MGT 448 MGT448 Final Exam with Answers (PHOENIX)

MGT 448 MGT448 Final Exam with Answers (PHOENIX)


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1.  List two benefits of Foreign Direct Investment (FDI) for the Host Country (CH 8)




2.  In which type of economic system are all productive activities privately owned? (CH 3)

a) a mixed economy

b) a command economy

c) a representative economy

d) a market economy    


3.  Which is not one of Geert Hofstede’s Cultural Dimensions?  (CH 4)

a) Individualism

b) Language

c) Power Distance

d)   Uncertainty Avoidance


4. The establishment of a wholly new operation in a foreign country is called? (CH 8)

a) an Acquisition

b) a Merger

c) a Greenfield Investment    

d) a Multinational Venture



5.   The _______ is the rate at which a foreign exchange dealer converts one currency intoanother currency on a particular day.  (CH 10)

a) Currency swap rate

b) Forward rate

c) Specific rate

d) Spot rate    


6.    The ________ is the rate at which one currency is converted into another. (CH 10)

a) Exchange rate      

b) Cross rate

c) Conversion rate

d) Foreign exchange market


7.   A _________ is a situation in which a country cannot service its foreign debt obligations, whether private sector or government debt.  (CH 11)

a)  Currency crisis

b)  Banking crisis

c)  Foreign debt crisis

d)  Foreign exchange crisis


8.     NAFTA is an example of a(n) ________________ ? (CH 9)

a)  Customs Union

b) Common Market

c) Free Trade Area  

d)  Economic Union  



9. Which of the following is not an advantage of buying from independent global suppliers? (CH 17)

a) it gives the firm greater flexibility

b) it helps drive down the firm's cost structure

c) it protects proprietary property

d) it helps the firm to capture orders from international customers


10:  List three purposes of the bill of lading?   (CH 16)

a) _______________  

b) ______________

c) ______________


11.  List four potential entry modes for a foreign market:   (CH 15)

a) _______________  

b) ______________

c) ______________

d) ______________


12:  Which of the following is notimportant to a successful strategic alliance? (CH 15)

a) establishing a 50:50 relationship with partner    

b) creating strong interpersonal relationships

c) a shared vision

d) learning from the partner



13: The World Bank was created in 1944 to ?   (CH 11)

a) enhance economic development through grants (particularly in Latin America)  

b) enhance economic development through subsidized loans

c) facilitate foreign currency exchanges between countries.

d)  enhance social development through low interest loans.


14. Standardized advertising makes sense in all of the following situations except(ch 18)

a) when cultural differences among nations are significant    

b) when a firm is trying to save money

c) when creative talent is scarce and one large effort to develop a campaign will be more successful than numerous smaller efforts

d) when brand names are global


15. Which of the following does nothelp predict a Manager’s success in a foreign posting?  (ch 19)

a) Cultural toughness

b) Technical expertise  

c) Others-orientation

d) Perceptual ability


16. Compared to developed nations, less developed nations have ____________ ?  (ch 12)

a) similar costs of capital

b) more investment opportunities

c) smaller capital markets  

d) greater liquidity



17. Firms using _______ fill all key management positions with parent-country nationals. (ch 19)

a) An geocentric staffing policy    

b) A ethnocentric staffing policy

c) A polycentric staffing policy

d) A transcentric staffing policy


18.   The term euro-currency refers to  __________ .  (ch 12)

a) any currency banked outside its country of origin

b) the currency used by the European Union countries  

c) currencies purchased in the international equities market

d) bonds sold outside the borrower’s country that are denominated in the currency of the country in which they are issued  


19.    The Exchange Rate for the Euro was 1.3 Dollars in February 2015.  How many $US is a 225 Euro Hotel Room?    $US______     (Ch 10 - Wk4 Instructor’s Post)

(Instructor’s Note: This is a manual calculation. Do not use online Currency Converters as they will give you the wrong answer because it will not reflect the Exchange Rate specified in this test question. ) 


20.  According to ________, a company’s home-country standards of ethics are the appropriate ones to follow in foreign countries. (ch5)

a) cultural relativism

b) the naïve immoralist

c) the Friedman doctrine

d) the righteous moralist  


21. Translation Exposure is;  (ch 10)

a)  a misunderstanding caused by cross-cultural humor.

b)  an Economic Risk that changes in foreign exchange rates will affect the reported financial statements of corporations.

c)  The Political Risk of a language misunderstanding between Global Leaders from different countries caused by differences in their interpreters.

d)  a Legal/Regulatory Risk that a Law or Regulation will be misinterpreted by the Corporate Lawyers in the Home country.


22.   List 3 factors to be considered when considering outsourcing to a Foreign Supplier. (ch 17 & Wk4 Discussion Starter)

a) _______________  

b) ______________

c) ______________

23   List 3 risks of starting an overseas business venture. (Wk3 LT Assignment)

a) _______________    

b) ______________

c) ______________


24.    What is the advantage of “Countertrade” in global trade?  (ch 16)

a) it is a form of global competition.

b) it enables trade without the need for repatriation of funds.

c) it mitigates Interest Rate Risk


25.   What is a company’s formal statement of ethical priorities called? (ch 5)

a)  Mission Statement

b)  Code of Ethics

c)  Code of Company Values 

d)  Organizational Culture 


Short Answer Question.   Describe how a Host Country’s “Culture” can potentially impact a global Business venture (5 points per sentence to a maximum of 25 points)

(ch 4, 5, 18, & 19) 

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