INTB 200 Test 2 questions solutions

INTB 200 Practice test #2 m , m , m , m ,




1. What is a characteristic of an ethnocentric staffing policy?
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It requires host-country nationals to be recruited to manage subsidiaries. It is
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used when a firm places a low value on its corporate culture.
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It increases advancement opportunities for host-country nationals.
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Itseeks the best people for keyjobs throughout the organization,regardless of
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nationality.
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It places parent-country nationals in key management positions.: It places
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parent-country nationals in key management positions.
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2. Tri-StarTechnologiesInc.hasmanufacturingunitsinCanada.Thecountry's m
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stable economic and political environment helps the firm gain competitive
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advantagebyloweringproductioncostsandimprovingproductquality.Other
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thingsbeingequal,thebenefitsrealizedfromsuchastrategycanbetypically
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referred to as ...
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economiesofscope. m
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location economies.
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aproductionpossibilityfrontier.
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factor endowments.
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logistics economies.: location economies m , m , m ,




3. One argument in favor of standardized advertising is that
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consumer tastes and preferences are universal. m, m, m, m, m,




amessagethatworksinonenationwillinvariablyworkineveryothercountry.
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advertising regulations always support standardized advertising.
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it spreads the cost of developing advertising over many countries.
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the costs of value creation maybe increased bystandardized advertising.:it spreads
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mthe cost of developing advertising over many countries.
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4. Howdoesacountrythatintroducesacurrencyboardmakeitscommitment to
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converting its domestic currency on demand into another currency at a fixed
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exchange rate credible?
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borrowingfunds from the International MonetaryFund and theWorld Bank m
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maintaining a trade surplus with foreign countries
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holding foreign currencyreserves equal at the fixedexchange rate toatleast 100
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percent of the domestic currency issued
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importing more goods from foreign countries than it exports m, m, m, m, m, m, m, m,




printing foreign currencies: holding foreign currency reserves equal at the fixed
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exchange rate to at least 100 percent of the domestic currency issued
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, INTB 200 Practice test #2 m , m , m , m ,




5. A U.S.-based company set up operations in Indonesia and determined that
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there wasn't a qualified applicant pool in Jakarta to fill its senior management
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positions.What staffing policy will the company most likely follow?
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eurocentric
ethnocentric
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polycentric
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geocentric
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transnational:ethnocentric m
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6. According to the U.S.Department of Commerce,what occurs whenever a m, m, m, m
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U.S.citizen,organization,oraffiliatedgrouptakesaninterestof10percentor more
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a foreign business entity?
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multilateral investment m,




foreigndirectinvestment
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privatization
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an absolute advantage
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isolationism: foreign direct investment m , m , m ,




7. In terms of the gold standard,gold par value referred to
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the ability of a nation to exchange gold for imported goods. pegging
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currencies to something other than gold,such as goods. the amount of
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gold a government had to maintain in its reserves. the amount of
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currency needed to purchase one ounce of gold.
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thenetworthof goldwhenused fortrade.:the amount of currency needed to purchase
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mone ounce of gold.
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8. Manyelderlytravelers and those travelers withcertainphysical disabilities are
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unable to climb stairs to motel rooms that are not on the first floor.The Walk Right
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Inn has catered tothis specific group ofcustomers via its motels, all of which have
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one floor of rooms with no stairs to climb.What didWalk Right Inn use to identify
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these distinct groups of consumers whose needs, wants, and purchasing
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behavior differ from others in important ways?
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market penetration m,




market development
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marketsegmentation
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product development
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diversification: market segmentation m , m ,

, INTB 200 Practice test #2 m , m , m , m ,




9. Under the Bretton Woods agreement, only the m, m, m, m, m, m, m, wasconvertible m
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into gold.
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dollar
yuan
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euro
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pound
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dinar:dollar m
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10. The nominal interest rate is 9 percent in Brazil and 6 percent in Japan.
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Applying the international Fisher effect, the Brazilian real should
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appreciate by 3 percent against the Japanese yen. m, m, m, m, m, m, m,




depreciate by 3 percent against the Japanese yen.
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appreciate by1.5percentagainsttheJapanese yen.
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depreciate by 1.5 percent against the Japanese yen.
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appreciateby15percentagainsttheJapaneseyen.:depreciateby3percent against m
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mthe Japanese yen.
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11. What must occur for a firm to ensure profitable price discrimination? m, m, m, m, m, m, m, m, m, m,




The firm must sell a standardized product.
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The firm must be able to keep its national markets separate.
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Thefirmmustencourageotherfirmsandcompetitorstoengageinarbitration.
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Products sold by the firm must have same price elasticities of demand in
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different countries.
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Products must be sold in countries where a small change in prices produces a m, m, m, m, m, m, m, m, m, m, m, m, m,




large change in demand.: The firm must be able to keep its national markets separate
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12. A country in South America allows its currency to nominally float freely
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against other currencies, but the government has the right to intervene if
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it believes that the currency has deviated too far from its fair value.In this
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country, the value of currency is determined based on a
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system.
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fixed
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pegged
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dirty
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capital:dirty m
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