Global Business Management
Mock Exam
Course Introduction
Global Business Management provides students with a comprehensive understanding of managing organizations in an increasingly interconnected and competitive international environment. The course explores key concepts such as international trade, cross-cultural communication, global marketing strategies, foreign direct investment, and the complexities of managing multinational teams. Students will analyze real-world case studies to develop skills in strategic decision-making, risk assessment, and ethical considerations relevant to global business operations. Emphasis is placed on adapting business practices to diverse cultural, legal, and economic contexts to successfully lead organizations across borders.
Recommended Textbook
Global Business 4th Edition by Mike W. Peng
Available Study Resources on Quizplus
17 Chapters
1326 Verified Questions
1326 Flashcards
Source URL: https://quizplus.com/study-set/1760
Page 2
Chapter 1: Globalizing Business
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35057
Sample Questions
Q1) The current state of globalization around the world is that of semiglobalization.
A)True
B)False
Answer: True
Q2) The institution-based view places emphasis on the external factors that could affect a firm.
A)True
B)False
Answer: True
Q3) The strategy of treating the entire world as one market is known as localization.
A)True
B)False
Answer: False
Q4) Overall,the focus on firm performance around the globe defines the field of global business more than anything else.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Understanding Formal Institutions: Politics, laws, and Economics
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35058
Sample Questions
Q1) Totalitarian countries have less political risk than democratic ones.
A)True
B)False
Answer: False
Q2) What are the two core propositions of the institution-based view?
Answer: The first core proposition of the institution-based view is that managers and firms rationally pursue their interests and make choices within the formal and informal constraints in a given institutional framework.The second proposition is that formal and informal institutions combine to govern firm behavior,in situations where formal constraints are unclear or fail,informal constraints will play a larger role in reducing uncertainty and providing constancy to managers and firms.
Q3) In which of the following ways do formal institutions regulate trade?
A) By inducing uncodified ethical beliefs into society
B) By putting faith in individuals to expose perceived wrong doings
C) By allowing the cultural beliefs of a society to dictate the terms of trade
D) By imposing laws that make certain trades unacceptable
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Emphasizing Informal Institutions: Cultures, ethics, and Norms
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35059
Sample Questions
Q1) Social mobility refers to the degree to which people can move from one area to another area in a country.
A)True
B)False
Answer: False
Q2) Which of the following descriptions summarizes ethical imperialism?
A) It is a perspective that each firm should cultivate its own ethics.
B) It is a perspective that there is only one set of ethics.
C) It is a perspective that ethical standards are relative.
D) It is a perspective that ethical standards can never be codified.
Answer: B
Q3) In individualistic societies,ties between individuals are relatively close.
A)True
B)False
Answer: False
Q4) The Ronen and Shenkar cluster divides the world into eight civilizations.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Leveraging Resources and Capabilities
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35060
Sample Questions
Q1) Including _____ into its organizational boundaries would convert an OEM into an ODM.
A) research and development
B) components
C) final assembly
D) marketing
Q2) According to the VRIO framework,valuable,but common resources and capabilities,will lead to a temporary competitive advantage.
A)True
B)False
Q3) The process of outsourcing to a domestic firm is known as captive sourcing.
A)True
B)False
Q4) Tangible resources differ from intangible resources in that tangible resources are easier to imitate.
A)True
B)False
Q5) The value chain exclusively deals with a firm's primary activities.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Trading Internationally
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35061
Sample Questions
Q1) Which theory is based on the notion that competitive advantage is dependent on the four interacting aspects of factor endowments,domestic demand,firm strategy,and related and supporting industries?
A) Strategic trade theory
B) Product life cycle theory
C) Comparative advantage theory
D) National competitive advantage of industries theory
Q2) Which of the following is true of voluntary export restraints?
A) It is an extra tax imposed by a country on its exports.
B) It is an example of a tariff barrier.
C) It is a government payment to domestic firms.
D) It is an export quota levied by a country on the quantity of its exports.
Q3) Discuss the political arguments against free trade.
Q4) Economist Adam Smith proposed the theory of comparative advantage.
A)True
B)False
Q5) Classical theories assume no foreign exchange complications.
A)True
B)False
Q6) Elaborate on Michael Porter's "diamond" theory.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Investing Abroad Directly
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35062
Sample Questions
Q1) Domestic transaction costs tend to be higher than international transaction costs.
