MGMT 338 Final Exam

Preview (6 of 17 Pages)

100%

MGMT 338 Final Exam - Page 1 preview image

Loading page ...

MGMT 338Final ExamThe scale for the test and the final grade is 90% = A, 80% = B, 70% = C, 60% = D, below 60%is an F.Please create ananswer sheetto submit to the drop box. Good luck!SUPPORT YOUR ESSAY ANSWERSWITH REFERRENCESI.(30pts)Answereach True or FalseTF1.Translation risk can be hedged against by using the forward market forcurrencyexchange.TF2.Environmental scanninginvolves looking for changes in environmental forcesin theglobal marketplace.TF 3.The Total Product and the Physical Productmeanthe samething.TF 4.Transfer pricing is a form of intracorporate pricing that can be used to shift thetaxburden from onesubsidiaryto another.TF 5. A language trap, where a person can speaktwolanguages, occurs because thepersonrelies ontheir knowledge of a secondlanguagewithout seeking theassistance of a nativespeaker.TF 6.Even withthe development of the internet and the virtual capabilities it isstillimportantto make a personal visit to a potential marketbefore investingin the market.TF7. Market segmentscreening isbased on needsacross national borders.TF 8.National borders may no longer be the relative unit of analysis for a firm in developinga global market plan.TF 9.A disadvantage for companies that insist on less risky transactions, such as a letter ofcredit, is that they may be losing business to competitors who sell on open accounts.TF 10.An importerdelayspayment ofthe necessary currency exchangewhen she thinks hercurrency will devalue in terms of the foreign payment currency.TF 11.When using a money market hedge, the hedger will immediately convert thecurrency borrowed into its own currency.TF12.JIT systems are more efficient than synchronous manufacturing in all situations.TF13.The US hasadopted theInternational Financial Reporting Standards and theyarenow in effect in the US.TF14. A broad statement that defines the organization's purpose and scope is avalues statement.TF15.Most companies can enter a market in stages. The order listed in the textbook isestablishment of a foreign sales company, exporting, local assembly, and manufacturing.II. (78pts) Markthe best answer.

MGMT 338 Final Exam - Page 2 preview image

Loading page ...

MGMT 338 Final Exam - Page 3 preview image

Loading page ...

1. Terms ofPaymentfound in international business contracts include:a. CFR (cost and freight, foreign port)b. Consignmentc. Documentary Draftsd. all of the abovee. (b) and (c) above2.Joint Ventures have thea. advantage ofutilizing the expertise of a local partner.b.disadvantage of notbeing ableto make all the decisions because control isshared.c. advantage of being able to share the profits.d. all of the abovee. (a) and (b) above3. Which of the following is a reason that imports are not a measure of the total market potentialfor a good?a. lack of foreign exchangeb. a competitor decides to produce locallyc. change in a country's political structured. all of the abovee. none of the above4.Businesses are using global or regional brands for the following reason(s):a. private brands do not offer any meaningful competition.b. economies of scale usually result in reduced costs.c. satellite and cable TV are widely available.d. all of the abovee. (b) and (c) above5. The HarmonizedTariff Schedule of the US:a. applies only to goods importedfromthe EUtothe U.S.b.provides for special rates for imports from countries that are not considered friends ofthe US.c.allows an importer to receive an advanced ruling from US Customs which isbinding on all customs inspectors.d. all of the abovee. (b) and (c) above6.E-Commerce Potential isa) is higher for Jamaica than for Argentina.b) is an index based on mobile phones, internet hosts, and number of PCs.c) is a composite ranking of three indices.d) (a) and (b) abovee) (a) and (c) above

MGMT 338 Final Exam - Page 4 preview image

Loading page ...

