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1. The benefits of offshore financial centers includeA. advantageous accounting practices.B. high interest and low fees.C. low taxes and few banking regulations.D. fluctuating currency exchange rates. 2. Reasons for global standardization of manufacturing systems includeA. greater market adjustments.B. producing significant cost savings.C. increased nonstandardization of data among plants.D. adding attractive complexities to draw new customers. 3. _______ are responsible for a shift in power from manufacturers to retailers.A. Public brandsB. Internet advertisersC. Foreign environmental forcesD. Private brands 4. The Sarbanes-Oxley Act was passed by Congress in response toA. product liability lawsuits.B. an international demand for antitrust protection.C. the Enron scandal.D. a need to protect U.S. citizens from foreign laws. 5. Of all the promotional mix elements, _______ may be the one with the greatest similarities worldwide.A. public relationsB. sales promotionC. personal sellingD. advertising 6. _______ exposure is a currency exchange risk resulting from exposure during the consolidation ofsubsidiary financial statements.A. TranslationB. TemporalC. DerivativeD. Parallel 7. Which of the following is not a part of the total product?A. AccessoriesB. WarrantyC. PackageD. Integration 8. Which of the following adds 3-5 percent to the quoted price of a product, due to the costs of importing?A. Customhouse broker's feesB. Invoice chargesC. B2B costsD. Export duties 9. A middle ground between an ad campaign that's standardized worldwide and an entirely local ad campaign is called a/an _______ approach.A. programmed-managementB. shared-managementC. hybrid advertisingD. computerized-management 10. Including such items as maintenance, repair, operating supplies, office equipment, and other services and supplies, indirect procurement can account for as much as _______ percent of the total purchasingexpenditures in companies.A. 80B. 50C. 70D. 25 11. Control of quality in the production of goods overseas is most easily accomplished whenA. raw materials come from just one supplier.B. production equipment overseas is similar to that used in the United States.C. workers have advanced language skills.D. components of the machinery are made in the United States. 12. Swedish safety requirements for machinery operatorsA. are stricter than those imposed by the U.S. Occupational Safety and Health Act.B. make exporting U.S. machines to Sweden very easy.C. are difficult to pin down because they vary from one machine to another.D. make imports of Swedish products popular in the U.S. 13. When a company's future cash flow could be affected by unanticipated movement in monetaryexchange rates, the company is experiencingA. currency exposure.B. translation exposure.C. economic exposure.D. potential bankruptcy. 14. A _______ tax is paid not by the person whose labor generates the income but by the business thatmakes the payment for the labor.A. withholdingB. swapC. exciseD. money market 15. Applying a total systems approach to managing the flow of materials, information, finances, andservices in a value chain is calledA. luxury brand development.B. information and technology management.C. organizational realignment.D. supply chain management. 16. The attitudes of governments toward transfer pricing isA. encouragement.B. academic interest.C. suspicion.D. indifference. 17. Global retailing requires that the company pay particular attention to _______ in distribution strategies.A. native company competitionB. product loyaltyC. localizationD. use of animal skins in products 18. The type of debt nearly always repaid in full by the borrower, with a repayment rate of 97 percent, is _______ loans.A. federally guaranteedB. microC. parallelD. company-to-company 19. When companies report on environmental and social, as well as financial results, it's calledA. triple bottom line.B. parallel management.C. global edge.D. convergence. 20. Relocating activities a company used to do in-house to another country is calledA. outsourcing.B. immigration.C. offshoring.D. emigration.
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