The Organizational Environment, Part 1

The Organizational Environment, Part 1 

 

Questions 1 to 20: Select the best answer to each question. 

 

1. A global mindset involves 

A. intellectual intelligence and global, emotional intelligence. 

B. knowledge of foreign languages. 

C. global skills and local contacts. 

D. knowledge of and experience in other cultures. 

 

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

A. resident buyers. 

B. export merchants. 

C. cooperative exporters. 

D. commission agents. 

 

3. On a consignment sale, the payment risk is 

A. covered by insurance. 

B. assumed by the buyer.

C. carried by the seller. 

D. assumed to be equally shared. 

 

4. Incoterms were developed by the International Chamber of Commerce to

 A. translate international contracts. 

B. clarify terms of sale. 

C. facilitate legal price quotes between buyers and sellers. 

D. promote trade missions. 

 

5. A _______ is an arrangement under which a company provides managerial know-how in some or all functional areas to another party for a fee. 

A. joint venture 

B. strategic alliance 

C. management contract 

D. manufacturing contract 

 

6. The difference between tacit knowledge and explicit knowledge is that 

A. explicit knowledge is subjective while tacit knowledge is objective. 

B. tacit knowledge is difficult to express in terms of pictures or words. 

C. explicit knowledge is codified in numbers only. 

D. tacit knowledge is always expressed visually. 

 

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

 A. product-search and product-support 

B. business development and financial 

C. market analysis and web development 

D. educational and placement 

 

8. Broad guidelines used to assist lower-level managers to handle recurring problems are called 

A. procedures. 

B. policies. 

C. scenarios. 

D. plans.

 

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

A. distributors. 

B. retailers. 

C. traders. 

D. agents. 

 

10. 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. ETC. 

C. Incoterms. 

D. the FCIB. 

 

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

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

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

C. American fans pulling anime in. 

D. an unusual amount of manga piracy. 

 

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

A. merger. 

B. growth triangle. 

C. strategic alliance. 

D. affiliation. 

 

13. Basic named perils marine insurance covers 

A. perils of the sea, fires, jettisons, and hurricanes. 

B. theft and larceny. 

C. accidents and storms other than hurricanes. 

D. piracy on the seas. 

 

14. Foreign direct investment (FDI) includes all of the following except 

A. strategic alliance. 

B. wholly owned subsidiary. 

C. joint venture. 

D. management contract. 

 

15. A description of the company’s desired future position if it can acquire the necessary competencies and successfully implement its strategy is known as a 

A. values statement. 

B. mission statement. 

C. vision statement. 

D. strategic plan. 

 

16. 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. Cash in advance 

C. Consignment 

D. Irrevocable letter of credit 

 

17. LASH and RO-RO are 

A. barges used in materials handling. 

B. innovative material-handling methods. 

C. kinds of containerization. 

D. Panamax ships. 

 

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

A. organized by geographic regions. 

B. a matrix organization. 

C. a hybrid organization. 

D. divided by both product and function. 

 

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

A. bonded warehouse managers. 

B. commerce chambers.

C. foreign freight forwarders. 

D. customhouse brokers. 

 

20. To effectively develop and implement an effective strategy, objectives should be 

A. eclectic. 

B. visible. 

C. voluntary. 

D. quantified