D270 Davis Midterm
________ consists of specific learned norms based on attitudes, values, and beliefs of a
group of people.
A) Ethnology
B) Civilization
C) Culture
D) Doctrine - correct answers--C
________ is the chance that political forces may change a country's business environment
2 2 2 2 2 2 2 2 2 2 2 2
in ways that lead investors to lose some or all of the value of their investment or be forced t
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
o accept a lower-than-projected rate of return.
2 2 2 2 2 2
A) Governmental risk
2 2
B) Operating risk
2 2
C) Transaction risk
2 2
D) Political risk - correct answers--D
2 2 2 2 2
________ peoples account for the largest percentage of global production.
2 2 2 2 2 2 2 2 2
A) English-speaking
2
B) Mandarin-speaking
2
C) French-speaking
2
D) Spanish-speaking - correct answers--A
2 2 2 2
________ political risks arise from political actions, such as public corruption or a partisan j
2 2 2 2 2 2 2 2 2 2 2 2 2 2
udicial system, that interfere with transactions between sellers and buyers and that can sig
2 2 2 2 2 2 2 2 2 2 2 2 2
nificantly raise the costs of getting things done.
2 2 2 2 2 2 2
A) Systemic
2
B) Procedural
2
C) Catastrophic
2
D) Distributive - correct answers--B
2 2 2 2
________ refer(s) to the creative ideas, innovative expertise, or intangible insights that giv
2 2 2 2 2 2 2 2 2 2 2 2
e an individual, company, or country a competitive advantage.
2 2 2 2 2 2 2 2
A) Proprietary goods
2 2
B) Exclusive ownership
2 2
C) Restrictive goods
2 2
D) Intellectual property - correct answers--D
2 2 2 2 2
________ refers to a political system in which government is organized by and accountabl
2 2 2 2 2 2 2 2 2 2 2 2 2
e to the people.
2 2 2
,A) Totalitarianism
2
B) Fascism 2
C) Socialism2
D) Democracy - correct answers--D
2 2 2 2
) In terms of international business, it is most accurate to say that ________.
2 2 2 2 2 2 2 2 2 2 2 2 2
A) there is a universal "best way" to conduct business
2 2 2 2 2 2 2 2 2
B) global competition affects large companies but not small ones
2 2 2 2 2 2 2 2 2
C) most firms depend either on foreign markets and supplies or compete against companie
2 2 2 2 2 2 2 2 2 2 2 2 2
s that do
2 2
D) government regulation of international business has little effect on a company's profits -
2 2 2 2 2 2 2 2 2 2 2 2 2
2correct answers--C 2
A ________ law system is based on tradition, judge-
2 2 2 2 2 2 2 2
made precedent, and usage and assigns a preeminent position to existing case law as a g
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
uide to dispute resolution.
2 2 2
A) theocratic
2
B) common 2
C) customary2
D) civil - correct answers--B
2 2 2 2
A company starting out with a global focus, usually because of the international experience
2 2 2 2 2 2 2 2 2 2 2 2 2
of its founders, is called a ________.
2 2 2 2 2 2 2
A) multinational enterprise
2 2
B) transnational company
2 2
C) strategically allied company
2 2 2
D) born-global company - correct answers--D
2 2 2 2 2
A computer firm has high foreign sales in Asia and wants to expand sales into Europe. Whi
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
ch of the following statements provides the most appropriate advice for Elway executives?
2 2 2 2 2 2 2 2 2 2 2 2
A) Although countries' market sizes differ, companies usually face about the same number
2 2 2 2 2 2 2 2 2 2 2 2
2of competitors in each national market.
2 2 2 2 2
B) In most industries, companies face the same competitors in each country where they op
2 2 2 2 2 2 2 2 2 2 2 2 2 2
erate.
C) It takes about the same amount of resources to gain national distribution in one country
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
versus another. 2
D) Being a leader in one country does not guarantee market leadership in another country.
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
- correct answers--D
2 2
A culture in which people prefer to finish one task before starting another is most accuratel
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
y characterized as which of the following?
2 2 2 2 2 2
A) low-context
2
B) monochronic
2
C) pragmatic2
D) high power-distance - correct answers--B
2 2 2 2 2
, A culture that prefers to first settle general principles rather than small issues is most accur
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
ately characterized as ________.
2 2 2
A) idealist
2
B) polychronic
2
C) high-context
2
D) pragmatist - correct answers--A
2 2 2 2
A firm is currently seeking resources from foreign countries. Which of the following is the L
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
EAST likely reason for doing so?
