1) The resource-based view is developed on the insight that competitors do not share
certain resources and capabilities specific to one’s firm.
2) Late movers face greater technological and market uncertainties.
3) One of the late-mover disadvantages is the establishment of entry barriers by the
first-mover.
4) Antidumping duties are levied on a countrys exports.
5) Globalization has driven up the salaries of low-level jobs.
6) Most opponents of globalization view globalization as a long-run historical evolution
since trade began.
7) An international premium is a significant pay raise awarded to expatriate employees
working abroad.
8) In individualistic societies, ties between individuals are relatively close.
9) The radical view treats FDIs as an instrument of imperialism.
10) The benefit of ownership lies in the combination of equity ownership rights and
management control rights.
11) Oligopoly happens when an industry is dominated by one company.
12) From an institution-based view, China’s economic development since it joined
WTO shows the amount of benefits associated with WTO membership.
13) The Group of 20 includes the European Union (EU)a regional bloc.
14) NAFTA is a free trade agreement between Latin American countries.
15) In global business, the institution-based view deals with internal strengths and
weaknesses.
16) Compared to licensing, FDI increases dissemination risks.
17) Cultural distance is the difference between two cultures along some identifiable
dimensions.
18) In high-context cultures, communication is usually taken at face value without
much reliance on unspoken context.
19) The concept of _____ suggests that barriers to market integration at borders are
high, but not high enough to completely insulate countries from each other.
a. localization
b. technocapitalism
c. semiglobalization
d. total globalization
20) Which of the following best describes a rate where selective government
intervention works hand-in-hand, allowing markets the freedom to work themselves
out?
a. Free float rate
b. Fixed rate
c. Dirty float rate
d. Target exchange rate
21) Which of the following business tools focuses on a firms external threats and
opportunities?
a. The VRIO framework
b. The BCG matrix
c. The SWOT analysis
d. The Pareto analysis
22) A greenfield operation refers to _____.
a. a new corporate entity created and jointly owned by two or more parent companies
b. a wholly owned subsidiary created by building a new factory and offices from
scratch
c. a wholly owned subsidiary created by acquisition
d. an outsourcing agreement in R&D between firms
23) From a CSR perspective, the best firms embrace a(n) _____ strategy when
engaging in CSR.
a. accommodative
b. proactive
c. reactive
d. defensive
24) Which of the following is one of the three “middle-of-the-road” guiding principles
proposed by business ethicist Thomas Donaldson?
a. Firms should try to export its home-country ethics to the global market
b. Firms should not base their ethics on local institutions
c. Firms should be culturally sensitive when conducting business abroad
d. Firms should follow a universal ethical business code regardless of geography
25) Which of the following is defined as the degree of overlap between two rivals
markets?
a. Cross-market retaliation
b. Market commonality
c. Multimarket competition
d. Mutual forbearance
26) Which of the following profiles characterizes a person who may be mistaken for a
native in a foreign country and is able to profitably balance insider skills with an
outsider’s perspective?
a. The Mimic
b. The Chameleon
c. The Analyst
d. The Natural
27) Private equity is primarily invested through _____.
a. leveraged buyouts
b. acquisitions
c. alliances
d. stock swaps
28) Which of the following activities is achieved within the domestic location of a firm?
a. Offshoring
b. FDI
c. Captive sourcing
d. Onshoring
29) Model of internationalization that portrays the slow step-by step process an SME
must go through to internationalize its business is referred to as the:
a. indirect model
b. stage model
c. franchising model
d. direct export model
30) The _____ structure is the opposite of the geographic area structure.
a. international division
b. global matrix
c. multidomestic
d. global product division
31) In _____ ownership and control, founders start up firms and completely own and
control them on an individual or family basis.
a. concentrated
b. diffused
c. capitalized
d. declared
32) Which theory suggests that nations will develop comparative advantages based on
their locally abundant factors?
a. Heckscher-Ohlin theory
b. Absolute advantage theory
c. Comparative advantage theory
d. Strategic trade theory
33) Corporations in continental Europe and Japan rely mostly on _____.
a. voice-based, internal mechanisms
b. market-oriented, network-based systems
c. market-oriented, high-tension systems
d. exit-based, external mechanisms
34) Which element of knowledge management faces the common problem of
absorptive capacity?
a. Knowledge inflow
b. Knowledge transmission
c. Knowledge outflow
d. Knowledge retention
35) Which of the following regions in the global economic pyramid would comprise
developed nations?