A)True
B)False
Q2) Investing in FDI will increase the home firm's exports of components and services.
A)True
B)False
Q3) FPI refers to the _____.
A) direct, hands-on management of foreign assets
B) amount of FDI moving in a given period in a certain direction
C) ability of a firm to engage in downstream stage of the value chain in a host country
D) investment in a portfolio of foreign securities that do not entail the active management of foreign assets
Q4) Identify the benefits and costs of FDI to host countries.
Q5) Oligopoly happens when an industry is dominated by one company.
A)True
B)False
Q6) Why do firms prefer FDI to licensing?
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Dealing With Foreign Exchange
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35063
Sample Questions
Q1) A weak dollar makes it more expensive for US tourists when traveling abroad.
A)True
B)False
Q2) A clean floating exchange rate policy is a government policy to _____.
A) set exchange rates purely on the basis of supply and demand
B) allow a currency's value to fluctuate according to the foreign exchange rate
C) allow selective government intervention in determining the exchange rate
D) link the exchange rate of a currency to the gold standard
Q3) _____ refers to non-financial companies spreading out its activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions.
A) Currency hedging
B) Currency pegging
C) Strategic hedging
D) Currency swapping
Q4) The primary participants of the foreign exchange market are IMF and World Bank.
A)True
B)False
Q5) Compare and contrast the three primary strategies companies use to cope with currency risks.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Capitalizing on Global and Regional Integration
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35064
Sample Questions
Q1) Every time a WTO country lowers a trade barrier,it has to do the same for all other member countries.
A)True
B)False
Q2) Discuss whether global and regional economic integration create more benefits or more challenges.
Q3) GATT 1994 refers to the agreement governing the international trade of goods in the WTO.
A)True
B)False
Q4) The UNASUR is a free trade agreement between the United States and five Central American countries and the Dominican Republic.
A)True
B)False
Q5) While emphasizing economic benefits,the most fundamental goal of global economic integration is to promote peace.
A)True
B)False
Q6) Describe the European Union as an economic union.
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Growing and Internationalizing the Entrepreneurial Firm
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35065
Sample Questions
Q1) Is successful entrepreneurship based more on the "traits" of the entrepreneur or on the "institutions" at work in his or her environment?
Q2) Direct exports are the sale of products made through export intermediaries.
A)True
B)False
Q3) Becoming a licensee or franchisee of a foreign brand does not internationalize the licensee or franchisee firm.
A)True
B)False
Q4) Both formal and informal institutional constraints,as rules of the game,affect entrepreneurship.
A)True
B)False
Q5) ____ perform an important "middleman" function by linking sellers and buyers overseas.
A) Export intermediaries
B) Indirect exporters
C) Sporadic exporters
D) Alliance partners
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Entering Foreign Markets
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35066
Sample Questions
Q1) Explain briefly the meaning of liability of foreignness.Why is it difficult for companies to succeed in foreign markets?
Q2) Non-equity modes of entry include acquisitions and wholly-owned subsidiaries.
A)True
B)False
Q3) Location-specific advantages never change and only tend to grow.
A)True
B)False
Q4) _____ are the most basic non-equity mode of entry,capitalizing on economies of scale in production concentrated in the home country and providing better control over distribution.
A) Indirect exports
B) Direct exports
C) Turnkey projects
D) Acquisitions
Q5) Equity modes tend to reflect relatively smaller commitments to overseas markets,whereas non-equity modes are indicative of relatively larger,harder-to-reverse commitments.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Managing Global Competitive Dynamics
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35067
Sample Questions
Q1) The lowest intensity of rivalry between competitors is the result of high resource similarity and low market commonality.
A)True
B)False
Q2) Which combination of resource similarity and market commonality results in the most intense competition?
A) High resource similarity, low market commonality
B) Low resource similarity, high market commonality
C) Low resource similarity, low market commonality
D) High resource similarity, high market commonality
Q3) In order to win a predation case in the US,"an attempt to monopolize" must be proved against the accused.
A)True
B)False
Q4) Firms with strong patents can challenge rivals for infringements,making mutual forbearance impossible.
A)True
B)False
Q5) Explain how interaction differs between tacit collusion and explicit collusion.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Making Alliances and Acquisitions Work
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35068
Sample Questions
Q1) In the context of equity-based alliances,_____ involves both firms investing in each other.
