1) A chain of activities used in the production of goods and services that add value is
a(n):
a. Value chain
b. Vertical chain
c. Activity chain
d. None of these answers
2) What is range anxiety?
a. A malfunction common to many EVs onboard GPS tracking systems
b. A concern that EVs might run out of battery before reaching the next charge station
c. An industry code word for tightening emission standards
d. A concern that the Nissan Leaf will not be distribured to ones market
3) Which of the following is NOT one of the components of the balance of payments?
a. Currency trade c. Service trade
b. Merchandise trade d. Capital movement
4) Which of the following dimensions does NOT accurately describe the majority firms
in the United States?
a. High individualism c. Low uncertainty avoidance
b. Low power distance d. High long-term orientation
5) Why are M&As and alliances often undertaken in isolation?
a. Firms combined mergers, acquisitions, and alliance departments are often poorly
managed
b. M&As let a firm stay focused on its own needs while alliances require a great deal of
investment in the other company.
c. In many firms, an M&A group reports to CFO while a separate unit deals with
alliances.
d. An alliance usually satisfies shareholders of both organizations, precluding an
acquisition
6) A(n) ____ union represents complete integration of all public affairs within a region.
a. Custom c. Economic
b. Monetary d. Political
7) Which of the following statements is correct?
a. FDI stock is a total accumulation of inbound FDI in a country or outbound FDI from
a country
b. MNEs are firms that engage in FDI
c. FDI refers to directly investing in activities that control and manage value creation in
other countries
d. All of these answers are correct
8) ____ is an international organization that was established to promote international
monetary cooperation, exchange stability, and orderly exchange arrangements.
a. Bretton Woods System c. International Monetary Fund
b. World Bank d. Grameen Bank
9) Factor endowments, which refer to the natural and human resource repertoires, were
noted by:
a. Michael Porter c. Adam Smith
b. Heckscher-Ohlin d. Raymond Vernon
10) HR managers need to:
a. Know the formal and informal rules of the game governing HRM in all regions of
operations
b. Develop organizational capabilities that drive business success
c. Nurture and develop people
d. All of these answers
11) Which of the following regional integration is yet to be established?
a. Mercosur c. FTAA
b. Andean Community d. CAFTA
12) Which of the following is not a situational factor in an expatriate selection decision?
a. Corporate headquarters preferences
b. Technical ability and expertise
c. Host country/subsidiary preferences
d. Language skills
13) ____ are restrictions on the quantity of goods brought into a country.
a. Export restraints c. Local content requirements
b. Import quotas d. Antidumping duties
14) Companies with market-seeking strategic goals search for:
a. An abundance of strong market demand and customers willing to pay
b. Economies of scale and abundance of low cost factors
c. Abundance of innovative individuals, firms, and universities
d. All of these answers
15) Political arguments against free trade include:
a. National security and consumer perception
b. Foreign policy and environmental and social responsibility
c. Foreign policy and national security
d. National security, consumer perception, foreign policy, and environmental and social
responsibility
16) A pure command economy is:
a. Characterized by the “invisible hand” of market forces
b. Defined by a government taking the “commanding height” in the economy
c. Characterized by a government that only performs functions the private sector cannot
perform
d. Characterized by innovation and entrepreneurial activities
17) Transnational strategy is usually the easiest strategy for an MNE to implement and
the first one adopted when the firm ventures abroad.
18) In the eyes of stakeholders, a top echelon consisting of largely one nationality bodes
well for an MNE aspiring to globalize everything it does.
19) The accommodative strategy a firm might take regarding CSR is much more
focused on following legal regulations and standards than the defensive strategy.
20) Organizational fit is slightly less important than strategic fit.
21) Absolute and comparative advantages come from economic differences.
22) In the United States, unionized employees earn less than non-unionized employees.