1. Subsidiaries consider regional environment for policy / Strategy formulation is known as
Correct : B. Regiocentric Approach
2. According to this theory the holdings of a country’s treasure primarily in the form of
gold constituted its wealth.
Correct : C. Mercantilism
3. Which is not an Indian Multinational Company?
Correct : A. Unilever
4. Globalization refers to:
Correct : D. A more integrated and interdependent world
5. A likely consequence of rationalization is:
Correct : C. Higher costs
6. A likely consequence of merger and acquisition is:
Correct : B. Price increase
7. All the following statements are correct except:
Correct : C. Financial and accounting studies typically conclude that mergers benefit shareholders
8. All of the following examples are hypothetical cases of horizontal growth except:
Correct : D. Ford and Michelin merge
9. In 90’s the global management perception was based on
Correct : C. Global integration v/s Local Responsiveness
10. Which of the following is an advantage of turnkey projects?
Correct : A. Can earn a return on knowledge asset
11. The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year
1999 is an example of
Correct : C. Strategic International Alliance
12. CISF pricing includes the following
Correct : D. All of the above
13. When the transaction is of high value, complex In nature and more technical __________ method of export sales contract is used.
Correct : C. Sales contact
14. Vertical mergers are those in which the participants are
Correct : C. In different phases of the value chain
15. Which of the following are commonly cited reasons for M&As?
Correct : D. All of the above
16. A merger is a combination of businesses in which
Correct : D. None of the above.
17. All of the following are common motives for a merger or acquisition except for
Correct : C. Raising the cost of capital.
18. Buyers can exercise high bargaining power over their suppliers if
Correct : A. The volume they buy accounts for a large percentage of their suppliers sales.
19. The generic competitive strategies are
Correct : D. All the above
20. What are core competences?
Correct : D. Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain.
21. Synergy' can best be explained by which of the sums below?
Correct : A. 2+2=5.
22. What do you mean by the term “holding company” is:
Correct : B. decentralized organization with a small head office that organizes finance for the subsidiaries
23. A firm with a functional director for 6 areas with an area director for 3 functions. There, staff at each area will be reporting to 2 bosses. This firm has which type of structure?
Correct : B. Matrix structure
24. Organization structure that is a functional or divisional structure but at the same time also includes project teams for dealing with specific issues is called:
Correct : D. A hybrid structure
25. Organization whose structure is divided into two main parts - one dealing with product groups and one dealing with customer segments is called:
Correct : A. A front-back structure
26. Choose the right sentence
Correct : A. Organization's structure would be expected to evolve as it grew larger and more diverse
27. Format of reporting and for decision making relationships can be defined as the organizational:
Correct : C. Hierarchy
28. Main component of Organization's architecture are structural hierarchy, values and belief systems, contracts and relationships and (two more):
Correct : D. Control systems and information infrastructure
29. ‘Vertical architecture' is the one which has:
Correct : C. Extends beyond the boundaries of legal ownership
30. Five dimensions are used to judge Organizational structures and systems (ABCDE) to assess whether they are achieving an appropriate balance. These five dimensions are Autonomy, Bureaucracy, Cultural Control, Decentralization and:
Correct : B. Economic Incentives
31. Those Organizations that are relatively good at developing some relevant capabilities to respond to a changing context are known as:
Correct : C. Learning organizations
32. 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
33. A strategic decision can be distinguished from other types of decisions by three factors,
these are magnitude, time-scale and:
Correct : B. Riskiness
34. 'Influence' is defined as the ability to ____________ someone to something they would not otherwise have done.
Correct : A. Intimidate
35. 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
36. According to Porter, dealing with the paradox of premature commitment versus not enough commitment involves some kind of:
Correct : C. Lock-out
37. 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
38. Which of the following industries is least likely to follow the conventional life-cycle model?
Correct : A. Software development
39. Brandenburger and Nalebuff added a sixth force to Porter's Five Forces. It is known as:
Correct : A. The threat of substitutes
40. 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
41. According to Porter, if an organization does not follow either a cost leadership strategy or a differentiation strategy they are:
Correct : C. Typical
42. Which is the right sequence of a stages of Internationalization
Correct : B. Domestic, International, Multinational, Global, Transnational
43. Which of the following is not a force in the Porter Five Forces model?
Correct : C. Complementary products
44. A likely consequence of rationalization is:
Correct : B. Lower revenues
45. The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of
Correct : C. Strategic International Alliance
46. When the transaction is of high value, complex In nature and more technical __________ method of export sales contract is used.
Correct : C. Sales contact
47. What are core competences?
Correct : D. Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain.
48. Specific cultural dimensions that does not have a significant impact on cross-national business interactions is
Correct : D. Geography
49. Professional culture refers to
Correct : B. Shared code of ethics and other commonalities shared by members of a given group
50. An attribute that doesn’t contribute to Porters Diamond model is
Correct : B. Organized Trade union
51. Theory of Mercantilism propagates
Correct : B. Encourage exports and discourage imports
52. Identify a factor that doesn’t play an important role in attracting FDI
Correct : D. Language
53. General electric follows ___________ as its international operational strategy
Correct : B. TRANSNATIONAL
54. Which term refers to the phenomenon in which the world’s population shares commonly recognized cultural symbols?
Correct : A. global village
55. According to the concept of the value chain, a firm is profitable if:
Correct : C. the value it commands exceeds the costs involved in creating the product
56. In which industries is global competition more common?
Correct : B. where upstream and support activities are crucial to competitive advantage
57. A global market leader is an organization which:
Correct : D. is recognized as being ahead of the rest in terms of market share.
