank governors
B.Presidents and defense ministers
C.Prime ministers and army chiefs
D.International trade ministers
E.Ministers of foreign affairs
Q:
According to the UN Charter, one of the four purposes of the UN is to:
A.be a center for harmonizing the actions of nations.
B.encourage high tariffs on imports of manufactured goods.
C.provide enhanced protection for patents.
D.promote the establishment of multinational treaties.
E.facilitate globalization of production.
Q:
Which of the following is an argument put forth by critics of the IMF?
A.It increases barriers to the free flow of goods and investment across national borders.
B.It provides assistance only to developing nations and completely ignores the developed nations.
C.It is not powerful enough to ensure that the nation-states adhere to the rules laid down in trade treaties.
D.It promotes the rise of communism across the globe.
E.It usurps the sovereignty of nation-states by telling governments what economic policies they must adopt.
Q:
Why was the World Bank set up?
A.To preserve peace through international cooperation
B.To promote economic development
C.To maintain order in the international monetary system
D.To formulate a coordinated policy response to financial crises
E.To police the world trading system
Q:
Which of the following was established after the Uruguay Round to police the international trading system?
A.United Nations
B.International Monetary Fund
C.Group of Twenty
D.World Trade Organization
E.World Bank
Q:
Which of the following services CANNOT be outsourced to foreign nations?
A.Debugging software
B.Handling consumer queries
C.Transcribing medical files
D.Interpreting MRI scans
E.Delivering closing arguments for a lawsuit
Q:
Early outsourcing efforts were primarily confined to:
A.accounting services.
B.manufacturing activities.
C.testing services.
D.educational activities.
E.consulting services.
Q:
West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the:
A.globalization of production.
B.globalization of markets.
C.dislocation of a developing nation's economy.
D.restriction on foreign direct investment.
E.regulation of the environment.
Q:
Which of the following best illustrates the globalization of production?
A.Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process.
B.Evan Swan, a U.S.-based fashion designer, is planning to open a flagship store in China to serve the Asian market.
C.Uncle Crab, a U.K. fast food chain, has been serving customers worldwide through its franchises.
D.Silver Unicorn Inc. uses sales personnel from the respective host country to sell its products and services.
E.Pizza Gallery, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes of its American and Australian customers.
Q:
Which of the following refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors such as labor, energy, land, and capital?
A.Globalization of markets
B.Containerization of production
C.Dispersal of production
D.Globalization of production
E.Industrialization of markets
Q:
Which of the following statements best supports the claim that greater uniformity replaces diversity in the context of global markets?
A.Differences in business systems and legal regulations lead companies to customize their marketing strategies, product features, and operating practices to best match conditions in a particular country.
B.As rival global firms follow each other across countries, they bring with them their brand names, products, and marketing strategies from other national markets, thus creating homogeneity across markets.
C.Truly innovative companies succeed by developing products that serve specific needs of the local markets.
D.The volume of goods, services, and investment crossing national borders has expanded at a slower rate than world output for more than half a century.
E.The most global of markets are not typically markets for consumer products, as significant differences in consumer tastes and preferences still exist among national markets.
Q:
Automobile companies promote different car models in different countries depending on a range of factors such as demographics, local taste, local fuel costs, income levels, traffic congestion, and cultural values. This most likely demonstrates that:
A.significant differences still exist among national markets.
B.cultural diversity has been replaced by global uniformity.
C.the global market is less complex than national markets.
D.only multinational giants can benefit from the globalization of markets.
E.the social norms in a country do not affect purchase decisions of consumers.
Q:
What is the shift toward a more integrated and interdependent world economy called?
A.International trade
B.Foreign direct investment
C.Globalization
D.Moore's Law
E.Containerization
Q:
Which of the following has been reduced as a result of globalization?
A.Volume of goods and services
B.Foreign exchange transactions
C.Environment and labor laws
D.Differences in material culture
E.Regulation of markets
Q:
As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions.
Q:
Despite all the talk about the emerging global village, differences between countries such as cultures and political systems are very profound and enduring.
Q:
Managers in an international business must find ways to work around the limits imposed by specific governmental institutions.
Q:
Highly indebted poor countries (HIPCs) can bootstrap themselves out of poverty by pursuing retaliatory trade policies rather than free trade policies.
Q:
In general, as countries get richer, they enact tougher environmental and labor regulations.
Q:
The growing income inequality is a result of the wages for skilled workers being discounted.
Q:
It is possible that economic growth in developed nations has offset the fall in the share of national income enjoyed by unskilled workers, raising their living standards.
Q:
According to many influential economists, the increase in international trade and cross-border investment will result in an increase in the prices of goods and services.
Q:
The move toward a global economy has strengthened the adoption of conservative economic policies by developing nations.
Q:
Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies.
Q:
Although most international trade and investment are still conducted by large firms, many medium-size and small businesses are becoming increasingly involved in international trade and investment.
Q:
Throughout the 1990s, the amount of investment directed at both developed and developing nations increased dramatically.
Q:
The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country.
Q:
Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from developing nations to their home countries where labor costs were lower.