2 2 2 2 2
A) manufacturing products at a lower cost
2 2 2 2 2 2
B) gaining knowledge about a specific market
2 2 2 2 2 2
C) following a customer into the global market
2 2 2 2 2 2 2
D) differentiating its products from the competition - correct answers--C
2 2 2 2 2 2 2 2 2
A firm that concentrates on national cultural differences in terms of averages is more likely t
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
o ________.
2
A) underestimate market demands
2 2 2
B) increase political risks
2 2 2
C) seek cultural collision
2 2 2
D) overlook outliers - correct answers--D
2 2 2 2 2
A flag of convenience is ________.
2 2 2 2 2
A) the declaration that a product is made in a country that has easier legal access to a give
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
n foreign market
2 2
B) a designation for products originating within a particular trading group
2 2 2 2 2 2 2 2 2 2
C) the registration of a shipping company in a country that charges low taxes
2 2 2 2 2 2 2 2 2 2 2 2 2
D) the indication that a shipping organization can sail in international waters -
2 2 2 2 2 2 2 2 2 2 2 2
correct answers--C
2 2
A foreign direct investment occurs when ________.
2 2 2 2 2 2
A) a company owns at least 25% of a foreign firm
2 2 2 2 2 2 2 2 2 2
B) a company has a controlling interest in a foreign company
2 2 2 2 2 2 2 2 2 2
C) foreign ownership is in private rather than government securities
2 2 2 2 2 2 2 2 2
D) a foreign firm agrees to a licensing agreement with a large conglomerate -
2 2 2 2 2 2 2 2 2 2 2 2 2
correct answers--B
2 2
A major criticism of offshoring is that it ________.
2 2 2 2 2 2 2 2
A) increases production costs
2 2 2
B) exchanges good jobs for bad jobs
2 2 2 2 2 2
C) threatens the sovereignty of larger countries
2 2 2 2 2 2
D) allows companies to avoid payment of any taxes - correct answers--B
2 2 2 2 2 2 2 2 2 2 2
A multinational enterprise (MNE) is best defined as a firm ________.
2 2 2 2 2 2 2 2 2 2
A) that is a member of the Fortune 500
2 2 2 2 2 2 2 2
B) with foreign business partners
2 2 2 2
C) involved in global franchising
2 2 2 2
________ consists of specific learned norms based on attitudes, values, and beliefs of a
group of people.
A) Ethnology
B) Civilization
C) Culture
D) Doctrine - correct answers--C
________ is the chance that political forces may change a country's business environment
2 2 2 2 2 2 2 2 2 2 2 2
in ways that lead investors to lose some or all of the value of their investment or be forced t
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
o accept a lower-than-projected rate of return.
2 2 2 2 2 2
A) Governmental risk
2 2
B) Operating risk
2 2
C) Transaction risk
2 2
D) Political risk - correct answers--D
2 2 2 2 2
________ peoples account for the largest percentage of global production.
2 2 2 2 2 2 2 2 2
A) English-speaking
2
B) Mandarin-speaking
2
C) French-speaking
2
D) Spanish-speaking - correct answers--A
2 2 2 2
________ political risks arise from political actions, such as public corruption or a partisan j
2 2 2 2 2 2 2 2 2 2 2 2 2 2
udicial system, that interfere with transactions between sellers and buyers and that can sig
2 2 2 2 2 2 2 2 2 2 2 2 2
nificantly raise the costs of getting things done.
2 2 2 2 2 2 2
A) Systemic
2
B) Procedural
2
C) Catastrophic
2
D) Distributive - correct answers--B
2 2 2 2
________ refer(s) to the creative ideas, innovative expertise, or intangible insights that giv
2 2 2 2 2 2 2 2 2 2 2 2
e an individual, company, or country a competitive advantage.
2 2 2 2 2 2 2 2
A) Proprietary goods
2 2
B) Exclusive ownership
2 2
C) Restrictive goods
2 2
D) Intellectual property - correct answers--D
2 2 2 2 2
________ refers to a political system in which government is organized by and accountabl
2 2 2 2 2 2 2 2 2 2 2 2 2
e to the people.
2 2 2
,A) Totalitarianism
2
B) Fascism 2
C) Socialism2
D) Democracy - correct answers--D
2 2 2 2
) In terms of international business, it is most accurate to say that ________.
