2010 NASBITE CGBP Review – Management International Trade Center

Questions and Answers 1.Low attrition rates and meticulous management is an example of which Hofstede Value Dimension: c. Uncertainty avoidance INTERNATIONAL TRADE CENTER

Questions and Answers 2. The civil law system: d. Is practiced in France, based on a detailed set of laws organized into codes, not often interpreted by the courts and rarely revised INTERNATIONAL TRADE CENTER

Questions and Answers 3.The U.S. Federal Trade Commission Act: b.Enforces antitrust legislation, protects competition and prevents divisions of markets INTERNATIONAL TRADE CENTER

Questions and Answers 4.Which financial statement displays foreign account receivables/foreign account payables? c.Balance sheet INTERNATIONAL TRADE CENTER

Questions and Answers 5.An American firm may obtain information on the reputation and creditworthiness of a foreign buyer from which government program? a. US Commercial Service International Company Profile INTERNATIONAL TRADE CENTER

Questions and Answers 6.Transfer pricing… c.Is related primarily to subsidiary activities and must be set at a comparable market transaction INTERNATIONAL TRADE CENTER

Questions and Answers 7.Which of the following provides worldwide trade statistics for virtually all countries on a yearly basis? c. U.N. Commodity Trade Statistics Database – U.N. Comtrade INTERNATIONAL TRADE CENTER

Questions and Answers 8.All of the following are part of the US Department of Commerce except: d.Office of Foreign Assets Control INTERNATIONAL TRADE CENTER

Questions and Answers 9.Which of the following is true of Article I of the GATT, the Most Favored Nation (MFN) clause? b. All WTO members receive the same tariff rates as the most favored nation INTERNATIONAL TRADE CENTER

Questions and Answers 10.If TeliMexico began exporting 32” HD television sets into the U.S. at a price of $100 it could be charged in the WTO with: a.Dumping INTERNATIONAL TRADE CENTER

Questions and Answers 11. In the US, if a product requires an export license, the exporter would most likely apply for it through which government agency? a.Bureau of Industry and Security INTERNATIONAL TRADE CENTER

Questions and Answers 12. The adoption of a common currency results in a: c.Monetary union INTERNATIONAL TRADE CENTER

Questions and Answers 13. Which government agency oversees import-wood packaging requirements specific to the US? d.Department of Agriculture INTERNATIONAL TRADE CENTER

CGBP Management 14. The challenge associated with an individual’s returning to the home country after an overseas assignment is knows as: d. Reverse culture shock

CGBP Management 15. Which of the following establishes free trade in goods and services, sets common external tariffs among members and allows free mobility of capital and factors of production among member countries? b. European Union

CGBP Management 16. A company that conducts business in multiple countries and believes that its home-country ideals and culture are superior to those of other countries is said to be: a. Ethnocentric

CGBP Management 17. Which of the following terms refers to the forced transfer of assets by a foreign government? c. Expropriation

CGBP Management 18. A US Company with a manufacturing plant in a foreign country sends an employee who is a US citizen to be the plant’s purchasing manager. The plant is on a very tight schedule, and the current supplier of one of its product’s essential components has been late with deliveries. The head of the local firm, a competitor of the current supplier, meets with the purchasing manager and make a pitch for the plant to buy the component from the local firm instead. The price for the component would be the same. The head of the local firm promises very prompt delivery and states that the contract is important enough to the firm that it would gladly pay $50,000 directly to the plant manager, in such a way that no one would ever know about it. Such payments are legal and common in the foreign country in which the purchasing manager is working. The company’s traditional code of ethics clearly states that employees should not accept such payment but the code was written before the company began operating overseas. The manager investigates the new supplier and confirms that it is reputable and that the component it is offering to supply is of equal quality to the one that the plant is currently purchasing. Does this situation primarily involve an issue of ethics or the Foreign corrupt practices act and why? b. Both ethics and the FCPA because the company’s code of ethics forbids such payments and the FCPA applies to all business transactions in foreign countries

CGBP Management 19. The US government agency responsible for negotiating and implementing free trade agreement is the: a. Office of the US Trade Representative

CGBP Management 20. High context refers to societies or groups where people: b. Have close connections over a long period of time and many aspects of cultural behavior are not made explicit

CGBP Management 21.What is the Berne Convention? a. Administered by the World Intellectual Property Organization, and protects, for example Coldplay’s latest CD

CGBP Management 22. Price fixing is a violation of what kind of laws: d. Anti-trust laws

CGBP Management 23. Which of the following are examples of foreign direct investment? c. A Japanese company's production plant in the U.S. State of Tennessee

CGBP Management 24. Which of the following can a seller NOT use for credit/background information: c. Export Management Company

Questions and Answers International Trade Center 501 W Durango Boulevard, 4th Fl. San Antonio, Texas T: INTERNATIONAL TRADE CENTER