Q:
The United States accounted for a significantly larger share of the world economy in 2012 than it did in the 1960s.
Q:
The real costs of information processing and communication have fallen dramatically in the past two decades.
Q:
Containerization has revolutionized the transportation business, significantly lowering the costs of shipping goods over long distances.
Q:
The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding it easier to protect themselves from attack by foreign competitors.
Q:
As a result of international trade, the economies of the world's nation-states are becoming less intertwined.
Q:
The lowering of trade and investment barriers allows firms to base production at the optimal location for that activity.
Q:
The Uruguay Round extended GATT to cover services as well as manufactured goods.
Q:
After World War II, the advanced nations of the West committed themselves to increasing barriers to the free flow of goods, services, and capital between nations.
Q:
Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.
Q:
The IMF is less controversial than its sister institution, the World Bank.
Q:
The WTO is seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are losing value against those of other nations.
Q:
The World Trade Organization, the International Monetary Fund and its sister institution the World Bank, and the United Nations were all created by voluntary agreement between individual nation-states.
Q:
Substantial impediments, such as barriers to foreign direct investment, make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe.
Q:
As a result of globalization, companies rarely need to customize marketing strategies, product features, and operating practices in different countries.
Q:
By offering the same basic product worldwide, firms help to create a global market.
Q:
As a result of globalization, we have been moving toward a world in which national economies are relatively self-contained entities.
Q:
How does unintentional bias affect the performance appraisal of expatriates? How can it be reduced?
Q:
Describe how management development programs can increase the value of human capital in an international business firm.
Q:
What is repatriation? What is its importance?
Q:
What is the purpose of cultural training before a foreign posting?
Q:
Describe the disadvantages of a polycentric staffing policy.
Q:
What are the reasons for the failure of spouses to adjust to an expatriate's foreign posting?
Q:
What is expatriate failure? According to Tung's survey, what are the different reasons for expatriate failure in U.S. multinationals?
Q:
Define an expatriate manager. Describe the dimensions of self-orientation and others-orientation that predict success in a foreign posting.
Q:
Discuss the differences between ethnocentric, polycentric, and geocentric approaches to staffing for international businesses. What is the rationale behind each of these approaches?
Q:
Describe human resource management.
Q:
International businesses differ markedly in their approaches to international labor relations. Which of the following current trends reflects international firms' attempts to rationalize their global operations?
A.Decentralized labor activities
B.Greater centralized control
C.Autonomy
D.Lateral relationships
E.National legislation
Q:
International businesses differ in terms of their approaches to international labor relations, mainly in the degree to which:
A.labor relations activities are centralized or decentralized.
B.labor relations are formal or informal.
C.labor relations are given a high priority or a low priority.
D.labor relations are internally or externally managed.
E.firms follow a polycentric or geocentric staffing policy.
Q:
Which of the following is an impediment to cooperation between national unions?
A.The retention of highly skilled tasks in the host country
B.The reciprocal tax treaty
C.The wide variation in the structure and ideology of unions
D.The common perception unions have about multinational companies
E.The decreasing bargaining power of multinational companies
Q:
International trade secretariats have been minimally successful because of the:
A.similarity in the structure of unions on a global level.
B.common perception unions have about multinational companies.
C.reciprocal tax treaty.
D.competition between national unions to attract investment from international businesses.
E.retention of highly skilled tasks in the host country.
Q:
In the 1960s, organized labor believed that by coordinating union action across countries through an international trade secretariat, it could counter the power of a multinational corporation by:
A.threatening to disrupt production on an international scale.
B.introducing a reciprocal tax treaty.
C.trying to farm out highly skilled tasks back to the home country of the firm.
D.increasing its bargaining power.
E.lobbying for importing employment practices from the home country of the firm.
Q:
The long-term goal for organized labor to establish international trade secretariats was to:
A.import employment practices and contractual agreements from the home country of the multinational firm.
B.retain low-skilled tasks in the host country.
C.prevent multinational firms from switching production from one location to another as economic conditions warrant.
D.introduce a reciprocal tax treaty.
E.be able to bargain transnationally with multinational firms.
Q:
Which of the following was established by organized labor in 1960s to provide worldwide links for national unions in particular industries?
A.HR watchdog groups
B.International trade secretariats
C.Unorganized labor organizations
D.International orientation resources
E.Reciprocal tax treaties
Q:
Organized labor responds to the increased bargaining power of multinational corporations by trying to:
A.impose regulations on multinationals through organizations such as GATT.
B.achieve international regulations on multinationals through the United Nations.
C.establish regional boards.
D.lobby multinational corporations to restrict their global reach to three or fewer foreign countries.
E.develop a local trade forum.
Q:
In the context of international labor relations, one of the reasons for a decline in union influence is the:
A.introduction of a reciprocal tax treaty.
B.retention of low-skilled tasks in an international firm's home country.
C.importing of employment practices and contractual agreements that are alien to the host country.
D.increased bargaining power of organized labor.
E.increased ability to threaten to disrupt production, either by a strike or some other form of work protest.
Q:
In the context of international labor relations, a labor union concern arises when an international business:
A.keeps low-skilled tasks in its home country.
