Global Business Management Review
Questions
Course Introduction
Global Business Management explores the strategies, structures, and operations of businesses within the international marketplace. This course examines key concepts such as global trade theories, entry modes, cross-cultural management, and the impact of economic, political, and legal environments on global business decisions. Students will develop skills in managing diverse teams, understanding currency and financial markets, navigating regulatory complexities, and building sustainable competitive advantages in a rapidly evolving world. Through case studies and real-world applications, students gain a comprehensive understanding of how organizations operate globally and how managers can successfully lead in multicultural and multinational contexts.
Recommended Textbook
International Business 7th Edition by
Ricky W. Griffin
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19 Chapters
2470 Verified Questions
2470 Flashcards
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Page 2
Chapter 1: An Overview of International Business
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Sample Questions
Q1) Ford Motor Company purchased all of the common stock of Sweden's Volvo Corporation. This is an example of ________.
A) foreign portfolio investment
B) foreign direct investment
C) international expansion
D) global licensing
Answer: B
Q2) Firms that enter new markets can benefit from economies of scale and diversified revenue streams.
A)True
B)False Answer: True
Q3) Multinational corporations engage in FDI and own or control value-adding activities in multiple countries.
A)True
B)False Answer: True
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Page 3
Chapter 2: Global Marketplaces and Business Centers
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) Which of these countries is NOT a member of the EU?
A) Austria
B) Monaco
C) Norway
D) Portugal
Answer: C
Q2) Which of the following African countries is not a major oil exporter?
A) Algeria
B) Gabon
C) Zambia
D) Libya
Answer: C
Q3) About what percentage of the world's 500 largest corporations in 2010 were headquartered in the United States?
A) 12%
B) 19%
C) 27%
D) 45%
Answer: C
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Page 4
Chapter 3: Legal, Technological, Accounting, and Political Environments
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) Bureaucratic law is common in dictatorships.
A)True
B)False Answer: True
Q2) Macropolitical risks affect all firms in a country, while micropolitical risks affect only specific industries or specific firms.
A)True
B)False
Answer: True
Q3) Which country does NOT require firms to capitalize financial leases?
A) Switzerland
B) United States
C) Great Britain
D) Canada
Answer: A
Q4) The Koran is the foundation for religious law in Iran.
A)True
B)False
Answer: True
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Chapter 4: The Role of Culture
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Sample Questions
Q1) Cultural attitudes toward social mobility are LEAST likely to affect an international business in the area of ________.
A) labor relations
B) human capital formation
C) risk taking
D) foreign exchange
Q2) ________ is the process by which people not only understand a foreign culture but also modify and adapt their behavior to make it compatible with that culture.
A) Cultural conversion
B) Cross-cultural literacy
C) Culture training
D) Acculturation
Q3) According to the low-context-high-context theory, in which of the following countries should advertisements be fact-oriented?
A) Japan
B) Greece
C) Saudi Arabia
D) Switzerland
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Chapter 5: Ethics and Social Responsibility in International Business
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Sample Questions
Q1) Gift exchanges in a business situation in Japan are best described as ________.
A) common
B) trendy
C) rare
D) illegal
Q2) Fruit juice suppliers in South America rely heavily on ________.
A) elderly employees
B) child labor
C) female workers
D) illegal immigrant workers
Q3) A firm that wants to review the effectiveness of its social responsibility efforts should most likely conduct a(n) ________.
A) corporate social audit
B) SWOT analysis
C) strategy session
D) HR audit
Q4) What is the purpose of the Foreign Corrupt Practices Act?
Q5) Companies can manage social responsibility using formal and informal tools.
A)True
B)False
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Chapter 6: International Trade and Investment
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130 Flashcards
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Sample Questions
Q1) Early theories of international trade focused on the patterns of exports and imports in individual countries.
A)True
B)False
Q2) Which theory suggests that a country should produce and export those goods and services for which it is relatively more productive than other countries are and import those goods and services for which other countries are relatively more productive?
A) relative advantage
B) comparative advantage
C) absolute advantage
D) specialization of countries
Q3) Why was Adam Smith opposed to mercantilism? What was the premise of Smith's theory?
Q4) Which of the following is not one of the stages in the international product life cycle theory?
A) new product
B) modified product
C) maturing product
D) standardized product
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Chapter 7: The International Monetary System and the Balance of Payments
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Sample Questions
Q1) The Smithsonian agreement established a fixed exchange rate system.
