Exam: 500666RR – The Organizational Environment, Part 1

1. Manufacturers that sell products from other companies in foreign markets along with their own are referred to as

A. cooperative exporters.

B. export merchants.

C. resident buyers.

D. commission agents.

2. By the end of 2010 Kraft Foods had become America’s

A. the second-largest branded-food company headquartered in Brazil.

B. the largest U.S. employer overseas.

C. largest branded-food and beverage company with headquarters in North America.

D. bigger than the Nestle Corporation.

3. The behaviors and processes that go along with organizing people to achieve a common purpose are seen in

A. leaders.

B. line supervisors.

C. chairmen of the board.

D. managers.

4. To increase communication among executives and encourage confidence in each other, an IC’s policies may include

A. transferring promising managers among headquarters and subsidiaries.

B. joining international business organizations.

C. resolving disputes among subsidiaries through arbitration.

D. operating in many diverse foreign regions.

5. The Small Business Administration (SBA) provides _______ assistance.

A. market analysis and Web development

B. educational and placement

C. business development and financial

D. product-search and product-support

6. Licensing has become a more profitable venture for international companies because

A. the federal government pressed foreign governments to enforce patent laws.

B. consumers are wiser and won’t accept cheap copies.

C. technology has provided the means to ensure accurate reproduction of products.

D. the agreements eliminate competition in foreign sales.

7. The term tactical plans refers to

A. long-term strategies that address best- and worst-case scenarios.

B. detailed, short-term operational plans.

C. broad operational plans on which strategic plans are based.

D. scenarios presented as comprehensive future strategies.

8. Independent businesses that handle import shipments for compensation are called

A. customhouse brokers.

B. bonded warehouse managers.

C. commerce chambers.

D. foreign freight forwarders.

9. A partnership between competitors, customers, or suppliers is called a/an

A. strategic alliance.

B. growth triangle.

C. merger.

D. affiliation.

10. Which of the following means that goods are shipped to the buyer and payment isn’t made until they’ve been sold?

A. Bank collection time draft

B. Consignment

C. Cash in advance

D. Irrevocable letter of credit

11. Japanese anime became a popular media in the United States due to

A. an unusual amount of manga piracy.

B. American fans pulling anime in.

C. heavy advertising in the United States by Japanese comic companies.

D. Disney’s adoption of the style in its animated movies.

12. The term for what people are doing when they put forth less effort while members of a group is

A. social loafing.

B. catatonia.

C. individualism.

D. groupthink.

13. Residents of a country who represent various noncompeting foreign suppliers and take orders in those firms’ names are known as manufacturers’

A. traders.

B. agents.

C. distributors.

D. retailers.

14. Which of the following is the least costly for a buyer of exported goods?

A. Cash in advance

B. Open account

C. Irrevocable letter of credit

D. Bank collection time draft

15. When new exporters need to quote terms of sale that differ from those used in domestic markets, they must be familiar with

A. Dun & Bradstreet.

B. the FCIB.

C. ETC.

D. Incoterms.

16. The next step after beginning direct exporting might be to set up

A. a joint venture with an import agent.

B. a franchise agreement in the area.

C. a sales company in the area.

D. indirect exporting through an agent.

17. A company in which each country’s division manager reports directly to the CEO is

A. a hybrid organization.

B. organized by geographic regions.

C. divided by both product and function.

D. a matrix organization.

18. The Conformité Européen is a type of

A. consular invoice.

B. export license.

C. certificate or origin.

D. inspection certificate.

19. The most well-known model for change that involved unfreezing, moving, and refreezing was developed by

A. Kurt Lewin.

B. Chad Henry.

C. John Kotter.

D. Adam Smith.

20. Organizational _______ is a process dealing with how a company should be organized for integration, efficiency, and effectiveness.

A. design

B. division

C. competitiveness

D. functions