1) Jewish and Islamic law are examples of:
a. Common law c. Civil law
b. Theocratic law d. Quasi-democracy
2) Which is NOT one of the primary types of foreign exchange transactions?
a. Swaps c. Spot transactions
b. Direct transactions d. Forward transactions
3) Which of the following is NOT one of the four strategic choices for MNEs?
a. Localization
b. Global standardization
c. Home replication
d. Asset allocation
4) Which of the following is NOT a part of VRIO?
a. Value c. Limitability
b. Resources d. Organization
5) Efforts to reduce trade and investment barriers within one region refer to:
a. Global economic integration
b. Local economic integration
c. Regional economic integration
d. Both local and regional integration
6) What determines the success and failure of a firm’s exports around the globe?
a. Discovering and leveraging the comparative advantage of world-class locations
b. Monitoring and nurturing the current comparative advantage of certain locations
combined with taking advantage of new locations
c. Being politically active to demonstrate, safeguard, and advance the gains from
international trade
d. All of these answers
7) Between the 1950s and the early 1980s, the radical view was influential throughout:
a. Europe
b. Asia
c. Central and Latin America
d. Eastern Europe, Africa, Asia, and Latin America
8) The expatriates’ important roles are:
a. Manager and trainer
b. Controller and ambassador
c. Daily manager, trainer, strategist, and ambassador
d. Controller, manager and trainer
9) A major drawback for foreign direct investment (FDI) is:
a. Cost c. Physical closeness
b. Control d. Commitment
10) IPRs primarily include rights associated with:
a. Copyrights c. Trademarks
b. Patents d. All of these answers
11) The resource-based view focuses on:
a. Value and rarity
b. Imitability
c. Organization and value
d. Value, rarity, imitability, and organization
12) From a resource-based view, managers need to:
a. Develop more trained workers
b. Develop overwhelming capabilities to offset the liability of foreignness
c. Enter into more joint venture agreements
d. Outsource work to the lowest bidder
13) A country experiencing a current account surplus will see its currency ____, while a
country experiencing a current account deficit will see its currency ____.
a. Appreciate, appreciate c. Depreciate, appreciate
b. Appreciate, depreciate d. Depreciate, depreciate
14) Which of the following best exemplifies how informal institutions govern MNEs?
a. The US has few laws limiting US firms from creating subsidiaries overseas, but there
is often a vocal backlash from the public over domestic job loss
b. MNEs coming into the US have relatively few restrictions, as long as they do not
practice illegal dumping or price setting
c. MNEs based in the US must advance quickly into foreign markets to beat
competitors and take care of opportunities, but these moves are often slowed by legal
regulations and entry barriers
d. The laws governing MNEs based in the US are always changing
15) Why is the flexible global matrix a popular organizational structure right now?
a. Because formal structures are easier to observe and imitate than informal structures,
and it is more of a management mentality than an organizational structure
b. Because it balances local responsiveness and cost efficiency
c. Because it allows efficiency and simplicity in management levels
d. Because it takes everything global and efficiently creates standardized products and
marketing
16) A term that seeks to find middle ground between cultural divergence and
convergence is:
a. Divergence c. Limited divergence
b. Relative convergence d. Crossvergence
17) Inadequate screening is a problem which occurs during the pre-acquisition phase of
the M&A process.
18) Formal and informal policies are popularly known as “the rules of the game.”
19) Turnkey project refers to outsourcing agreements in R&D between firms.
20) The unique part of international competition is the pressure for cost reduction.
21) What is the difference between shareholders and stakeholders? Which one is
typically more important for firms focused on CSR?
22) Identify the strengths and influences of the classical theories of international trade.