4. The mode of entry into international business with least risk to the firm is :
Correct : A. Indirect exports
5. The following is an export intermediary:
Correct : C. A manufacturing exporter
6. A global company can----------- its experience to expand its global operations
Correct : D. Leverage
7. Governmental regulations can affect the viability & ----------- of a company using the
internet as a foreign market entry mode.
Correct : A. effectiveness
8. ______ typically offer more flexibility in international markets
Correct : A. SMEs
9. From the point of view of marketing, an organization that enjoys competitive advantage in an
industry has done so by:
Correct : C. Creating superior value for customers.
10. Regionalism is:
Correct : B. The grouping of countries into regional clusters based on geographic proximity.
11. Within an international context, what are 'economies of scope' synonymous with?
Correct : A. Reusing a resource from one business/country in additional businesses/countries.
12. Globalization refers to:
Correct : A. A more integrated and interdependent world
13. Which one of the following is a pull factor in emigration?
Correct : B. Job opportunities
14. Which of the following do NOT facilitate globalization?
Correct : B. Barriers to trade and investment
15. Which of the following could be defined as a multinational company?
Correct : C. A firm owning a chain of supermarket outlets outside its country of origin.
16. Which of the following is not a driver of globalization?
Correct : A. The fragmentation of consumer tastes between countries.
17. Globalization is beneficial for firms because:
Correct : C. It opens up new market opportunities.
18. The internet facilitates globalization by:
Correct : B. Cutting the cost for firms of communicating across borders.
19. Why might MNCs in the past have focused their marketing activities on the triad?
Correct : A. That is where the most lucrative markets were located.
20. Globalization can create problems for business because:
Correct : A. It can result in more competition.
21. Which of the following statements on civil law systems would be seen as an advantage by business?
Correct : B. Relevant areas of law are much easier to find than in common law systems.
22. How does international law facilitate international trade and investment?
Correct : A. It makes it easier to resolve contract disputes for firms involved in international trade and investment.
23. Laws relating to The Single Market Program allow EU-based companies to:
Correct : D. All of the options given.
24. Competition Law in the EU means that firms:
Correct : B. May be refused permission to take over a US competitor.
25. The law relating to E-Commerce fits which of the following descriptions:
Correct : B. The law lacks clarity.
26. The existence of different currencies is beneficial to private financial institutions because:
Correct : D. Profits can be made from arbitrage.
27. The International Monetary Fund is important because:
Correct : B. It has sufficient financial resources to help individual countries facing balance of payments problems.
28. Which of the following are characteristic of the period when financial bubbles burst?
Correct : B. Excessive pessimism about future asset prices.
29. What functions do financial institutions traditionally perform?
Correct : B. They concentrate risk.
30. The balance of payments includes which of the following?
Correct : D. all of the above
31. Which one of the following is a pull factor in emigration?
Correct : D. War
32. Which of the following do NOT facilitate globalization?
Correct : C. Immigration controls
33. Which of the following constitutes Foreign Direct Investment?
Correct : B. A UK energy company buying territory abroad where it expects to find oil reserves.
34. Which of the following is a driver of globalization?
Correct : B. Weak competition.
35. Globalization is beneficial for firms because:
Correct : A. It protects them against foreign competition.
36. The internet facilitates globalization by:
Correct : D. Making it easier for governments to censor the information received by their citizens from abroad.
37. Globalization can create problems for business because:
Correct : D. All of the options given are correct.
38. Ethnocentric views concentrate on their
Correct : A. home country
39. In a global market place
Correct : D. All of the above
40. In a global market place Managers must
Correct : D. A and B
41. Trade Related Investment Measures (TRIMS) doesn’t apply for
Correct : B. Measures that lead to restrictions in quantities.
42. . General Agreement on Trade in Services will not be applicable to
Correct : B. Transaction of goods across the border – Export Import
43. As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider
Correct : B. Indirect assistance and support to farmers including R & D support by govt. are not permitted.
44. Quantitative restrictions refer to limit set by countries to curb
Correct : C. Discouraging measures that limit a company’s imports.
45. A Most Favored nation status doesn’t necessarily refers to
Correct : D. Uniform civil code
46. The world trade organization was formed in the year _________ with GATT as it basis.
Correct : C. 1995
47. Specific cultural dimensions that does not have a significant impact on cross national business
interactions is
Correct : D. Geography
48. NAFTA is an example of
Correct : D. Free Trade Area
49. Which one is not an international organization
Correct : D. CBDT
50. Which of the following is not an International Financial Institution
Correct : A. ICICI
51. What one of the following is not the advantage of MNCs to the host country
Correct : A. Increase in social activities
52. In terms of the PESTLE analysis, the liberalizing of international trade and tariff
regimes could go in which section or sections?
