Global Business Management Review
Questions
Course Introduction
Global Business Management explores the strategies, structures, and operational challenges faced by organizations competing in international markets. Students examine the complexities of conducting business across borders, including cultural differences, global economic environments, international trade regulations, and foreign market entry strategies. The course also addresses global supply chain management, cross-cultural communication, ethical considerations, and the impact of technological advancements on international business practices. By analyzing real-world case studies, students develop the skills necessary to successfully manage and lead in the dynamic, interconnected global business landscape.
Recommended Textbook
Global Business 3rd Edition by Mike Peng
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17 Chapters
1326 Verified Questions
1326 Flashcards
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Page 2
Chapter 1: Globalizing Business
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Approximately _____ people are employed by foreign-owned firms throughout the world.
A) 80 million
B) 40 million
C) 18 million
D) 1 million
Answer: A
Q2) The term "emerging markets" refers to all markets other than the developed markets.
A)True
B)False Answer: True
Q3) A dragon multinational is a name given to MNEs from emerging markets.
A)True
B)False Answer: True
Q4) Formal institutions include laws,regulations,and rules.
A)True
B)False Answer: True
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Chapter 2: Understanding Formal Institutions: Politics, Laws, and Economics
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) The Washington Consensus emphasizes using government intervention over state ownership in business.
A)True
B)False
Answer: False
Q2) Define political risk.How is it related to nationalization?
Answer: Political risk is risk associated with political changes that may negatively influence domestic and foreign firms.The most extreme political risk may lead to nationalization (expropriation)of foreign assets.This happened in many totalitarian countries from the 1950s through the 1970s.It has not become a thing of the past.Zimbabwe has recently demanded that foreign mining companies cede 51% of their equity without compensation.It is hardly surprising that foreign mining companies are sick and tired and would rather go to "greener pastures" elsewhere.
Q3) Totalitarian countries have less political risk than democratic ones.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Emphasizing Informal Institutions: Cultures, Ethics, and Norms
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78 Verified Questions
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Sample Questions
Q1) "Respect for institutional context" is one of the guiding principles proposed by business ethicist Thomas Donaldson.
A)True
B)False
Answer: True
Q2) English-speaking countries contribute the largest share of global business output.
A)True
B)False
Answer: True
Q3) An American firm operating in the Middle East struggles with enforcing rules opposing sexual discrimination against Muslim women working in its management.Which of the following describes the American firm's stand against enforcing local norms?
A) Ethical relativism
B) Cultural relativism
C) Ethical imperialism
D) Xenocentrism
Answer: C
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Chapter 4: Leveraging Resources and Capabilities
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78 Flashcards
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Sample Questions
Q1) An original equipment manufacturer refers a firm that _____.
A) executes design blueprints provided by other firms and manufactures such products
B) both designs and manufactures products
C) designs, manufactures, and markets branded products
D) licenses its patented inventions to other firms for manufacturing
Q2) The point at which an industry-specific activity becomes common across industries and the need to keep it proprietary no longer exists is called _____.
A) commoditization
B) monopolization
C) break-even point
D) captive sourcing
Q3) Tangible resources and capabilities are assets that are observable and easily quantified.
A)True
B)False
Q4) BPO refers to the outsourcing of low-end manufacturing to third-party providers.
A)True
B)False
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Chapter 5: Trading Internationally
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78 Flashcards
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Sample Questions
Q1) Local content requirements require a certain proportion of the value of the goods made in one country to originate from that country.
A)True
B)False
Q2) Discuss the characteristics of the modern trade theories.
Q3) _____ are tariffs levied on imports sold below costs to drive domestic firms out of business.
A) Antidumping duties
B) Import quotas
C) Local content requirements
D) Voluntary export requirements
Q4) Briefly elaborate on any three nontariff barriers (NTBs).
Q5) The strategic trade theory was mainly proposed for low capital-investment industries.
A)True
B)False
Q6) Briefly explain the classical theory of mercantilism.
Q7) Discuss the political arguments against free trade.
Q8) Elaborate on Michael Porter's "diamond" theory.
Q9) Discuss the economic arguments against free trade. Page 7
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Page 8
Chapter 6: Investing Abroad Directly
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Knowledge spillover refers to _____.
A) the risk associated with unauthorized diffusion of firm-specific know-how
B) a violation of the knowledge and IP rights secured by a copyright
C) knowledge diffused from one firm to others among closely located firms
D) the imperfect rules governing international transactions
Q2) _____ refers to the ability to extract favorable outcome from negotiations due to one party's strengths.
