Deck 1: Introduction to International Management

Question 1

The countries that are part of the WTO are committed to the promotion of trade.

Answer 1

True

Question 2

The original six members of the European Union were Austria, West Germany, Luxembourg, France, Italy, and the Netherlands.

Answer 2

False

Question 3

The Japan-Thailand Trade Agreement went beyond established regional trade agreements and allowed Thailand greater access to rice grown in Japan.

Answer 3

False

Question 4

In lending to different nations, the World Bank typically imposes standards of behaviors that require the country to conduct certain reforms.

Question 5

The Big Unit economy generally produced efficient but rigid, pyramidal organizations and government departments that demanded excellence and accountability in work and educational quality.

Question 6

India has undergone an economic revival in recent years and now has a GDP of $3.7 trillion in purchasing-power parity terms.

Question 7

Offshoring occurs when activities that were once part of a company's internal operation, are performed by other firms outside of the U.S. at a lower cost.

Question 8

The greatest opportunity for the poor around the world is protectionism.

Question 9

China was a doctrinaire communist country until 1978.

Question 10

The International Monetary Fund was established in 1944 as part of the Bretton Woods Agreements.

Question 11

One of the recent trends in international management has been the growth of multinational and bilateral agreements with the goal of encouraging free trade.

Question 12

The change in the amount of information available began with the globalization of television.

Question 13

China is now the largest recipient of foreign direct investment.

Question 14

The market for corporate control is beginning to expand worldwide.

Question 15

Tariffs are defined as taxes on exported goods.

Question 16

During the last 30 years China has experienced economic growth averaging about 5 percent annually.

Question 17

The process of applying management concepts and techniques in a multinational environment is called international management.

Question 18

The number of jobs insourced to the U.S. increased even more than those outsourced in 2000.

Question 19

International business focuses on how individuals manage a global business.

Question 20

A sustaining innovation is an innovation that changes the economics or technological standard of an industry.

Question 21

Which of the following statements about the fab lab is false?

A) It is a collection of commercially available machines that can be used to make anything with features smaller than those of a computer chip.
B) It includes a laser cutter that makes two-dimensional and three-dimensional structures.
C) It contains a miniature milling machine that maneuvers a cutting tool in three dimensions to make circuit boards and other precision parts.
D) The components can machine objects with precision within one-millionth of a meter.

Question 22

All firms believe a business should add more to society than just jobs.

Question 23

_____ are bonds that corporations issue directly to the public in order to raise capital.

A) Treasury bills
B) Equity bonds
C) Derivatives
D) Commercial bills

Question 24

Business ethics is, in part, concerned with understanding the firm's stakeholders and their needs and desires.

Question 25

Globalization results from a dramatic increase in all of the following EXCEPT:

A) protectionism.
B) international trade.
C) cultural exchange.
D) foreign direct investment.

Question 26

The costs of the Sarbanes-Oxley Act have been quite high, particularly for small firms.

Question 27

A new technological innovation, product, service or business model that overturns the existing dominant innovation or technological standard in the marketplace is called a(n):

A) de facto innovation.
B) evolutionary innovation.
C) sustainable innovation.
D) disruptive innovation.

Question 28

Which of the following focuses on the macro approach to operating internationally?

A) Global trade
B) International management
C) Global business strategy
D) International business

Question 29

The change in the amount of information available began with the globalization of:

A) computers.
B) telephones.
C) television.
D) radio broadcasting.

Question 30

Which of the following offered an alternative opportunity for financing, while the public could invest in growing firms or firms undergoing turnarounds while enjoying higher interest?

A) Junk bonds
B) Municipal bonds
C) Treasury bonds
D) Brady bonds

Question 31

_____ occurs when activities that were once part of a company's internal operation, are performed by other firms outside of the U.S. at a lower cost.

A) Offshoring
B) Outsourcing
C) Telecommuting
D) Open-sourcing

Question 32

For much of the post-Cold War era, most large-scale domestic and international lending or underwriting was done by all of the following EXCEPT:

A) big commercial banks.
B) investment banks.
C) credit unions.
D) insurance companies.

Question 33

Which of the following statements about Big Unit Capitalism is false?

