1) The point at which an industry-specific activity becomes common across industries
and the need to keep it proprietary no longer exists is also called:
a. Commoditization c. Break even point
b. Specification d. Pinnacle
2) Which does ASEAN stand for?
a. Assembly of Southeast Asian Nations
b. Assembly of South American Nations
c. Association of Southeast Asian Nations
d. Association of South American Nations
3) Who benefits the most from the acquisition premium valued during an acquisition?
a. The shareholders of the acquiring firm
b. The shareholders of the target firm
c. Neither benefit much
d. Both benefit the same
4) Which of the following is a leading problem with the international division
organizational structure?
a. It encourages the fragmentation of the MNE into fiefdoms
b. Foreign subsidiary managers are not given sufficient voice relative to domestic
division managers
c. It is too locally responsive
d. The management team is duplicated, creating organizational confusion
5) Desirable attributes for cross-cultural adaptability include:
a. Financial stability and a positive attitude
b. Education and an established career
c. Positive attitude, emotional stability, and previous international experience
d. Education, financial stability, and previous international experience
6) Which of the following is NOT an intangible asset?
a. Human resources and capabilities
b. Reputational resources and capabilities
c. Innovation resources and capabilities
d. All of these are intangible assets
7) What is a sovereign wealth fund?
a. A philanthropic organization funded by foreign investors
b. A state-owned investment fund funded by foreign exchange assets
c. An FDI-oriented political action committee
d. An open source licensing agreement
8) First-mover advantages include:
a. Opportunity to free ride on first-mover investments
b. Resolution of technological and market uncertainties
c. Difficulty to adapt to market changes
d. Avoidance of a clash with dominant firms at home
9) The institution-based view of global business focuses on the dynamic interaction
among:
a. Institutions c. Firm behaviors
b. Firms d. All of these answers
10) Turning over an organizational activity to an outside supplier that will perform it on
behalf of the local firm is also called:
a. Captive sourcing c. Offshoring
b. Inshoring d. Outsourcing
11) Assets hard to observe and difficult to quantify are:
a. Resources and capabilities c. Tangible assets
b. Core competences d. Intangible assets
12) Environmental groups or fair labor practice groups that challenge firms to maintain
high standards are examples of:
a. Primary stakeholder groups c. Shareholders
b. Secondary stakeholder groups d. CSRs
13) Managers, to succeed, need to:
a. Match efforts in market entry with strategic goals
b. Develop overwhelming resources and capabilities
c. Understand the rules of the game
d. All of these answers
14) Which item is not a late-mover advantage?
a. Avoidance of a clash with a dominant firm at home
b. Opportunity to free ride on first mover investments
c. Resolution of technological and market uncertainty
d. First movers difficulty to adapt to market changes
15) You as a student studying this book are advised to invest in your career by doing the
following except:
a. Learn at a minimum two foreign languages
b. Spend one semester globally
c. Make international friends
d. Be aware of the prevailing norms and global transitions
16) Culture is defined in the text as:
a. The communication between members of similar location
b. The collective programming of the mind, which distinguishes the members of one
group or category of people from another
c. The main component of formal institutions
d. The attitudes and behaviors characteristic of a particular social group or organization
17) Which of the following is most closely aligned with the free market view of why a
firm exists?
a. A firm’s main focus is to serve as a vehicle for addressing the interests of the
stakeholders
b. A firm is created to bring equality to the world economic gap
c. A firm is created to generate profit and address the interests of the shareholders
d. A firm’s aim is to address social issues with a practical business perspective
18) Which of the following is the economic trade agreement between Australia and
New Zealand?
a. ANZCERTA c. APEC
b. ASEAN d. ANZU
19) Which of the following is NOT one of the three “middle-of-the-road” guiding
principles proposed by business ethicist Thomas Donaldson?
a. Firms should maintain and teach the ethical standards from their home country
b. All firms should show respect for human dignity and basic rights
c. Firms should gain careful understanding of local institutions if they wish to show
respect for institutional context
d. Firms that show respect for local traditions suggests cultural sensitivity
20) Which of the following are the four focal points of the resource-based view?
a. Value, return on investment, imitability, organizational aspects of resources and
capabilities
b. Validity, return on investment, imitability, organizational aspects of resources and
capabilities
c. Value, rarity, imitability, operation
d. Value, rarity, imitability, organizational aspects of resources and capabilities
21) The resource-based view of CSR helps test the link between CSR and economic
performance.
22) Explain in your own words how, according to the author, this book will focus on
international business.
23) Formal government policies regarding entry mode requirements for new firms are
generally becoming more conservative.
24) HR managers must do more “homework” to better understand their HCNs.
25) Emerging markets contribute about 25% of global GDP when adjusted for
purchasing power parity, PPP.
26) Identify the benefits and costs of FDI to home countries.
27) Expatriate managers are usually paid salaries coinciding with the salaries paid to
foreign local managers of similar rank.
28) According to absolute advantage theory, by specializing and trading, each nation
produces more and consumes more.