MGT 448 Final Exam / 100% correct answers

profileindigo11
 (Not rated)
 (Not rated)
Chat


1.    While workers in manufacturing industries are considered to be vulnerable to the negative effects of globalization, workers in service industries are relatively secure.
a.    True
b.    False

2.    Which of the following was set up to promote economic development globally?
a.    World Bank
b.    International Monetary Fund
c.    United Nations
d.    World Trade Organization

3.    Companies hope to lower their overall cost structure or improve the quality or functionality of their product offering which allows them to compete more effectively by engaging in
a.    predatory pricing practices.
b.    outsourcing of core functions.
c.    dumping.
d.    globalization of production.

4.    In the early 20th century, the social ideology split into two broad categories – communism and social democracy – both of which were still going strong at the beginning of the 21st century
a.    True
b.    False

5.    Political systems can be assessed according to two dimensions. Which of the following is one among them?
a.    The degree to which they are socialist or capitalist.
b.    The degree to which they are democratic or totalitarian.
c.    The degree to which they are based on religious principles.
d.    The power orientation of the society.

6.    Individualism lays emphasis on the importance of guaranteeing individual freedom and self expression
a.    by letting some collective body dictate what is in the society's best interest.
b.      by viewing the needs of society as a whole.
c.      by restricting anything that runs counter to "the good of society."
d.      by letting people pursue their own economic self-interest.

7.    Norms are abstract ideas about what a group believes to be good, right, and desirable.
a.    True
b.    False

8.    _____ are the routine conventions of everyday life
b.    Values
b.    Folkways
c.    Culture
d.    Mores



9.    Norms are?
a.    abstract ideas about what a group believes to be good, right, and desirable.
b.    social rules and guidelines that prescribe appropriate behavior in particular situations.
c.    routine conventions of everyday life.
d.    an association of two or more individuals who have a shared sense of identity.

10.    There may be benefits to trade even for products a country can produce for itself.
a.    True
b.    False

11. When a country is more efficient than any other country in producing a particular product it is said to have
a.    an absolute advantage.
b.    mobile resources.
c.    a comparative advantage.
d.    diminishing returns.

12. Which of the following theories stresses that some countries specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can support only a limited number of firms?
a.    New trade.
b.    Trade bloc
c.    Free trade
d.    Balance of trade

13. Both government and consumers realize significant gains as a result of tariffs, while domestic producers typically see a negative effect.
a.    True
b.    False

14. This is a quota on trade imposed by the exporting country at the request of the importing country's government.
a. Tariff rate quota.
b. Quota rent.
c.    Voluntary export restraint.
d.    Embargo.

15. How does a subsidy influence international trade?   
a.    By competing against foreign imports.
b.    By favoring consumers.
c.    By requiring that some specific fraction of a good be produced domestically.
d.    By imposing a quota on trade at the request of the importing country's government.

16. FDI flows were steadily increasing from 1975 to 2000, but have been decreasing ever since.
a.    True.
b.    False.

17. All of the following are reasons why firms prefer to acquire existing assets rather than undertake greenfield investments EXCEPT
a.    mergers and acquisitions are quicker to execute than greenfield investments.
b.    foreign firms are acquired because those firms have valuable strategic assets.
c.    they believe they can increase the efficiency of the acquired unit by transferring capital, technology, or management skills.
d.    there is evidence that most mergers and acquisitions realize more than anticipated gains.

18. Which of the following is NOT a factor that drives the shift to services in recent times?
a.    Reflects the general move in many developed economies away from manufacturing and toward service industries.
b.    Many services can be traded internationally.
c.    Many countries have liberalized their regimes governing FDI in services.
d.    Rise of Internet-based global telecommunications networks has allowed some service enterprises to relocate some of their value-creation activities to different nations.

19. The Single European Act committed EU countries to adopt a single currency, the euro.
a.    True
b.    False

20. The level of economic integration is highest in a
a.    common market.
b.    political union.
c.    customs union.
d.    free trade area.

21. An economic union involves all of the following EXCEPT   
a.    free flow of products and factors of production between member countries.
b.    the adoption of a common external trade policy.
c.    a central political apparatus which coordinates the economic, social, and foreign policy of the member states.
d.    harmonization of members' tax rates, and a common monetary and fiscal policy.

22. Exchange rates are determined by the demand and supply of one currency relative to the demand and supply of another.
a.    True.
b.    False.

23. This involves the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates.   
a.    Liquidity risk
b.    Exchange rate
c.    Currency speculation
d.    Risk mitigation

24. Amber, a French distillery exports its whisky to the U.S. The distillery is paid in dollars, but it cannot be spent in France until they are converted to Francs. So the foreign exchange market is used by this business to
a.    pay a foreign company for its products or services in its country currency.
b.    invest their spare cash for short terms in money markets.
c.    convert payment it receives from its exports or foreign investments into home currency.
d.    speculate on currency.

25. It is impossible for "late movers" to compete once the early entrants have become well established.
a.    true
b.    false





26. Choosing which markets to enter depends on all of the following factors EXCEPT
a.    the size of the market.
b.    the value an international business can first create in its home market.
c.    the future wealth of consumers.
d.    the political climate of that region.

27. Which among the following is a first-mover advantage?       
a.    Ability to create switching costs that tie customers into their products or services.
b.    Ability to avoid the often substantial costs of establishing manufacturing operations in the host country.
c.    Ability to avoid incurring pioneering costs.
d.    Ability to side-step regulatory risks, especially in developing countries.