a. The base
b. The Triad
c. The second tier
d. The outlier
36) Which of the following is one of the methods by which entrepreneurial firms
internationalize by entering foreign markets?
a. Harvest and exit
b. Indirect exports
c. Microfinancing
d. Franchising
37) When an MNE is locally responsive, _____.
a. the local governments involvement reduces
b. regulations are loosened
c. innovations are limited
d. costs increase
38) A firm establishing a manufacturing plant in a foreign country due to the cheap
labor costs in that country is an example of the _____ advantage that the firm enjoys.
a. location
b. ownership
c. internalization
d. externalization
39) In Round Two of FDI negotiation process between MNEs and host governments,
_____.
a. the government may demand renegotiations of the deal
b. the MNE is not willing to enter in the absence of some government assurance
c. the previous deal becomes obsolete
d. the MNE enters the host market and earns profits
40) Which of the following agreements was in direct violation of the principles of
GATT?
a. Trade policy review
b. Multifibre Arrangement
c. General Agreement on Trade in Services
d. Trade-Related Aspects of Intellectual Property Rights
41) With regard to investment in start-ups, investment by _____ is considered as
informal investment.
a. foreign entrants
b. friends
c. venture capitalists
d. banks
42) Which of the following is a disadvantage of licensing and franchising?
a. Little control over marketing
b. High development costs
c. High risk in overseas expansion
d. Creation of a monopoly
43) The _____ was the only round of trade negotiations sponsored by the WTO to
reduce agricultural subsidies, slash tariffs, and strengthen intellectual property
protection.
a. Copenhagen Consensus
b. WTO Ministerial Conference of 1999
c. Uruguay Round
d. Doha Round
44) Founders and/or owners of new businesses or managers of existing firms who
identify and exploit new opportunities are called _____.
a. bloggers
b. entrepreneurs
c. adjudicators
d. arbitrators
45) Which of the following is a benefit of large-scale entries?
a. There are no losses even if these large-scale bets turn out to be wrong
b. They have unlimited strategic flexibility in all markets
c. They experience no liability of foreignness
d. They demonstrate strategic commitment to certain markets
46) The category of customers who may not be able to afford, but nevertheless admire,
global brands are called _____.
a. global agnostics
b. global dreamers
c. antiglobals
d. global citizens
47) Which of the following must be practiced to avoid blunders in international
marketing?
a. Encourage ethnocentrism
b. Encourage the pushy salesman approach
c. Be susceptible to nationalistic feelings of local consumers, employees, and
governments
d. Save back-translation cost
48) Which combination of resource similarity and market commonality results in the
least intense competition?
a. High resource similarity, low market commonality
b. Low resource similarity, high market commonality
c. Low resource similarity, low market commonality
d. High resource similarity, high market commonality
49) Which is the best-case scenario for an equity-based alliance?
a. High tacitness and high importance to direct organizational monitoring and control
b. Low potential as real options and low influence of formal institutions
c. High tacitness and low influence of formal institutions
d. Low tacitness and high importance to direct organizational monitoring and control
50) The distinction between _____ is what defines an MNE from a firm that merely
exports or imports.
a. direct and indirect exports
b. licensing and franchising
c. small- and large-scale of entry
d. equity and non-equity modes of entry
51) Which of the following motives for acquisition faces the resource-based issue of
access to complementary resources?
a. Collaborative
b. Hubristic
c. Managerial
d. Synergistic
52) _____ are exclusive legal rights of firms to use specific names, brands, and designs
to differentiate their products from others.
a. Patents
b. Trademarks
c. Copyrights
d. Trade secrets
53) Antitrust authorities provide easy approvals for both alliances and acquisitions with
less intervention.
54) MNEs do face a few issues with respect to knowledge management. Elaborate on
these issues and the possible ways to combat them.
55) Explain the three drivers of counterattacks.
56) Define culture. Describe the four major components of culture.
57) The CSR advocates argue that firms and managers, if left to their own devices, will
choose public interest over self-interest.
58) What are turnkey projects? What are its advantages and disadvantages compared to
other modes of entry?
59) Is successful entrepreneurship based more on the traits of the entrepreneur or on the
institutions at work in his or her environment?
60) Explain the dimensional approach of power distance in cultures.
61) Shareholders purchase stock both for dividends and for the growth potential of the
stock.