McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .
Chapters
| 51. |
What one of the following is not the advantage of MNCs to the host country |
| A. | Increase in social activities |
| B. | increase in economic activities |
| C. | Utilisation of natural resource |
| D. | R&D efforts enhanced. |
| Answer» 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? |
| A. | Political |
| B. | Legal |
| C. | Political and economic and legal |
| D. | Political and environmental |
| Answer» D. Political and environmental | |
| 53. |
An 'industry recipe' can be defined as: |
| A. | An accepted pattern of operating and competing |
| B. | A tactic for anticipating a competitor's next move |
| C. | The hidden competences that are difficult to imitate |
| D. | A strategic group |
| Answer» C. The hidden competences that are difficult to imitate | |
| 54. |
Typically, profits are highest in which stage of the industry life-cycle? |
| A. | Introduction |
| B. | Growth |
| C. | Maturity |
| D. | Decline |
| Answer» B. Growth | |
| 55. |
The corporate culture of a firm is more effectively carried to the managers who are |
| A. | Host country nationals |
| B. | Home country nationals |
| C. | Third country nationals |
| D. | none |
| Answer» B. Home country nationals | |
| 56. |
Posting of home country nationals for all key management positions throughout the globe is supported by: |
| A. | Geocentric staffing model. |
| B. | Polycentric staffing model. |
| C. | Ethnocentric staffing model. |
| D. | none |
| Answer» C. Ethnocentric staffing model. | |
| 57. |
Which of the following is NOT a business opportunity generated by globalization? |
| A. | Access to low cost labour. |
| B. | Cheap International transport. |
| C. | Currency crises. |
| D. | Less stringent regulation of the business environment. |
| Answer» C. Currency crises. | |
| 58. |
The interpersonal norms of a country may necessitate a company’s alteration of __? |
| A. | Child Labor |
| B. | Operations |
| C. | Accounting |
| D. | None of the above |
| Answer» B. Operations | |
| 59. |
Which of the following terms are not synonymous with the others? |
| A. | MNE |
| B. | MNC |
| C. | MNM |
| D. | TNC |
| Answer» C. MNM | |
| 60. |
Foreign sources may give companies? |
| A. | Higher costs |
| B. | New and/or better products |
| C. | Conflicting operating knowledge |
| D. | Legal problems |
| Answer» B. New and/or better products | |
| 61. |
A major operating objective that may induce companies to engage in international business is _____? |
| A. | To expand sales |
| B. | To maximize risk |
| C. | To acquire competitors |
| D. | None of the above |
| Answer» A. To expand sales | |
| 62. |
Critics of globalization claim _______? |
| A. | Countries lose sovereignty |
| B. | The resultant growth hurts the environment |
| C. | Some people lose in both aspects |
| D. | All of the above |
| Answer» D. All of the above | |
| 63. |
All of the following are objectives of international business operations except for: |
| A. | sales expansion |
| B. | resource acquisition |
| C. | locally expanding |
| D. | risk minimization |
| Answer» C. locally expanding | |
| 64. |
Globalization consists of the following processes except: |
| A. | political process |
| B. | environmental process |
| C. | social process |
| D. | economic process |
| Answer» B. environmental process | |
| 65. |
Which of the following is a criticism of globalization? |
| A. | going into someone’s country uninvited |
| B. | different climates in other countries get in the way |
| C. | terrorist opportunities |
| D. | threat to national sovereignty |
| Answer» D. threat to national sovereignty | |
| 66. |
To minimize your risk you can: |
| A. | diversify suppliers across countries |
| B. | take advantage of business cycle differences amongst countries |
| C. | a & b |
| D. | none of the above |
| Answer» C. a & b | |
| 67. |
Which of the following does not support globalization? |
| A. | Improvements in communications |
| B. | Barriers to trade and investment |
| C. | Immigration controls |
| D. | Removal of controls on movement of capital across borders |
| Answer» C. Immigration controls | |
| 68. |
The gains from two nations depend on |
| A. | Domestic barter rates |
| B. | Different in the domestic barter rates of the two countries |