A) Expropriation
B) Bargaining power
C) Compromising power
D) Accommodating power
Q3) What determines the success and failure of FDI around the globe?
Q4) Oligopoly happens when an industry is dominated by one company.
A)True
B)False
Q5) In the context of FDI,ownership refers to MNEs' possession and leveraging of certain valuable,rare,hard-to-imitate,and organizationally embedded (VRIO)assets overseas.
A)True
B)False
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Chapter 7: Dealing with Foreign Exchange
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) An appreciation is an increase in the value of the currency whereas a depreciation is a loss in the value of the currency.
A)True
B)False
Q2) A _____ is the price of one currency,such as the dollar,in terms of another,such as the euro.
A) stock exchange index
B) securities market rate
C) commodities exchange rate
D) foreign exchange rate
Q3) Which of the following will cause a country's currency to depreciate?
A) High interest rates on the currency
B) High inflation rates
C) High account surplus
D) High in-flow of foreign funds
Q4) A manager arguing against currency hedging would most likely argue that _____.
A) currency hedging eats into company profits
B) currency hedging leaves firms at the mercy of the spot market
C) currency hedging decreases stability of cash flows and earnings
D) currency hedging is mainly a practice of very large MNEs
Page 10
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Chapter 8: Capitalizing on Global and Regional Integration
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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) Which of the following changes was introduced to the EU through the Lisbon Treaty?
A) Establishment a passport-free travel zone within the EU
B) Appointment of a long-term President of the European Council
C) Transformation of the EU into an FTA
D) Creation of a common currency for EU members
Q3) The _____ was a multilateral agreement,created in 1948,governing the international trade of goods (merchandise).
A) WTO
B) GATT
C) UN
D) EU
Q4) The Andean Community is more pro-free trade than Mercosur.
A)True
B)False
Q5) Describe the pros and cons of regional economic integration.
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Chapter 9: Growing and Internationalizing the Entrepreneurial Firm
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Sample Questions
Q1) In a manufacturing industry,_____ refers to firm A's agreement to give firm B the rights to use A's proprietary technology (such as a patent)or trademark (such as a corporate logo)for a royalty fee paid to A by B.
A) franchising
B) bailment
C) adverse possession
D) licensing
Q2) Which of the following is one of the methods by which entrepreneurial firms internationalize by staying in domestic markets?
A) Through harvest and exit sell-offs to foreign entrants
B) Through direct exports
C) Through strategic alliances by FDI
D) Through greenfield wholly owned subsidiaries abroad
Q3) Which of the following supports the notion that most new ventures in China are financed by friends and family?
A) Informal investments are outlawed in China.
B) China lacks formal market-supporting institutions.
C) Credit reporting agencies are abundant in China.
D) Venture capitalists are the biggest investors for entrepreneurship in China.
Page 12
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Chapter 10: Entering Foreign Markets
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Sample Questions
Q1) The existence of multiple currencies and the resultant currency risks can be viewed as informal trade and investment barriers.
A)True
B)False
Q2) Identify the advantages and disadvantages that pertain to first movers.
Q3) Which of the following is true of modes of entry?
A) Non-equity modes require the establishment of independent organizations overseas.
B) Non-equity modes are methods used to enter a market in the home country.
C) Equity modes are indicative of relatively larger, harder-to-reverse commitments.
D) Equity modes do not require the establishment of independent organizations overseas.
Q4) Non-equity modes of entry include acquisitions and wholly-owned subsidiaries. A)True B)False
Q5) Greenfield operations are a type of wholly owned subsidiary that does not require any FDI.
A)True B)False
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Chapter 11: Managing Global Competitive Dynamics
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Which of the following is defined as the degree of overlap between two rivals' markets?
A) Cross-market retaliation
B) Market commonality
C) Multimarket competition
D) Mutual forbearance
Q2) The United States has the world's oldest antitrust frameworks dating back to the 1890 Sherman Act.
A)True
B)False
Q3) Laws that make it illegal for an exporter to sell goods below cost abroad with the intent to raise prices after eliminating local rivals are called _____ laws.
A) collusion
B) antidumping
C) antitrust
D) anticartel
Q4) Define predatory pricing.Why is it difficult to win a domestic predation case in the United States?
Q5) Under what conditions would a firm adopt a contender strategy?
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Chapter 12: Making Alliances and Acquisitions Work
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Sample Questions
Q1) With respect to the motives for acquisition,_____ motives add value.
