1) What was one of the major reasons the gold standard fell apart?
a. Countries fighting in World War I printed excessive amounts of money to finance
their war efforts
b. Military campaigns during World War I stole much of the gold from foreign central
banks
c. Gold lost its value and was no longer reliable
d. Gold became too rare and costly to maintain adequate reserves
2) The motto for international business is:
a. Beat the competition to the marketplace
b. Set strategic goals
c. Partner with local companies
d. Location, Location, Location
3) The global economy can be viewed as a pyramid. The Triad represents:
a. US, Germany, England
b. US, Western Europe, China
c. Brazil, India, China
d. North America, Western Europe, Japan
4) A political view that approves FDI only when its benefit outweighs its costs is known
as:
a. A free market view c. Pragmatic nationalism
b. The radical view d. Economic patriotism
5) Who usually has the advantage in the “going public” phase of alliance dissolution?
a. The initiator
b. The partner
c. Neither are at an advantage
d. Both have the same advantage
6) The resource-based view argues that foreign firms need to:
a. Understand regulatory risks
b. Employ overwhelming resources and capabilities to offset the liability of foreignness
c. Understand the rules governing investing
d. Be aware of trade and investment barriers
7) Which of the following definitions best defines an expatriate manager?
a. A manager who works outside his or her native country
b. A manager of great expertise
c. An ex-manager rehired for advisory purposes
d. None of these answers
8) Which of the following is a classical theory?
a. Product life cycle c. Strategic trade
b. National competitive advantage d. Absolute advantage
9) The most widely used method in expatriate compensation is:
a. Going rate approach c. Performance appraisal
b. Balance sheet approach d. Employee’s request
10) Which of the following is NOT a defining characteristic of entrepreneurship?
a. Opportunity c. Exploration
b. Discovery d. Age
11) Traders and investors trading in a forward transactions market are most concerned
about:
a. Political and social stability of the foreign country
b. Change in the spot rate
c. Regulation from the International Monetary Fund
d. Currency hedging
12) Which strategy for MNEs entering foreign markets is best described as the
development and distribution of standardized products worldwide to reap maximum
benefits from low cost advantages?
a. Asset allocation c. Home replication strategy
b. Localization strategy d. Global standardization
13) ____ suggests that FDI, unrestricted by government intervention, will enable
countries to tap into their absolute or comparative advantage by specializing in the
production of certain goods or services.
a. The radical view c. Pragmatic nationalism
b. The free market view d. Expropriation
14) Which of the following is NOT one of the major management strategies?
a. Understand and be prepared to change the internal rules of the game governing MNE
management
b. Understand and carefully control subsidiaries and minimize autonomous and locally
dependent teams
c. Understand and master the external rules of the game governing MNEs and
home/host country environments
d. Develop learning and innovation capabilities to leverage multinational presence as an
asset
15) Which are the two primary pressures MNEs confront?
a. Ethics and governance
b. Cost reductions and local responsiveness
c. Liability of foreignness and investment risk
d. Local and foreign government
16) Why study global business?
a. In order to increase one’s employability
b. In order not to get Bangalored or Shanghaied
c. In order to better understand how to become a sought-after, globe-trotting manager
d. All of these answers
17) What was one of the steps Nissan took to ensure a successful launch of the Leaf?
a. It set the list price at $44,600
b. It prohibited environmental activists from previewing the Leaf
c. It limited the launch to just seven states
d. It advertised the Leaf as a rugged SUV
18) Which of the following is a factor behind English being accepted as the global
business language?
a. English speakers have traditionally been more mobile than non-English speakers
b. It is easiest to translate to and from English
c. English-speaking countries contribute the largest share of global output
d. English is the number one language in the world
19) Which is one of the disadvantages of the home replication strategy?
a. It focuses too much on the home country
b. It is organizationally complex and difficult to implement
c. It focuses too much on the foreign country
d. It has higher costs due to duplication efforts in multiple countries
20) The most effective way to learn cultural skills is to take a class.
21) Unlike tariffs, whose existence is easily observed, many governments imposed
NTBs (non-tariff barriers) to protect their domestic market.
22) Formal rules refer to government regulations regarding foreign and domestic firms.
In most modern emerging environments, formal rules ensure equal playing field for all
companies, regardless of origin.
23) Benchmarking is an assessment as to whether a firm has resources and capabilities
to perform a particular activity in a manner superior to competitors.
24) What is the challenge in drawing conclusions from previous studies linking CSR
and economic performance?
25) The difficulty of identifying the causal determinants of successful firm performance
is best described in two words: causal ambiguity.
26) The best-performing entrepreneurs tend to have the most general knowledge about a
host of business opportunities.
27) Identify the three categories of intangible assets, and provide an example for each
category.
28) The theory of absolute advantage espouses that the economic advantage one nation
enjoys is superior to another nation.
29) What determines the success and failure of a firm’s exports around the globe?