7. Generally,industrialproducts require __________ adaptation thanconsumerproducts to meetthe demands of the world market.a)greaterb)lessc)the same amount ofd)only slightly lesse)only slightly more8.Nonequity modes of entry includea) Strategic Allianceb) Management contractc) Franchisingd) All of the abovee) (b) and (c) above only9.Management Contracts may be useda) in a joint venture arrangementb) in a wholly owned subsidiary situationc) in a minority ownership situationd) all of the abovee) (a) and (c) above10.Terms of Sale found in international business contracts include:a. CFR (cost and freight, foreign port)b. Consignmentc. Documentary Draftsd.all of the abovee. (b) and (c) above11.The Ex-Im Banka. is a private corporation that supports firms that wishto export.b. makes loans to foreign buyers and foreign governments to assist in financing USexports.c. provides export credit insurance against commercial risk but not political risk.d. all of the abovee. (b) and (c) above12.According to Table15.1a. Google has made the greatest increase and Citi the greatest decrease in ranking.b. IBM, Disney, and McDonalds have all improved their ranking.c.Coca Cola is the only brand whose ranking has not changed.d. (a) and (b) abovee. (a) and (c) above13.Although global sourcing can be beneficial it may have some disadvantages such asa. added costs

MGMT 338 Final Exam - Page 5 preview image

Loading page ...

b. exchange rate fluctuations affecting pricesc. quality controld. all of the abovee. (b) and (c) above14.In staffinga. an ethnocentric policy is always the most effective if qualified personnel are available.b. a polycentric policy is always the leasteffective even when qualified personnel areavailable.c. using third country personnel would be considered most frequently with regiocentricor geocentric policies.d. all of the abovee. (a) and (c) above15. In value chain analysis the firm must answer the following question(s):a. How will customer value be created?b. Will decisions be made at the local or home office level?c. Who are the company's target customers?d. All of the abovee. (a) and (c) above only16. In the most recent 40 years, union membership around the world has been in decline, in partbecause:a) There are more women in the workforce.b)The unions have been successful and priced themselves out of the market.c)Employers have made efforts to keepbusiness union-free.d)(a) and (c) above onlye)All of the above.17.When a firm has less than a majority interest in a subsidiary it can still have control byhavinga) a management contractb) the right to control the technologyc) the right to vote its sharesd) all of the abovee) (a) and (b) above only18. The Female Wage Gapa. is the percent of Male Wages earned by Female Employees.b. younger females have less of a gap in all countries.c. is the smallest for older females in Korea.d. all of the abovee. (a) and (c) above19. Income earned abroad by U.S. citizens:a)incurs a tax liability in the US with some adjustments.

MGMT 338 Final Exam - Page 6 preview image

Loading page ...

b)incurs tax liability only on the portions earned in the U.S.c)incurs no tax liability.d)incurs a tax liability in the US on all income earned with no adjustments fortaxes paid in other countries.e)none of the above20. The international structural stages model suggests that a typical evolutional path for aninternational company's structure would be:a)from international division to geographical area division to worldwide productdivision.b)from international division to worldwide product division to geographical areadivision.c)from geographical area division to worldwide product division to global matrix.d)from functional division to horizontal company to virtual corporation.e)from international division to worldwide product division to global matrix.21. Competitive advantage is acquired by developing competencies thata. are common to all competitors so the firm can compete.b. create value for customers even if the price is higherthan customers want to pay.c. are difficult to imitate.d. all of the abovee. (a) and (c) above only22.In their measurement and disclosure for accounting systems, less developed countries tend toward:A.transparency andconservatism.B.transparency and optimism.C.secrecy and optimism.D.secrecy and conservatism.23.Export marketing plans should be specific about:A.the markets to be developed.B.the marketing strategy for servicing them.C.the tactics required to make the strategy operational.D.cash flow projections.E.A, B, and C.

Preview Mode

This document has 17 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

CIS 337 Unit 7 Assignment Final Project Part IV Pr

Analysis of Leadership in Monster Inc

Evaluation of Alphabet's Mission, Vision, and 8-29

Boundless Management

Uncovering the Martha Stewart Tax Scandal Insider

Boundless Business

JetBlue Airlines Case Analysis

Effective Speaker Notes Template for BUS 210 Prese

Leading as a Function of Management

McDonald's Q4 Earnings U

Company

Explore

Study Tools