1) Non-MNE firms can also do business abroad by:
a. Licensing and franchising
b. Outsourcing and engaging in FDI
c. Exporting and importing
d. All of these answers
2) Foreign market entry is a(n) ____ overseas actions.
a. Obstacle to
b. Conclusion of
c. Foundation for
d. Unrelated concept to
3) Upon establishment of GATT, there were many loopholes in the Multifibre
Arrangement (MFA), designed to limit free trade in textiles.
4) Companies with innovation-seeking strategic goals target countries and regions:
a. With an abundance of strong market demand and customers willing to pay
b. Economies of scale and abundance of low cost factors
c. Renowned for generating first-class innovators
d. All of these answers
5) The socially intricate and interdependent ways that firms are typically organized may
be called:
a. Social typicality
b. Social complexity
c. Organized typicality
d. Complex organization
6) Which of the following is NOT one of the three drivers behind acquisitions?
a. Synergistic c. Managerial motives
b. Strategic fit d. Hubristic
7) Which of the following is NOT a factor in expatriate individual selection decision?
a. Cross-cultural adaptability
b. Spouse and family preferences
c. Technical ability and expertise
d. Host country/subsidiary preferences and language skills
8) In the trade relationship with China, why is the US dollar in more demand than the
Chinese yuan?
a. More people demand the yuan domestically in China, so it is not used for imports and
exports
b. The dollar is the common transaction currency between the two countries
c. The yuan is pegged to the US dollar
d. Formal institutions and regulations demand the trade be conducted in the dollar
9) Which of the following is NOT a benefit of adopting the euro?
a. Reducing currency conversion costs
b. Limiting the flexibility in fiscal policy
c. Facilitating direct price comparison
d. Imposing monetary discipline on governments
10) Which of the following is an agreement regulating intellectual property?
a. GATT c. IPA
b. GATS d. TRIPS
11) A(n) ____ is an investment in real operations as opposed to financial capital.
a. Acquisition c. Real option
b. Merger d. Foreign direct investment
12) Which of the following is NOT one of the 5 strategies for entrepreneurial SMEs to
internationalize without leaving their home country?
a. Become suppliers for foreign firms
b. Export indirectly
c. Outsource administrative work
d. Harvest and exit through sell-offs
13) One benefit of large-scale market entries investments is to:
a. Assure local customers and suppliers you are here for the long haul
b. Demonstrate a commitment to a long-term investment in dollars and manpower
c. Show you are willing to take a risk
d. Indicate better control over distribution
14) If BMW chooses to have some FDI in China, instead of selling its technology to a
Chinese firm for a fee, this is an example of:
a. Ownership advantage c. Internalization
b. Location advantage d. Market imperfection
15) When entering foreign markets, basic entry choices include:
a. Exporting and importing c. Exporting and licensing
b. Exporting and FDI d. Exporting, licensing, and FDI
16) Which of the following most describes a free market advocate’s view of the CSR
approach?
a. Managers never receive any benefits from taking social responsibility
b. Managers may choose their own self-interest over the public’s interest
c. Managers are to be concerned with the interests of all their stakeholders
d. Manager will lose their focus on profit maximization if they seek to address social
issues
17) Atmospheric greenhouse gas levels are:
a. Increasing at a slowing rate
b. Increasing at an accelerating rate
c. Decreasing at a slowing rate
d. Decreasing at an accelerating rate
18) The view that most closely follows the idea that a firm’s code of conduct may be
written mostly as a tool to help make good profits and not really aid the firm in
becoming more “ethical” is which of the following?
a. Negative c. Cognitive
b. Instrumental d. Positive
19) Differentiate the primary characteristics of horizontal and vertical FDI.
20) Describe how two of the four organizational structures align with their strategic
counterparts.
21) International transaction costs are qualitatively higher than domestic transaction
costs.
22) The “hot potato” of the Doha round turned out to be intellectual property.
23) Although Megabus is a brand new, no-frills entrant into the US market, it is backed
by the full strengths of second largest transport firm in the UK, Stagecoach Group.
What four factors have attracted young customers, allowing Megabus to turn a
declining national trend of bus ridership around and succeed in the US market?
24) A joint venture (JV) is a form of equity-based alliance.
25) A combination of work-related and family-related problems usually does not lead to
expatriate failures.
26) Outline the differences between democracy and totalitarianism.
27) Most countries practice a totally “free market” view.
28) Administrative policy is a superficial policy to show that exporting countries
voluntarily agree to restrict their exports.