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1) Which one of the following is NOT a function of WTO?
a. Regulation of subsidies on agricultural products
b. Dispute settlement
c. Trade policy reviews
d. Regulation of trade of goods, services, and intellectual property
2) What is the "law of one price," where the price for identical products in different
countries should be the same if trade barriers are absent?
a. Purchasing power parity
b. Fixed exchange rate policy
c. Balance of payments
d. Currency swap
3) Which is NOT one of the three broad modes for entering foreign markets?
a. Licensing/franchising c. Microfinancing
b. Direct exports d. Foreign direct investment
4) Which is not one of the four major characteristics associated with a growing
entrepreneurial firm?
a. Growth c. Inimitable
b. Financing d. Internationalization
5) Which one of the following was NOT part of the agenda of the Doha round?
a. Reducing agricultural subsidies in developing countries
b. Slashing tariffs in the industries that developing countries might benefit from
c. Freeing up trade in services
d. Strengthening intellectual property protection
6) Which of the following regional integrations is more pro-free trade oriented than
others?
a. Mercosur c. Latin American Union
b. Andean Community d. CAFTA
7) Which of the following best describes a firm taking a reactive strategy regarding
CSR?
a. The firm focuses most on following regulations
b. Nothing disastrous is happening in the industry, so social issues are not a concern of
the firm
c. The firm constantly anticipates responsibility and endeavors to do more than is
required
d. A number of upper managers in the firm often remind the organization about its CSR
8) Which of the following countries can be defined as a high-context culture?
a. Japan c. Finland
b. France d. Canada
9) A(n) ____ emphasizes the norms and practices of the parent company relying on
PCNs.
a. Polycentric approach c. Regioncentric approach
b. Geocentric approach d. Ethnocentric approach
10) Which strategy for MNEs is best for environments where there are clear differences
between the home and foreign markets and there is a low pressure for cost reduction?
a. Home replication strategy c. Global standardization
b. Localization strategy d. Asset allocation
11) Which of the following is NOT part of the triple bottom line?
a. Economic performance c. Environmental performance
b. Financial performance d. Social performance
12) In order to answer the question: "What determines the success and failures of firms
around the globe?," the author introduces which two core perspectives?
a. Capability- and asset-based views
b. Formal- and informal-rule-based views
c. Institution- and resource-based views
d. Ability- and mobility-based views
13) Observable and easily quantified assets are:
a. Resources and capabilities c. Tangible assets
b. Core competencies d. Intangible assets
14) Favorable locations in certain countries may give firms:
a. Location-specific advantages
b. Opportunities for expansion
c. Access to new markets
d. All of these answers
15) A policy to assist strategic advantage is known as:
a. Strategic trade policy c. Heckscher-Ohlin policy
b. "Diamond" policy d. Free trade policy
16) Why was the US dollar chosen as the currency to which other currencies would be
pegged?
a. The US had high levels of productivity
b. The US was experiencing a large trade surplus
c. The US contributed approximately 70% of the global GDP
d. All of these answers
17) A disadvantage to the global standardization strategy is that often one size does not
fit all, and MNEs who adopt this strategy tend to experience a lack of local
responsiveness.
18) In situations where formal institutions are unclear or fail, informal institutions play
a more important role in reducing uncertainty.
19) The phrase think global, act local is a winning formula when it comes to leveraging
multinational presence.
20) The motto of international business is location, location, location.
21) Human resources, innovation, and reputational resources and capabilities are all
intangible assets.
22) Based on the mercantilism theory, the wealth of all trading nations and the world
increases.
23) Explain the reciprocal relationship between multinational strategy and structure.
24) If the richest 10% of a country's population controls 22% of the national income,
this is an example of relatively high power distance.
25) Ethics is a legal issue represented solely in formal institutions.