| C. | Terms of trade |
| D. | Degree of absolute advantage. |
| Answer» C. Terms of trade | |
| 69. |
Which of the following statements is not true when describing a successful strategy? |
| A. | It provides some property that is unique or distinctive |
| B. | It provides the means for renewing competitive advantage |
| C. | It addresses changes in the external environment |
| D. | It guarantees long term survival |
| Answer» B. It provides the means for renewing competitive advantage | |
| 70. |
In the context of strategic management resources can be defined as: |
| A. | The knowledge and skills within the organization |
| B. | Something that an organization owns or controls that cannot be copied |
| C. | Something that an organization owns, controls or has access to on a semipermanent basis |
| D. | The physical assets of the organization |
| Answer» D. The physical assets of the organization | |
| 71. |
In the context of strategic management, stakeholders can be defined as: |
| A. | An individual or group with a financial stake in the organization |
| B. | An external individual or group that is able to impose constraints on the organization |
| C. | Internal groups or individuals that are able to influence strategic direction of the organization |
| D. | An individual or group with an interest in the organization's activities and who seeks to influence them |
| Answer» 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: |
| A. | Horizontal integration |
| B. | Forwards vertical integration |
| C. | Backwards vertical integration |
| D. | Downstream vertical integration |
| Answer» 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? |
| A. | Transnational |
| B. | Global |
| C. | Multi-national |
| D. | Global-local |
| Answer» C. Multi-national | |
| 74. |
Knowledge which is difficult to define and codify is known as: |
| A. | Explicit |
| B. | Tangible |
| C. | Tacit |
| D. | Random |
| Answer» A. Explicit | |
| 75. |
Competitive advantage based on the creation of opportunities using internal resources is characterized by which approach/view? |
| A. | The positioning approach |
| B. | The outside-in approach |
| C. | The resource-based view |
| D. | The knowledge-management approach |
| Answer» C. The resource-based view | |
| 76. |
'Reputation' in the context of an organization's resources can provide competitive advantage because: |
| A. | It is difficult to copy |
| B. | It is based on word-of-mouth |
| C. | It is a threshold resource |
| D. | It is explicit |
| Answer» 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? |
| A. | Satisfactory |
| B. | Satisficing |
| C. | Irrational |
| D. | Optimal |
| Answer» A. Satisfactory | |
| 78. |
A strategic decision can be distinguished from other types of decisions by three factors, these are magnitude, time-scale and: |
| A. | Commitment |
| B. | Riskiness |
| C. | Impact |
| D. | Longevity |
| Answer» B. Riskiness | |
| 79. |
'Logical incrementalism' can be described as: |
| A. | Careful design and planning |
| B. | Emergent |
| C. | Cautious resource allocation |
| D. | Top management rational analysis |
| Answer» 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? |
| A. | The transactive mode |
| B. | The muddling through mode |
| C. | The command mode |
| D. | The emotional mode |
| Answer» C. The command mode | |
| 81. |
'Influence' is defined as the ability to ____________ someone to something they would not otherwise have done. |
| A. | Intimidate |
| B. | Force |
| C. | Order |
| D. | Persuade |
| Answer» 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? |
| A. | Business |
| B. | Corporate |
| C. | Functional |
| D. | International |
| Answer» A. Business | |
| 83. |
The authors believe there are three tests that can be applied to judge whether a strategy is 'good'. These are: |
| A. | Fit, distinctiveness, sustainability |
| B. | Fit, internal resources, external environment |
| C. | Distinctiveness, internal resources, fit |
| D. | Sustainability, distinctiveness, external environment |
| Answer» B. Fit, internal resources, external environment | |
| 84. |
Diversification into many unrelated areas is an example of: |
| A. | Risk management |
| B. | Good management |
| C. | Uncertainty reduction |
| D. | Sustainability |
