15. When an organization, such as Disney, takes knowledge it has acquired in one area (cartoons, for example), and
transfers that knowledge to other activities (such as amusement parks and toys), we have:
a. Economies of scope
b. Economies of scale
c. A multidomestic strategy
d. Loss of brand equity
16. Which of the following countries is a member of OPEC?
a. Nigeria and South Africa
b. Venezuela and Saudi Arabia
c. Russia, Norway and Mexico
d. Indonesia and Malaysia
17. The world's largest employers:
a. Are all European-based
b. Include both Walgreens's and Target
c. At least one multinational retailer
d. Are Microsoft and Apple
18. Which of the following best describes the current state of world use of languages?
a. Americans tend to think of English as the only international business language
b. The French, unlike other Europeans, only speak their native language
c. Portuguese is expected to be the most widely spoken language, world-wide by the year 2010
d. Most Americans study many other languages in school, especially Arabic and Spanish
19. The US steel industry:
a. Has never been protected by any form of tariff or quota.
b. Is competitive with Brazil and South Korea, because of the numerous basic and advanced factor advantages the
US has
c. Is a classic example of how administrative regulations can be used to impede the free flow of goods
d. Has been protected by tariffs because of domestic political and national security concerns
20. The EU has only six official languages - English, French, German, Italian, Dutch and Danish.
a. True
b. False
21. In a greenfield operation, a company:
a. Enters a market by forming a completely new subsidiary
b. Takes a minority ownership in a joint venture with a partner or partners from the host country
c. Purchases an existing company to operate as a subsidiary
d. Ensures that products conform to EU environmental standards
