1) An original brand manufacturer includes research and development in its value chain
activities.
2) By trying to be self-sufficient and producing a wide range of goods, mercantilist
policies help sustain the wealth of a nation in the long run.
3) The absolute advantage theory is considered as the forerunner of the free trade
movement.
4) All the countries of Europe are part of the European Union (EU).
5) The laws of a country are part of the formal institution.
6) An original equipment manufacturer does not include marketing in its value chain
activities.
7) General Agreement on Tariffs and Trade (GATT) expanded considerably to become
the EU.
8) Risk analysis of any country must include its currency risks.
9) Managers in low uncertainty avoidance countries tend to rely more on rules than
experience.
10) The product life cycle theory explains patterns of trade based on factor
endowments.
11) Semiglobalization calls for adopting one way of doing business for all conditions.
12) The two key elements to achieve alignment are power and _____.
a. agility
b. promotion
c. aggregation
d. trust
13) The vast majority of large firms throughout continental Europe, Asia, Latin
America, and Africa feature _____ ownership.
a. concentrated state
b. concentrated family
c. diffused family
d. diffused state
14) Which of the following is a theory that studies the interactions between two parties
that compete and/or cooperate with each other?
a. Predatory pricing
b. Game theory
c. Prisoner’s dilemma
d. Cross-market retaliation
15) The post-Bretton Woods system is a system of flexible exchange rate regimes with
_____.
a. the Japanese yen as its common denominator
b. the American dollar as its common denominator
c. gold as its common denominator
d. no official common denominator
16) Which of the following would be an example of a top down innovation?
a. Lowering prices and features of existing products to meet emerging market needs
b. Launching a product in and for emerging economies
c. Adopting an innovation first in emerging economies and then diffusing it around the
world
d. Introducing products from emerging markets into developed markets
17) Market orientation seeks to place the highest priority on which of the following?
a. Coordinating operations
b. Supply chain efficiency
c. Relationships with customers
d. Creation of superior customer value
18) A member of the board who is a top executive of the firm is called a(n) _____.
a. outside director
b. executive manager
c. inside director
d. co-manager
19) In the context of the motives for acquisition, from a resource-based view, the most
important _____ rationale is to leverage superior resources.
a. managerial
b. synergistic
c. hubristic
d. collusive
20) ____ refers to the ability to change supply chain configurations in response to
long-term changes in the environment and technology.
a. Aggregation
b. Agility
c. Alignment
d. Adaptability
21) For which of the following categories of customers can MNEs market localized
products and services under local brands?
a. Global dreamers
b. Global activists
c. Global citizens
d. Global agnostics
22) Which of the following characterizes an MNE from a non-MNE?
a. It enters foreign markets via non-equity modes
b. It exports or imports with or without FDI
c. It enjoys OLI advantages
d. It enters foreign markets through FPI
23) Captive sourcing is also known as _____.
a. business process outsourcing
b. foreign direct investment
c. securitization
d. domestic in-house activity
24) Which of the following is true of a command economy?
a. All factors of production are privately owned
b. The government only performs those functions that the private sector cannot perform
c. It does not allow private entrepreneurship
d. It strictly follows the doctrine of laissez faire
25) The _____ structure allows for consolidation on a worldwide or regional basis and
reduces inefficient duplication in multiple countries.
a. geographic area
b. global matrix
c. international division
d. global product division
26) Which of the following does the institution-based view of global business lay
emphasis on?
a. Acquiring resources that belong to the host nation
b. Consolidating the internal assets of a firm
c. Focusing on the capabilities of the firms headquarters
d. Understanding the laws and values of the firms host nation
27) Which element of knowledge management faces the common problem of Not
invented here syndrome?
a. Knowledge inflow
b. Knowledge transmission
c. Knowledge acquisition
d. Knowledge outflow
28) An MNE following a _____ strategy is more likely to hire a mix of parent-, host-,
and third-country nationals as managers in their local subsidiary.
a. home replication
b. global standardization
c. regionalization
d. localization
29) Which of the following was considered the primary sector for organized economic
activities during the Industrial Revolution in the 18th and 19th centuries?
