An institutional framework is made up of

Test #2BusinessMGMT 370 – InternationalChapter 2—Understanding Formal Institutions: Politics, Laws,and Economics1.a.b.c.d.An institutional framework is made up of:Regulatory and cognitive pillarsFormal and informal institutionsThe political, economic, and legal systems of countriesNone of these answers2.a.b.c.d.More than 80 countries practice:Common lawCivil lawTheocratic lawSocial democracy3.a.b.c.d.The world’s largest democracy is:United StatesChinaIndiaWestern EuropeChapter #9 – Growing and Internationalizing theEntrepreneurial Firm4.a.b.c.d.Small and medium-sized enterprises (SMEs) are defined as:Firms with less than 20 employeesFirms with less than three departmentsFirms with less than 200 employeesFirms with less than 500 employees5. Small and medium-sized enterprises (SMEs) account for ____percent of the number of firms worldwide.a. 50b. 95c. 12d. 80MGMT 370 – International Business6. An advocate of globalization of every industry would most closelybelieve:a. Firms need to enter culturally and institutionally close markets first andthen gradually move to use sophisticated strategies in distant markets.b. Entrepreneurial firms need to internationalize rapidly in order to takeadvantage of new opportunities.c. New entrepreneurs will most likely "drown" in unfamiliar foreign waters.d. Firms have a hard time overcoming substantial inertia because of theirdomestic orientation.Chapter 10 – Entering Foreign Markets7. What determines the success or failure of businesses in foreignmarket entries?a. Overwhelming resources and capabilities to offset the liability offoreignness.b. Understanding the rules of the game governing competition in foreigncountriesc. Matching efforts in market entry and geographic diversification withstrategic goals.d. All of these answers8.a.b.c.d.From a resource-based view, managers need to:Develop more trained workersDevelop overwhelming capabilities to offset the liability of foreignnessEnter into more joint venture agreementsOutsource work to the lowest bidder9.a.b.c.d.Managers, to succeed, need to:Match market entries with strategic goalsDevelop alliances and acquisitionsCreate dynamic and flexible structures.All of these answersMGMT 370 – International BusinessChapter 11—Making Alliances and Acquisitions Work10. What is the main reason why formal institutions limit alliancesand acquisitions in the areas of formal market entry modes?a. Many governments discourage acquisitions in order to establish localonly subsidiaries.b. The liability of foreignness is guaranteed to make the alliances oracquisitions fail.c. The governments are unable to tax acquisitions by foreign firms.d. The institutions do not limit the firms in regards to entry modes.11. What is the problem behind a majority joint venture (JV)partner always having both the higher equity and greatermanagement control?a. Formal institutions and legal regulations prohibit it.b. Joint ventures only exist when one party brings the equity and the otherbrings the organizationc. The local minority party may resent the equity/managementdominance.d. All of these answers12. Which is the best strategy for dealing with conflict betweenalliance partners?a. Ignore conflict so as to not disrupt the relationship.b. Address conflict directly, but do not let it get out of hand.c. Terminate the alliance.d. Alliance partners rarely get into conflicts, so they won’t need a strategy.Chapter 12—Strategizing, Structuring, and Learning Aroundthe World13. Which of the following is a leading problem with theinternational division organizational structure?a. It is not locally responsive.b. It tends to be phased out first when a firm faces domestic challenges.c. It is too locally responsived. The management team is duplicated, creating organizational confusion.MGMT 370 – International Business14. Which of the following best exemplifies how informalinstitutions govern MNEs?a. The US has few laws limiting US firms from creating subsidiariesoverseas, but there is often a vocal backlash from the public overdomestic job loss.b. MNEs coming into the US have relatively few restrictions, as long asthey do not practice illegal dumping or price setting.c. MNEs based in the US must advance quickly into foreign markets tobeat competitors and take care of opportunities, but these moves areoften slowed by legal regulations and entry barriers.d. The laws governing MNEs based in the US are always changing.15. Which of the following best describes the motive forappointing a host country national as head manager in a MNEsubsidiary?a. They are familiar with the intricate workings of the MNE.b. They are independent of the local traditions and MNE so act as a neutralleader.c. They are familiar with the local informal institutions and market.d. Host country nationals are never appointed as head manager.16. Which of the following is NOT one of the major managementstrategies? ba. Understand and be prepared to change the internal rules of the gamegoverning MNE management.b. Understand and carefully control subsidiaries and minimize autonomousand locally dependent teams.c. Understand and master the external rules of the game governing MNEsand home/host country environments.d. Develop learning and innovation capabilities to leverage multinationalpresence as an asset.Chapter 14—Managing Corporate Social Responsibility Globally17. Starbucks was most hesitant to purchase fair trade coffeebecause:a. It was sold at too high a price.b. It was processed by sweat shops.c. It might not meet its quality standards.d. It was too hard to find enough producers.MGMT 370 – International Business18. What is defined as the ability to meet the needs of the presentwithout compromising the ability of future generations to meet