Exam 2 Flashcards Preview

International Business & Society > Exam 2 > Flashcards

Flashcards in Exam 2 Deck (40)
Loading flashcards...
1

Phillip is an international business manager with Corbin Manufacturing. Which of the following serves as an external influence on the business decisions that Phillip makes?

A) production plant locations
B) host country monetary policy
C) supply chain linkages
D) product design standards

B) host country monetary policy

2

________ is the framework that managers apply to determine the competitive moves and business approaches that run the company.

A) Competition
B) Growth
C) Strategy
D) Vision

C) Strategy

3

The integration-responsiveness (IR) expresses how a company's ________ is a
function of the relationship between its value chain and the prevailing pressures for global integration or local responsiveness in its industry.

A) value proposition
B) target market
C) mission
D) strategy

D) strategy

4

Which force in Toyota's immediate environment would most likely have the greatest impact on its strategy?

A) interest rate trends
B) technology developments
C) shifts in U.S. political attitudes
D) actions taken by Honda and Mercedes Benz

D) actions taken by Honda and Mercedes Benz

5

The Industry Organization (IO) paradigm assumes which of the following?

A) stable political and cultural trends
B) shifting foreign exchange rates
C) perfect competition
D) unequal value

C) perfect competition

6

Perfect competition presumes?

- many buyers and sellers, such that no individual agent determines price or quantity
- perfect information for both producers and consumers
- few, if any, barriers to market entry and exit
- full mobility of resources
- perfect knowledge among firms and buyers

7

International managers most likely need to understand how to evaluate international geographic alternatives because ________.

A) they usually have a surplus of resources and need to take advantage of all opportunities
B) many regional trading groups prohibit companies from outside of the trading group from manufacturing in more than one member country
C) the commitment of resources to one locale may require forgoing projects in other locales
D) decreased worldwide transportation costs and increased trade liberalization now allow companies to serve worldwide markets from a single production location

C) the commitment of resources to one locale may require forgoing projects in other locales

8

A company’s overall geographic strategy should be flexible enough to ________

A) implement concentration strategies instead of diversification strategies
B) respond to new opportunities and withdraw from less profitable ones
C) import from anywhere in the world to a single production location
D) export anywhere in the world from a single production location

B) respond to new opportunities and withdraw from less profitable ones

9

When planning international geographic expansion, decision makers use scanning to reduce the number of options available to a manageable number for further detailed analysis.
T/F?

True

10

In a diversification strategy for international expansion, a company would move ________.

A) rapidly into many foreign countries, and then gradually increase its presence in those countries
B) rapidly into a few foreign countries with many of its products and most of its resources
C) into one foreign country and fully expand its product lines in that country before moving to another country
D) move quickly into a regional foreign market but build up its resources in only a few of the countries in the region

A) rapidly into many foreign countries, and then gradually increase its presence in those countries

11

Companies are likely to export products abroad in all of the following situations EXCEPT which one?

A) when their average cost per unit of home country production declines substantially by increasing output
B) when they want to use the riskiest but most profitable method to engage international trade
C) when they aim to increase degree of market diversification
D) when they are new to international business

B) when they want to use the riskiest but most profitable method to engage international trade

12

Which of the following transactions refers to the sale of goods or services produced by a company based in one country to customers that reside in a different country?

A) importing
B) countertrading
C) exporting
D) freight forwarding

C) exporting

13

Which of the following transactions refers to the purchase of goods or services produced by a company based in one country from sellers that reside in a different country?

A) importing
B) countertrading
C) exporting
D) freight forwarding

A) importing

14

Which of the following is NOT an example of a service export?

A) a management firm providing advice to a foreign client
B) an investment bank arranging financing for a foreign firm
C) a coffee chain opening a new store in a foreign country
D) an engineering firm building roads in a foreign country

C) a coffee chain opening a new store in a foreign country

15

The benefits of retaining a core competency within a company and purposefully threading that core competency through the value chain are referred to as ________ advantages.

A) internalization
B) domestic
C) location
D) ownership

A) internalization

16


Products that have to be altered significantly for a country’s market are more likely to be _____________________

A) imported into that market
B) licensed to a foreign firm
C) produced within that country
D) test-marketed in the home country

C) produced within that country

17

The benefits of retaining a core competency within a company and purposefully threading that core competency through the value chain are referred to as ________ advantages.

A) internalization
B) domestic
C) location
D) ownership

A) internalization

18

Its internalization will most likely lead to cost savings because the firm can avoid ________.

A) costly customs brokers
B) high, fixed start-up costs
C) the costs of enforcing an agreement
D) sharing profits

C) the costs of enforcing an agreement

19

Appropriability theory refers to ________.

A) denying rivals access to competitive resources such as management know-how
B) categorizing the appropriateness of a firm's foreign investments in terms of host country objectives
C) explaining an investing firm's choice of partner in a joint venture
D) predicting the general pattern of direct investment locations

A) denying rivals access to competitive resources such as management know-how

20

Historically, managers built organization focused on a(n)______structure.

A) Formal
B) Innovative
C) Collaborative
D) Flexible

A) Formal

21

Downsizing and delayering are two ways the companies have ______

A) Solidified the social contract between employee and company
B) Followed the example of the internet as a design standard
C) Restructured their workplace organizations
D) Formalized their workplace organizations

C) Restructured their workplace organizations

22

The degree of ______ in a company determines where it has opted to assign decision making authority within the context of its organization structure.

A) Systemic differentiation
B) Horizontal differentiation
C) Schematic differentiation
D) Vertical differentiation

D) Vertical differentiation

23

The ________ the level of the company at which managers make decisions, the more that organization is ________.

A) higher; decentralized
B) lower; centralized
C) higher; centralized
D) higher; unstructured

C) higher; centralized

24

Which term refers to the network that links together the different aspects of the value chain and coordinates materials, information, and funds from the initial raw-material supplier to the ultimate customer?

A) logistics strategy information system
B) materials management device
C) customer service
D) supply chain

D) supply chain

25

Jordan, a manager at an MNE, is responsible for supervising the transportation and storage of materials and final goods. Jordan is most likely a manager involved with ________.

A) quality control
B) offshoring
C) logistics
D) inventory management

C) logistics

26

Inbound logistics is also known as ________.

A) internal logistics
B) materials management
C) the internal supply chain
D) value-added management

B) materials management

27

Which of the following best describes a major difference between supply chain management and logistics?

A) Supply chain management involves handling suppliers and customers.
B) Logistics involves longer distances and international distribution networks.
C) Supply chain management focuses on transportation and the storage of goods.
D) Logistics only encompasses the outbound flow of products and materials.

A) Supply chain management involves handling suppliers and customers.

28

The long-term financing dimension of cash management _____________

A) deals with the selection, issuance, and management of long-term debt and equity
B) is unaffected by currency changes because everyone borrows in U.S. dollars
C) focuses on the analysis of investment opportunities
D) is independent of the capital structure of an MNE

A) deals with the selection, issuance, and management of long-term debt and equity

29

The financial management activity that determines the proper mix of debt and equity is ________.

A) capital structure
B) long-term financing
C) capital budgeting
D) working capital management

A) capital structure

30

The CFO’s function in a company focuses on ___________

A) improving distributor relationships
B) acquiring financial resources
C) handling accounting issues
D) creating financial statements

B) acquiring financial resources