B.signs a reciprocal tax treaty with the host country.
C.increases the bargaining power of organized labor.
D.faces difficulty in switching production from one location to another.
E.attempts to import employment practices and contractual agreements from its home country.
Q:
In the context of international labor relations, which of the following is a concern of organized labor?
A.An international business increases the bargaining power of organized labor.
B.An international business keeps highly skilled tasks in its home country and farms out only low-skilled tasks to foreign plants.
C.An international business faces difficulty in switching production from one location to another.
D.An international business does not import employment practices and contractual agreements from its home country.
E.An international business signs a reciprocal tax treaty with the host country.
Q:
A principal concern of domestic unions about multinational firms is that a company can counter its bargaining power with:
A.work schedules tied to global rather than domestic standards.
B.wage rates tied to global rather than domestic standards.
C.the power to import labor from abroad.
D.the power to move production to another country.
E.the retention of low-skilled tasks in home country.
Q:
In the context of international labor relations, which of the following is true of organized labor?
A.It supports the pursuit of a transnational standardization strategy.
B.It supports the pursuit of a global standardization strategy.
C.It increases unintentional bias in evaluating the performance of expatriate managers.
D.It limits a firm's ability to integrate and consolidate its global operations.
E.It reduces a firm's ability to understand host-country cultural differences that require different approaches to marketing.
Q:
From a strategic perspective, the key issue in international labor relations is:
A.dealing with multiple business units.
B.the degree to which organized labor can limit the choices of an international business.
C.whether to hire parent-country nationals, host-country nationals, or third-country nationals.
D.helping expatriates cope with new role demands.
E.the extent to which a reciprocal tax treaty can be brought into effect.
Q:
Which of the following functions of an international business is typically responsible for international labor relations?
A.Public relations
B.Human resource management
C.Finance and accounting
D.Legal
E.Logistics
Q:
In terms of expatriate pay, what does a firm typically do when a reciprocal tax treaty is not in force?
A.The firm requires the expatriate to pay one-third of the income tax to the host-country government.
B.The firm requires the expatriate to pay 50 percent of the income tax to the host-country government.
C.The firm pays the expatriate's income tax to the host-country government.
D.The firm requires the expatriate to pay the income tax to both the host-country and home-country governments.
E.The firm pays the expatriate's income tax to the home-country government.
Q:
In the absence of a reciprocal tax treaty, an expatriate:
A.may have to pay income tax to both the home- and host-country governments.
B.may not have to pay any tax.
C.may not have to pay income tax only to the host-country government.
D.may not have to pay income tax to the home-country government.
E.may have to pay 50 percent less tax to the host-country government.
Q:
Which of the following allowances is paid when an expatriate is being sent to a difficult location?
A.Education
B.Housing
C.Hardship
D.Cost of living
E.Reciprocal
Q:
In terms of expatriate pay, which of the following is true of a foreign service premium?
A.It ensures that expatriates' children receive adequate schooling.
B.It helps to evaluate expatriates' performance without any unintentional bias.
C.It ensures that expatriates are prepared for reentry into their home-country organization.
D.It is paid as a percentage of base salary, with 16 percent being the average premium.
E.It allows a firm to pay expatriates' income tax in the host country.
Q:
In terms of expatriate pay, which of the following is a characteristic of a foreign service premium?
A.It allows a firm to pay expatriates' income tax in the host country.
B.It ensures that expatriates' children receive adequate schooling.
C.It helps to evaluate expatriates' performance without any unintentional bias.
D.It ensures that expatriates are prepared for reentry into their home-country organization.
E.It compensates expatriates for having to live in an unfamiliar country.
Q:
Which of the following refers to the extra pay an expatriate receives for working outside his or her country of origin?
A.Parity adjustment
B.Special bonus
C.Foreign service premium
D.Expat allowance
E.Benefit
Q:
Which of the following staffing policies limits a firm's ability to reduce its use of expatriates?
A.Geocentric
B.Polycentric
C.Transnational
D.Regiocentric
E.Neocentric
Q:
In the context of expatriate compensation, what is the role of a balance sheet approach?
A.It equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home.
B.It helps expatriate managers and their families to adjust to the day-to-day life of the host country.
C.It rewards expatriates on the basis of merit and performance.
D.It helps expatriates to come to terms with the standard of living of the host country.
E.It is offered as an inducement to accept foreign postings and live away from family.
Q:
Which of the following is the most common approach to expatriate pay, which equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home?
A.Merit approach
B.Correspondence approach
C.Balance sheet approach
D.Parity approach
E.Perceptual approach
Q:
Which of the following staffing policies is pursued by a firm where considerable resentment is caused among foreign nationals who are members of the international cadre and work with U.S. nationals, if pay is not equalized?
A.Polycentric
B.Geocentric
C.Ethnocentric
D.Regiocentric
E.Localized
Q:
Which of the following staffing policies is concerned with the need for a cadre of international managers that may include many different nationalities?
A.Polycentric
B.Geocentric
C.Ethnocentric
D.Regiocentric
E.Localized