1) A firm’s resources and capabilities are the tangible and intangible assets used to
choose and implement its strategies.
2) Trademarks are legal rights awarded by government authorities to inventors of new
products or processes.
3) A firm that exports or imports, with or without FDI, is regarded as an MNE.
4) In the context of NTBs, administrative policies require a certain proportion of the
value of the goods made in one country to originate from that country.
5) Formal institutions include laws, regulations, and rules.
6) A country with low masculinity has very subtle differentiation between gender roles
in society.
7) Classical theories are based on the assumption of perfect resource mobility.
8) The rise of a country’s productivity is usually accompanied by increased demand for
its home currency.
9) Power distance is the extent to which less powerful members within a country expect
and accept that power is distributed unequally.
10) MNEs encounter sunk costs when they face an obsolescing bargain with the host
country.
11) The institution-based view places emphasis on the external factors that could affect
a firm.
12) Trade embargoes are a means of trade intervention.
13) The leverage in the LLL framework focuses on an MNEs deep understanding of its
customer needs and wants.
14) The WTO sets time limits for a panel, consisting of three neutral countries, to reach
a judgment for trade dispute settlements.
15) GATS is a WTO agreement governing _____.
a. trade dispute settlement mechanisms
b. the international trade of services
c. intellectual property rights
d. trade policy reviews
16) _____ is the ability to meet the needs of the present without compromising the
ability of future generations to meet their needs.
a. Capitulation
b. Global sustainability
c. Corporate social responsibility
d. Social activism
17) Top management at a(n) _____ firm not only supports and champions CSR
activities, but also views CSR as a source of differentiation that permeates throughout
the corporate DNA.
a. proactive
b. accommodative
c. defensive
d. reactive
18) _____ refers to a loan that the firm needs to pay back at a given time with interest.
a. Mutual fund
b. Debt
c. Equity
d. Unit trust
19) The _____ refers to the internalized, taken for granted values and beliefs that guide
individual and firm behavior.
a. normative pillar
b. regulatory pillar
c. cognitive pillar
d. formal pillar
20) The category of customers who are skeptical about whether global brands deliver
higher quality goods are called _____.
a. global citizens
b. global dreamers
c. antiglobals
d. global agnostics
21) The bandwagon effect is an example of the way _____ directly affects foreign
exchange rates.
a. exchange rate policy
b. investor psychology
c. purchasing power parity
d. balance of payments
22) The main external governance mechanism is the _____.
a. market for corporate control
b. market for product competition
c. market for private equity
d. market for stock options
23) The _____ view of global business focuses on external factors that affect a firms
performance.
a. resource-based
b. asset-based
c. capability-based
d. institution-based
24) ____ refers to overconfidence in ones capabilities.
a. Hubris
b. Fringe
c. Decoupling
d. Andon
25) The Mercosur countries collectively represent the second largest US export in Latin
America.
26) Costs that a firm has to endure even when its investment turns out to be
unsatisfactory are referred to as _____.
a. switching costs
b. replacement costs
c. cost overruns
d. sunk costs
27) Which of the following methods of understanding cultural differences characterizes
sex role differentiation in cultures?
a. Humanistic Approach
b. Cluster Approach
c. Context Approach
d. Dimensional Approach
28) The _____ theory is based on the assumption that the wealth of the world is fixed.
a. product life cycle
b. mercantilism
c. strategic trade
d. national competitive advantage of industries
29) Which of the following category of customers are most likely to lead
anti-globalization demonstrations?
a. Global dreamers
b. Global citizens
c. Antiglobals
d. Global agnostics
30) _____ groups are those who influence or affect, or are influenced or affected by, the
corporation, but are not engaged in transactions with the corporation and are not
essential for its survival.
a. Primary stakeholder
b. Union
c. Secondary stakeholder
d. Task
31) Which of the following is an advantage of hiring parent-country nationals?
