1) Between the 1950s and the early 1980s, the radical view was influential throughout
Africa, Asia, Eastern Europe, and Latin America.
2) When US firms offshore to India, how much do they save on each dollar invested?
a. 58% c. 80%
b. 10% d. 45%
3) The greatest weakness in the fight against eradicating corruption is:
a. There is too much corruption to ever win
b. Every country must institutionalize and enforce anti-corruption laws
c. The fact that the Foreign Corrupt Practices Act is no longer being followed
d. Overseas bribes are often tax deductible
4) One consequence of internationalizing a firm’s CSR is:
a. Cultural differences hinder effective CSR for the first few years in a foreign country
b. Profits are usually cut but goodwill and other intangible assets increased
c. Employees and communities domestically may be ignored or have fewer resources to
work with
d. It is easily imitated
5) Which is NOT one of the four phases in alliance dissolution?
a. Initiation c. Splitting
b. Going public d. Aftermath
6) Which strategy is most difficult to implement and is the most organizationally
complex?
a. Localization strategy c. Home replication strategy
b. Transnational strategy d. Global standardization
7) Agglomeration advantages stem from:
a. Knowledge spillovers among closely located firms that attempt to hire individuals
from competitors
b. Industry demand that creates a skilled labor force whose members may work for
different firms without having to move out of the region
c. Industry demand that facilitates a pool of specialized suppliers and buyers also
located in the region
d. All of these answers
8) As a major tariff barrier, a(n) ____ is a tax imposed on imports.
a. Import tariff c. Deadweight costs
b. Export tariff d. NTBs
9) The aggregation of importing and exporting by both sides leads to a:
a. Balance of trade
b. Trade surplus or deficit
c. Different nation’s trade
d. Both a balance of trade and a trade surplus or deficit
10) Civil law can be best described by which of the following statements?
a. It is the oldest, most influential, and most widely distributed law around the world
b. It is English in origin and shaped by precedents and traditions from previous judicial
decisions
c. It is based on religious beliefs
d. It has more flexibility because judges have to resolve specific disputes based on their
interpretation of the law
11) Most countries practice:
a. Pragmatic nationalism c. Government embracing radical view
b. Free market based FDI d. French patriotism
12) ____ is/are measured as the sum of value added by resident firms, households, and
government operating in an economy.
a. Gross national product c. Gross domestic product
b. Gross national income d. National reserves
13) Which of the following is NOT a balance sheet approach disadvantage?
a. Costly
b. Great disparities between expatriates and HCNs
c. Variation between assignments in different locations for the same employees
d. Organizationally complex to administer
14) Indirect export is a(n):
a. Strategy for exporting to foreign countries
b. Strategy of exporting through domestically based intermediaries
c. Strategy for exporting through local governments
d. Indirect way to generate new revenues
15) Beyond geographic advantages, location-specific advantages arising from the
clustering of economic activities in certain countries are referred to as:
a. Joint ventures c. Dominant areas
b. Agglomeration d. Desired marketing locations
16) Having access to partners’ knowledge and assets is an advantage for equity modes,
such as joint ventures.
17) Social issue participation does not add much value to a firm.
18) Totalitarian countries often experience wars, riots, protests, chaos, and breakdowns,
resulting in higher political risk.
19) “The business of business is business” is a quote most representing the free market
approach to a firm’s purpose.
20) There is a positive relationship between a high degree of innovation and superior
profitability.
21) Managers need not be politically active to appreciate the gains from trade.
22) Markets governed by rules, regulation, and norms are designed to reduce costs
associated with doing business.
23) What are the two sets of considerations that drive the location of foreign entities?
24) Offshoring means outsourcing to an international or foreign firm.