| Answer» C. Uncertainty reduction | |
| 85. |
According to Porter, dealing with the paradox of premature commitment versus not enough commitment involves some kind of: |
| A. | Trade-off |
| B. | Lock-in |
| C. | Lock-out |
| D. | Diversification |
| Answer» C. Lock-out | |
| 86. |
Corporate governance is concerned with: |
| A. | Executive remuneration, disclosure of information, auditing and accounting procedures, and organizations' management structures |
| B. | Elections to the board of directors |
| C. | Relationships with national governments |
| D. | Corporate-level strategy |
| Answer» C. Relationships with national governments | |
| 87. |
The principal-agent problem is concerned with: |
| A. | Procurement |
| B. | Appropriation of shareholders' investment by a firm's managers |
| C. | How to control a firm's distributors and dealers |
| D. | Corporate social responsibility |
| Answer» D. Corporate social responsibility | |
| 88. |
Which of the following industries is least likely to follow the conventional life-cycle model? |
| A. | Software development |
| B. | Coal mining |
| C. | Insurance broking |
| D. | Hairdressing |
| Answer» A. Software development | |
| 89. |
Brandenburger and Nalebuff added a sixth force to Porter's Five Forces. It is known as: |
| A. | The threat of substitutes |
| B. | The power of complementors |
| C. | Seller power |
| D. | Government regulation |
| Answer» A. The threat of substitutes | |
| 90. |
The Six Forces framework is based on the principle of: |
| A. | Resource-based view |
| B. | Conduct - structure - performance |
| C. | Econometrics |
| D. | Structure - conduct – performance |
| Answer» A. Resource-based view | |
| 91. |
In the Six Forces, the 'threat of new entrants' relates to: |
| A. | Barriers to entry |
| B. | Substitutes |
| C. | Switching costs |
| D. | Buyer power |
| Answer» D. Buyer power | |
| 92. |
An industry characterized by irregular patterns of stability, rapid technological change, high uncertainty and global competition can be described as: |
| A. | Hypercompetitive |
| B. | Hyperactive |
| C. | Atypical |
| D. | Co-optive |
| Answer» 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: |
| A. | The Trojan Horse |
| B. | The Icarus Paradox |
| C. | The Prisoner's Dilemma |
| D. | The Icarus Dilemma |
| Answer» D. The Icarus Dilemma | |
| 94. |
In the context of environmental analysis, 'munificence' means: |
| A. | The extent to which resources are freely available to support firms in an industry and enable them to grow |
| B. | The extent to which it is diverse |
| C. | The extent to which it is stable or turbulent |
| D. | The extent to which the industry follows the conventional life-cycle stages |
| Answer» C. The extent to which it is stable or turbulent | |
| 95. |
A 'market driven' firm will typically: |
| A. | Develop new products and then find someone to sell them to |
| B. | Define the target market and produce products that will satisfy those customers' needs |
| C. | Operate in a product-oriented fashion |
| D. | Suffer from market-myopia |
| Answer» B. Define the target market and produce products that will satisfy those customers' needs | |
| 96. |
Segmentation is a way of: |
| A. | Subdividing markets |
| B. | Subdividing industries |
| C. | Differentiating products |
| D. | Subdividing organizations into departments |
| Answer» A. Subdividing markets | |
| 97. |
A B2C market is: |
| A. | Business to commercial |
| B. | Business to consumer |
| C. | Business to contract |
| D. | Business to corporate |
| Answer» D. Business to corporate | |
| 98. |
Segmentation is a compromise between two ideals: mass marketing and: |
| A. | Customization |
| B. | Uniformity |
| C. | Innovation |
| D. | Convergence of tastes |
| Answer» B. Uniformity | |
| 99. |
Porter's generic strategies are: |
| A. | Low price, differentiation, focus |
| B. | Cost leadership, differentiation, cost focus, focus differentiation |
| C. | Price leadership, differentiation, focus |
| D. | Low cost, differentiation, focus differentiation |
| Answer» 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: |
| A. | Hybrid |
| B. | Stuck in the middle |
| C. | Typical |
| D. | No frills |
| Answer» C. Typical | |
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