41. 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
42. 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.
43. 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
44. 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.
45. 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.
46. 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
47. 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
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 tariffregimes 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
69. Which of the following statements is not true when describing a successful strategy?
A. It provides some property that is unique or distinctive
B. It provides the means for renewing competitive advantage
C. It addresses changes in the external environment
D. It guarantees long term survival
Answer
B. It provides the means for renewing competitive advantage
70. In the context of strategic management resources can be defined as:
A. The knowledge and skills within the organization
B. Something that an organization owns or controls that cannot be copied
C. Something that an organization owns, controls or has access to on a semipermanent basis
D. The physical assets of the organization
Answer
D. The physical assets of the organization
71. In the context of strategic management, stakeholders can be defined as:
A. An individual or group with a financial stake in the organization
B. An external individual or group that is able to impose constraints on the organization
C. Internal groups or individuals that are able to influence strategic direction of the organization
D. An individual or group with an interest in the organization’s activities and who seeks to influence them
Answer
C. Internal groups or individuals that are able to influence strategic direction of the organization
72. In the case where an organization acquires its supplier, this is an example of:
A. Horizontal integration
B. Forwards vertical integration
C. Backwards vertical integration
D. Downstream vertical integration
Answer
D. Downstream vertical integration
73. Knowledge which is difficult to define and codify is known as:
A. Explicit
B. Tangible
C. Tacit
D. Random
Answer
A. Explicit
74. Competitive advantage based on the creation of opportunities using internal resources is characterized by which approach/view?
A. The positioning approach
B. The outside-in approach
C. The resource-based view
D. The knowledge-management approach
Answer
C. The resource-based view
75. When a firm seeks the benefits of global integration and local adaptation, it is bestdescribed as which type of strategy?
A. Transnational
B. Global
C. Multi-national
D. Global-local
Answer
C. Multi-national
76. ‘Reputation’ in the context of an organization’s resources can provide competitive advantage because:
A. It is difficult to copy
B. It is based on word-of-mouth
C. It is a threshold resource
D. It is explicit
Answer
A. It is difficult to copy
77. A strategic manager that seeks to reach acceptable profit targets as opposed to making as much profit as possible is making decisions of which type?
A. Satisfactory
B. Satisficing
C. Irrational
D. Optimal
Answer
A. Satisfactory
78. ‘Logical incrementalism’ can be described as:
A. Careful design and planning
B. Emergent
C. Cautious resource allocation
D. Top management rational analysis
Answer
D. Top management rational analysis
79. An organization in which strategy development is characterized by internal political negotiation and self-interest is operating in which strategy-making mode?
A. The transactive mode
B. The muddling through mode
C. The command mode
D. The emotional mode
Answer
C. The command mode
80. McDonalds is deciding whether to expand into manufacturing kitchen equipment in China. At what level is this decision likely to be made?
A. Business
B. Corporate
C. Functional
D. International
Answer
A. Business