2 2 2 2 2 2 2 2 2 2 2 2 2
A) there is a universal "best way" to conduct business
2 2 2 2 2 2 2 2 2
B) global competition affects large companies but not small ones
2 2 2 2 2 2 2 2 2
C) most firms depend either on foreign markets and supplies or compete against companie
2 2 2 2 2 2 2 2 2 2 2 2 2
s that do
2 2
D) government regulation of international business has little effect on a company's profits -
2 2 2 2 2 2 2 2 2 2 2 2 2
2correct answers--C 2
A ________ law system is based on tradition, judge-
2 2 2 2 2 2 2 2
made precedent, and usage and assigns a preeminent position to existing case law as a g
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
uide to dispute resolution.
2 2 2
A) theocratic
2
B) common 2
C) customary2
D) civil - correct answers--B
2 2 2 2
A company starting out with a global focus, usually because of the international experience
2 2 2 2 2 2 2 2 2 2 2 2 2
of its founders, is called a ________.
2 2 2 2 2 2 2
A) multinational enterprise
2 2
B) transnational company
2 2
C) strategically allied company
2 2 2
D) born-global company - correct answers--D
2 2 2 2 2
A computer firm has high foreign sales in Asia and wants to expand sales into Europe. Whi
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
ch of the following statements provides the most appropriate advice for Elway executives?
2 2 2 2 2 2 2 2 2 2 2 2
A) Although countries' market sizes differ, companies usually face about the same number
2 2 2 2 2 2 2 2 2 2 2 2
2of competitors in each national market.
2 2 2 2 2
B) In most industries, companies face the same competitors in each country where they op
2 2 2 2 2 2 2 2 2 2 2 2 2 2
erate.
C) It takes about the same amount of resources to gain national distribution in one country
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
versus another. 2
D) Being a leader in one country does not guarantee market leadership in another country.
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
- correct answers--D
2 2
A culture in which people prefer to finish one task before starting another is most accuratel
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
y characterized as which of the following?
2 2 2 2 2 2
A) low-context
2
B) monochronic
2
C) pragmatic2
D) high power-distance - correct answers--B
2 2 2 2 2
, A culture that prefers to first settle general principles rather than small issues is most accur
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
ately characterized as ________.
2 2 2
A) idealist
2
B) polychronic
2
C) high-context
2
D) pragmatist - correct answers--A
2 2 2 2
A firm is currently seeking resources from foreign countries. Which of the following is the L
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
EAST likely reason for doing so?
2 2 2 2 2
A) manufacturing products at a lower cost
2 2 2 2 2 2
B) gaining knowledge about a specific market
2 2 2 2 2 2
C) following a customer into the global market
2 2 2 2 2 2 2
D) differentiating its products from the competition - correct answers--C
2 2 2 2 2 2 2 2 2
A firm that concentrates on national cultural differences in terms of averages is more likely t
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
o ________.
2
A) underestimate market demands
2 2 2
B) increase political risks
2 2 2
C) seek cultural collision
2 2 2
D) overlook outliers - correct answers--D
2 2 2 2 2
A flag of convenience is ________.
2 2 2 2 2
A) the declaration that a product is made in a country that has easier legal access to a give
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
n foreign market
2 2
B) a designation for products originating within a particular trading group
2 2 2 2 2 2 2 2 2 2
C) the registration of a shipping company in a country that charges low taxes
2 2 2 2 2 2 2 2 2 2 2 2 2
D) the indication that a shipping organization can sail in international waters -
2 2 2 2 2 2 2 2 2 2 2 2
correct answers--C
2 2
A foreign direct investment occurs when ________.
2 2 2 2 2 2
A) a company owns at least 25% of a foreign firm
2 2 2 2 2 2 2 2 2 2
B) a company has a controlling interest in a foreign company
2 2 2 2 2 2 2 2 2 2
C) foreign ownership is in private rather than government securities
2 2 2 2 2 2 2 2 2
D) a foreign firm agrees to a licensing agreement with a large conglomerate -
2 2 2 2 2 2 2 2 2 2 2 2 2
correct answers--B
2 2
A major criticism of offshoring is that it ________.
2 2 2 2 2 2 2 2
A) increases production costs
2 2 2
B) exchanges good jobs for bad jobs
2 2 2 2 2 2
C) threatens the sovereignty of larger countries
2 2 2 2 2 2
D) allows companies to avoid payment of any taxes - correct answers--B
2 2 2 2 2 2 2 2 2 2 2
A multinational enterprise (MNE) is best defined as a firm ________.
2 2 2 2 2 2 2 2 2 2
A) that is a member of the Fortune 500
2 2 2 2 2 2 2 2
B) with foreign business partners
2 2 2 2
C) involved in global franchising
2 2 2 2