A)True
B)False
Q2) What is an SDR? How are SDRs used?
Q3) A(n) ________ is the price of one currency in terms of a second currency.
A) export rate
B) exchange rate
C) excise tax rate
D) interest payment
Q4) Which of the following is not one of the major accounts in the BOP accounting system?
A) capital account
B) debt account
C) official reserves account
D) errors and omissions
Q5) What was the Baker Plan?
Q6) How can capital outflows occur as debits in the BOP accounting system?
Q7) The gold standard effectively created a floating exchange rate system.
A)True
B)False Page 9
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Page 10
Chapter 8: Foreign Exchange and International Financial Markets
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130 Flashcards
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Sample Questions
Q1) ________ focus on offering banking and other financial services to nonresident customers.
A) Subsidiary banks
B) Branch banks
C) Affiliated banks
D) Offshore financial centers
Q2) What is the difference between a Eurocurrency and a Eurobond?
Q3) A ________ is a contract for a standard amount on a standard delivery date.
A) forward contract
B) currency future
C) currency option
D) call option
Q4) Spot transactions account for about two-thirds of all foreign exchange transactions.
A)True
B)False
Q5) The Eurocurrency market is limited to exchanges that include the euro.
A)True
B)False
Q6) How can firms obtain foreign exchange in the future?
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Chapter 9: Formulation of National Trade Policies
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Sample Questions
Q1) A ________ is a numerical limit on the quantity of a good that may be imported into a country during some time period.
A) quota
B) numerical export control
C) voluntary export restraint
D) regulatory control
Q2) NAFTA provided many of the benefits of Mexico's foreign trade zones to factories throughout Mexico.
A)True
B)False
Q3) Local purchase requirements, investment controls, and product and testing standards are all forms of ________.
A) numerical export controls
B) voluntary export restraints
C) nontariff barriers
D) embargoes
Q4) What is the purpose of Section 201 of the 1974 Trade Act? Who benefits and loses from the enforcement of this law? Provide an example to illustrate your response.
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Page 12
Chapter 10: International Cooperation Among Nations
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Sample Questions
Q1) As a participant at the Doha Round, you would experience the most negotiation difficulties in the area of ________.
A) agricultural trade
B) tariff reductions
C) foreign exchange
D) service trade
Q2) A political union ________.
A) is complete political and economic integration of two or more countries
B) eliminates trade barriers among member countries and reduces trade deflection
C) requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production
D) involves the elimination of internal trade barriers among member countries and the adoption of common external trade policies toward nonmembers
Q3) So far, the Mercosur Accord has been a failure when it comes to stimulating trade between member countries.
A)True
B)False
Q4) Explain the five forms of economic integration and provide an example of each.
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Chapter 11: International Strategic Management
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Sample Questions
Q1) Parker Sportswear is an MNE with retail stores around the world. Parker views itself as a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market. Parker most likely uses a ________ strategy.
A) multidomestic
B) home replication
C) transnational
D) global
Q2) Sargent Software faces significant pressure to move towards global integration , but the MNE does not need to respond locally. Which strategy should most likely be used by Sargent Software?
A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy
Q3) Firms using a ________ conduct business the same way anywhere in the world.
A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy
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Page 14
Chapter 12: Strategies for Analyzing and Entering Foreign Markets
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Sample Questions
Q1) What are the major competitor characteristics that should be analyzed when conducting a competitor analysis?
Q2) When the licensor fully investigates market opportunities and the abilities of its licensees, licensing has a relatively low financial risk.
A)True
B)False
Q3) Intracorporate transfers are common in the service sector.
A)True
B)False
Q4) Government stability is an important factor in foreign market assessment.
A)True
B)False
Q5) When British Petroleum ships crude oil from its storage facilities in Kuwait to its Australian subsidiary, ________ has occurred.
A) indirect exporting
B) direct exporting
C) an intracorporate transfer
D) an intercorporate transfer
Q6) What is indirect exporting?
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Chapter 13: International Strategic Alliances
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Sample Questions
Q1) Which of the following is not considered one of the primary pitfalls of strategic alliances?
A) mutual trust
B) loss of autonomy
C) partner incompatibility
D) changing circumstances
Q2) A strategic alliance between Ford and Mazda experienced problems when Mazda refused to allow Ford officials to visit the Mazda research laboratory. What was the source of this problem?
A) incompatible cultures
B) limited information access
C) unfair distribution of earnings
D) loss of autonomy for both partners
Q3) What is a functional alliance?
