COMMON CRITICISM OF THE IMF 1568 Get Instant Assignment Help With Us – Assignments Online | assignmentsonline.org

Which of the following is NOT a common criticism of the IMF?Provides excessively lenient repayment terms to poor countriesInappropriate policiesMoral hazardLack of accountability1 points Question 5Empirical research has demonstrated that corruption tends to _______economic growth, foreign direct investment, and international trade.increasereduceprecedepreclude1 points Question 6Why would a manufacturing firm prefer to execute a green-field investment instead of acquiring an existing asset in a foreign country?Because green-field investments are typically less costly to executeBecause green-field investments are typically less riskyBecause green-field investments are less likely to be targeted by host governments and/or protestersBecause the acquiring firm may want to have full control of facility design and layout1 points Question 7Firms that compete in the global marketplace typically face two types of competitive pressures. They face pressures for cost reductions and:pressures for volume increasespressures to be locally responsivepressures to be politically savvypressures for price reductions1 points Question 8_____ refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.Market penetrationMarket developmentMarket segmentationProduct development1 points Question 9The _____ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.experience curvelearning effectslocation economiesefficiency slope1 points Question 10According to the article "Strategies that Fit Emerging Markets," McDonald's experience in Russia suggests that:Institutional voids can be overcomeSome countries, particularly those with collectivist orientations, are just not open to Western fast-food restaurantsBusiness models developed for advanced, Western markets rarely succeed in the developing worldEven the most successful multinational firms can lose their way when they forsake the four elements of Porter's diamond1 points Question 11A (an) _________ may be defined as a situation in which none of the available alternatives seems morally acceptable.existential conflicttragedy of the commonscognitive conundrumethical dilemma1 points Question 12In terms of the influence of cultural differences on product attributes, which of the following is evidence of the trends that Theodore Levitt described?Differences in traditional eating habitsCultural differences due to historical and idiosyncratic reasonsMarket segments that remained confined to national bordersTastes and preferences becoming cosmopolitan1 points Question 13Which of the following strategies is most likely to pursued by a firm when there are strong pressures for cost reductions and demands for local responsiveness are minimal?Domestic strategyGlobal standardization strategyInternational strategyTransnational strategy1 points Question 14In return for licensing one of its products to a foreign firm, the licensor:gets preferential trade treatment from the country of the licenseegets a special subsidy from the country of the licenseecollects a royalty fee on every unit the licensee sellsgets a suitcase full of unmarked bills tossed from a bridge1 points Question 15In the context of value chain analysis, which of the following is an example of a "primary" activity?Materials managementResearch and developmentManufacturingHuman relations1 points Question 16A country's __________ of FDI refers to the total accumulated value of foreign-owned assets at a given time.portfolioinventoryflowStock1 points Question 17The task of the International Monetary Fund, as established by the Bretton Woods agreement, is to:promote general economic developmentmaintain order in the international monetary systemprovide letters of credit on behalf of first-time exportersfacilitate the establishment of regional trade agreements1 points Question 18______ is (are) payment/s made to ensure that a foreign company receives standard treatment that might otherwise be obstructed by a host country government official.facilitating paymentshush moneyblackmailarbitrage1 points Question 19Labor productivity increases over time as individuals understand the most efficient ways to perform particular tasks. This is as a result of _____.diminishing returnslocation economieseconomies of timelearning effects1 points Question 20Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets?Multinational corporations consider the world to consist of distinct and unique entities.Multinational corporations operate at low relative costs.Multinational corporations operate from a single country.Multinational corporations do not adjust their products and practices to suit each country.1 points Question 21According to the article "How Wal-Mart is Changing China," which of the following is NOT a reason why Wal-Mart established the Direct Farm Program in China?To drive down costs by eliminating unproductive pieces of the supply chainTo be able to get produce to customers in cities faster, thereby reducing spoilageTo be better able to control the standards of the food it advertises as green and organicTo comply with Beijing's demand that they purchase food directly from rural communes1 points Question 22In the 1930s, confidence in the _____________ shattered because countries were devaluing their currencies at will.fixed exchange systeminternational currency boardgold standardInternational Monetary Fund1 points Question 23A Jamaican brewery is working on its methods of advertising, promoting, and selling its product. This is an example of _____.primary activities in the value chainsupport activities in the value chainprocurement activities in the value chainservice activities in the value chain1 points Question 24How did the U.S. Justice Department learn about Chiquita's payments to illegal groups in Colombia?A private company cable was discovered by U.S. investigatorsColombian politicians