a. Retail
b. Agriculture
c. Manufacturing
d. Service
30) In the context of which of the following strategic responses, would adopting a code
of conduct be a tangible indication of a firms willingness to accept CSR?
a. Accommodative
b. Reactive
c. Proactive
d. Defensive
31) A _____ is the highest cultural grouping of people and the broadest level of cultural
identity people have.
a. clan
b. chiefdom
c. civilization
d. tribe
32) _____ refers to non-financial companies spreading out its activities in different
currency zones in order to offset the currency losses in certain regions through gains in
other regions.
a. Currency hedging
b. Currency pegging
c. Strategic hedging
d. Currency swapping
33) Which of the following cultural intelligence profiles would match an individual
with a collectivist ideology?
a. The Local
b. The Chameleon
c. The Mimic
d. The Natural
34) Which of the following political perspectives maintains the view that FDI has both
pros and cons and can only be approved when its benefits outweigh costs?
a. Pragmatic nationalism
b. Protectionism
c. The radical view of FDI
d. The free market view of FDI
35) Which of the following perspectives describes ethical imperialism?
a. It is a perspective that each firm should cultivate its own ethics
b. It is a perspective that there is only one set of ethics
c. It is a perspective that ethical standards are relative
d. It is a perspective that ethical standards can never be codified
36) The _____ enacted in 1977 bans U.S. firms from bribing non-U.S. officials.
a. Trust Against Bribery and Distortion Act
b. Foreign Corrupt Practices Act
c. Statute of Limitation on Foreign Direct Investment Act
d. Bribery of Foreign Public Officials Act
37) Constituents on which the firm relies for its continuous survival and prosperity are
_____ groups.
a. primary stakeholder
b. secondary stakeholder
c. tertiary stakeholder
d. corporate parenthood
38) Pre-acquisition analysis often focuses on strategic fit, which is the effective
matching of ____ strategic capabilities.
a. competitive
b. complementary
c. relational
d. collaborative
39) In which type of equity-based alliance does one firm invest in another?
a. Hubristic investment
b. Cross-shareholding
c. Licensing
d. Strategic investment
40) Which of the following economies would be characterized as having a laissez faire
policy?
a. Pure market economy
b. Mixed economy
c. Command economy
d. Socialist economy
41) Which of the following is an example of a primary stakeholder group?
a. Shareholders
b. Fair labor practice groups
c. Public agencies
d. Environmental groups
42) If globalization pressures for a firm are relatively low, and if the firm has skills and
assets that are transferable overseas, which of the following is the best strategy for the
firm to use?
a. Defender strategy
b. Extender strategy
c. Dodger strategy
d. Contender strategy
43) Which of the following statements about governance mechanisms is misleading?
a. Governance mechanisms can be classified as voice-based and exit-based mechanisms
b. As an external governance mechanism, private equity utilizes the stock market to
discipline managers
c. In general, boards are likely to use carrots before considering sticks
d. Product market competition complements the market for corporate control and the
market for private equity
44) _____ occurs when firms engage the same rivals in numerous markets.
a. Multimarket competition
b. Explicit collusion
c. Cross-border dumping
d. Cross-market retaliation
45) A(n) _____ strategy focuses on regulatory compliance.
a. proactive
b. reactive
c. accommodative
d. defensive
46) Which of the following would be an example of a force majeure defense for a
seller?
a. If the seller decides to stop delivery out of fear of nonpayment
b. If the customer has already accepted nonconforming goods
c. If the goods to be delivered are destroyed in an earthquake
d. If the seller places warranties on the goods
47) MNEs with a _____ strategic orientation follow a geocentric staffing approach.
a. home replication
b. localization
c. transnational
d. regionalization
48) An institution-based view suggests that firm-specific resources and capabilities
largely determine entrepreneurial success and failure.
49) The majority of an MNEs employees are typically parent-country nationals.
50) Explain the institution-based views in light of their effect on entrepreneurial
success.
51) An industry with heterogeneous products, in which rivals are forced to compete on
price, is likely to lead to collusion.
52) List the globally useful ways of segmenting according to customer categorization.
53) Explain the possible outcomes of an antidumping investigation in the United States.
54) Equity alliance relationships tend to have less direct control over joint activities on
a continual basis than contractual relationships.