A) strategic fit
B) acquisition premium
C) strategic investment
D) cross-shareholding
Q2) Describe the four driving forces that influence the choice of a contract or an equity approach in the formation of alliances.
Q3) The set of informal institutions that stresses the cognitive pillar lays emphasis on
A) establishing wholly owned subsidiaries
B) granting more liberal policies
C) copying reputable organizations to ensure a low-cost way to gain legitimacy
D) the internalized taken-for-granted values and beliefs that guide firm behavior
Q4) Which of the following alliances is a contractual alliance?
A) Strategic investment
B) Franchising
C) Cross-shareholding
D) Joint venture
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Strategizing,structuring,and Learning Around the World
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35069
Sample Questions
Q1) Which are the two primary pressures MNEs confront?
A) Ethics and governance
B) Cost reductions and local responsiveness
C) Liability of foreignness and investment risk
D) Ethics and local responsiveness
Q2) Which element of knowledge management faces the common problem of absorptive capacity?
A) Knowledge inflow
B) Knowledge transmission
C) Knowledge outflow
D) Knowledge retention
Q3) The home replication strategy duplicates home country-based competencies in foreign countries.
A)True
B)False
Q4) Subsidiary initiatives are new opportunities pursued by a subsidiary based on headquarters' demands.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Q5) Explain the advantages and disadvantages of the global standardization strategy.
Chapter 14: Competing on Marketing and Supply Chain Management
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35070
Sample Questions
Q1) ____ refers to the expenditures a customer is willing to pay for a product.
A) Total cost
B) Price
C) Total cost of ownership
D) Price elasticity
Q2) List a few do's and don'ts to avoid blunders in international marketing.
Q3) In international marketing,the country-of-origin effect refers to the positive or negative perception of firms and products from a certain country.
A)True
B)False
Q4) The category of customers who are in favor of buying global brands that signal prestige and cachet are called _____.
A) global agnostics
B) global dreamers
C) antiglobals
D) global citizens
Q5) A supply chain can't be changed after it is established.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Managing Human Resources Globally
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35071
Sample Questions
Q1) Bristall Inc.is a steel manufacturing company headquartered in the United States with subsidiaries in India,China,and the United States.To create a global mind-set for its subsidiary employees,Bristall Inc.relocated its employees in India to the United States.This employee relocation is an example of _____.
A) inpatriation
B) benchmarking
C) collusion
D) expatriation
Q2) Which of the following staffing approaches is said to be color blind (the "color" refers to the color of the manager's passport)?
A) Ethnocentric approach
B) Polycentric approach
C) Regiocentric approach
D) Geocentric approach
Q3) A _____ approach is the opposite of an ethnocentric approach.
A) telocentric
B) polycentric
C) geocentric
D) regiocentric
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: Financing and Governing the Corporation
Globally
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35072
Sample Questions
Q1) Which of the following statements about governance mechanisms is misleading?
A) Governance mechanisms can be classified as voice-based and exit-based mechanisms.
B) As an external governance mechanism, private equity utilizes the stock market to discipline managers.
C) In general, boards are likely to use "carrots" before considering "sticks."
D) Product market competition complements the market for corporate control and the market for private equity.
Q2) A voice-based mechanism indicates that shareholders no longer have patience and are willing to "exit" by selling their shares.
A)True
B)False
Q3) Principal-agent conflicts result in agency costs.
A)True
B)False
Q4) Market for private equity is also known as the takeover market.
A)True
B)False
Q5) Elaborate on the external governance mechanisms.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Managing Corporate Social Responsibility
Globally
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/35073
Sample Questions
Q1) Elaborate on the CSR movement.
Q2) List some corporate social responsibilities with regard to employment practices,recommended for multinational enterprises by some international organizations.
Q3) From a CSR perspective,the best firms embrace an accommodative strategy.
A)True
B)False
Q4) Adopting a code of conduct is a tangible indication of a firm's willingness to accept CSR.
A)True
B)False
Q5) At present,the number of proactive firms is still a minority.
A)True
B)False
Q6) Which of the following is an example of a primary stakeholder group?
A) Shareholders
B) Fair labor practice groups
C) Public agencies
D) Environmental groups
Q7) Elaborate on the resource-based view to CSR. Page 19
To view all questions and flashcards with answers, click on the resource link above.
Page 20