filed a complaintA competitor spilled the beansThe company came forward and admitted it1 points Question 25Which of the following did Chiquita CEO Fernando Aquirre NOT do in dealing with his company's crisis in Colombia?turn itself into the U.S. Justice Departmentcease making illegal paymentssell off its Colombia banana unitpay reparations to the family members murdered by guerrillas and paramilitaries1 points Question 26In international business, the benefits frequently associated with entering a foreign market early are known as _____.pioneering costsfirst-mover advantagesabsolute advantagesbandwagon effects1 points Question 27Chinese towel-maker Loftex is cited in the article "How Wal-Mart is Changing China," as a success story. How come?Because it has achieved ambitious energy-reduction goals set by Wal-MartBecause it has developed new synthetic micro-fibers that are cheaper than cottonBecause it has found a way to lower production costs while simultaneously improving working conditions within its factoriesBecause it has found a way to lower production costs while raising worker salaries by 25 percent1 points Question 28The number of intermediaries between the product (or manufacturer) and the consumer is referred to as _____.channel lengthchannel qualitychannel exclusivitychannel fragmentation1 points Question 29_____ explicitly rejects the idea that businesses should undertake social expenditures beyond those mandated by the law and required for the efficient running of a business.The Friedman doctrineThe Sullivan principleUtilitarianismKantian ethics1 points Question 30Whereas in developing countries most FDI takes the form of _______, in developed countries most FDI take the form of _______.greenfield investments; acquisitionsacquisitions; greenfield investmentsjoint ventures; licensing dealslicensing deals; turnkey operations1 points Question 31In terms of an international firm considering foreign expansion, _____ include the costs of promoting and establishing a product offering, and educating customers.Sunk costsPioneering costsOpportunity costsIntangible costs1 points Question 32In the film "The Curse of Inca Gold," Newmont executive Larry Kurlander is caught on tape telling Peruvian intelligence chief Vladamiro Montesinos that he wants a ______.$1 million kickback deposited into his Swiss bank accountfriend for lifeguarantee that the government will suppress protests at the Yanacocha mineguarantee that the government will award Newmont and its partners a $1 billion mining concession1 points Question 33Which of the following is an element of a firm's marketing mix?Product attributesEmployee managementCustomer servicePopulation demographics1 points Question 34According to the article "How Wal-Mart is Changing China," October 24, 2005 was a critical date in the company's recent history. How come?Because the CEO gave an important speech committing the company to going greenBecause the company opened its 100th store in China, becoming the country's largest foreign retailerBecause Wal-Mart was selected by China's government as a top-tier corporate sponsor for the 2008 Beijing Summer Olympics, bestowing upon it copious amounts of guanxi and good karmaBecause the CEO gave an important speech committing the company to enhancing worker rights in its supplier factories1 points Question 35A _____ means the value of the currency is fixed relative to a reference currency, and then the exchange rate between that currency and other currencies is determined by the reference currency exchange rate.flexible exchange ratepegged exchange ratereal exchange ratedirty float exchange rate1 points Question 36Managers pursuing a ____ seek to make their product or service different from those of competitors on dimensions valued by customers.global strategydifferntiation strategycost leadership strategymultipoint competition strategy1 points Question 37A strategy that focuses primarily on increasing the attractiveness of a product is referred to as a _____ strategy.standardizationdifferentiationtarget-identificationlow-cost1 points Question 38Kapstein argues in "Avoiding Unrest in a Volatile Environment," that savvy multinational companies should to seek to win the favor of foreign governments and their citizens by embedding themselves deeply in the communities in which they operate. In other words, they ought to follow a (an) ______ strategy.engagementmulti-domesticenclavetransnational1 points Question 39In a _____, a mode of entry into foreign markets, a firm agrees to set up an operating plant for a foreign client and hand over the plant when it is fully operational.franchising agreementturnkey projectlicensing agreementwholly owned subsidiary1 points Question 40Which of the following modes of entry into foreign markets have the advantage of being characterized by low development costs and risks?ExportingLicensingA greenfield investmentA wholly owned subsidiary1 points Question 41In the 1960s, RCA licensed its leading-edge color television technology to a number of Japanese companies, which later took over the market. This demonstrates:The Japanese are not to be trustedThere are certain capabilities that are often not amenable to licensingLicensing may result in a firm's giving away valuable technological know-how to a potential foreign competitorLicensing does not give a firm the tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize its profitability1 points Question 42The _____ of a firm is measured by the difference between the value of a product to an average consumer and the average unit cost of producing that product.customer surplusvalue creationcost curvevalue efficiency1 points Question 43If Boeing won an order to sell 50 of its new 787 airplanes to China, but the Chinese government stipulated that 40 percent of the component parts be produced in China, that stipulation would be an example of a (an):ad valorem quotaanti-dumping dutyadministrative