D270 Midterm – Davis Exam Questions With
Verified Answers
The same automoblie company produces Fiats and Ferraris. The company builds an engine plant
in China with low production costs for Fiats but not for Ferraris. The probable reason is that
______
A) Fiat competes mainly on a focus strategy, whereas Ferrari competes mainly on a mass-market
strategyB) Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on
a focus strategyC) Ferrari faces global competitors in China, whereas Fiat competes in China
mainly against Chinese competitorsD) although Ferrari did not build an engine plant, it will use
the same Fiat engines in its models - Answers✔B
Assume a U.S. firm plans to expand into Mexico, Germany, or Japan. Its executives travel to
each country to meet with local businesspeople in decision-making. Which of the following
would be LEAST beneficial when the executives make a presentation?
A) requesting a translator with technical vocabulary knowledge
B) simplifying vocabulary and terminology for the audience
C) conducting back translations for written work
D) avoiding repetition to prevent boredom - Answers✔D
Garnet Footwear suffered significant financial losses and had to close its foreign operations. The
dissolution process took six months and cost four percent of the firm's estate. Where were
Garnet's foreign operations most likely located?
A) Ecuador
B) France
C) Japan
ALL RIGHTS RESERVED.
D) China - Answers✔C
lthough globalization may bring economic growth, critics nevertheless contend that ________.A)
the growth is too fastB) the inequality of gains puts some people in a relatively worse economic
situationC) this growth is mainly for the future, thus ignoring present economic growth needsD)
the cultural foundations of sovereignty are supported by globalization - Answers✔B
Which of the following BEST explains how a firm reduces risk by operating internationally?A)
taking advantage of business-cycle differences among countriesB) buying competitive risk
insurance unavailable domesticallyC) preventing competitors from operating in the countries it
has enteredD) operating in less competitive environments than those at home - Answers✔A
Which term refers to two or more companies that share ownership of an FDI?
A) turnkey operationB) transnational firmC) joint ventureD) franchise - Answers✔C
A computer firm has high foreign sales in Asia and wants to expand sales into Europe. Which of
the following statements provides the most appropriate advice for Elway executives?A)
Although countries' market sizes differ, companies usually face about the same number of
competitors in each national market.B) In most industries, companies face the same competitors
in each country where they operate.C) It takes about the same amount of resources to gain
national distribution in one country versus another.D) Being a leader in one country does not
guarantee market leadership in another country. - Answers✔D
Critics of the view that regionalization will prevail over globalization most likely base their
argument on the belief that ________.A) regionalization is a transition stage toward
globalizationB) neighboring countries are more apt to disagree politically than distant
countriesC) neighboring countries are too geographically similar to benefit from tradeD)
business in non-territorial areas is not regional - Answers✔A
Businesspeople seeking to understand more about another culture in order to successfully
conduct business within that culture would be best advised to do which of the following?A)
observing the behavior of people who have gained respect within that cultural environmentB)
relying on stereotypes, which are based on averages, to gain an understanding of the cultureC)
avoiding cultural research studies because they perpetuate unjustified stereotypes and
behaviorsD) memorizing the cultural variations that are typically encountered in a specific
cultural environment - Answers✔A
All of the following are international business translation problems EXCEPT which of the
following?A) All written work requires back translation in order to be understood in a second
language.B) Because languages and the common meaning of words are constantly evolving, the
intended meaning of a word may be different from what the listener or reader understands.C)
Some words in one language simply don't have a direct translation into another language.D)
ALL RIGHTS RESERVED.
Words mean different things in different contexts, thus the wrong context may be translated. -
Answers✔A
When a company does business in another country whose official language is the same as its
home country's, the company should most likely ________.A) assume that communications will
go smoothlyB) use back-translation on all written documentsC) realize that words may have
different meaningsD) assume that word meanings are the same despite spelling differences -
Answers✔C
U.S. companies monopolize much of the international entertainment media, which largely
portrays U.S. products and lifestyles as glamorous and appealing. This situation would most
likely be used as an example of ________.
A) the stronger work ethic typical of developed countries
B) the spread of high-context cultures
C) cultural fragmentation
D) cultural imperialism - Answers✔D
Which of the following ideas holds that a government should NOT interfere in business
affairs?A) collectivismB) laissez-faireC) the rule of manD) pluralism - Answers✔B
Which of the following was a notable trend in political systems during the second half of the
20th century and beginning of the 21st century?A) A wave of democratic transformations
occurred as countries around the world moved away from totalitarian systems.B) A wave of
theocratic revolutions occurred as people around the world looked to spirituality to guide
them.C) Socialistic revolutions swept the world as countries aspired toward greater social
justice.D) A totalitarian revolution swept the world as people looked to strong state leadership in
uncertain times. - Answers✔A
Recently, the Economist Intelligence Unit investigated the status of democracies around the
globe. Relying on 60 indicators that focus on the performance of free elections, civil liberties,
government functioning, political participation, and political culture in a country, the study found
that ________.A) almost all of the world's democracies are full democraciesB) nearly half of the
world's democracies qualify as "full" or "flawed" democraciesC) less than a quarter of the
countries studied are outright authoritarian regimesD) most democracies are hybrid political
systems that share theocratic and totalitarian characteristics - Answers✔B
Ian, a financial manager, is preparing to transfer to Germany where he will serve as an expatriate
manager of his employer's European office. With which type of legal system will Ian most likely
have to deal with in Germany?A) mixedB) commonC) civilD) theocratic - Answers✔C
All of the following are reasons piracy has occurred EXCEPT ________.A) technology allows
copyrighted material to be reproduced cheaply without much loss of qualityB) some countries
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