Ace INTB 200 Exam 2 – A+ Graded Study Pack
with Definitions, Case Examples & Theories
What is a characteristic of an ethnocentric staffing policy?
A) It requires host-country nationals to be recruited to manage subsidiaries.
B) It is used when a firm places a low value on its corporate culture.
C) It increases advancement opportunities for host-country nationals.
D) It seeks the best people for key jobs throughout the organization, regardless of nationality.
E) It places parent-country nationals in key management positions. - ✔✔E) It places parent-country
nationals in key management positions.
Tri-Star Technologies Inc. has manufacturing units in Canada. The country's stable economic and political
environment helps the firm gain competitive advantage by lowering production costs and improving
product quality. Other things being equal, the benefits realized from such a strategy can be typically
referred to as
A) economies of scope.
B) location economies.
C) a production possibility frontier.
D) factor endowments.
E) logistics economies. - ✔✔B) location economies.
One argument in favor of standardized advertising is that
A) consumer tastes and preferences are universal.
B) a message that works in one nation will invariably work in every other country.
C) advertising regulations always support standardized advertising.
D) it spreads the cost of developing advertising over many countries.
E) the costs of value creation may be increased by standardized advertising. - ✔✔D) it spreads the cost
of developing advertising over many countries.
,How does a country that introduces a currency board make its commitment to converting its domestic
currency on demand into another currency at a fixed exchange rate credible?
A) borrowing funds from the International Monetary Fund and the World Bank
B) maintaining a trade surplus with foreign countries
C) holding foreign currency reserves equal at the fixed exchange rate to at least 100 percent of the
domestic currency issued
D) importing more goods from foreign countries than it exports
E) printing foreign currencies - ✔✔C) holding foreign currency reserves equal at the fixed exchange rate
to at least 100 percent of the domestic currency issued
According to the U.S. Department of Commerce, what occurs whenever a U.S. citizen, organization, or
affiliated group takes an interest of 10 percent or more in a foreign business entity?
A) multilateral investment
B) foreign direct investment
C) privatization
D) an absolute advantage
E) isolationism - ✔✔B) foreign direct investment
A U.S.-based company set up operations in Indonesia and determined that there wasn't a qualified
applicant pool in Jakarta to fill its senior management positions. What staffing policy will the company
most likely follow?
A) eurocentric
B) ethnocentric
C) polycentric
D) geocentric
E) transnational - ✔✔B) ethnocentric
In terms of the gold standard, gold par value referred to
A) the ability of a nation to exchange gold for imported goods.
B) pegging currencies to something other than gold, such as goods.
C) the amount of gold a government had to maintain in its reserves.
, D) the amount of currency needed to purchase one ounce of gold.
E) the net worth of gold when used for trade. - ✔✔D) the amount of currency needed to purchase one
ounce of gold.
Many elderly travelers and those travelers with certain physical disabilities are unable to climb stairs to
motel rooms that are not on the first floor. The Walk Right Inn has catered to this specific group of
customers via its motels, all of which have one floor of rooms with no stairs to climb. What did Walk
Right Inn use to identify these distinct groups of consumers whose needs, wants, and purchasing
behavior differ from others in important ways?
A) market penetration
B) market development
C) market segmentation
D) product development
E) diversification - ✔✔C) market segmentation
Under the Bretton Woods agreement, only the __________ was convertible into gold.
A) dollar
B) yuan
C) euro
D) pound
E) dinar - ✔✔A) dollar
The nominal interest rate is 9 percent in Brazil and 6 percent in Japan. Applying the international Fisher
effect, the Brazilian real should
A) appreciate by 3 percent against the Japanese yen.
B) depreciate by 3 percent against the Japanese yen.
C) appreciate by 1.5 percent against the Japanese yen.
D) depreciate by 1.5 percent against the Japanese yen.