policylocal content requirement1 points Question 44Which of the following is an advantage of wholly owned subsidiaries as a mode of entry into foreign markets?A foreign firm is relieved of many of the costs and risks associated with opening a foreign market on its own.The risk of losing control over a firm's technological competence is reduced.A foreign firm is insulated completely from the threat posed by high transport costs.It is the most politically acceptable mode of entry into foreign markets.1 points Question 45According to Michael Porter, primary value chain activities involve _____.planning, finance, accounting, legal activities, and government relationsacquiring, training, evaluating, compensating, and developing human resourcesexpertise and the tools or equipment related to the exercise of that expertisecreating a product or service and distributing it to customers1 points Question 46Which of the following is true of the marketing and research and development (R&D) departments in an international firm?Marketing and R&D should always work independently.R&D identifies gaps in a market so that marketing can work to fill those gaps.R&D defines the market's needs for the marketing personnel.A major contributor to the success of new-product introductions is a close relationship between marketing and R&D.1 points Question 47_____ implicitly rejects the idea that universal notions of morality transcend different cultures.Just distributionCultural relativismThe Kantian ethicUtilitarianism1 points Question 48Franchising, a mode of entry into foreign markets, is employed primarily by _____ firms.servicemanufacturingonlinehigh-technology1 points Question 49According to our textbook, firms often view _____ and licensing as alternatives to FDI:importingexportingfranchisingdumping1 points Question 50A righteous moralist is most likely to claim that:a multinational s home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.a firm should adopt the ethics of the culture in which it is operating.people should be treated as ends and never purely as means to the ends of others.human beings have fundamental rights and privileges that transcend national boundaries and cultures.1 points Question 51BMW announces plans to build a state-of-the-art automobile assembly factory in Jacksonville, Florida. Shortly thereafter, Delphi automotive, a parts supplier, opens a warehouse down the street and hires 200 people to staff the facility. With respect to BMW s initial investment, the new Delphi jobs are considered:Direct employmentIndirect employmentSupplemental employmentNone of the above1 points Question 52A _____ allows two or more firms to share the fixed costs (and associated risks) of developing new products or processes.franchising agreementglobal webfree trade agreementstrategic alliance1 points Question 53The turning point for Newmont Mining in Peru took place when ______.The company refused to pay a bribe to intelligence chief Vladamiro MontesinosThe minister of energy and mines revoked the company's license to operateAn accidental mercury spill sent dozens of local villagers to the hospitalThe Fujimori government expropriated its assets1 points Question 54Other things being equal, FDI is ________ and ________ compared to exporting or licensing.expensive, riskyexpensive, risk averseinexpensive, riskyinexpensive, risk averse1 points Question 55_____ are the economies that arise from performing a value creation activity in the optimal place for that activity, wherever in the world that might be.Diversification economiesvalue-building economiesLocation economiesSupport economies1 points Question 56Which of the following is an advantage of exporting as a mode of entry into foreign markets?A firm can avoid the cost of establishing manufacturing operations in the host country.A firm does not have to bear the development costs and risks associated with opening a foreign market.A firm can earn returns from process technology skills in countries where FDI is restricted.A firm has access to local partner s knowledge.1 points Question 57Which of the following is true of a localization strategy?It allows a firm to capture the cost reductions of mass-producing a standardized product.It reduces duplication of functions.It involves longer production runs.It makes sense if the value added by customization supports higher pricing.1 points Question 58The Sullivan principles attempted to fight against _____.globalizationapartheid lawslegalization of facilitating paymentsdemocratic structures1 points Question 59According to the article "How Wal-Mart is Changing China," the country's burgeoning middle class has embraced Western branded fast-food and grocery chains primarily because:They have new purchasing power and like the novelty of Western brandsThey are captivated by Western advertising campaigns featuring characters like Colonel Sanders and Ronald McDonaldThey are seen as more trustworthy food purveyors than their local counterpartsTheir prices are on average 25 percent cheaper than at their Chinese counterparts1 points Question 60A _____ refers to a system under which some currencies are allowed to float freely, but the majority are either managed by government intervention or pegged to another currency.managed-float systempegged exchange rate systemfixed exchange rate systemfloating exchange rate system1 points Question 61_____ arises when people behave recklessly because they know they will be saved if things go wrong.Systemic riskMoral hazardEthical dilemmaTragedy of the commons1 points Question 62The pragmatic nationalist view sees FDI as having:both benefits and costsbenefits and essentially no costscosts and essentially no benefitsneither benefits nor costs1 points Question 63According to the video on Chiquita in Colombia, the U.S. banana company admitted to paying protection money to:left-wing guerrillasright-wing paramilitariesdrug lordscorrupt government officials