1) The “division of labor” thesis was first advanced by:
a. Adam Smith c. Max Weber
b. Douglass North d. Francis Fukuyama
2) Which of the following is not one of the five dimensions outlined in the Dimensions
Approach?
a. Uncertainty Avoidance c. Masculinity
b. Work Ethic d. Individualism
3) Which of the following is the first theory to incorporate dynamic changes in patterns
of trade?
a. Strategic trade c. Product life cycle
b. Mercantilism d. Absolute advantage
4) Which of the following is NOT an economic benefit of global economic integration?
a. Disputes are handled constructively
b. Building confidence in a multilateral trading system
c. Rules make life easier and discrimination impossible for all participating countries
d. Free trade and investment raise incomes and stimulate economic growth
5) Which of the following is NOT an influential set of clusters outlined in the text?
a. GLOBE c. Ronen and Shenkar
b. Hofstede d. Huntington
6) A type of FDI in which firms move upstream or downstream in different value chain
stages in a host county is identified as:
a. horizontal FDI c. vertical FDI
b. radical FDI d. FDI flow
7) Sometimes foreign firms are discriminated against:
a. Formally
b. Informally
c. Randomly
d. Both formally and informally
8) Which one of the following is NOT one of the three sets of drivers related to the
urgency of global sustainability?
a. Firms from the United States are internationalizing more rapidly than ever before
b. The increasingly active role of NGOs as monitors and enforcers of social standards
c. Rising levels of population and poverty call for new ideas and solutions
d. Industrialization has created some irreversible effects on the environment
9) The world economy at the beginning of the 21st century is an approximately:
a. $10 trillion economy
b. $23 trillion economy
c. $60 trillion economy
d. $72 trillion economy
10) The relative advantage in one economic activity that one nation enjoys in
comparison with other nations is known as:
a. Theory of comparative advantage
b. Theory of absolute advantage
c. Free-trade advantage
d. Theory of nations advantage
11) ____ perform an important “middleman” function by linking sellers and buyers
overseas.
a. Export intermediaries c. Sporadic exporters
b. Indirect exporters d. Alliance partners
12) International premium is a significant pay raise awarded to expatriate employees
working abroad.
13) European MNEs are more likely to appoint HCNs and TCNs to lead subsidiaries.
14) The institution-based view says that a code of conduct is a good start towards
developing CSR because, despite its weaknesses, it is still a move in a good direction.
15) Social complexity refers to the socially complex ways of organizing typical of
many firms.
16) In the IT industry in China and India, managers do not have to excel in the game of
market responsiveness and innovation because the rules of the game are defined by the
global heavyweights.
17) In home replication strategy, knowledge flow is multidirectional, while in
transnational strategy, it is one-way.
18) EU can be best described as the United States of Europe.
19) Most opponents of globalization view globalization as a long-run historical
evolution since the dawn of human history.