Management of International Business solved MCQs

1 of 10
chapter:   Unit 1

1. Computer programs are protected as :

a. Copyrights

B. Trade marks

c. Patents.

d. none

2. Geographical indication specifies:

a. Place of origin of goods only

B. Special characteristics of product associated with place of origin.

c. Both (a) and (b)

d. none

3. Strategic alliance cannot be between:

a. Manufacturer and supplier

B. Competitors

c. Non- competitors

d. None of the above

4. The mode of entry into international business with least risk to the firm is :

a. Indirect exports

B. Direct exports

c. Management contract

d. Contract Manufacturing

5. The following is an export intermediary:

a. Export house

B. Trading house

c. A manufacturing exporter

d. Merchant exporter.

6. A global company can----------- its experience to expand its global operations

a. Contract

B. Expand

c. Minimize

d. Leverage

7. Governmental regulations can affect the viability & ----------- of a company using theinternet as a foreign market entry mode.

a. effectiveness

B. association

c. performance

d. None of the above

8. ______ typically offer more flexibility in international markets

a. SMEs


c. MNEs

d. None of the above

9. From the point of view of marketing, an organization that enjoys competitive advantage in anindustry has done so by:

a. Focusing on long-term profit.

B. Charging lower prices than competition.

c. Creating superior value for customers.

d. Constantly enlarging its marketing activities.

10. Regionalism is:

a. An international management orientation and a protectionist policy created to exclude third world countries from certain forms of international trade.

B. The grouping of countries into regional clusters based on geographic proximity.

c. A protectionist policy created to exclude third world countries from certain forms of international trade.

d. An international management orientation.

11. Which one of the following is a pull factor in emigration?

a. Political oppression

B. Job opportunities

c. Food shortages

d. War

12. Which of the following do NOT facilitate globalization?

a. Improvements in communications

B. Barriers to trade and investment

c. Immigration controls

d. Removal of controls on movement of capital across borders

13. Which of the following is not a driver of globalization?

a. The fragmentation of consumer tastes between countries.

B. The competitive process.

c. Multinational companies successfully persuading governments to lower trading barriers.

d. The need to gain economies of scale.

14. Globalization is beneficial for firms because:

a. It protects them against foreign competition.

B. It cushions them from the effects of events in other countries.

c. It opens up new market opportunities.

d. It increases the risk and uncertainty of operating in a globalizing world economy.

15. The internet facilitates globalization by:

a. Making it more difficult to contact potential customers abroad.

B. Cutting the cost for firms of communicating across borders.

c. Making it harder to send money from one country to another.

d. Making it easier for governments to censor the information received by their citizens from abroad.

16. Globalization can create problems for business because:

a. It can result in more competition.

B. It increases vulnerability to political risk and uncertainty when operating abroad.

c. It means that they can increase prices.

d. All of the options given are correct.

17. How does international law facilitate international trade and investment?

a. It makes it easier to resolve contract disputes for firms involved in international trade and investment.

B. It allows business to choose the most favorable national legal system to institute proceedings.

c. The terms used in international conventions are open to differing interpretations.

d. The Uniform Commercial Code favors big US multinationals.

18. Laws relating to The Single Market Program allow EU-based companies to:

a. Move goods and services from any member state to another.

B. Transfer managers to any member state.

c. Invest anywhere in the EU.

d. All of the options given.

19. Competition Law in the EU means that firms:

a. Are free to set up international cartels.

B. May be refused permission to take over a US competitor.

c. Can not be made to repay government financial assistance.

d. Can cross-subsidise loss-making services from profitable activities.

chapter:   more mcqs

20. Within an international context, what are 'economies of scope' synonymous with?

a. Reusing a resource from one business/country in additional businesses/countries.

B. Decreased cost per unit of output.

c. Buying components in a bulk.

d. Any of the above.

21. Globalization refers to:

a. A more integrated and interdependent world

B. Less foreign trade and investment

c. Global warming

d. Lower incomes worldwide

22. Which of the following could be defined as a multinational company?

a. A firm that owns shares in a foreign company but does not participate in the company's decision making.

B. A UK based internet package holiday firm specializing in selling tours to Turkey to German customers.

c. A firm owning a chain of supermarket outlets outside its country of origin.

d. A finance company transferring its HQ and all its activities from the UK to the US.

23. Why might MNCs in the past have focused their marketing activities on the triad?

a. That is where the most lucrative markets were located.

B. Income per head in developing countries was relatively low.

c. Transport and communication links were improving outside the tri

24. Which of the following statements on civil law systems would be seen as an advantage by business?

a. Civil law systems operate in very few countries.

B. Relevant areas of law are much easier to find than in common law systems.

c. Relevant areas of law are more difficult to find than in common law systems.

d. Lawyers act as oral advocates for their clients.

25. The law relating to E-Commerce fits which of the following descriptions:

a. It comprises a single set of laws.

B. The law lacks clarity.

c. There is no problem applying contract law to the internet.

d. The law makes it easy to deal with foreign computer hackers.


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