28. Issued by the importer, the letter of credit represents a promise of payment.
a.    True
b.    False

29. Which of the following is true of reactive firms?       
a.    They may not even consider exporting until their domestic market is saturated.
b.    They create excess productive capacity and actively hunt for opportunities in foreign markets.
c.    Almost all large firms fall under this category.
d.    They systematically scan foreign markets for profitable export opportunities.

30. Which of the following helps explain why exporters still account for only a tiny percentage of U.S. firms?
a.    Tariffs; FDI restrictions
b.    Lack of export opportunities; buoyant demand within U.S.
c.    Unfamiliarity; intimidation by the complexities
d.    Regulatory burden; barriers to free trade

31. Source effects and country of origin effects always have a negative impact on the firm.
a.    True
b.    False

32. This refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.
a.    Marketing mix
b.    Market distribution
c.    Market segmentation
d.    Market niche

33. According to the text, this is probably the most important aspect of cultural differences in a global market.
a.    Impact of tradition.
b.    Impact of class systems.
c.    Impact of social structure.
d.    Impact of education.

34. Problems of limited liquidity are limited to less developed nations, which tend to have smaller domestic capital markets.
a.    True.
b.    False.




35. Which of the following capital market players typically earn profits from the interest rate spread?
a.    Investment banks
b.    Commercial banks
c.    Insurance companies
d.    Mutual funds

36. Which of the following observations is true of an equity loan?
a.    Repayment is made at regular intervals regardless of how much profit a firm is making.
b.    The amount of the dividends is fixed in advance.
c.    Dividends are determined by management.
d.    It includes cash loans from banks and funds raised from the sale of corporate bonds.

37. The return that a firm makes on its invested capital is its profitability.       
a.    True
b.    False

38. What is profitability?
a.    Increase in a firm's sales over a period of time.
b.    Rate of return that the firm makes on its invested capital.
c.    Percentage increase in net profits over time.
d.    Value of product to an average consumer.

39. This focuses primarily on increasing the attractiveness of a product.   
a.    Low-cost strategy
b.    Positioning
c.    Differentiation strategy
d.    Resource allocation

40. Management decisions on where to locate an operation or facility can include considerations in political economy and national culture, but international trade theory is usually beside the point.
a.    True
b.    False

41. What are the three characteristics of manufacturing technology that are pivotal to location decisions?
a.    minimum efficient scale; level of fixed costs; flexibility of technology.
b.    level of fixed costs; economies of scope; exchange rate movements.
c.    informal trade barriers; flexibility of technology; level of variable costs.
d.    flexibility of technology; level of variable costs; exchange rate movements.

42. Which of the following statements about Six Sigma is true?
a.    It is a statistically based philosophy.
b.    It is easily possible for a company to achieve Six Sigma perfection.
c.    At six sigma, a production process will have 66 defects per million units.
d.    At six sigma, a production process would be 100 percent accurate.

43. Failure rates for American expatriates sent to developing countries run as high as 70 percent
a.    True
b.    False





44. Identify a reason for the firm to pursue an ethnocentric staffing policy.
a.    It believes the host country lacks qualified individuals to fill senior management positions.
b.    It is less expensive to implement.
c.    It is less likely to suffer from cultural myopia.
d.    It enables the firm to make the best use of its human resources.

45. All of the following are functions of HRM EXCEPT
a.    staffing.
b.    performance appraisal activities.
c.    culture.
d.    basic R&D.

46. When evaluating foreign investment opportunities, the parent should be concerned with its cash flows, not those of the subsidiaries or projects.
a.    True
b.    False

47. This quantifies the benefits, costs, and risks of an investment from a given location.
a.    Capital budgeting
b.    Flexible budgeting
c.    Working capital
d.    Operations budgeting

48. Identify the incorrect statement regarding cash flows that a firm must estimate, to decide if it should go ahead with a project.
a.    In most cases, the cash flows will be negative at first, because the firm will be investing heavily in production facilities.
b.    Once the cash flows have been estimated, they must be discounted to determine their net present value using an appropriate discount rate.
c.    After some initial period the cash flows becomes positive as investment costs decline and revenues grow.
d.    If the net present value of the discounted cash flows is less than zero, the firm should go ahead with the project.

49. The Foreign Corrupt Practices Act was ultimately proved to be disadvantageous to American firms.
a.    True
b.    False

50. Which of the following is NOT a source for ethical concern for international businesses?
a.    Employment practices
b.    Human rights
c.    Environmental pollution
d.    Currency movements

51. Which of the following observations is true of "facilitating payments?"
a.    They are also known as bribes.
b.    They are payments to secure contracts that would not otherwise be secured.
c.    They are the payments to obtain exclusive preferential treatment.
d.    They are sometimes known as speed money or grease payments..



52. Companies with a low degree of diversification and a domestic structure based on functions tend to favor the worldwide area structure.
a.    True
b.    False

53. This stands for the totality of a firm's organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people.
a.    Organizational architecture
b.    Control systems
c.    Organizational culture
d.    Processes

54. Which of the following is one of the main arguments for decentralization of an organization?
a.    It can help ensure that decisions are consistent with organizational objectives.
b.    It can facilitate coordination.
c.    It can give top-level managers the means to bring about needed major organizational changes.
d.    It permits greater flexibility.





    • 10 years ago
    MGT 448 Final Exam / 100% correct answers

    Purchase the answer to view it

    blurred-text
    • attachment
      mgt_448_final_exam.doc