A) It is characterized by a low degree of central planning even in many free-market economies.
B) The period immediately after World War II is referred to as the period of Big Unit capitalism.
C) Big Unit Capitalism from the end of World War II until 1971 produced a period of unmatched economic growth.
D) It is characterized by stable economics with large domestic firms.

Question 34

The _____ of home mortgages occurred in the 1970s, when bonds in dominations as small as $1,000 were created.

A) commercialization
B) disruptive innovation
C) privatization
D) securitization

Question 35

_____ focuses on how individuals manage a global business.

A) International business
B) Global business strategy
C) International management
D) Global trade

Question 36

What is the purpose of the fab lab?

A) To train managers around the world and to ensure that the global managers are using consistent methods.
B) To give backyard and desktop inventors access to design houses and job shops to produce prototypes.
C) Creating a Global Production Center to ensure state-of-the-art production methods are used around the world.
D) Focusing on quality manufacturing and a commitment to innovation, even at the lower end of the marketplace.

Question 37

Ethical choices in international management often mean choosing between either two bad choices where you try to do the least harm, or paradoxically, between two rights.

Question 38

Which of the following was a negotiated monetary order after World War II to govern monetary relations and currency exchange rates among independent states?

A) World Trade Organization
B) Bretton Woods system
C) Big Unit Capitalism
D) GATT

Question 39

Under the Foreign Corrupt Practices Act, ''facilitating payments'' are not allowed.

Question 40

The flow of information about the need to be able to act on specific problems has led to a new invention from Massachusetts Institute of Technology called the:

A) self-replicating machine.
B) digital fabricator.
C) RepRap Project.
D) fab lab.

Question 41

The greatest opportunity for the poor around the world is:

A) tariffs.
B) subsidies.
C) free trade.
D) protectionism.

Question 42

The agreement signed in 1994 between Canada, the U.S., and Mexico, which has created a largely free-trade zone between these three nations with all tariffs eliminated as of 2003, is:

A) GATT.
B) NAFTA.
C) FTAA.
D) WTO.

Question 43

List some of the major provisions of the Sarbanes-Oxley Act.

Question 44

What is the IMF's basic function?

A) To improve the living standards of people in the developing world.
B) To advise nations on how to establish sound political policies.
C) To provide a means for the exchange of currencies among different nations.
D) To fight poverty in all nations.

Question 45

What is a fab lab and how is it useful?

Question 46

What is outsourcing and what is its impact on the U.S.?

Question 47

What is the stated goal of the World Bank?

A) Lending to different nations if their balance of payments is such that they have shortages that threaten the stability of their monetary system.
B) Providing additional stability to the economic systems of the various member states of the Bretton Woods Agreements.
C) Providing a means for the exchange of currencies among different nations.
D) Fighting poverty and improving the living standards of people in the developing world.

Question 48

The establishment of rules by the World Trade Organization is an umbrella agreement called the:

A) OECD.
B) NAFTA.
C) GATT.
D) ITO.

Question 49

Which country is seen as the greatest market opportunity in the world?

A) China
B) India
C) Japan
D) Thailand

Question 50

Write a detailed note on Big Unit Capitalism.

Question 51

Write a note on the World Trade Organization and GATT.

Question 52

Explain the Bretton Woods System in detail.

Question 53

Which of the following was one of the original members of the EU?

A) Poland
B) Denmark
C) Austria
D) Belgium

Question 54

Which act grew out of revelations that some U.S. firms had paid bribes to obtain contracts overseas?

A) Sarbanes-Oxley Act
B) International Anti-Bribery and Fair Competition Act
C) Foreign Corrupt Practices Act
D) Contract Disputes Act

Question 55

In the late 1980s, the then U.S. Treasury Secretary helped to get Latin American debts to the major commercial banks converted into U.S. government-backed bonds. These bonds are called:

A) High-yield bonds.
B) Brady bonds.
C) Junk bonds.
D) Municipal bonds.

Question 56

All of the following are major provisions of the Sarbanes-Oxley Act EXCEPT:

A) CEO and CFO certification of financial reports.
B) ban on loans to insiders, excepting executive officers and directors.
C) real-time disclosure of material events.
D) enhancement of criminal and civil penalties for violations of securities law.

Question 57

What are junk bonds?