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MGT 448 Final Exam Guide
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MGT 448 Final Exam Guide

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20 Question Set Choose the best answer for each question below. There is only one (1) answer to each question.Please make sure you only select one box for each question.1.Which of the following best describes globalization?The increasing unification of the world’s economic systemThe development of a world governmentIncreasing U.S. trade with ChinaEase of communications due to the Internet 2.Which of the following is a consequence of globalization?Foreign direct investment (FDI) has declinedCompetitive pressures have decreased in many industriesForeign companies compete directly with domestic firmsWorld trade has decreased over the last decade 3.Critics of globalization claim that foreign companies may put adverse pressure on small domesticfirms potentially driving them out of business.TrueFalse 4.Global corporations view the world as their market?TrueFalse 5.Which of the following modes of foreign entry is best described by cost and risk sharing while gaininglocal knowledge and political influence?FranchisingLicensingJoint VentureTurnkey project 6.___________________ predicts that countries will export those goods that make intensive use oflocally abundant factors and will import goods that make intensive use of factors that are locallyscarce.The new trade theory7.The theory of absolute advantageThe theory of competitive advantageThe Heckscher-Ohlin Theory 8.American citizens may pay bribes when doing business in another country as long as bribes are considered a “normal” way of doing business in that country.TrueFalse 9.The cost of capital in global markets is generally lower than in domestic markets.TrueFalse 10.Which of the following represents the 4 P’s of the marketing mix?Place, Price, Profit, and PromotionProduct, Price, Promotion, and PlaceProduct, Process, Promotion, and PlaceProduct, Process, Promptness, and Place 11.When deciding whether to do business in another country, firms will review the financial system of the country. Which of the following is not a step in the financial overview process?The ability to repatriate profitsReview of the health of the host country banking systemSources of capital and financeCompetitor profiling 12.Tariffs lower the cost of the imported productTrueFalse 13.In a free-market economy,Business decisions are coordinated with government advisorsProfits from a successful firm may be applied to less successful firms to keep them viablePrivate ownership is predominant and business decisions are made by the ownersLarge firms are owned by the government 14.The ___________ exchange rate is the price at which a dealer expects to convert currency into in thefuture.SpotForwardBackwardFair 15.The World Bank was created in 1944 for the principal purpose ofProviding a clearinghouse for currency exchangesEnhancing economic development and FDI principally in AfricaEnhancing economic development through subsidized loansEnhancing economic development and FDI principally in Latin America 16.A country is in a balance of trade equilibrium whenthe country is a member of a free trade blocit has not had a reevaluation of its currency in over a yearthe capital account and the current account sum to zero.the income its residents earn from exports is equal to the money paid to foreigners to purchaseimports17.A falling dollar results inthe cost of imports decrease and the cost of exports increasethe cost of imports increase and the cost of exports increasethe cost of imports decrease and the cost of exports decreasethe cost of imports increase and the cost of exports decrease 18.The four main dimensions of organizational structure arevertical differentiation, horizontal differentiation, management differentiation, and informationsystemsvertical differentiation, horizontal differentiation, integration, and information systemsvertical differentiation, horizontal differentiation, integration, and control systemsvertical differentiation, diagonal differentiation, integration, and control systems 19.Horizontal differentiation refers to how a firm is divided into subunitsTrueFalse An exit strategy is the means by which a business ends operations or cancels a project in a country in which it is doing business due to factors such as a significant change in the business climate of that country.TrueFalse 20.Customizing a product offering, marketing strategy, and business strategy to various nationalconditions is an example ofa global strategyan international strategya domestic strategya multidomestic strategy

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