58. The international division is established:
Correct : D. Mostly at the corporate headquarters of the firm, but can be at a foreign centre also.
59. Global area structure is suitable for firms:
Correct : D. none
60. Duplication of staff groups results in:
Correct : B. Global product division structure.
61. Most complex of international organization structures is :
Correct : C. Transnational network structure.
62. Posting of home country nationals for all key management positions throughout the globe is
supported by:
Correct : C. Ethnocentric staffing model.
63. The following is not considered as an acceptable motivation for foreign assignments:
Correct : C. Escape from boredom of present assignment.
64. It was recognized in the 1990s that physical assets are not the only thing that needs to be included in the valuation of a firm. In Europe, firms also included a supplement detailing the:
Correct : B. Intellectual capital
65. A graph showing a rise in demand over a number of years can be described as:
Correct : B. Information
66. Something that you learn to do by practicing rather than from reading a manual is knownas:
Correct : C. Embodied knowledge
67. Knowledge that is known to a specific set of people who understand what particular references mean, whereas people outside of that group don't know what they mean is known as:
Correct : D. Symbolic knowledge
68. Organizations that are good at developing relevant capabilities to respond to a changing context are known as:
Correct : C. Learning organizations
69. An organization adjusts its pricing in response to falling customer demand. This is an example
of which type of learning?
Correct : A. Single-loop learning
70. Which of the following attributes is NOT seen as being necessary for an organization to become a 'learning organization'?
Correct : A. Cultural diversity
71. One of the traps into which organizations can fall with respect to organizational learning is that they misread the reasons for success or failure. This trap is known as:
Correct : B. Superstitious learning
72. Knowledge management is concerned with the emergence, storage and_________ of
knowledge.
Correct : B. Transfer
73. One of the main problems with explicit knowledge is that:
Correct : B. It is easier to obtain it
74. A holding company is:
Correct : B. A decentralized organization with a small head office that organizes finance for the subsidiaries
75. A firm has a functional director for six areas and an area director for three functions. There, taff at each area/function will be reporting to 2 bosses. This firm has which type of structure?
Correct : B. Matrix structure
76. An organization structure that is in the main a functional or divisional structure but also
includes project teams to deal with specific issues is called:
Correct : D. A hybrid structure
77. An organization that divides its structure into two main parts - one dealing with product groups and one dealing with customer segments is called:
Correct : A. A front-back structure
78. The essential question that a corporate parent needs to ask is:
Correct : A. Does it add value to its individual businesses
79. A corporate parent can offer an individual business a number of 'propositions'. These are build
propositions, stretch propositions, link propositions, select propositions and:
Correct : C. Leverage propositions
80. The parenting style 'financial control' will tend to be most suitable in which type of portfolio?
Correct : B. Stable businesses with low investment needs
81. Which type of corporate parenting style has the closest relationship with its individual businesses?
Correct : D. Strategic planning
82. What is the main reason why organizations enter alliances?
Correct : B. To obtain synergies between other organizations' resources and their own
83. Which of the following is NOT an important element to look for when selecting an alliance partner?
Correct : A. Very similar culture and resources
84. When there is a fit between the goals of the organization and the goals of individuals, this is known as:
Correct : B. Goal congruence
85. Which of the following is correct?
Correct : A. An organization's structure would be expected to evolve as it grew larger and more diverse
86. The shape or format of reporting and decision making relationships can be defined as the
organizational:
Correct : C. Hierarchy
87. The main components of an organization's architecture are structural hierarchy, values and
belief systems, contracts and relationships and (two more):
Correct : D. Control systems and information infrastructure
88. A 'vertical architecture' is one which:
Correct : C. Extends beyond the boundaries of legal ownership
89. Organizational structures and systems can be judged using five dimensions (ABCDE) to assess whether they are achieving an appropriate balance. These five dimensions are Autonomy, Bureaucracy, Cultural Control, Decentralization and:
Correct : B. Economic Incentives
90. Employees who work in an autonomous fashion are:
Correct : A. Given freedom to make decisions
91. Bureaucracy is sometimes seen as a negative thing but it has some benefits for organizations. Which of the following is NOT a benefit of bureaucracy?
Correct : C. It can increase organizational flexibility
92. Successful business relationships tend to:
Correct : A. Combine relational contracts - to build trust in the long term - with transactional contracts to cover specific situations
93. Goffee and Jones use two variables to classify organizational cultures. These are:
Correct : C. Sociability and Solidarity
94. Hyperglobalization is a process of globalization which —
Correct : C. emphasizes the rise of the TNC and decline of the nation state
95. Economic globalization is characterized by —
Correct : D. international trade and investment flows
96. Cultural homogeneity refers to —
Correct : D. cultural uniformity
97. The process of glocalization is —
Correct : C. an amalgamation of the global and the local
98. Political globalization is the process of —
Correct : A. changes in the rules and structures of global governance
99. South–South co-operation means —
Correct : A. the flow of resources from one developing country to another
100. International orientation refers to —
Correct : C. an attitude or strategic predisposition of a TNC towards internationalization