1) ____ are exclusive legal rights of firms to use specific names, brands, and designs to
differentiate their products from others.
a. Patents c. Copyrights
b. Trademarks d. Intellectual property rights
2) Companies with efficiency-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
3) Where does the International Monetary Fund receive its funds?
a. Member countries quota c. Subsidiary investing
b. Foreign direct investment d. Currency trading
4) The amount of FDI moving in a given period in a certain direction is:
a. FDI flow c. Horizontal FDI
b. Upstream vertical FDI d. FDI stock
5) A policy developed to show that exporting countries voluntarily agree to restrict their
exports is known as:
a. Voluntary export restraints c. Administrative policy
b. Local content requirements d. Antidumping duties
6) Foreign firms crack new markets by:
a. Undertaking actions deemed legitimate and appropriate by governing institutions
b. Bribing government officials
c. Hiring locals to manage the new entity
d. Outsourcing production
7) Which of the following is best defined by “the conversion of one currency into
another at Time 1, with an agreement to revert it back to the original currency at a
specific Time 2 in the future”?
a. Currency swap
b. Direct currency transaction
c. Spot currency transaction
d. Forward currency transaction
8) If central bankers raise interest rates to curb inflation, they risk driving currency
____. If their interventions in the foreign exchange market drive the currency ____,
they may boost inflation.
a. Up, up
b. Up, down
c. Down, down
d. Down, up
9) What is the drawback to the global matrix approach?
a. The complex levels of management often have conflicting incentives, which require
valuable time to align
b. While teamwork is realized, it is difficult to know whom to blame or praise when
things go poorly or well
c. The management complexity creates slow decision making
d. All of these answers
10) ____ is the consideration of, and response to, issues beyond the narrow economic,
technical, and legal requirements of the firm to accomplish social benefits along with
the traditional economic gains a firm seeks.
a. Corporate social responsibility c. Global sustainability
b. Capitulation d. Code of conduct
11) Non-HR managers must be:
a. Curious
b. Competent
c. Proactive in managing international careers
d. Caring and courageous
12) “Expatriate failure” can be defined as
a. premature (earlier than expected) return
b. unmet business objectives
c. unfulfilled career development objectives
d. All of these answers
13) Which of the following is NOT one of the three broad categories in value creation
in an alliance?
a. Possibilities to use alliances as real options
b. Controlling the direction of the firm’s investments
c. Reducing costs, risks, and uncertainties
d. Accessing complementary assets and learning opportunities
14) Which of the following is NOT a going rate approach advantage?
a. Simplicity
b. Identification with host country
c. Equality among PCNs, TCNs, and HCNs in the same location
d. Facilitates expatriate re-entry
15) The institution-based view concerning the effectiveness of the CSR approach
focuses on the strategic responses of the firms.
16) Identify how the WTO addressed the former problems of the old GATT and how
WTO executes their decisions.
17) Mercosur is relatively more protectionist and suspicious of the US, whereas the
Andean Community is more pro-free trade.
18) Explicit knowledge is codifiable and can be transmitted by IT. Tacit knowledge is
non-codifiable and requires hands-on communication.
19) There are three types of economic integration, namely: global, regional, and local.
20) What are the major reasons driving the CSR movement?
21) Regarding knowledge flow in MNEs, firms adopting the transnational strategy
experience the highest knowledge interdependence while firms adopting the
localization strategy experience the lowest.
22) All Latin American countries launched negotiations with Canada and the US for a
possible Free Trade Area of the Americas.