TEST BANK and SOLUTION MANUAL For International
Business 3rd Edition by Michael Geringer, Jeanne
McNett
Morning Fresh Skin Care, a U.S.-based beauty products manufacturer, has set up a
manufacturing plant in Hong Kong. This is an example of - ANSWER: foreign direct
investment.
Monique, a French fashion designer, sells her merchandise by exporting it to retail
stores in the United States, United Kingdom, and Brazil. According to this
information, Monique is participating in - ANSWER: international trade.
The range of problems that a manager in an international business faces is typically
more complex than those faced by a manager in a domestic business. - ANSWER:
TRUE
Which statement best supports the claim that greater uniformity replaces diversity
in the context of global markets? - ANSWER: 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 some homogeneity across
markets.
The lowering of trade and investment barriers creates fewer opportunities for
companies to have the world as their market. - ANSWER: FALSE
Tomorrow's Tech Inc., a U.S.-based company, has productive activities in more than
two countries. Tomorrow's Tech is what type of enterprise? - ANSWER: multinational
Which statement reflects the changing demographics of the global economy? -
ANSWER: U.S. dominance in export markets has waned as Japan, Germany, and a
number of newly industrialized countries have taken a larger share of world exports.
Containerization has revolutionized the transportation business, significantly
lowering the costs of shipping goods over long distances. - ANSWER: TRUE
Sanjay purchased a computer for $500 in 2018. Compared to the $900 computer
that he purchased in 2011, the new one seems better in terms of the price he has
paid and the power of the microprocessor technology. This is best explained by -
ANSWER: Moore's Law
, Ivory Piano is headquartered in Michigan and has production plants in Mexico and
Indonesia. Ivory Piano is an example of - ANSWER: a multinational enterprise.
One criticism of globalization is that falling trade barriers encourage companies to
locate manufacturing activities in another country to take advantage of lower wage
rates. - ANSWER: TRUE
As a result of globalization, international businesses can avoid the haggle of currency
exchanges during cross-border transactions. - ANSWER: FALSE
While he was shopping for new clothes, Sanjay noticed there was a sale on shirts by
Tommy Hilfiger. The Tommy Hilfiger name is an officially registered __________ in
menswear clothing. - ANSWER: Trademark
On an island nation, citizens are restricted in how much land they can own if it
creates opposition to the rule of the "common good." What is the political system of
the island based on? - ANSWER: Collectivism
After the collapse of communism in Russia, successful business owners often had to
pay "protection money" to the mafia or face violent retribution. In the context of
property rights, the behavior of the mafia is an example of - ANSWER: Private Action
Shondra Watson, a U.S.-based business executive, paid the equivalent of $30 to an
official of a European country to expedite the overnight delivery of critical
documents necessary to expedite a work permit. When questioned, Shondra claimed
this was a way to facilitate the performance of an obligation that was already agreed
upon. The $30 is an example of - ANSWER: a grease payment.
Jeremy invented a portable blood pressure machine that has generated some
interest from major medical supply retailers. Before he agrees to work with the
retailers, he wants to protect his invention so it is his sole property to manufacture
and sell. What does Jeremy need to help him do this? - ANSWER: Patent
Big Top Boxes has developed a new type of recycled packaging. Which type of legal
protections can grant the company exclusive rights for a defined period to the
manufacture, use, or sale of the new packaging? - ANSWER: Patent
A European government took Scottish Alliance, a domestic energy firm, into state
ownership to save the company from bankruptcy. However, the other private
competitors in the energy industry were enraged by this decision. As a result, the
government had to reduce the tax burden on all private energy firms so that both
the state-owned enterprise and private firms could coexist. What type of economy
does this portray? - ANSWER: Mixed
Nolan is a lawyer representing Killian Auto Group in a lawsuit. During the trial, Nolan
referred to a court case from twenty years ago and asked the witness if she felt
Killian Auto Group had acted in a similar manner as the company in the previous
Business 3rd Edition by Michael Geringer, Jeanne
McNett
Morning Fresh Skin Care, a U.S.-based beauty products manufacturer, has set up a
manufacturing plant in Hong Kong. This is an example of - ANSWER: foreign direct
investment.
