McqMate
Chapters
1. |
Computer programs are protected as : |
A. | Copyrights |
B. | Trade marks |
C. | Patents. |
D. | none |
Answer» A. Copyrights |
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 |
Answer» C. Both (a) and (b) |
3. |
Strategic alliance cannot be between: |
A. | Manufacturer and supplier |
B. | Competitors |
C. | Non- competitors |
D. | None of the above |
Answer» 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 |
Answer» A. Indirect exports |
5. |
The following is an export intermediary: |
A. | Export house |
B. | Trading house |
C. | A manufacturing exporter |
D. | Merchant exporter. |
Answer» C. A manufacturing exporter |
6. |
A global company can----------- its experience to expand its global operations |
A. | Contract |
B. | Expand |
C. | Minimize |
D. | Leverage |
Answer» D. Leverage |
7. |
Governmental regulations can affect the viability & ----------- of a company using the internet as a foreign market entry mode. |
A. | effectiveness |
B. | association |
C. | performance |
D. | None of the above |
Answer» A. effectiveness |
8. |
______ typically offer more flexibility in international markets |
A. | SMEs |
B. | LSEs |
C. | MNEs |
D. | None of the above |
Answer» A. SMEs |
9. |
From the point of view of marketing, an organization that enjoys competitive advantage in an industry 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. |
Answer» C. Creating superior value for customers. |
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. |
Answer» B. The grouping of countries into regional clusters based on geographic proximity. |
11. |
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. |
Answer» A. Reusing a resource from one business/country in additional businesses/countries. |
12. |
Globalization refers to: |
A. | A more integrated and interdependent world |
B. | Less foreign trade and investment |
C. | Global warming |
D. | Lower incomes worldwide |
Answer» A. A more integrated and interdependent world |
13. |
Which one of the following is a pull factor in emigration? |
A. | Political oppression |
B. | Job opportunities |
C. | Food shortages |
D. | War |
Answer» B. Job opportunities |
14. |
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 |
Answer» B. Barriers to trade and investment |
15. |
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. |
Answer» 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? |
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. |
Answer» A. The fragmentation of consumer tastes between countries. |
17. |
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. |
Answer» C. It opens up new market opportunities. |
18. |
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. |
Answer» 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? |
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 |
Answer» A. That is where the most lucrative markets were located. |
20. |
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. |
Answer» 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? |
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. |
Answer» 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? |
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. |
Answer» 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: |
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. |
Answer» D. All of the options given. |
24. |
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. |
Answer» B. May be refused permission to take over a US competitor. |
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. |
Answer» B. The law lacks clarity. |
26. |
The existence of different currencies is beneficial to private financial institutions because: |
A. | Each country has its own currency. |
B. | The exchange rate of each currency is fixed by the International Monetary Fund. |
C. | A collapse in the exchange rate of a currency can cause economic disruption. |
D. | Profits can be made from arbitrage. |
Answer» D. Profits can be made from arbitrage. |
27. |
The International Monetary Fund is important because: |
A. | It has sufficient financial resources to deal with a major global financial crisis. |
B. | It has sufficient financial resources to help individual countries facing balance of payments problems. |
C. | Emerging economies can exercise significant influence on it. |
D. | It fixes exchange rates. |
Answer» 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? |
A. | Excessive optimism about future asset prices. |
B. | Excessive pessimism about future asset prices. |
C. | Rising house prices. |
D. | Rising share prices. |
Answer» B. Excessive pessimism about future asset prices. |
29. |
What functions do financial institutions traditionally perform? |
A. | They immobilise savings. |
B. | They concentrate risk. |
C. | They spread risk. |
D. | They offer only short-term finance. |
Answer» B. They concentrate risk. |
30. |
The balance of payments includes which of the following? |
A. | a country's balance of trade |