a. Lesser international exposure for managers
b. Eliminates cultural and language barriers
c. Bridges gap between headquarters and subsidiary
d. Facilitates control and coordination by headquarters
32) According to sociologist Max Weber, what is the ideological foundation that led to
the rise of Western economic development?
a. The Industrial Revolution
b. Protestant work ethics
c. Catholicism
d. Colonialism
33) The fixing of East and West Germany’s currencies at a 1:1 ratio to each other during
the German unification in 1990 is an example of a _____.
a. managed float rate policy
b. floating rate policy
c. target exchange rate policy
d. fixed exchange rate policy
34) Deadweight costs are net losses that occur when _____ are imposed.
a. import tariffs
b. import quotas
c. voluntary export restraints
d. local content requirements
35) In the context of the customer-focused dimension of a global matrix, the _____
structure supplies customers in a coordinated and consistent way across various
countries.
a. solutions-based
b. open innovation
c. global account
d. social capital
36) Intellectual property specifically refers to _____ property.
a. tangible
b. intangible
c. real
d. moveable
37) Which of the following corporate social responsibilities with regard to employment
practices is recommended for MNEs by international organizations?
a. Restrict collective bargaining
b. Give advance notice of plant closures and mitigate the adverse effects
c. Refrain from improper or illegal involvement in local politics
d. Consult governmental authorities and national employers and workers organizations
to ensure conformance to the economic and social development policies
38) In a service industry, _____ refers to firm As agreement to give Firm B the rights to
use As proprietary assets for a royalty fee paid to A by B.
a. adverse possession
b. franchising
c. bailment
d. licensing
39) _____ 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
b. Capitulation
c. Social networking service
d. Corporate personhood
40) Which of the following is the argument used by proponents of the cultural
explanation for the difference in economic development across the globe?
a. That rich countries have a smarter and harder-working population
b. That rich countries tend to be endowed with natural resources
c. That rich countries tend to have better market-supporting institutions
d. That rich countries generally tend to have a democratic style of government
41) Viewing the global economy as a pyramid, the Triad refers to _____.
a. Taiwan, Hong Kong, and South Korea
b. US, the EU, and China
c. Brazil, India, and China
d. North America, Western Europe, and Japan
42) The costs associated with principal-agent relationships are called _____.
a. principal costs
b. opportunity costs
c. agency costs
d. actual costs
43) Approximately _____ people are employed by foreign-owned firms throughout the
world.
a. 80 million
b. 40 million
c. 18 million
d. 1 million
44) Which strategy is organizationally complex and most difficult to implement?
a. Localization strategy
b. Transnational strategy
c. Home replication strategy
d. Global standardization strategy
45) Including _____ into its organizational boundaries would convert an OEM into an
ODM.
a. research and development
b. components
c. final assembly
d. marketing
46) Which of the following countries is an original signatory of the Trans-Pacific
Partnership (TPP)?
a. The United States of America
b. Australia
c. Chile
d. Japan
47) The institution-based view deals with the ____ in the SWOT analysis.
a. external strengths and weaknesses
b. internal weaknesses and opportunities
c. external opportunities and threats
d. internal strengths and threats
48) MNEs’ possession and leveraging of certain valuable, rare, hard-to-imitate, and
organizationally embedded (VRIO) assets overseas in the context of FDI refer to _____.
a. location
b. ownership
c. internalization
d. market imperfections
49) Alignment refers to the grouping of interests of various players involved in the
supply chain.
50) In firms with separation of ownership and control, ownership is concentrated with a
few owners.
51) List the five underlying building blocks that determine the supply and demand of
foreign exchange.
52) The “imitability” of an alliance is based on the trust and understanding between the
partners.
53) Adaptability in supply chain management refers to the ability to quickly react to
unexpected shifts in supply and demand.
54) At the most fundamental level, regulatory pressures underpin informal institutions,
whereas normative and cognitive pressures support formal institutions.
55) Describe the stages in the formations of alliances.
56) Price elasticity refers to the changes in demand when price changes.
57) Briefly elaborate on any three nontariff barriers (NTBs).