McqMate
Chapters
| 1. |
A multinational is a firm that controls and manages production facilities in |
| A. | both developed and developing countries |
| B. | at least two countries |
| C. | one country but relies on multiple markets for the consumption of goods it produces |
| D. | at least two developed countries and one developing country |
| Answer» B. at least two countries | |
| 2. |
Locational advantages are based on which combination of the following specific country characteristics |
| A. | a large reserve of natural resources, a large local market and efficiency opportunities |
| B. | a small reserve of natural resources, a large local market and efficiency opportunities |
| C. | a small reserve of natural resources, a small local market and efficiency opportunities |
| D. | a large reserve of natural resources, a small local market and efficiency opportunities |
| Answer» A. a large reserve of natural resources, a large local market and efficiency opportunities | |
| 3. |
Horizontal integration occurs when |
| A. | firm creates singular country production facilities, each of which produces different good or goods |
| B. | firm creates multiple production facilities, each of which produces the same good or goods. |
| C. | firm creates multiple production facilities, each of which produces different good or goods |
| D. | firm creates singular country facilities, each of which produces the same good or goods |
| Answer» B. firm creates multiple production facilities, each of which produces the same good or goods. | |
| 4. |
Which of the following would be an example of foreign direct investment from the United States to Taiwan? |
| A. | a u.s. bank buys bonds issued by a taiwan computer manufacturer. |
| B. | a u.s. car manufacturer enters into a contract with a taiwan firm to make and sell it spark plugs. |
| C. | microsoft hires a taiwanese computer programmer to debug some software for it. |
| D. | the state of california rents space in taipei for one of its employees to use promoting tourism in |
| Answer» B. a u.s. car manufacturer enters into a contract with a taiwan firm to make and sell it spark plugs. | |
| 5. |
If a German manufacturer of household appliances wants to take advantage of the cheaper labor available in the Czech Republic, which of the following actions will not serve that purpose? |
| A. | build a manufacturing subsidiary there and employ czech workers. |
| B. | build a plant in the czech republic and send all german workers to operate it. |
| C. | license a czech firm to produce its products under its own label. |
| D. | contract for a czech firm to do some of the processing for it. |
| Answer» B. build a plant in the czech republic and send all german workers to operate it. | |
| 6. |
Which of the following was created in an effort to promote free trade? |
| A. | world trade organization |
| B. | the sarbanes-oxley act |
| C. | multilateral development banks |
| D. | the organization for economic cooperation and development |
| Answer» A. world trade organization | |
| 7. |
. Removing barriers or restrictions set by the government is called: |
| A. | liberalisation |
| B. | investment |
| C. | favorable trade |
| D. | free trade |
| Answer» A. liberalisation | |
| 8. |
Which is the right sequence of stages of Internationalization |
| A. | domestic, transnational, global, international, multinational |
| B. | domestic, international, multinational, global, transnational |
| C. | domestic, multinational, international, transnational, global |
| D. | domestic, international, transnational, multinational, global |
| Answer» B. domestic, international, multinational, global, transnational | |
| 9. |
Subsidiaries consider the regional environment for policy / Strategy formulation is known as |
| A. | polycentric approach |
| B. | regionocentric approach |
| C. | ethnocentric approach |
| D. | geocentric approach |
| Answer» B. regionocentric approach | |
| 10. |
. Which is not an Indian Multinational Company? |
| A. | unilever |
| B. | asian paints |
| C. | piramal |
| D. | wipro |
| Answer» A. unilever | |
| 11. |
Select example of Indian Multinational Company |
| A. | hindustan unilever |
| B. | videocon |
| C. | cargill |
| D. | tesco |
| Answer» B. videocon | |
| 12. |
…………………corporation produces in the home country or in a single country and focuses on marketing these products globally or vice a versa. |
| A. | global |
| B. | international |
| C. | transnational |
| D. | none of the above |
| Answer» A. global | |
| 13. |
The —————-company produces, markets, invests and operates across the world |
| A. | global |
| B. | international |
| C. | transnational |
| D. | multinational |
| Answer» C. transnational | |
| 14. |
Business across several countries with some decentralization of management decision making to subsidiaries is |
| A. | global business. |
| B. | multinational business. |
| C. | transnational business. |
| D. | multi-regional business. |
| Answer» B. multinational business. | |
| 15. |
Immobility of labor among nations is |
| A. | absolute. |
| B. | relatively of a higher degree than among regions in the same country. |
| C. | relatively easier than movement within the country. |
| D. | of the same degree as within the country. |
| Answer» B. relatively of a higher degree than among regions in the same country. | |
| 16. |
The following factor does not differentiate international business from domestic business |
| A. | different currencies |
| B. | product quality |
| C. | product mobility |
| D. | trade policies |
| Answer» B. product quality | |
| 17. |
By entering into international business, a firm expects improvement in |
| A. | marketing. |
| B. | all spheres of marketing, operation and finance simultaneously. |
| C. | any or all spheres of marketing, operation and finance. |
| D. | finance only |
| Answer» C. any or all spheres of marketing, operation and finance. | |
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