Chapter: Unit 3
1.

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
2.

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
3.

'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
4.

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
5.

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
6.

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
7.

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
8.

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
9.

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
10.

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
11.

Which is the right sequence of a stages of Internationalization

A. Domestic, Transnational, Global, International, Multinational
B. Domestic, International, Multinational, Global, Transnational
C. Domestic, Multinatinal, International, Transnational, Global
D. Domestic, Internatinal, Transnational, Multinational, Global
Answer» B. Domestic, International, Multinational, Global, Transnational
12.

Which of the following is not a force in the Porter Five Forces model?

A. Buyers
B. Suppliers
C. Complementary products
D. Industry rivalry
Answer» C. Complementary products
13.

A likely consequence of rationalization is:

A. Lower number of employees
B. Lower revenues
C. Higher costs
D. Price decrease
Answer» B. Lower revenues
14.

The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of

A. Subsidiary
B. Joint venture
C. Strategic International Alliance
D. License agreement
Answer» C. Strategic International Alliance
15.

When the transaction is of high value, complex In nature and more technical __________ method of export sales contract is used.

A. Performa invoice
B. Purchase order
C. Sales contact
D. None of the above
Answer» C. Sales contact
16.

What are core competences?

A. Resources which critically underpin competitive advantage and that others cannot obtain.
B. Activities and processes needed to meet customers' minimum requirements and therefore to continue to exist.
C. Key skills required for success in a particular business.
D. Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain.
Answer» D. Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain.
17.

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
18.

Professional culture refers to

A. Shared belief of top managers about how they should manage themselves and their employees
B. Shared code of ethics and other commonalities shared by members of a given group
C. Both (a) and (c)
D. None of the above
Answer» B. Shared code of ethics and other commonalities shared by members of a given group
19.

An attribute that doesn’t contribute to Porters Diamond model is

A. Government
B. Organized Trade union
C. Factor Conditions
D. Demand Conditions
Answer» B. Organized Trade union
20.

Theory of Mercantilism propagates

A. Encourage exports and imports
B. Encourage exports and discourage imports
C. Discourage exports and imports
D. Discourage exports and encourage imports
Answer» B. Encourage exports and discourage imports
21.

Identify a factor that doesn’t play an important role in attracting FDI

A. Laws, rule sand regulations
B. Administrative procedures and efficiency
C. Infrastructure related factors
D. Language
Answer» D. Language
22.

General electric follows ___________ as its international operational strategy

A. GLOBAL
B. TRANSNATIONAL
C. INTERNATIONAL
D. MULTI-DOMESTIC
Answer» B. TRANSNATIONAL
23.

Which term refers to the phenomenon in which the world’s population shares commonly recognized cultural symbols?

A. global village
B. monopolistic market
C. global city
D. multicultureal village
Answer» A. global village
24.

According to the concept of the value chain, a firm is profitable if:

A. the value it commands equals the costs involved in creating the product.
B. it operates in global industries
C. the value it commands exceeds the costs involved in creating the product
D. the value it commands is lower than the costs involved in creating the product
Answer» C. the value it commands exceeds the costs involved in creating the product
25.

In which industries is global competition more common?

A. where the value chain functions are carried out at head office
B. where upstream and support activities are crucial to competitive advantage
C. where downstream activities or other-tied activities are vital to competitive advantage
D. in none of the above situations
Answer» B. where upstream and support activities are crucial to competitive advantage
26.

A global market leader is an organization which:

A. has the monopoly over several foreign markets.
B. has more than 50% global market share.
C. is ahead of the competition in terms of global innovation.
D. is recognized as being ahead of the rest in terms of market share.
Answer» D. is recognized as being ahead of the rest in terms of market share.
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