1) Patents are exclusive rights of firms to use specific names and brands.
2) Strategic trade theory advocates mercantilist policy for all industries.
3) According to the pendulum view of globalization, globalization is a relatively new
phenomenon triggered by the information revolution of early 1990s.
4) The GATT differed from the WTO in that the GATT was not considered an
organization.
5) Overall, the focus on firm performance around the globe defines the field of global
business more than anything else.
6) The United States is often classified as a collectivist society.
7) A proactive firm would anticipate responsibility and do more than required when
facing ethical challenges.
8) Co-marketing has the ability to reach more customers but with limited control and
coordination.
9) The International Monetary Fund offers free grants to countries depending on the
stability and need of the borrower.
10) In order to become an MNE, an exporter has to undertake FDI.
11) In the context of tariff barriers, deadweight = total inefficiency – net gain.
12) All the countries of the BRIC belong to the top tier of the global economic pyramid.
13) The strategy of treating the entire world as one market is known as localization.
14) One of the arguments against free trade is the necessity to safeguard domestic
industries.
15) If a firm is operating in an environment that is customized to home market, which
of the following is the most preferred strategy?
a. Collusion strategy
b. Dodger strategy
c. Extender strategy
d. Contender strategy
16) In the European Union, small and medium-sized enterprises (SMEs) are defined as
firms with less than _____.
a. 500 employees
b. 250 employees
c. 1000 employees
d. 750 employees
17) _____ is specific preparation to do a particular job.
a. Appraisal
b. Onboarding
c. Tracking
d. Training
18) Which of the following staffing approaches is said to be color blind (the color refers
to the color of the managers passport)?
a. Ethnocentric approach
b. Polycentric approach
c. Regiocentric approach
d. Geocentric approach
19) An advantage of joint ventures is _____.
a. the protection of know-how
b. the access to partners assets
c. the ease of global coordination
d. the complete equity and operational control
20) The _____ strategy is also known as multidomestic strategy.
a. home replication
b. transnational
c. global
d. localization
21) Which of the following entry modes is a type of strategic alliance?
a. Licensing
b. Wholly owned subsidiary
c. Acquisition
d. Export
22) Which of the following profiles characterizes a person who relies on intuition rather
than on a systematic learning style when interacting with people from different cultural
backgrounds?
a. The Mimic
b. The Local
c. The Chameleon
d. The Natural
23) Corporations in _____ are market-oriented, high-tension systems.
a. Japan
b. continental Europe
c. the United States
d. China
24) Which of the following changes was introduced to the EU through the Lisbon
Treaty?
a. Establishment a passport-free travel zone within the EU
b. Appointment of a long-term President of the European Council
c. Transformation of the EU into an FTA
d. Creation of a common currency for EU members
25) The liability of foreignness is the inherent disadvantage faced by _____.
a. domestic firms against other domestic firms that have engaged in global business
b. foreign firms in host nations due to their non-native status
c. domestic firms from foreign firms setting up in their country
d. foreign firms from their home country governments
26) Which of the following is true of the strategic trade theory?
a. It provides direct policy advice
b. It advocates complete deregulation of international trade
c. It explains patterns of trade based on factor endowments
d. It is the first theory to account for dynamic changes in trade patterns
27) The _____ strategy is an extension of the home replication strategy.
a. global
b. transnational
c. localization
d. export
28) The hallmark of the _____ structure is the coordination of responsibilities between
product divisions and geographic areas.
a. global product division
b. geographic area
c. global matrix
d. international division
29) _____ refers to the reaction of local firms to rise to the challenge demonstrated by
MNEs through learning and imitation.
a. Bandwagon effect
b. Domino effect
c. Dissemination risk
d. Contagion effect
30) The American antitrust policy is considered to be _____.
a. pro-incumbent
b. pro-producer
c. pro-collusion
d. pro-consumer
31) If the forward rate of the euro per dollar is higher than the spot rate, the euro has a
_____.
a. high spread
b. low spread
c. forward discount
d. forward premium
32) Which of the following languages is considered the lingua franca of global
business?
a. English
b. Chinese
c. Spanish
d. French
33) In ____ cultures, the unspoken context is as important as the words used during
communication.
a. high-context
b. low-context
c. individualistic
d. collectivist
34) The WTO differs from GATT 1948 in that the WTO _____.
a. has trade in services as its primary trade focus
b. has provisions that allows members to review other members trade policies
c. has no rules governing intellectual property rights
d. has no mechanism to settle member disputes
35) The point at which an industry-specific activity becomes common across industries
and the need to keep it proprietary no longer exists is called _____.
a. commoditization
b. monopolization
c. break-even point
d. captive sourcing
36) At stage 1 in the formation of an alliance, a firm must _____.
a. check the degree of tacitness
b. evaluate institutional constraints
c. decide whether growth can be achieved through market transactions
d. choose between a contract or an equity approach
37) The _____ of globalization suggests that globalization is neither recent nor
one-directional.
a. new-force view
b. long-run historical view
c. pendulum view
d. colonial view
38) The second phase in an alliance dissolution is _____.
a. going public
b. imitation
c. strategizing
d. uncoupling
39) Which of the following is a proposition of the institution-based view?
a. Decisions based on bounded rationality should be avoided
b. Dependency on informal constraints will always increase the political risks
associated with a firm
c. When formal constraints are unclear, informal constraints will play a larger role in
reducing uncertainty and providing constancy to managers and firms
d. Informal constraints always increases transaction costs for the firm
40) The board of directors oversees and ratifies strategic decisions and evaluates,
rewards, and, if necessary, penalizes top managers.
41) Identify the advantages and disadvantages that pertain to first movers.
42) Identify the difference between fixed and floating exchange rates. Provide an
example of a situation where the fixed and floating exchange rates were used.
43) Identify the four Cs of the Human Resource Manager.
44) Describe the VRIO framework.
45) The formal institution-based view that drives mergers and alliances is based on the
normative and cognitive pillars.
46) In the principal-agent relationship, principals are managers to whom authority is
delegated.