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 theinternet 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 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.
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. 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
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
Answer
B. Barriers to trade and investment
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.
Answer
A. The fragmentation of consumer tastes between countries.
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.
Answer
C. It opens up new market opportunities.
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.
Answer
B. Cutting the cost for firms of communicating across borders.
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.
Answer
A. It can result in more competition.
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.
Answer
A. It makes it easier to resolve contract disputes for firms involved in international trade and investment.
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.
Answer
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.
Answer
B. May be refused permission to take over a US competitor.
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.
Answer
A. Reusing a resource from one business/country in additional businesses/countries.
21. 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
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.
Answer
C. A firm owning a chain of supermarket outlets outside its country of origin.
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
Answer
A. That is where the most lucrative markets were located.
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.
Answer
B. Relevant areas of law are much easier to find than in common law systems.
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. 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.
29. Ethnocentric views concentrate on their
A. home country
B. host country
C. world orientation
D. Racial orientation
Answer
A. home country
30. Specific cultural dimensions that does not have a significant impact on cross national businessinteractions is
A. Hofstede’s five cultural dimensions
B. Monochromatic vs polychromatic tune
C. Communication
D. Geography
Answer
D. Geography
31. 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.
32. 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
33. 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
34. 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
35. 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.
36. 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.
37. 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.
38. 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.
39. 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.
40. 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
