51. An example of an inventory management technique pioneered by Japanese firms is _____________.

a. transmodal systems
b. just in time system
c. bimodal systems
d. scenario analysis systems
e. concurrent systems

52. Which of the following companies is mentioned in the text as among the first to experiment with such labor practices as
empowerment, quality circles, autonomous work groups, and cross-functional teams to raise the productivity and satisfaction of
their work forces?
a. General Motors
b. Ford Motor Company
c. Volvo Corporation
d. Motorola
e. General Electric

53. Japanese firms such as Honda were among the first to experiment with labor practices that include all of the following EXCEPT:
a. empowerment.
b. management by objectives.
c. quality circles.
d. autonomous work groups.
e. cross-functional teams.

INTERNATIONAL BUSINESS ACTIVITIES

54. Historically, international business activity first took the form of _____________.
a. joint ventures
b. foreign direct investment
c. licensing
d. franchising
e. importing and exporting

55. Which of the following best describes the selling of products made in one’s own country for use or resale in other countries?
a. exporting
b. importing
c. licensing
d. franchising
e. portfolio investing

56. ______________ is the buying of products made in other countries for resale in one’s own country.
a. Importing
b. Exporting
c. Licensing
d. Franchising
e. Portfolio investing

57. Exporting and importing activities are subdivided into which of the following two groups?
a. goods and intellectual property
b. services and goods
c. services and intellectual property
d. goods and capital
e. capital and services

58. Official U.S. government publications call the trade tangible products such as clothing, computers, and raw materials
______________.
a. service exports and imports
b. invisible trade
c. visible trade
d. merchandise exports and imports
e. bimodal exports and imports

59. Which of the following terms do the British use for the trade in tangible products such as clothing, computers, and raw
materials?
a. service exports and imports
b. invisible trade
c. visible trade
 d. merchandise exports and imports
e. bimodal exports and imports

60. Trade in intangible products such as banking, travel, and accounting is called ______________ according to official U.S.
government publications.
a. service exports and imports
b. invisible trade
c. visible trade
d. merchandise exports and imports
e. bimodal exports and imports

61. Which of the following terms do the British use for the trade in intangible products such as banking, travel, and accounting?
a. service exports and imports
b. invisible trade
c. visible trade
d. merchandise exports and imports
e. bimodal exports and imports

62. According to the text, about _____________ of Boeing’s commercial aircraft sales are to foreign customers.
a. 13 percent
b. 23 percent
c. 33 percent
d. 43 percent
e. 53 percent

63. _____________ accounts for over 60 percent of the Netherlands’ gross domestic product (GDP), and over a quarter of the GDPs
of Canada, Germany, France, and the United Kingdom.
a. Foreign direct investment
b. Licensing
c. Franchising
d. Exporting
e. Portfolio investment

64. Which of the following describes capital supplied by residents of one country to residents of another?
a. exporting
b. importing
c. international investments
d. licensing
e. franchising

65. International investments are typically divided into which of the following two categories?
a. exporting and importing
b. importing and foreign direct investment
c. foreign direct investment, and portfolio investment
d. portfolio investment and exporting
e. exporting and foreign direct investment

66. ______________ are investments made for the purpose of actively controlling property, assets, or companies located in host
countries.
a. Foreign direct investments
b. Management contracts
c. Turnkey operations
d. Licensing agreements
e. Portfolio investments

67. The country in which the parent company’s headquarters is located is called the _____________.
a. home country
b. host country
c. portfolio country
d. contract country
e. affiliate country

68. Which of the following describes the other country in which a company is operating?
a. home country
b. portfolio country
c. host country
 d. contract country
e. affiliate country

69. The purchase of all the common stock of Sweden’s Volvo Corporation by Ford Motor Company is an example of
______________.
a. foreign direct investment
b. licensing
c. franchising
d. exporting
e. portfolio investment

70. Portfolio Investment is ​______________.

a. when a firm buys products from another firm in a foreign country
b. when a firm sells some products to another firm in another country
c. when a firm grants the use of some or all of its intellectual property to a firm in another country
d. when a firm purchases foreign financial assets for a purpose other than control
e. when a firm authorizes a firm in another country to utilize its brand names and logos in return for a royalty payment

71. The purchase of 1000 shares of Sony’s common stock by a Danish pension fund is an example of ______________.
a. foreign direct investment
b. licensing
c. franchising
d. exporting
e. portfolio investment

72. All of the following are important forms of international business activity EXCEPT:
a. licensing.
b. franchising.
c. management contracts.
d. expropriation.
73. Licensing is​ ______________.
a. when a firm buys products from another firm in a foreign country
b. when a firm grants the use of some or all of its intellectual property to a firm in another country
c. when a firm sells some products to another firm in another country
d. when a firm purchases foreign financial assets for a purpose other than control
e. when a firm authorizes a firm in another country to utilize its brand names and logos in return for a royalty payment

74. Which of the following is NOT an example of an intellectual property right?

a. patent
b. trademark
c. brand name
d. copyrights
e. all of the selections are correct.