theirneeds?a. Capitulationb. Global sustainabilityc. Corporate social responsibilityd. Social activism19. Home Depot and Lowe’s both being able to monitor that theirlumber suppliers in Latin America are only working out of renewableforests is an example of valuable capabilities but low ____.a. Rarityb. Imitabilityc. Organizationd. ValueBasic Guide to Export (Chapters 3, 6, 8, 9, 12, 13, 17)20. An example of a Non-Tariff barrier is:A. VATB.C.D.E.QuotaCoup20% Duty RateNone of the above21. The Export Classification Control Number (ECCN) is used to:A. Determine shipping ratesB. Determine if you need an export/import licenseC. Determine the tariff classificationsD. Determine VAT RatesE. All of the above22. A ______ is a contract between the owner of the goods and thefreight carrier.A. Commercial InvoiceB. Bill of LadingC. Force MajeureD. Time DraftE. None of the aboveMGMT 370 – International Business23. Which of the following is not a factor that affects a company’smarketing decision to utilize an Adaption strategy?A. Consumer income and ability to buyB. Economies in production, R & D, MarketingC. Cultural differences affecting produce and useD. Technical standardsE. None of the above24: Which of the following Incoterms refers to the seller’s pricequote for the goods, including the charge for delivery of the goodsalongside a vessel at the named port of export?A. FASB. CIFC. FOBD. EXW25. The Export Administration Regulations (EAR) provides assistanceto exporters on:A. How to obtain an export licenseB. How to classify goods under the HTSC. How to import products to CubaD. How to use ITARE. All of the above26. To encourage and facilitate international trade in more than 75foreign countries, these designated areas and similar customsprivileged facilities are now in operation, usually in or near seaportsor airports. Panama has the second largest.A.B.C.D.E.Advocacy CentersForeign Trade ShowsOverseas Private Investment CorporationsFree Trade ZoneNone of the aboveMGMT 370 – International Business27. ________ refers to a broad collection of rights relating to suchmatters as works of authorship, which are protected under copyrightlaw; inventions, which are protected under patent law; marks, whichare protected by trademark law; as well as designs and tradesecrets.A. Export LicenseB. United Aid InitiativeC. Intellectual PropertiesD. Free Trade AgreementsE. None of the above28. Under the _______it is unlawful for a U.S. person or firm (as well asany officer, director, employee, or agent of a firm or any stockholderacting on behalf of the firm) to offer, pay, or promise to pay (or toauthorize any such payment or promise) money or anything of valueto any foreign official (or foreign political party or candidate forforeign political office) for the purpose of obtaining or retainingbusiness.A. Antidivision ClauseB. Foreign Corrupt Practices Act (FCPA)C. Antiboycott RegulationsD. NAFTAE. None of the above29. In order to qualify to receive duty free status under NAFTA, acompany must show that ____% of it value was derived in the US:A. 33%B. 51%C. 67%D. 91%E. 100%30. The _______ governs the export and re-export of items for reasonsof national security, non-proliferation, foreign policy, and shortsupply. Failure to secure such a license will result in significant fines.A.C-PATB.Department of Homeland SecurityC.EARD.FTZ ActE.FTA’sMGMT 370 – International Business31. _______is a set of United States government regulations thatcontrol the export and import of defense-related articles and services onthe United States Munitions List (USML)D-TradeFree Trade ZonesITARVATHTS32. _____ is the INCOTERM used to designate that seller quotes aprice for the goods, including all transportation, and miscellaneouscharges to the point of debarkation from the vessel. (The term isused only for ocean shipments.)A. FOBB. FASC. CPTD. CIFE. CFR33. The term ____ rule is defined as the export control of certaintechnical information pertaining to the development, production anduse of such technology by non-US persons.A. ITARB. EARC. Restricted ScreeningD. DeemedE. Sanctioned Party34. To decide if a specific export requires an export license, oneneeds to use the ______, this is used by the US Commerce Departmentto catalog hardware, software, technical information and other suchitems.A. Schedule BB. ECCNC. ITARD. EARE. Control LMGMT 370 – International Business35. A ____is the bill for the goods from the seller to the buyer;usedby many governments to determine customs duties.A. Bill of LadingB. Commercial InvoiceC. Destination Control StatementD. Consular invoiceE. Insurance certification36. What are some considerations when choosing a freightforwarder?A. Company background, financial strength, experienceB. Areas of expertise, foreign market strengths, and services offeredC. Surface, air and ocean strengthsD. Import servicesE. All of the above37. The Export Management System (EMS) is a voluntary program toensure participants:A. They will be paidB. The shipment will be sentC. Regulatory complianceD. They will be audited.E. All of the above38. How do you need to know if you need an export license?A. What you are exportingB. Who you are exporting toC. What is the end-user?D. A & B aboveE. All of the above39. Before accepting an overseas transaction you should check:A. Entity ListB. Denied persons listC. Unverified ListD. A & C aboveE. All of the aboveMGMT 370 – International Business40. Which of the following are The Export Administration Act’s (EAA)penalties for violations of the Anti-boycott Regulations?A. Imprisonment of up to five yearsB. A fine of up to $50,000 or five times the value of the exports involved,whichever is greater.C. General denial of export privilegesD. B & C aboveE. All of the above



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