1) Out of the following, which one is an example of regional economic integration?
a. European Union
b. British Commonwealth
c. AT&T and T-Mobile merger
d. Coca-Cola international operations
2) Which of the following is a comparative advantage strength?
a. It defeats mercantilism, at least intellectually
b. It provides direct policy advice
c. It explains patterns of trade based on factor endowments
d. It positively incorporates the role of governments in trade
3) When one firm enters a foreign country through FDI, its rivals are likely to follow by
undertaking additional FDI in a host country to:
a. Create knowledge spillover
b. Discover a new market for its goods
c. Overcome and combat market failure through FDI
d. Acquire location advantages or neutralize the first movers location advantages
4) What defines the field of global business more than anything else?
a. The focus on firm performance around the globe
b. The focus on ROI of the global venture
c. The focus on maximizing profits while minimizing expenses
d. The focus on global expansion
5) Which of the following is NOT one of the four segments of the strategic response
framework?
a. Accommodative c. Interactive
b. Proactive d. Defensive
6) In a collective society:
a. Family units are highly valued
b. Being an entrepreneur is a popular mindset
c. Being different than your neighbor is important
d. Outsiders are easily trusted
7) ____ allow participants to buy and sell currencies now for future delivery.
a. Swaps c. Spot transactions
b. Direct transactions d. Forward transactions
8) MNEs are rushing into ____, whereby the local supply of top talent is limited.
a. Japan c. Eastern Europe
b. Mexico d. Brazil, Russia, India, and China
9) Which of the following is an example of a customs union?
a. Mercosur (Eastern South America)
b. EU (European Union)
c. RC (Russian Confederation)
d. Eastern Europe (Romania, Bulgaria)
10) Which of the following definitions of the international/global business represents
the author’s view?
a. A business that engages in international economic activities
b. The action of doing business abroad
c. Business around the globe including international and domestic business activities
d. All of these answers
11) Which of the following would most likely foster more entrepreneurship?
a. Individualistic and high uncertainty-avoidance
b. Collectivistic and high uncertainty-avoidance
c. Collectivistic and low uncertainty-avoidance
d. Individualistic and low uncertainty-avoidance
12) An ethnocentric staffing policy:
a. Utilizes host country nationals in key foreign management and technical positions
b. Assigns expatriates who have learned the language and culture of the country of their
assignment
c. Is required in order to prepare home-country citizens for high-level managerial
positions at headquarters
d. None of these answers
13) Problems associated with repatriation include:
a. Career anxiety and work adjustment
b. Loss of status and pay
c. Difficult for the spouse and children to adjust
d. All of these answers
14) ____ are defined as rights associated with the ownership of intellectual property.
a. Patents c. Trademarks
b. Copyrights d. Intellectual property rights
15) An American firm operating in the Middle East struggles with enforcing rules
against sexual discrimination against Muslim women working in its management. This
is an example of:
a. Ethical relativism c. Ethical imperialism
b. Ethical responsibility d. Ethical institution
16) The single most important source of funds for new start-ups in the United States is
the mortgage of entrepreneurs’ houses.
17) Firms operating in democracies almost never confront political risk.
18) Currency hedging is a popular way to minimize the foreign exchange risk inherent
in all nonspot transactions.
19) Explain the benefits of gaining international business experience and working as an
expat.
20) Define microfinance, then explain how it works towards alleviating poverty.
21) The global economy may be viewed as a pyramid. The growing number of
opportunities at the base of the pyramid highlights the role this bottom tier will play in
the years to come. How would you take advantage of this often-ignored level if you
were occupying a top management position at a prominent MNE?