1) Original design manufacturers are firms that both design and manufacture products.
2) Licensing and franchising are examples of equity modes of entry.
3) Original equipment manufacturers are firms that design, manufacture, and market
branded products.
4) Activities with high levels of commoditization should be performed in-house to
increase competitiveness.
5) Liability of foreignness is the inherent disadvantage experienced by foreign firms in
host counties because of their non-native status.
6) Original brand manufacturers cover more value chain activities than original
equipment manufacturers.
7) In acquiring cultural intelligence, awareness refers to the ability to identify the
symbols, rituals, and taboos in other cultures.
8) A mixed economy has elements of both a market economy and a command economy.
9) Gross domestic product (GDP) is the sum of value added by resident firms,
households, and governments operating in an economy.
10) Reverse innovation is an example of bottom up innovation.
11) Proponents of fixed exchange rates believe that market forces should take care of
supply, demand, and price of any currency.
12) The GLOBE project identifies a total of five clusters.
13) The United States has a low-context culture in business.
14) In the United States, only 1 per cent of the land is formally registered.
15) Cultures of low uncertainty avoidance tend to resist change.
16) TRIPS is a WTO agreement governing the international trade of services.
17) Agglomeration explains why certain cities and regions can attract businesses even
in the absence of obvious geographic advantages.
18) The value chain exclusively deals with a firms primary activities.
19) Which of the following types of entrepreneurs are best described as people who
start, grow, and sell several businesses throughout their career?
a. Social entrepreneurs
b. Lifestyle entrepreneurs
c. Serial entrepreneurs
d. Cooperative entrepreneurs
20) _____ is defined as the identification and exploitation of previously unexplored
opportunities.
a. Distributorship
b. Dealership
c. Vendorship
d. Entrepreneurship
21) Which of the following is one of the triple As in supply chain management?
a. Accountability
b. Accessibility
c. Applicability
d. Alignment
22) _____ is designed to combat monopolies and cartels.
a. Competition policy
b. Predatory pricing
c. Cross-market retaliation
d. Antitrust policy
23) Any group or individual who can affect or is affected by the achievement of the
organizations objectives is called a(n) _____.
a. debtor
b. stakeholder
c. arbitrageur
d. broker
24) One of the leading indicators of concentrated family ownership and control is the
appointment of family members as board chairman, CEO, and other TMT members.
25) Free market advocates argue that if firms attempt to attain social goals, such as
providing employment and social welfare, managers will lose their focus on profit
maximization.
26) Failing to heed to certain CSR imperatives may be self-defeating in the long run.
27) The secondary stakeholder groups are constituents on whom the firm relies for its
continuous survival and prosperity.
28) Explain possible benefits of global economic integration.