Q4) Under a(n) ________, each partner in the joint venture fully and actively participates in managing the alliance.
A) shared management agreement
B) assigned arrangement
C) delegated arrangement
D) consensual arrangement
Page 16
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Chapter 14: International Organization Design and Control
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Sample
Questions
Q1) What are the competitive advantages associated with a global product design?
Q2) What is another name for organizational design?
A) functional design
B) strategic hierarchy
C) management design
D) organization structure
Q3) The ________ allows a firm to concentrate resources and create specialized programs targeted on international business activity while simultaneously keeping that activity segregated from the firm's ongoing domestic activities.
A) corollary approach
B) export department
C) international division
D) global product design
Q4) The higher the level of interdependence among divisions and functions in a firm, the more coordination is required.
A)True
B)False
Q5) How is strategic control handled in strategic alliances?
Q6) Explain the meaning of product knowledge.
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Chapter 15: Leadership and Employee Behavior in International Business
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Sample Questions
Q1) Xuan-Li, a manager at a Japanese electronics firm, has initiated a ringisho, which is currently circulating through his work group. Xuan-Li most likely generated the ringisho for the purpose of ________.
A) identifying potential group leaders
B) adhering to the firm's hierarchical structure
C) encouraging creative solutions to a problem
D) documenting a problem raised by management
Q2) Satisfied employees tend to be absent less often, make positive contributions, and stay with the organization.
A)True
B)False
Q3) What is the difference between an internal and external locus of control? How would this affect employers and employees?
Q4) Extroversion describes the level of order and precision a person imposes on activities.
A)True
B)False
Q5) Explain how decisions are made under the descriptive model of decision making.
Q6) What is a group? Is it different from a team?
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Chapter 16: International Marketing
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130 Flashcards
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Sample Questions
Q1) Pizza Hut is offering free pizza slices in Beijing. This is an example of ________.
A) advertising
B) sales promotion
C) public relations
D) brand placement
Q2) Which element of the promotion mix consists of efforts aimed at enhancing a firm's reputation and image with the general public?
A) sales promotion
B) personal selling
C) public relations
D) brand placement
Q3) A decentralized firm can more easily standardize its marketing mix than a centralized one.
A)True
B)False
Q4) Personal selling is popular in international firms because it is a relatively low-cost strategy.
A)True
B)False
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Chapter 17: International Operations Management
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Sample Questions
Q1) What increases the difficulty and expense for international businesses that try to enforce contracts with foreign suppliers?
A) changes in technology
B) fluctuating exchange rates
C) differences in national legal systems
D) lack of oversight from World Trade Organization
Q2) Although international materials management is generally more complex than domestic materials management, transportation and distribution decisions are typically simpler on an international scale because of advanced technology.
A)True
B)False
Q3) When managers decide on modes of transportation and methods of inventory control, what area of international operations management is involved?
A) resources
B) location
C) accounting
D) logistics
Q4) How has Lufthansa increased productivity through employee participation?
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Page 20
Chapter 18: International Financial Management
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Sample Questions
Q1) What is the simplest form of countertrade?
A) barter
B) parallel barter
C) offset purchase
D) clearinghouse accounts
Q2) Which of the following strategies could result in a lost opportunity for capital gain if the home currency rises in value?
A) buying a forward currency
B) buying a currency option
C) acquiring offsetting assets
D) buying a currency future
Q3) Theresa, an importer, uses a variety of payment methods when paying for goods. Which of the following is most likely Theresa's LEAST preferred form of payment?
A) letter of credit
B) wire transfer
C) open account
D) payment in advance
Q4) What is a clearinghouse account? What are the benefits of using such accounts?
Q5) When does a firm face transaction exposure?
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Chapter 19: International Human Resource Management and Labor Relations
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Sample Questions
Q1) Decentralized firms tend to prefer home country nationals in international assignments.
A)True
B)False
Q2) How can a firm improve its staff's expertise as export sales increase early in the internationalization process?
Q3) In the ________ stage of acculturation, the new culture seems exciting and interesting.
A) honeymoon
B) acceptance
C) adaptation
D) biculturalism
Q4) TechWare, an MNE based in Canada, has foreign operations in Singapore and Tokyo. TechWare's foreign offices are managed by parent country nationals. What is the most likely advantage of this staffing policy?
A) develops community ties
B) generates innovative ideas
C) minimizes costs of relocating managers
D) facilitates communication with headquarters
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