1.

the demise of communism in Russia

1.    One of the two factors that seem to underlie the trend toward globalization is change in communication, information, and transportation technologies. The other factor is
a.    the demise of communism in Russia.
b.    declining trade barriers.
c.    the strength of the U.S. dollar and Japanese Yen.
d.    fewer international conflicts.
e.    the influence of the United Nations
2. Firms that are involved in international business tend to be
a) large
b) small
c) medium-sized
d) large, small, and medium-sized

3. All of the following theories advocated free trade except
a)    Stolper-Samuelson
b)    Mercantilism
c)    Comparative Advantage
d)    Absolute Advantage
e)    Hecksher-Ohlin

4. Which theory suggests that as products mature the optimal production location will change?
a) Mercantilism
b) Comparative Advantage
c) Absolute Advantage
d) Product life-cycle
e) New trade

5.The establishment of a wholly new operation in a foreign country is called
a) an acquisition
b) a merger
c) a brownfield investment
d) a greenfield investment
e) a multinational venture

6.Most FDI is directed toward
a) developed countries
b) BRIC countries
c) emerging economies
d) the United States
e) China

7.All barriers to the free flow of goods and services between member countries are removed, and a common policy toward nonmembers is established in a
a) Free trade area
b)  Common market
c) Regionalization
d) Customs union
e) Economic union

8. Which of the following is not a pressure for local responsiveness?
a) Improve working conditions/environment for local workforce
b) Excess capacity
c) Host government demands
d) Differences in consumer tastes and preferences
e) Differences in distribution channels

9. 2+2  = 5 is the mathematical expression for this international business, accounting,  finance, economics  term

a) opportunity cost

b) money multiplier

c) synergy

d) relative vector

e) purchasing power parity

10. Which strategy tries to simultaneously achieve low costs through location economies, economies of scale, and learning effects, and differentiate the product offering across geographic markets to account for local differences?
a) Internationalization
b) Localization
c) Global standardization
d) Transnational
e) Regionalism

11. Which strategy makes sense when pressures are high for local responsiveness, but low for cost reductions?
a) Multi-domestic
b)Localization
c)Global standardization strategy
d) International strategy
e) Transnational strategy

12)How do most firms begin their international expansion?
a)green field investments
b)exporting
c) with a joint venture
b) with a wholly owned subsidiary
e) with licensing or franchising

13.What is the main disadvantage of wholly owned subsidiaries?
a) ) location advantages are compromised by the need to internalize resources
b) they make it difficult to realize location and experience curve economies
c) the firm bears the full cost and risk of setting up overseas operations
d) they may inhibit the firm’s ability to take profits out of one country to support competitive attacks in another
e) high transport costs and tariffs can make it uneconomical

14. Which of the following is not important to a successful strategic alliance?
a) establishing a 50:50 relationship with partner
b) creating strong interpersonal relationships
c) a shared vision
d) learning from the partner

15.Which factor characterizes foreign direct investment (FDI) trends over the past two decades?
a).There has been a decline in the relative importance of the United States as a source of FDI, while other countries have increased their share of total FDI outflows
b) There has been a significant decrease in the total volume of FDI.
c) The total volume FDI has remained stagnant.
d) There has been a surge in the relative importance of the United States as a source of FDI, while other countries have decreased their share of total FDI outflows..
e) There has been a notable decrease in the amount of FDI undertaken by firms based in developing nations
16    The ____________ exchange rate is the rate at which a dealer converts currency on a particular day.
a.    forward
b.    backward
c.    spot
d.    speculative
e.    fair
17.    Which of the following is a type of foreign exchange risk?
a.    Political exposure
b.    Transfer exposure
c.    Translation exposure
d.    Investment exposure
e.    Capital exposure

18.All of the following except ____ contribute to unethical behavior by international managers.
a) Decision-making processes
b) Leadership
c) Establishing close ties gov’t officials
d) Personal ethics
e) National culture

19.The norms and value systems that are shared among the employees of an organization are called
a) Organizational values
b) Value statement
c) organizational culture
d) control systems
e) incentives

20. ?