What is NOT a tax issue that multinational corporations (MNCs) face?

a. Corporate income tax

b. Sales tax

c. Payroll tax

d. Property tax

e. Culture tax

Answer: e. Culture tax

What can investors who want to compare one company's profit margin to another company's profit margin utilize?

a. The financial statements to conduct a trend analysis

b. The financial statements to calculate the current ratio

c. The financial statements to perform financial ratio analysis

d. The financial statements to calculate the debt ratio

Answer: c. The financial statements to perform financial ratio analysis

What is the goal of the International Accounting Standards Board (IASB)?

a. To distinguish the financial statements from one country to another

b. To achieve domestically recognized accounting and reporting standards

c. To achieve globally recognized or harmonized standards of accounting and reporting

d. To increase the reporting requirements for multinational corporations (MNCs)

Answer: b. To achieve domestically recognized accounting and reporting standards

Which of the following best illustrates a function of generally accepted accounting principles?

a. Supplying domestic Company B with International Accounting Standards Board (IASB) requirements

b. Supplying private Company B with International Accounting Standards Board (IASB) requirements

c. Supplying domestic, publicly traded Company B with guidance in preparing financial statements

d. Supplying private Company B with guidance in preparing financial statements

Answer: d. Supplying private Company B with guidance in preparing financial statements

Which source of funds to financing international trade and investment is the International Monetary Fund (IMF) a part of?

a. Private funding

b. International stock markets

c. Government financing

d. The International Bank

e. International bond markets

Answer: c. Government financing

How do options contracts hedge exchange rate risk?

a. By giving an investor the right to buy or sell a specified amount of currency at a future date at a predetermined price

b. By giving investors the flexibility of future contracts that are market-to-market daily

c. By requiring investors to make small commitments to purchase future contracts

d. By investors buying a currency in future option

e. By allowing an investor the ability to exchange a specified amount of currency at a previously agreed exchange rate

Answer: d. By investors buying a currency in future option

What are two short-term effects of currency movement?

a. Translation risk

b. Accounting risk

c. Economic risk

d. Exchange rate fluctuation

e. Transaction risk

f. Consolidated accounting statements

Answer: 

e. Transaction risk

A successful shoe manufacturer has long been subcontracting production of their shoes to countries such as Vietnam. Which of the following concepts was likely considered when selecting production in this country?

a. Political uproar

b. Integrity

c. Contract law

d. Value-to-weight ratio

e. Comparative advantage of labor

Answer: d. Value-to-weight ratio

What is most likely to happen if a computer company decided to own and operate its own fleet of trucks instead of using shipping companies to deliver its computers?

a. The computer company would decrease its expertise in supply chain matters

b. The computer company would produce incentives to make its computers better

c. The computer company would be able to compete in international markets

d. The computer company would be increasing the complexity of its process

Answer: d. The computer company would be increasing the complexity of its process

Why may companies outsource?

a. To increase their competition

b. To focus on non-value-added inputs

c. To learn a new business

d. To control the supply chain

e. To take advantage of lower wages

Answer: e. To take advantage of lower wages

What should a smart company do regarding customer complaints to improve the company's customer service in the future?

a. Make customer complaint policies as clear as possible before purchases are made

b. Welcome customer complaints to use as feedback

c. Seek out dissatisfied customers through social media outlets

d. Reward customers who provide positive feedback

Answer: b. Welcome customer complaints to use as feedback

What are international pricing objectives that keep competitors out of a foreign market with low prices?

a. Gray marketing

b. Prevention

c. Performance

d. Maintenance

Answer: b. Prevention

Which marketing method uses contests and sweepstakes as the most widely-used promotional technique in foreign markets?

a. Sales promotion

b. Direct mail 

c. Perception

d. Advertising 

e. Personal selling

Answer: a. Sales promotion

Which appropriate set of steps should companies follow when developing new products for overseas markets?

a. Concept testing, business analysis, market testing, and commercialization

b. Business analysis, evaluation of new product ideas, development, and commercialization

c. Commercialization, business analysis, development, and evaluation of new product ideas 

d. Identification of sources of new products, evaluation of new product ideas, development, business analysis, and commercialization

e. Identification of sources of new product ideas, evaluation of new product ideas, concept testing, business analysis, development, market testing, and commercialization

Answer: e. Identification of sources of new product ideas, evaluation of new product ideas, concept testing, business analysis, development, market testing, and commercialization

How are standardization strategies defined?

a. Approaches in which global products are developed

b. Approaches that compromise marketing strategies

c. Approaches in which marketing strategies used in international operations will be the same as those being used domestically

d. Approaches in which marketing strategies used in international operations will be different than those used domestically 

e. Approaches in which concept testing is delivered to the whole market

Answer: c. Approaches in which marketing strategies used in international operations will be the same as those being used domestically

What is one factor that distinguishes market intelligence systems from marketing research?

a. Collecting information in the United States

b. Collecting information regularly over time

c. Collecting information of women by country 

d. Collecting information in France

Answer: b. Collecting information regularly over time

Which issues was discussed as a concern during the establishment of North American Free Trade Agreement (NAFTA)?

a. The exclusion of Canada from the agreement

b. Uncertainty about whether or not profit for companies would increase

c. The exclusion of Mexico from the agreement

d. A fear that companies would move American manufacturing jobs to Mexico

Answer: d. A fear that companies would move American manufacturing jobs to Mexico

Which issues are associated with expatriate compensation?

a. Collective performance appraisals

b. Language barriers

c. Variability in taxes between countries

d. Major corporation presence

Answer: c. Variability in taxes between countries

What is needed when a U.S. company sends an employee to work in a foreign country for several years?

a. Host country nationals

b. Third country nationals

c. Heavy reassignment costs

d. Training in the foreign language

Answer: d. Training in the foreign language

What is NOT an issue for a business considering outsourcing and offshoring?

a. Wage equality concerns

b. Quality of product comparison

c. Costs structure comparison

d. Available technology concerns

Answer: d. Available technology concerns