B. | foreign investments |
C. | foreign aid |
D. | all of the above |
Answer» D. all of the above |
31. |
Which one of the following is a pull factor in emigration? |
A. | Political oppression |
B. | Job opportunities |
C. | Food shortages |
D. | War |
Answer» D. War |
32. |
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 |
Answer» C. Immigration controls |
33. |
Which of the following constitutes Foreign Direct Investment? |
A. | A speculator trying to make a profit by buying company shares on a foreign stock exchange. |
B. | A UK energy company buying territory abroad where it expects to find oil reserves. |
C. | A tourist purchasing foreign currency to spend on a holiday abro |
Answer» 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? |
A. | Trade barriers and controls on inflows of foreign direct investment. |
B. | Weak competition. |
C. | Technological advance. |
D. | Economies of scale are being exploited to the maximum. |
Answer» B. Weak competition. |
35. |
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. |
Answer» A. It protects them against foreign competition. |
36. |
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. |
Answer» D. Making it easier for governments to censor the information received by their citizens from abroad. |
37. |
Globalization can create problems for business because: |
A. | It can result in more competition. |
B. | It reduced 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. |
Answer» D. All of the options given are correct. |
38. |
Ethnocentric views concentrate on their |
A. | home country |
B. | host country |
C. | world orientation |
D. | Racial orientation |
Answer» A. home country |
39. |
In a global market place |
A. | the entire world is a market place |
B. | national borders are irrelevant |
C. | the potential for organizations to grow expands dramatically |
D. | All of the above |
Answer» D. All of the above |
40. |
In a global market place Managers must |
A. | deals with economic, political and cultural differences |
B. | expect competitors to suddenly appear at any time from any place |
C. | not to take specific differences of local environment into consideration |
D. | A and B |
Answer» D. A and B |
41. |
Trade Related Investment Measures (TRIMS) doesn’t apply for |
A. | Measures that affect trade in goods. |
B. | Measures that lead to restrictions in quantities. |
C. | Discouraging measures that limit a company’s imports. |
D. | Discouraging measures that limit a company’s exports. |
Answer» B. Measures that lead to restrictions in quantities. |
42. |
. General Agreement on Trade in Services will not be applicable to |
A. | Services supplied from one country to another – cross border supply |
B. | Transaction of goods across the border – Export Import |
C. | Individuals traveling from own country to supply services in another – presence of natural persons. |
D. | Consumers/firms making use of a service in another country – consumption abroad. |
Answer» B. Transaction of goods across the border – Export Import |
43. |
As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider |
A. | Direct payments to farmers are permitted. |
B. | Indirect assistance and support to farmers including R & D support by govt. are not permitted. |
C. | Domestic policies which directly effect on production and trade have to be cut back. |
D. | Least developed countries do not need to make any cuts. |
Answer» 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 |
A. | Measures that affect trade in goods. |
B. | Measures that lead to restrictions in quantities. |
C. | Discouraging measures that limit a company’s imports. |
D. | Discouraging measures that limit a company’s exports. |
Answer» C. Discouraging measures that limit a company’s imports. |
45. |
A Most Favored nation status doesn’t necessarily refers to |
A. | Same and equal economic treatment |
B. | Non-discriminatory treatment |
C. | Same tariff rates applicable |
D. | Uniform civil code |
Answer» D. Uniform civil code |
46. |
The world trade organization was formed in the year _________ with GATT as it basis. |
A. | 1993 |
B. | 1994 |
C. | 1995 |
D. | 1996 |
Answer» C. 1995 |
47. |
Specific cultural dimensions that does not have a significant impact on cross national business interactions is |
A. | Hofstede’s five cultural dimensions |
B. | Monochromatic vs polychromatic tune |
C. | Communication |
D. | Geography |
Answer» D. Geography |
48. |
NAFTA is an example of |
A. | Common Market |
B. | Customers Union |
C. | Economic Community |
D. | Free Trade Area |
Answer» D. Free Trade Area |
49. |
Which one is not an international organization |
A. | SAARC |
B. | ASEM |
C. | ASEAN |
D. | CBDT |
Answer» D. CBDT |
50. |
Which of the following is not an International Financial Institution |
A. | ICICI |
B. | IMF |
C. | IDA |
D. | World Bank |
Answer» A. ICICI |
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 |
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