A) collusive
B) hubristic
C) managerial
D) synergistic
Q2) In a non-equity-based alliance,which of the following should be high for possible upgrading to equity-based relationships?
A) Degree of tacitness
B) Importance of direct organizational monitoring and control
C) Potential as real option
D) Influence of formal institutions
Q3) Cross-shareholding is based on financial interest between the firms.
A)True
B)False
Q4) Alliances have emerged as great instruments of real options because of their flexibility to sequentially scale up or scale down investment.
A)True
B)False
Q5) One of the merits of alliances is to use them as real options.Elaborate.
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Chapter 13: Strategizing,Structuring,and Learning around the World
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78 Flashcards
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Sample Questions
Q1) The geographic area structure is appropriate for a transnational strategy.
A)True
B)False
Q2) The _____ strategy is also known as multidomestic strategy.
A) home replication
B) transnational
C) global
D) localization
Q3) Externally,MNEs are subject to the formal institutional frameworks erected by various home-country and host-country governments.
A)True
B)False
Q4) Explain the reciprocal relationship between multinational strategy and structure.
Q5) Which strategy is organizationally complex and most difficult to implement?
A) Localization strategy
B) Transnational strategy
C) Home replication strategy
D) Global standardization strategy
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Q6) Summarize the advantages and disadvantages of the home replication strategy.
Chapter 14: Competing on Marketing and Supply Chain Management
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78 Flashcards
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Sample Questions
Q1) As one of the Ps in the marketing mix,place is also often referred to as the distribution channel.
A)True
B)False
Q2) _____ refers to the positive or negative perception of firms and products from a certain country.
A) Ethnocentrism
B) VRIO effect
C) Market orientation
D) Country-of-origin effect
Q3) In terms of the supply chain,alignment is best defined as _____.
A) the combining of interests of various players involved in the supply chain
B) the ability to change supply chain configurations in response to long-term changes in the environment and technology
C) the ability to quickly react to unexpected shifts in supply and demand
D) the way to identify consumers who differ from others in purchasing behavior
Q4) Explain the four Ps of marketing.
Q5) The four Ps of marketing are: product,price,positioning,and place.
A)True
B)False
Page 17
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Chapter 15: Managing Human Resources Globally
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78 Verified Questions
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Sample Questions
Q1) Non-native employees who work and reside in a foreign country are known as
A) host-country nationals
B) expatriates
C) multinationals
D) repatriates
Q2) The staffing choices in an MNE are always random.
A)True
B)False
Q3) An MNE with transnational strategy typically staffs host-country nationals.
A)True
B)False
Q4) _____ is specific preparation to do a particular job.
A) Appraisal
B) Onboarding
C) Tracking
D) Training
Q5) Inpatriation is sometimes used for filling skill shortages at headquarters.
A)True
B)False
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Chapter 16: Financing and Governing the Corporation
Globally
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78 Verified Questions
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Source URL: https://quizplus.com/quiz/5401
Sample Questions
Q1) In firms with separation of ownership and control,ownership is concentrated with a few owners.
A)True
B)False
Q2) Explain the role of the Board of Directors.
Q3) Elaborate on the principal-principal conflicts.
Q4) The institution-based view argues that among a number of firms governed by the same set of rules,some excel more than others because of differences in firm-specific capabilities that leverage advantage in corporate governance.
A)True
B)False
Q5) One of the leading indicators of concentrated family ownership and control is the appointment of family members as board chairman,CEO,and other TMT members.
A)True
B)False
Q6) Voice-based governance mechanisms are external mechanisms.
A)True
B)False
19
Q7) Differentiate between concentrated and diffused ownership.
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Chapter 17: Managing Corporate Social Responsibility
Globally
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Sample Questions
Q1) Elaborate on the environmental standards debate concerning CSR.
Q2) _____ groups are those who influence or affect,or are influenced or affected by,the corporation,but are not engaged in transactions with the corporation and are not essential for its survival.
A) Primary stakeholder
B) Union
C) Secondary stakeholder
D) Task
Q3) Which of the following corporate social responsibilities is recommended for MNEs by the UN?
A) Respect the rights for employees to engage in collective bargaining
B) Refrain from improper or illegal involvement in local politics
C) Respect human rights and fundamental freedoms in host countries
D) Provide reasonable terms and conditions when granting licenses for industrial property rights
Q4) The CSR approach draws upon Adam Smith's idea that the pursuit of economic self-interest within legal and ethical bounds leads to efficient markets.
A)True
B)False
20
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