1. Global trade has this important effect on developing new competitors.
It facilitates the transfer of technology, allowing former assemblers to become creators. 
It facilitates the transfer of knowledge, allowing former builders to become assemblers. 
It reduces competition. 
It reduces rivalry.
2. The two forms of risk discussed in the text include
Exchange rate risk and corruption risk. 
Business risk and social risk. 
Sales risk and employment risk. 
Economic and political risk.
3. The European Union consists of:
25 member nations, with the 26th scheduled to become a member in 2013. 
26 member nations, with the 27th scheduled to become a member in 2013. 
27 member nations, with the 28th scheduled to become a member in 2013. 
25 member nations, with no others scheduled to become a member in 2013.
4. Major regional trade agreements include all of the following EXCEPT
5. Which of the following would not be considered a basic source of globalization?
Similar customer needs 
Falling of trade barriers 
Advances in communication technology 
Differentiation among countries
6. According to your text, FDI means
Foreign development initiatives. 
Various investment policies of the U.S. government. 
A foreign company has an ownership position in a company in another country. 
A type of international negotiation strategy.
7.  Cultural paradoxes represent
Cases where situations in reality seem to contradict cultural prescriptions. 
The assumption that all people within a culture behave, feel and act the same. 
The belief that a person’s culture is superior. 
The belief that one’s culture is inferior.
8. Which of the following best describes U.S. culture with regard to individualism?
Lower than many European nations 
Highest observed so far 
About the same as Japan 
Slightly above average
9. A cultural paradox is defined as:
Group situations define cultural prescriptions. 
Individual situations define cultural prescriptions. 
Group situations contradict cultural prescriptions. 
Individual situations contradict cultural prescriptions.
10 . An emphasis on leadership styles that appeal to duty and commitment to group goals are found primarily in countries with
Low masculinity. 
Low uncertainty avoidance. 
Short term orientations. 
High collectivisim (low individualism).
11. A new expatriate manager located in India reports to you that all of her subordinate local managers lack initiative and will only do what she tells them to do. You realize that most Indian managers expect superiors to tell them what to do. You advise her of this, but also caution the new manager to avoid:
Uncertainty avoidance. 
12. The achievement versus ascription dimension addresses
The extent to which an individual’s life is involved with work. 
The manner by which a society gives status. 
The way a culture deals with the past, present, and future. 
The belief people have in controlling their fate.
13. Pre industrial societies tend to have
Poor infrastructure and support. 
Adequate infrastructure. 
Favorable business conditions. 
Government support.
14. Which of the following four religions are practiced by 71% of the world’s population?
Jainism, Hinduism, Islam and Christianity 
Hinduism, Christianity, Islam, and Sikhism 
Christianity, Hinduism, Islam and Buddhism 
Judaism, Christianity, Buddhism, and Islam
15. The educational attainment scores
Are fairly similar for most countries. 
Give an idea of the abundance of engineers for research and development purposes. 
Reflect the mean years of schooling of people in any society. 
All of the above are true of educational attainment scores.
16. The index of economic freedom may be used by multinationals to understand the nature of
market transitions 
national culture 
national context 
governmental intervention
17. The national context of a society is made up of
The national and business cultures of that society. 
The social institutions of that society. 
The national cultures and social institutions of that society. 
The national cultures of that society.
18. Which of the following religions is most practiced around the world?
19. Postindustrial societies are typically characterized by the dominance of
Service and manufacturing sectors. 
Service sectors. 
Manufacturing sectors. 
Agricultural sectors.
20. In the BCG Matrix, Defend and Harvest are the most popular strategies for
Cash cows. 
Problem children.
21. Offensive strategies
Are examples of basic generic strategies. 
Are direct targeting/attacking of rivals. 
Are attempts to reduce the risk of being attacked. 
Are used to convince other firms to seek other targets.
22. Which of the following more likely represents a threat to a multinational company like Toyota?
Higher prices charged by Toyota’s competitors. 
Lower interest rates around the world that makes cars more affordable. 
Toyota’s bad image among teenagers. 
Kia and Hyundai’s entry in markets traditionally dominated by Toyota.
23. Capabilities
Are the inputs into a company’s production or service processes. 
Are early activities in the value chain such as R&D and dealing with suppliers. 
Are similar to distinctive competencies. 
Represent the ability of companies to assemble and coordinate their resources in ways that lead to lower costs of differentiated outputs.
24. Favorable conditions in a firm’s external environment are known as
Distinctive competencies.
 25. Sales and dealing with distribution channels refer to _________ activities in the value chain.