Correct : D. Political and environmental
53. An 'industry recipe' can be defined as:
Correct : C. The hidden competences that are difficult to imitate
54. Typically, profits are highest in which stage of the industry life-cycle?
Correct : B. Growth
55. The corporate culture of a firm is more effectively carried to the managers who are
Correct : B. Home country nationals
56. Posting of home country nationals for all key management positions throughout the globe is supported by:
Correct : C. Ethnocentric staffing model.
57. Which of the following is NOT a business opportunity generated by globalization?
Correct : C. Currency crises.
58. The interpersonal norms of a country may necessitate a company’s alteration of __?
Correct : B. Operations
59. Which of the following terms are not synonymous with the others?
Correct : C. MNM
60. Foreign sources may give companies?
Correct : B. New and/or better products
61. A major operating objective that may induce companies to engage in international business is
_____?
Correct : A. To expand sales
62. Critics of globalization claim _______?
Correct : D. All of the above
63. All of the following are objectives of international business operations except for:
Correct : C. locally expanding
64. Globalization consists of the following processes except:
Correct : B. environmental process
65. Which of the following is a criticism of globalization?
Correct : D. threat to national sovereignty
66. To minimize your risk you can:
Correct : C. a & b
67. Which of the following does not support globalization?
Correct : C. Immigration controls
68. The gains from two nations depend on
Correct : C. Terms of trade
69. Which of the following statements is not true when describing a successful strategy?
Correct : B. It provides the means for renewing competitive advantage
70. In the context of strategic management resources can be defined as:
Correct : D. The physical assets of the organization
71. In the context of strategic management, stakeholders can be defined as:
Correct : C. Internal groups or individuals that are able to influence strategic direction of the organization
72. In the case where an organization acquires its supplier, this is an example of:
Correct : D. Downstream vertical integration
73. When a firm seeks the benefits of global integration and local adaptation, it is best
described as which type of strategy?
Correct : C. Multi-national
74. Knowledge which is difficult to define and codify is known as:
Correct : A. Explicit
75. Competitive advantage based on the creation of opportunities using internal resources is characterized by which approach/view?
Correct : C. The resource-based view
76. 'Reputation' in the context of an organization's resources can provide competitive advantage because:
Correct : A. It is difficult to copy
77. A strategic manager that seeks to reach acceptable profit targets as opposed to making as much profit as possible is making decisions of which type?
Correct : A. Satisfactory
78. A strategic decision can be distinguished from other types of decisions by three factors, these
are magnitude, time-scale and:
Correct : B. Riskiness
79. 'Logical incrementalism' can be described as:
Correct : D. Top management rational analysis
80. An organization in which strategy development is characterized by internal political negotiation and self-interest is operating in which strategy-making mode?
Correct : C. The command mode
81. 'Influence' is defined as the ability to ____________ someone to something they would
not otherwise have done.
Correct : A. Intimidate
82. McDonalds is deciding whether to expand into manufacturing kitchen equipment in China. At what level is this decision likely to be made?
Correct : A. Business
83. The authors believe there are three tests that can be applied to judge whether a
strategy is 'good'. These are:
Correct : B. Fit, internal resources, external environment
84. Diversification into many unrelated areas is an example of:
Correct : C. Uncertainty reduction
85. According to Porter, dealing with the paradox of premature commitment versus not
enough commitment involves some kind of:
Correct : C. Lock-out
86. Corporate governance is concerned with:
Correct : C. Relationships with national governments
87. The principal-agent problem is concerned with:
Correct : D. Corporate social responsibility
88. Which of the following industries is least likely to follow the conventional life-cycle
model?
Correct : A. Software development
89. Brandenburger and Nalebuff added a sixth force to Porter's Five Forces. It is known
as:
Correct : A. The threat of substitutes
90. The Six Forces framework is based on the principle of:
Correct : A. Resource-based view
91. In the Six Forces, the 'threat of new entrants' relates to:
Correct : D. Buyer power
92. An industry characterized by irregular patterns of stability, rapid technological change, high uncertainty and global competition can be described as:
Correct : D. Co-optive
93. A situation in which the joint moves of two firms can determine how much money each
firm can make or lose can be explained using the story of:
Correct : D. The Icarus Dilemma
94. In the context of environmental analysis, 'munificence' means:
Correct : C. The extent to which it is stable or turbulent
95. A 'market driven' firm will typically:
Correct : B. Define the target market and produce products that will satisfy those customers' needs
96. Segmentation is a way of:
Correct : A. Subdividing markets
97. A B2C market is:
Correct : D. Business to corporate
98. Segmentation is a compromise between two ideals: mass marketing and:
Correct : B. Uniformity
99. Porter's generic strategies are:
Correct : B. Cost leadership, differentiation, cost focus, focus differentiation
100. According to Porter, if an organization does not follow either a cost leadership strategy or a
differentiation strategy they are: