Families whose income level is 20 to 30 percent more than the median of their class are considered ...

Answer to #1

C

Answer to #2

T
Voluntary import expansions are not voluntary at all. A country agrees to import products as a result of pressure from another country. An example of voluntary import expansion is Japan's decision to avert U.S. imposed trade sanctions by importing U.S. semiconductors.

Answer to #3

T
The location of production facilities determines the extent to which a company can control costs and price the products competitively. Multinationals can usually afford to shift production in order to take advantage of lower costs and exchange rates.

Answer to #4

B

Answer to #5

F
Voluntary export quotas were banned by the Uruguay Round of the GATT. However, they are still used today. The United States is imposing them informally, for example, for Japanese steel imports.

Answer to #6

Upon repatriation, expatriates often find themselves working in a company that has changed drastically during their absence. They find that their corner offices are occupied by their former underlings, or by professionals new to the company. They also suffer a loss of status. During their international assignment, expatriates and their families are involved in a close, elite social environment. Upon return, they often find themselves to be no more than average dwellers in nondescript suburbia. Companies often try to soften the reverse culture shock by offering the repatriate a substantial incentive package, such as a raise upon return, guaranteeing a promotion, and/or a repatriation grand. Probably the most important action that the company can take is to keep the expatriate in the loop for the duration of the assignment.

Answer to #7

D

Answer to #8

T
Nonautomatic import licenses are issued on a discretionary basis and are used to restrict imports of a given product. Licensing requirements can restrict the volume of imports, as do quotas, or they can be used to impose on the exporter or importer specific conditions that will result in fewer imports.

Answer to #9

Companies can offer numerous compensation incentives above those used for assignments in the home country thus making the international assignment very attractive. Among incentives used to increase extrinsic motivation are: cost-of-living adjustments, housing allowances, education allowances, home-leave allowances, moving allowances, and repatriation allowances. Other types of allowances that expatriates can benefit from include family memberships in social or health clubs. Non-compensation incentives are very important. Multinational corporations frequently offer as incentive a guaranteed promotion to the expatriate in the company ranks upon his or her successful return from the country of assignment.

Answer to #10

C