75. In a licensing arrangement, payments made to the owner of the intellectual property are called _____________.
a. subsidiary payments
b. royalty payments
c. temporary payments
d. portfolio payments
e. expropriated payments

76. Which of the following forms of international business activity best describes the following arrangement? “The Walt Disney
Company permits a German clothing manufacturer to market children’s pajamas embroidered with Mickey Mouse’s smiling
face in return for a percentage of the company’s sales.”
a. licensing
b. franchising
c. management contracts
d. exporting
e. importing

77. A specialized form of licensing that occurs when a firm in one country authorizes a firm in a second country to utilize its
operating systems as well as its brand names, trademarks, and logos in return for royalty payment is called _____________.
a. Licensing
b. Franchising
c. Management contracts
d. Exporting
 e. Importing

78. Which of the following companies is known for its worldwide franchises?
a. General Motors
b. General Electric
c. McDonald’s
d. Microsoft
e. Yahoo!

79. An international business activity that involves the operation of facilities on behalf of another firm in another country for a fee is
referred to as​ ______________.
a. franchising
b. management Contracts
c. licensing
d. portfolio Investment
e. foreign Direct Investment

80. According to the text, management contracts are common in which of the following industries?
a. fast-food restaurants
b. hotel
c. oil drilling
d. financial services

81. Any organization that engages in cross-border commercial transactions with individuals, private firms, and/or public-sector
organizations is called a(n) _____________.
a. franchise
b. international business
c. management contract
d. licensor
e. exporter

82. According to the text, the term ______________ is used to identify firms that engage in foreign direct investment and own or
control value-adding activities in more than one country.
a. multinational corporation
b. multinational organization
c. multinational enterprises
d. multinational subsidiaries
e. international organizations

83. Which of the following terms is used in the text to describe large MNCs, such as accounting partnerships and Lloyd’s of London,
which are not corporations?
a. multinational corporations
b. multinational affiliates
c. multinational enterprises
d. multinational subsidiaries
e. international organizations

THE CONTEMPORARY CAUSES OF GLOBALIZATION

84. The two broad reasons mentioned in the text why international business activity is likely to continue to skyrocket during the next
decade are ___________________________.
a. social responsibility initiatives and environmental changes
b. strategic imperatives and environmental changes
c. cross cultural initiative and strategic imperatives
d. social responsibility initiatives and strategic imperatives
85. Which of the following is mentioned in the text as the factor that motivates globalization?
a. environmental changes
b. strategic imperatives
c. cross cultural initiatives
d. social responsibility initiatives

86. The factor mentioned in the text that is responsible for the facilitation of globalization is ______________.
a. environmental changes
b. strategic imperatives
c. cross cultural initiatives
d. social responsibility initiatives
87. Which of the following is NOT an example of a strategic imperative?
a. leveraging a firm’s core competencies
b. acquiring resources at low cost
c. expanding into new markets
d. competing with industry rivals
e. controlling the political environment

88. A(n) _____________ is a distinctive strength or advantage that is central to a firm’s operations.
a. strategic imperative
b. environmental change
c. core competency
d. cross cultural initiative
e. social responsibility initiative

89. Which of the following companies developed cutting-edge cellular phone technology that was eagerly adopted by domestic
consumers in Finland?
a. Motorola
b. Nokia
c. Ericsson
d. Qualcomm
e. Vodafone

90. Strategic imperatives that have compelled firms to become more global in both their orientation and actions include all of the
following EXCEPT:
a. leveraging a firm’s core competencies.
b. acquiring resources at low cost.
c. controlling the political climate in countries.
d. expanding into new markets.
e. competing with industry rivals.

91. All of the following are examples of resources that can be acquired by companies EXCEPT:
a. materials.
b. labor.
c. capital.
d. technology.
e. cultural imperatives.

92. Which of the following is NOT an example of an emerging market?

a. China
b. India
c. Indonesia
d. Japan

93. Significant changes in which of the two key areas of the environment have allowed firms to expand their international activities
to the extent observed in the post-World War II period?
a. the cultural environment and the technological environment
b. the technological environment and the political environment
c. the legal environment and the cultural environment
d. the cultural environment and the political environment
e. the technological environment and the cultural environment

94. Many of the reductions in tariffs and quotas between countries were negotiated through the ______________ after the Second
World War.
a. United Nations
b. General Agreement on Tariffs and Trade
c. World Bank
d. International Monetary Fund
e. European Union

95. Which of the following organizations is the successor to the General Agreement on Tariffs and Trade?
a. United Nations
b. General Agreement on Tariffs and Trade
c. World Trade Organization
d. International Monetary Fund
e. European Union
96. Examples of regional accords that have relaxed trade and investment barriers among their members include all of the following
EXCEPT:
a. the United Nations.
b. the European Union.
c. the Mercosur Accord.
d. the North American Free Trade Agreement.

97. According to the text, international business is more feasible and profitable as a result of improvements in all of the following
EXCEPT:
a. communications.
b. transportation.
c. information processing.
d. currency exchange rates.

98. Which of the following is the largest component of international trade in services?
a. international consulting
b. international tourism
c. international banking
d. international food processing

99. Which of the following countries leads the world in spending on information technology as a proportion of gross domestic
product?
a. Canada
b. Sweden
c. the United States
d. Germany
e. Japan

100. All of the following are ways in which the growth of the Internet and other information technologies affect international business
EXCEPT:
a. the Internet and associated technologies facilitate international trade in services.
b. the Internet serves to level the playing field between larger and smaller enterprises regardless of what products or services
they sell.
c. the Internet holds considerable potential as an efficient networking mechanism among businesses.
d. the Internet is subsidized by regional economic integration.