1) According to Max Weber, Protestant work ethics led to the rise of capitalism in
Europe.
2) On the global economic pyramid, the Triad refers to developed economies consisting
of North America, Western Europe, and Japan.
3) Proponents of fixed exchange rates argue that fixed exchange rates impose monetary
discipline by preventing governments from engaging in inflationary monetary policies.
4) Local content requirements require a certain proportion of the value of the goods
made in one country to originate from that country.
5) A weak dollar makes it more expensive for US tourists when traveling abroad.
6) Force majeure is a method of interpreting a statute by understanding the legislative
history leading up to the adoption of that statute.
7) Intellectual property rights are enforced though the informal institution system.
8) The GATT system is an example of a strictly bilateral trading system.
9) The Bretton Woods system had been built on the condition that the US inflation rate
had to be continuously high.
10) The concept of opportunity cost is crucial to the theory of comparative advantage.
11) Repatriated earnings from profits of MNEs benefit the host country financially.
12) The scale of entry refers to the amount of resources committed to entering a foreign
market.
13) A firm that has adopted an accommodative strategy for ethical challenges in
business _____.
a. accepts responsibility and does all that is required
b. denies responsibility and does less than required
c. admits responsibility but does the least that is required
d. anticipates institutional changes and does more than is required
14) Which of the following is true of the absolute advantage theory of international
trade?
a. It emphasizes relative advantage in one economic activity that one nation enjoys in
comparison with other nations
b. It divides the countries of the world into three categories based on innovation
c. It advocates extensive government intervention in international trade
d. It was the first theory that advocated free trade
15) Which of the following nations has the highest level of informal investment, as a
percentage of GDP, in the world?
a. Sweden
b. China
c. Greece
d. Japan
16) The perceptions of product quality, durability, and reliability are an example of
_______ resources and capabilities.
a. physical
b. reputational
c. technological
d. human
17) The process of anticipating rivals actions in order to both revise a firms plan and
prepare to deal with rivals response is called _____.
a. mutual forbearance
b. multimarket competition
c. competitor analysis
d. prisoners dilemma
18) Which of the following is true of the Group of 20 (G-20)?
a. It only has 19 member countries
b. It doesnt represent any European nation
c. It meets annually to discuss environmental issues
d. It includes many regional blocs
19) ____ are persons to whom authority is delegated.
a. Agents
b. Principals
c. Shareholders
d. Acquirers
20) Which of the following support activities corresponds to a firms primary activity of
final assembly?
a. Technology development
b. Human resources
c. Infrastructure
d. Logistics
21) Relocating employees of a foreign subsidiary to the MNEs headquarters for the
purposes of filling skill shortages at headquarters and developing a global mind-set for
such employees is called _____.
a. onboarding
b. orientation
c. nepotism
d. inpatriation
22) Which of the following is true of the civil law system?
a. It is the most widely distributed legal system around the world
b. It originated in England, and was then spread as the legal system for all its former
colonies
c. It is shaped by precedents and traditions from previous judicial decisions
d. It allows judges to interpret the law before making judicial decisions
23) Knowledge acquisition, one of the knowledge management elements, faces the
common problem of _____.
a. How does it help me? syndrome
b. failure to share and integrate external knowledge
c. Not invented here syndrome
d. absorptive capacity
24) Which of the following drives the urgent need for global sustainability?
a. Internationalization of firms from the U.S. in a more rapid pace than ever
b. Decreased participation of NGOs in monitoring and enforcing social standards
c. Rising levels of population and poverty calling for new ideas and solutions
d. The discovery of new sources of non-renewable natural resources
25) Which of the following would be considered an example of informal institutions?
a. Laws
b. Regulations
c. Ethics
d. Rules
26) Which of the following is an advantage of hiring parent-country nationals (PCNs)?
a. Increases opportunities for HCNs
b. Opportunities for host-country nationals will be abundant
c. Adaptation will take lesser time
d. Managers are given international experience
27) Which of the following four Ps of marketing includes TV, radio, print, and online
advertising, as well as coupons, direct mail, billboards, direct marketing, and public
relations?
a. Prospecting
b. Promotion
c. Pointcasting
d. Positioning
28) _____ refers to a firms failure to satisfy the terms of a loan obligation.
a. Debt
b. Dissolution
c. Default
d. Defeasance
29) A(n) _____ is a non-equity mode of entry used to build a longer-term presence by
building and then operating a facility for a period of time before transferring operations
to a domestic agency or firm.
a. BOT agreement
b. R&D contract
c. JV
d. WOS
30) Microfinance provides micro loans used to:
a. pay mortgages
b. pay car loans
c. start small businesses
d. start subsidiaries
31) In a collectivist society, _____.
a. family units are highly valued
b. individual identity is considered separate from his or her group
c. ties between individuals are relatively loose
d. individual achievement and freedom are highly valued
32) Relative to licensing and franchising, _____ allow a firm to have better control of
how its proprietary technology is used while entering foreign markets.
a. harvest and exit methods
b. foreign direct investments
c. indirect exports
d. direct exports
33) Which of the following foreign exchange transactions provide protection to traders
and investors from being exposed to fluctuations of the spot rate?
a. Spot transactions
b. Forward transactions
c. Direct transactions
d. Currency swaps
34) _____ firms actively participate in regional, national, and international policy and
standards discussions.
a. Accommodative
b. Reactive
c. Proactive
d. Defensive
35) International new ventures are also referred to as _____.
a. born global firms
b. microfinance firms
c. greenfield subsidiaries
d. conglomerates
36) _____ are associations between firms that are based on contracts and do not involve
the sharing of ownership.
a. Joint ventures
b. Cross-shareholdings
c. Non-equity based alliances
d. Strategic investments
37) A compensation approach that pays expatriates the prevailing rate for comparable
positions in a host country is called the _____ approach.
a. pay-per-impression
b. balance sheet
c. merit rate
d. going rate
38) A price leader is a firm that ____ in the industry.
a. sets the highest prices and has a low market share
b. sets the lowest prices
c. sets acceptable prices and has a dominant market share
d. sets the globally consistent price
39) Mutual forbearance is a type of _____.
a. cross-market retaliation
b. multimarket competition
c. explicit collusion
d. tacit collusion
40) The General Agreement on Tariffs and Trade (GATT) expanded considerably into a
multilateral trading system called _____.
a. EU
b. NAFTA
c. UN
d. WTO
41) The _____ is measured as the sum of value added by resident firms, households,
and governments operating in an economy.
a. gross national product
b. gross national income
c. gross domestic product
d. national reserve
42) Elaborate on the various aspects marketers have to consider to enhance promotion.
43) What is a value chain?
44) In a transnational strategy, the flow of knowledge is unidirectional.
45) The going rate approach is the most widely used method in expatriate
compensation.
46) Briefly explain outsourcing and its different types.
47) Patenting adds value to a firms resources when engaging with rivals.
48) Explain the reciprocal relationship between multinational strategy and structure.
49) Describe the different strategic responses to ethical challenges.
50) Mutual forbearance refers to retaliatory attacks on a competitor’s other markets if
this competitor attacks a firm’s original market.