Monique, a French fashion designer, sells her merchandise by exporting it to retail
stores in the United States, United Kingdom, and Brazil. According to this
information, Monique is participating in - ANSWER: international trade.
The range of problems that a manager in an international business faces is typically
more complex than those faced by a manager in a domestic business. - ANSWER:
TRUE
Which statement best supports the claim that greater uniformity replaces diversity
in the context of global markets? - ANSWER: 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 some homogeneity across
markets.
The lowering of trade and investment barriers creates fewer opportunities for
companies to have the world as their market. - ANSWER: FALSE
Tomorrow's Tech Inc., a U.S.-based company, has productive activities in more than
two countries. Tomorrow's Tech is what type of enterprise? - ANSWER: multinational
Which statement reflects the changing demographics of the global economy? -
ANSWER: U.S. dominance in export markets has waned as Japan, Germany, and a
number of newly industrialized countries have taken a larger share of world exports.
Containerization has revolutionized the transportation business, significantly
lowering the costs of shipping goods over long distances. - ANSWER: TRUE
Sanjay purchased a computer for $500 in 2018. Compared to the $900 computer
that he purchased in 2011, the new one seems better in terms of the price he has
paid and the power of the microprocessor technology. This is best explained by -
ANSWER: Moore's Law
, Ivory Piano is headquartered in Michigan and has production plants in Mexico and
Indonesia. Ivory Piano is an example of - ANSWER: a multinational enterprise.
One criticism of globalization is that falling trade barriers encourage companies to
locate manufacturing activities in another country to take advantage of lower wage
rates. - ANSWER: TRUE
As a result of globalization, international businesses can avoid the haggle of currency
exchanges during cross-border transactions. - ANSWER: FALSE
While he was shopping for new clothes, Sanjay noticed there was a sale on shirts by
Tommy Hilfiger. The Tommy Hilfiger name is an officially registered __________ in
menswear clothing. - ANSWER: Trademark
On an island nation, citizens are restricted in how much land they can own if it
creates opposition to the rule of the "common good." What is the political system of
the island based on? - ANSWER: Collectivism
After the collapse of communism in Russia, successful business owners often had to
pay "protection money" to the mafia or face violent retribution. In the context of
property rights, the behavior of the mafia is an example of - ANSWER: Private Action
Shondra Watson, a U.S.-based business executive, paid the equivalent of $30 to an
official of a European country to expedite the overnight delivery of critical
documents necessary to expedite a work permit. When questioned, Shondra claimed
this was a way to facilitate the performance of an obligation that was already agreed
upon. The $30 is an example of - ANSWER: a grease payment.
Jeremy invented a portable blood pressure machine that has generated some
interest from major medical supply retailers. Before he agrees to work with the
retailers, he wants to protect his invention so it is his sole property to manufacture
and sell. What does Jeremy need to help him do this? - ANSWER: Patent
Big Top Boxes has developed a new type of recycled packaging. Which type of legal
protections can grant the company exclusive rights for a defined period to the
manufacture, use, or sale of the new packaging? - ANSWER: Patent
A European government took Scottish Alliance, a domestic energy firm, into state
ownership to save the company from bankruptcy. However, the other private
competitors in the energy industry were enraged by this decision. As a result, the
government had to reduce the tax burden on all private energy firms so that both
the state-owned enterprise and private firms could coexist. What type of economy
does this portray? - ANSWER: Mixed
Nolan is a lawyer representing Killian Auto Group in a lawsuit. During the trial, Nolan
referred to a court case from twenty years ago and asked the witness if she felt
Killian Auto Group had acted in a similar manner as the company in the previous
