International Management Test Bank
Course Introduction
International Management explores the strategies, structures, and processes that organizations use to operate effectively in global markets. The course covers the challenges and opportunities of managing across diverse cultural, legal, and economic environments, emphasizing topics such as global leadership, cross-cultural communication, international human resource management, global competitive dynamics, and ethical considerations. Students will learn frameworks for analyzing international business situations, developing global strategies, and adapting management practices to varied international contexts, preparing them for leadership roles in a rapidly globalizing business world.
Recommended Textbook
Global Business Today 4th Edition by
Charles W. L. Hill
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16 Chapters
2040 Verified Questions
2040 Flashcards
Source URL: https://quizplus.com/study-set/2805
Page 2
Chapter 1: Globalization
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126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/55860
Sample Questions
Q1) Which of the following statements is consistent with data from the World Trade Organization?
A) the volume of world trade has grown faster than the volume of world output since the 1950s.
B) the volume of world trade has grown slower than the volume of world output since the 1950s.
C) the volume of world trade and the volume of world output have grown at approximately the same rate since the 1950s.
D) the volume of world trade and the volume of world output have remained constant since the 1950s.
E) the volume of world trade is inversely related to the growth of world output.
Answer: A
Q2) The acronym GATT stands for:
A) Global Agreement on Taxation and Tariffs
B) Global Association of Technology and Trade
C) General Agreement on Taxation and Trademarks
D) General Agreement on Tariffs and Trade
E) General Accord of Transportation and Trade
Answer: D
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3
Chapter 2: Country Differences in Political Economy
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) Canada could be described as having elements of both a __________ economy and a ___________ economy.
A) command; mixed
B) mixed; regional
C) market; regional
D) command; regional
E) market; mixed
Answer: E
Q2) When businesses feel that their intellectual property has been violated,they can lobby governments or they can do what?
A) apply to TRIPS
B) apply Bill S-21
C) look at IPRs
D) ask for a WTO ruling
E) file lawsuits on their own behalf
Answer: E
Q3) There must be no restrictions on supply for a market economy to work.
A)True
B)False
Answer: True
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Chapter 3: The Cultural Environment
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) A __________ is a group of people who share a common set of values and norms.
A) cohort
B) society
C) fellowship
D) fraternity
E) community
Answer: B
Q2) A __________ is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living.
A) society
B) clique
C) fraternity
D) culture
E) more
Answer: D
Q3) Folkways are the routine conventions of everyday life.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Ethics in International Business
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) Which business straw men approach to business ethics is best summarized by the maxim "When in Rome,do as the Romans do"?
A) Cultural relativism
B) Righteous moralist
C) Naïve immoralist
D) Friedman doctrine
E) Managerial Imperative
Q2) _________ and ________ shape the culture of a business organization.
A) Norms; greed
B) Values; norms
C) Greed; values
D) Values; profits
E) Shareholders; management
Q3) Cultural relativism is the belief that ethics are nothing more than the reflection of a culture.
A)True
B)False
Q4) An example of a "straw man" argument is the Friedman Doctrine.
A)True
B)False
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Chapter 5: International Trade Theories
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) _______ is a situation in which one country is more efficient at producing a product than any other country.
A) Absolute advantage
B) Relative advantage
C) Comparative advantage
D) Pertinent advantage
E) Favourable factor endowment
Q2) We would expect Porter's model to predict _______,if he is correct.
A) currency exchange rates
B) membership in the World Trade Organization
C) the pattern of international trade
D) factor endowments
E) trade costs
Q3) The first theory of international trade emerged in England in the mid-16<sup>th</sup> century.Referred to as the theory of comparative advantage,its principle assertion was that gold and silver were the mainstays of national wealth and essential to vigorous commerce.
A)True
B)False
Q4) When does free trade occur?
Page 7
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Chapter 6: The Political Economy of International Trade
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) A quota on trade imposed by the exporting country,typically at the request of the importing country's government is referred to as a(n)
A) voluntary export restraint.
B) involuntary export restraint.
C) trade reconciliation.
D) refereed export restraint.
E) limited market access.
Q2) In the United States,if a domestic producer believes that a foreign firm is dumping production in the U.S.market,it can file a petition with the following two government agencies
A) Treasury Department and the Senate Committee on Fair Trade.
B) Department of Agricultural and the Department of Labor.
C) Department of State and the Treasury Department.
D) Commerce Department and International Trade Commission.
E) U.S. office of the WTO.
Q3) What is a tariff? Describe the difference between specific tariffs and ad valorem tariffs.
Q4) What is a voluntary export restraint? Can countries use voluntary export restraints to avoid trade retaliation?
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Chapter 7: Foreign Direct Investment
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) In a ________________ view,FDI should be allowed only if the benefits outweigh the costs.
A) communist
B) socialist
C) pragmatic nationalism
D) radical
E) liberal
Q2) If 3M,an American firm,produces adhesive tape in St.Paul,Minnesota,and ships the tape to South Korea to be sold,that is an example of:
A) exporting
B) licensing
C) franchising
D) cross-border investing
E) international trade
Q3) The ________________ view is that FDI has both benefits and costs.
A) radical
B) conservative
C) free market
D) pragmatic nationalist
E) liberal
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Chapter 8: Regional Economic Integration
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129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/55846
Sample Questions
Q1) The most enduring free trade area in the world is the A) Asian Free Trade Association.
B) MERCOSUR.
C) European Free Trade Association.
D) North American Trade Association.
E) European Union.
Q2) According to the textbook,one likely short-term effect of NAFTA would be that many U.S.and Canadian firms will move some production to Mexico to take advantage of A) cheaper transportation costs.
B) lower interest rates.
C) lower labour costs.
D) a higher skilled labour force.
E) the Mexican market.
