International Business MKTG 317 Quizzes (1 - 5) | Questions and Answers

International Business MKTG 317 Quizzes (1 - 5) | Questions and Answers Quiz 1 A _______economy follows the principles of collectivism as resources are allocated based on "the common good" Command Corinne has analysed the overall attractiveness of doing business with three possible countries and has determined that country A is the best choice based on the potential for huge economic growth that should occur there because of recent advances in technology. Which factor of overall attractiveness is Corinne basing her decision on? Benefits What is an accurate description of how the political economy of many of the world’s nation-states has changed radically since the late 1980s? There had been a move away from centrally planned and mixed economies and toward a more free market economic model Julie asked her assistant to determine the gross national income of three different countries by evaluating the GNI against the cost of living in the United States. What Measure is Julie asking her assistant to use? Purchasing power parity TimeForce, a U.S. based company is planning to expand operations to a foreign country. Considering the factors that make a country attractive as a place in which to do business, which country should TimeForce consider entry? Country D, which has Democratic institutions and a market-based economic system As a judge in France, Maurice is not allowed to interpret the law but relies on a strict set of codes to determine the outcome of a case, Which type of law is in place in France? Civil Law System A country that has _____ lowers the risk of doing business in that country The presence of a strong legal system James is the warehouse supply manager for a major tool corporation. It is his job to take inventory of the tools the company has available and send orders to make more tools when supplies run low. The supply and demand form of production is and example of a ____ economy. Market A country that has lax intellectual property laws will find that .... Firms will be reluctant to enter into such a country The spreed of democracy among countries is most likely to lead to .... The promotion of greater competition Quiz 2 Which of these is not used to determine culture? Geography Which of the following Best increases a country's competitive advantage and its attractiveness as a location for international business? education system that is well developed Within the context of the individual as the basic unit of a social organization, what is an implication of the emphasis on individualism in many Western societies? High degree of managerial mobility between companies Which of the following statements is true with regard to Geert Hofstede's cultural dimensions? Members of high uncertainty avoidance cultures have a strong need for rules and regulations In the Republic of Nabu, natives are resistant to change and do not like to take risks. They value job security and retirement benefits. In addition, they have a strong need for rules and regulations. Based on this information, the Republic of Nabu demonstrates which cultural dimension by Hofstede? High uncertainty avoidance MaryAnn is always late to meetings and she knows she needs to be better about being on time because it is expected by almost everyone living in the United States. This attitude toward time is an example of a .... folkway Folkways are the routine conventions of everyday life. Generally, folkways are actions of little moral significance. Rather, they are social conventions concerning things such as the appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like. Although folkways define the way people are expected to behave, violation of them is not normally a serious matter The social rules and guidelines that prescribe appropriate behavior in particular situations are called Norms Jason runs a manufacturing company. He hires five people based on their physical abilities because they are to lift heavy boxes in the stockroom and 2 people based who are able to strategically plan the company's next steps. Jason realizes that people are not equal in physical and intellectual capabilities, an aspect of which cultural dimension identified by Hofstede? power distance Intelligent Tool Corp. is planning to set up a production plant abroad. It has selected potential countries based on their population size, stage of economic development, labor costs, and access to world markets. Consider the connection between culture and competitive advantage, which of the following countries would be the best investment site for Intellectual Toll Corp? Country B - where education is well-developed and social stratification is lacking Which scenario best represents a mores violation? Bribing a government official in a country where bribery is illegal Quiz 3 Assume that the exchange rate between the euro and the dollar is E1.00 = $1.50. An American tourist in Germany is buying a product whose price is E80. How much in U.S. dollars would the tourist have to pay to buy the product? $120 Explanation E80 x $1.50 Jacob is the chief financial officer for RinseAll Detergent products. His company is interested in investing in a facility in Indonesia, but he is worried about unpredictable fluctuations in future exchange rates, which could cost his company millions of dollars. One way to ensure against this exchange risk is for Jacob to use ..... Hedging The rate at which a foreign exchange dealer converts one currency into another currency on a particular day is the ... spot exchange rate ..... occurs when two parties agree to exchange currency and execute the deal at some specific date in the future. A forward exchange Assume that the exchange rate between the U.S. dollar and the Japanese yen is $1 = Y150. A book that retails for $10 in New York should sell for Y1,500 in Tokyo, if there are no trade barriers and transportation costs, according to the ..... law of one price According to the ...., for any two countries, the spot exchange rate should change in an equal amount but in the opposite direction to the difference in nominal interest rates between the two countries. International Fisher effect An American company sold heavy building materials to the government of Taiwan. Instead of receiving U.S. dollars, the company agreed to take payment in the form of Taiwanese goods. This is an example of .... Countertrade The extent to which a firm;s future international earning power is affected by changes in exchange rates is know as ... Economic exposure