E) appreciate by 15 percent against the Japanese yen. - ✔✔D) depreciate by 1.5 percent against the
Japanese yen.
with Definitions, Case Examples & Theories
What is a characteristic of an ethnocentric staffing policy?
A) It requires host-country nationals to be recruited to manage subsidiaries.
B) It is used when a firm places a low value on its corporate culture.
C) It increases advancement opportunities for host-country nationals.
D) It seeks the best people for key jobs throughout the organization, regardless of nationality.
E) It places parent-country nationals in key management positions. - ✔✔E) It places parent-country
nationals in key management positions.
Tri-Star Technologies Inc. has manufacturing units in Canada. The country's stable economic and political
environment helps the firm gain competitive advantage by lowering production costs and improving
product quality. Other things being equal, the benefits realized from such a strategy can be typically
referred to as
A) economies of scope.
B) location economies.
C) a production possibility frontier.
D) factor endowments.
E) logistics economies. - ✔✔B) location economies.
One argument in favor of standardized advertising is that
A) consumer tastes and preferences are universal.
B) a message that works in one nation will invariably work in every other country.
C) advertising regulations always support standardized advertising.
D) it spreads the cost of developing advertising over many countries.
E) the costs of value creation may be increased by standardized advertising. - ✔✔D) it spreads the cost
of developing advertising over many countries.
,How does a country that introduces a currency board make its commitment to converting its domestic
currency on demand into another currency at a fixed exchange rate credible?
A) borrowing funds from the International Monetary Fund and the World Bank
B) maintaining a trade surplus with foreign countries
C) holding foreign currency reserves equal at the fixed exchange rate to at least 100 percent of the
domestic currency issued
D) importing more goods from foreign countries than it exports
E) printing foreign currencies - ✔✔C) holding foreign currency reserves equal at the fixed exchange rate
to at least 100 percent of the domestic currency issued
According to the U.S. Department of Commerce, what occurs whenever a U.S. citizen, organization, or
affiliated group takes an interest of 10 percent or more in a foreign business entity?
A) multilateral investment
B) foreign direct investment
C) privatization
D) an absolute advantage
E) isolationism - ✔✔B) foreign direct investment
A U.S.-based company set up operations in Indonesia and determined that there wasn't a qualified
applicant pool in Jakarta to fill its senior management positions. What staffing policy will the company
most likely follow?
A) eurocentric
B) ethnocentric
C) polycentric
D) geocentric
E) transnational - ✔✔B) ethnocentric
In terms of the gold standard, gold par value referred to
A) the ability of a nation to exchange gold for imported goods.
B) pegging currencies to something other than gold, such as goods.
C) the amount of gold a government had to maintain in its reserves.
, D) the amount of currency needed to purchase one ounce of gold.
E) the net worth of gold when used for trade. - ✔✔D) the amount of currency needed to purchase one
ounce of gold.
Many elderly travelers and those travelers with certain physical disabilities are unable to climb stairs to
motel rooms that are not on the first floor. The Walk Right Inn has catered to this specific group of
customers via its motels, all of which have one floor of rooms with no stairs to climb. What did Walk
Right Inn use to identify these distinct groups of consumers whose needs, wants, and purchasing
behavior differ from others in important ways?
A) market penetration
B) market development
C) market segmentation
D) product development
E) diversification - ✔✔C) market segmentation
Under the Bretton Woods agreement, only the __________ was convertible into gold.
A) dollar
B) yuan
C) euro
D) pound
E) dinar - ✔✔A) dollar
The nominal interest rate is 9 percent in Brazil and 6 percent in Japan. Applying the international Fisher
effect, the Brazilian real should
A) appreciate by 3 percent against the Japanese yen.
B) depreciate by 3 percent against the Japanese yen.
C) appreciate by 1.5 percent against the Japanese yen.
D) depreciate by 1.5 percent against the Japanese yen.
E) appreciate by 15 percent against the Japanese yen. - ✔✔D) depreciate by 1.5 percent against the
Japanese yen.