Q3) The last few years has witnessed an unprecedented proliferation of regional trade agreements.
A)True
B)False
Q4) Describe the concept of regional economic integration.Do you believe that regional economic integration is a good thing?
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Chapter 9: The Foreign Exchange Market
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) A country's currency is said to be _____________ when the country's government allows both residents and non-residents to purchase unlimited amounts of foreign currency with it.
A) technically convertible
B) freely convertible
C) externally convertible
D) nonconvertible
E) internally convertible
Q2) _____________ typically involves the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates.
A) Capital venturing
B) Currency speculation
C) Monetary risk taking
D) Investment contemplation
E) Currency conversion
Q3) A currency is said to be externally convertible when only non-residents may convert it into foreign currency without limitations.
A)True
B)False
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Page 11
Chapter 10: The Global Monetary System
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) The gold standard is the practice of pegging currencies to gold and guaranteeing convertibility.
A)True
B)False
Q2) Advocates of a ________________ exchange rate regime argue that removal of the obligation to maintain exchange rate parity restores monetary control to a government.
A) fixed
B) floating
C) narrow
D) forward
E) managed float
Q3) It is argued that a _______________ exchange rate regime gives countries monetary policy autonomy.
A) restricted
B) forward
C) fixed
D) floating
E) managed float
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Page 12
Chapter 11: Global Strategy
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132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/55858
Sample Questions
Q1) According to Christopher Bartlett and Sumantra Ghoshal,the flow of skills and product offerings should not be all one way,from home firm to foreign subsidiary.Rather,they argue that the flow should also be from foreign subsidiary to home country,and from foreign subsidiary to foreign subsidiary-a process they call:
A) adaptive learning effect.
B) international education.
C) international lore.
D) worldwide effect.
E) global learning.
Q2) A business strategy that seeks experience-based economies and location economies,transfers distinctive competencies within the firm,and pays attention to pressures for local responsiveness is a transnational strategy.
A)True
B)False
Q3) Strategy is a ratio or rate of return concept.
A)True
B)False
Q4) Under what circumstances is entering into strategic alliances a risky undertaking?
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Chapter 12: Entering Foreign Markets
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) XYZ,Inc,a Canadian company,has chosen to establish a wholly owned subsidiary in Mexico.It has the choice of acquiring an established company in Mexico or A) create a joint venture.
B) buy a franchise.
C) license the manufacturing techniques to a Mexican corporation.
D) build a greenfield venture.
E) a merger.
Q2) Which of the following is not an argument in favour of licensing as a means of foreign market entry?
A) The firm does not have to have capital to open markets overseas
B) A firm wants to participate in a foreign market, but is prohibited from doing so by barriers to investment
C) The firm possesses some intangible property that might have business applications and does not want to develop that technology or those applications itself
D) The firm does not have to bear the development costs and risks associated with opening a foreign market
E) The firm wants to maintain tight control over the marketing
Q3) In what situation would you choose exporting over wholly owned subsidiary?
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Chapter 13: Exporting,Importing,and Countertrade
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110 Verified Questions
110 Flashcards
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Sample Questions
Q1) The volume of export activity in the world economy is declining as exporting has become more difficult and regulated.
A)True
B)False
Q2) According to the UN report on trade and development,a typical international trade transaction may involve __________ parties,___________ original documents,and ___________ document copies.
A) 25; 35; 225
B) 2; 9; 18
C) 10; 3; 30
D) 15; 180; 60
E) 30; 60; 360
Q3) Until recently,Canada was mostly a(n)____________ when it came to international trade.
A) market leader
B) economy where exports played a major role
C) economy built on countertrade
D) self-contained economy
E) example of the world's most successful exporting nations
Q4) What is the difference between a sight draft and a time draft?
Page 15
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Chapter 14: Global Marketing and Randd
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) Because leading-edge research is now carried out in many locations,the argument for centralizing R&D activity in Canada is now much weaker.
A)True
B)False
Q2) Mass production and marketing of a standardized product can be ruled out by differing ____________ product standards.
A) government-mandated
B) consumer-mandated
C) market and
D) distribution of
E) consumer driven
Q3) __________ communications occurs whenever a firm uses a marketing message to sell its products in another country.
A) Diversified
B) International
C) Multi-domestic
D) Functional
E) Cross-cultural
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Chapter 15: Global Manufacturing and Materials Management
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) Increased utilization of JIT inventory systems,CAD,and CAM over the past decades seems to have decreased pressures for firms to establish long-term relationships with suppliers,but increased the pressure to establish short-term ones.
A)True
B)False
Q2) Define the term "total quality management (TQM)." What is the relationship between TQM and manufacturing?
Q3) Needs that are the same all over the world are called global needs.
A)True
B)False
Q4) The larger the minimum efficient scale of a plant,the greater the argument for centralizing production in a single location or a limited number of locations is the implication of the _____________ concept.
A) consumer input
B) economies of scale
C) production
D) materials management
E) TQM
Q5) Describe the terms flexible manufacturing and mass customization.
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Chapter 16: Global Human Resource Management
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/55853
Sample Questions
Q1) Your firm wants to operate in the international environment.At home in Canada,your company has been considered to be a leader in the human resources field.You want to select the appropriate staffing policy for your firm,and recognize that it is important to integrate staffing policy with your overall corporate operations. How does a firm's staffing policy relate to the strategy that it is pursuing in a foreign country?
Q2) A(n)______________ approach to staffing has the following advantages: (1)overcomes lack of qualified managers in host nation,(2)unified culture,and (3)helps transfer core competencies.
A) polycentric
B) geocentric
C) ethnocentric
D) intercentric
E) multicentric
Q3) Substantial differences exist in the compensation of executives at the same level in various countries.
A)True
B)False
Q4) Explain the impact of unionization on HRM.
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