INTB 200 TEST 2 QUESTIONS & ANSWERS
E) It places parent-country nationals in key management positions. - Answers -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.
B) location economies. - Answers -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.
D) it spreads the cost of developing advertising over many countries. - Answers -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.
C) holding foreign currency reserves equal at the fixed exchange rate to at least 100
percent of the domestic currency issued - Answers -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
,B) foreign direct investment - Answers -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) ethnocentric - Answers -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
D) the amount of currency needed to purchase one ounce of gold. - Answers -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.
A) dollar - Answers -Under the Bretton Woods agreement, only the __________ was
convertible into gold.
A) dollar
B) yuan
C) euro
D) pound
E) dinar
C) market segmentation - Answers -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
B) depreciate by 3 percent against the Japanese yen. - Answers -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.
B) The firm must be able to keep its national markets separate. - Answers -What must
occur for a firm to ensure profitable price discrimination?
A) The firm must sell a standardized product.
B) The firm must be able to keep its national markets separate.
C) The firm must encourage other firms and competitors to engage in arbitration.
D) Products sold by the firm must have same price elasticities of demand in different
countries.
E) Products must be sold in countries where a small change in prices produces a large
change in demand.
D) dirty - Answers -A country in South America allows its currency to nominally float
freely against other currencies, but the government has the right to intervene if it
believes that the currency has deviated too far from its fair value. In this country, the
value of currency is determined based on a __________ float system.
A) fixed
B) clean
C) pegged
D) dirty
E) capital
A) channel length. - Answers -The number of intermediaries between the product (or
manufacturer) and the consumer is referred to as:
A) channel length.
B) channel quality.
C) channel exclusivity.
D) channel fragmentation.
E) channel concentration.
E) It places parent-country nationals in key management positions. - Answers -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.
B) location economies. - Answers -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.
D) it spreads the cost of developing advertising over many countries. - Answers -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.
C) holding foreign currency reserves equal at the fixed exchange rate to at least 100
percent of the domestic currency issued - Answers -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
,B) foreign direct investment - Answers -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) ethnocentric - Answers -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
D) the amount of currency needed to purchase one ounce of gold. - Answers -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.
A) dollar - Answers -Under the Bretton Woods agreement, only the __________ was
convertible into gold.
A) dollar
B) yuan
C) euro
D) pound
E) dinar
C) market segmentation - Answers -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
B) depreciate by 3 percent against the Japanese yen. - Answers -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.
B) The firm must be able to keep its national markets separate. - Answers -What must
occur for a firm to ensure profitable price discrimination?
A) The firm must sell a standardized product.
B) The firm must be able to keep its national markets separate.
C) The firm must encourage other firms and competitors to engage in arbitration.
D) Products sold by the firm must have same price elasticities of demand in different
countries.
E) Products must be sold in countries where a small change in prices produces a large
change in demand.
D) dirty - Answers -A country in South America allows its currency to nominally float
freely against other currencies, but the government has the right to intervene if it
believes that the currency has deviated too far from its fair value. In this country, the
value of currency is determined based on a __________ float system.
A) fixed
B) clean
C) pegged
D) dirty
E) capital
A) channel length. - Answers -The number of intermediaries between the product (or
manufacturer) and the consumer is referred to as:
A) channel length.
B) channel quality.
C) channel exclusivity.
D) channel fragmentation.
E) channel concentration.
