Global Business Management Study Guide
Questions
Course Introduction
Global Business Management explores the complexities and opportunities of conducting business in a globalized world. This course examines fundamental concepts such as international trade, global market entry strategies, cross-cultural management, and the impact of political, economic, and legal environments on multinational organizations. Students will analyze global business trends, learn about international supply chain management, and develop skills to formulate effective strategies for operating in diverse markets. Emphasis is placed on real-world case studies, ethical considerations, and the development of skills necessary to lead and manage in a multicultural business environment.
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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Sample Questions
Q1) On the global economic pyramid,the Triad refers to developed economies consisting of North America,Western Europe,and Japan.
A)True
B)False
Answer: True
Q2) People who earn _____ a year comprise the base of the global economic pyramid.
A) between $2,000 to $20,000
B) less than $2,000
C) between $20,000 to $40,000
D) more than $40,000
Answer: B
Q3) Reverse innovation is an example of bottom up innovation.
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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Sample Questions
Q1) In a pure market economy,the government only performs functions that the private sector cannot do.
A)True
B)False
Answer: True
Q2) Institutional framework only pertains to a firm's behavior.
A)True
B)False Answer: False
Q3) Civil law uses comprehensive statutes and codes as a primary means to form legal judgments.
A)True
B)False Answer: True
Q4) The values and beliefs of a culture are examples of a formal institution.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Emphasizing Informal Institutions: Cultures, Ethics,
and Norms
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Sample Questions
Q1) Which of the following cultural clusters contains the group "Hindu"?
A) The GLOBE clusters
B) The Huntington civilizations
C) The Ronen and Shenkar clusters
D) The Kogut-Singh cultural index
Answer: B
Q2) Addressing bosses with honorary titles would be an instance of low power distance in a firm.
A)True
B)False
Answer: False
Q3) A _____ is the highest cultural grouping of people and the broadest level of cultural identity people have.
A) clan
B) chiefdom
C) civilization
D) tribe
Answer: C
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Chapter 4: Leveraging Resources and Capabilities
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Sample Questions
Q1) A firm's financial resources and capabilities are an example of its intangible assets.
A)True
B)False
Q2) Product design is considered an upstream activity in the value chain.
A)True
B)False
Q3) _____ is defined as turning over an organizational activity to an outside supplier that will perform it on behalf of the focal firm.
A) Deregulation
B) Outsourcing
C) Commoditizing
D) Securitization
Q4) Which of the following strategies would suit a firm activity that is both firm-specific and industry-specific?
A) Keep the activity in-house
B) Offshore the activity to a foreign supplier
C) Outsource the activity to a domestic firm
D) Set up a subsidiary in a foreign location to perform the activity
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Chapter 5: Trading Internationally
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Sample Questions
Q1) Factor endowments is one of the four interacting aspects of the theory of national competitive advantage of industries.
A)True
B)False
Q2) Which of the following can be considered as an economic argument against free trade?
A) National security
B) Foreign policy
C) Consumer protection
D) Infant industry
Q3) Elaborate on Michael Porter's "diamond" theory.
Q4) Deadweight costs are net losses that occur when _____ are imposed.
A) import tariffs
B) import quotas
C) voluntary export restraints
D) local content requirements
Q5) Strategic trade theory advocates mercantilist policy for all industries.
A)True
B)False
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Chapter 6: Investing Abroad Directly
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Sample Questions
Q1) Costs that a firm has to endure even when its investment turns out to be unsatisfactory are referred to as _____.
A) switching costs
B) replacement costs
C) cost overruns
D) sunk costs
Q2) What determines the success and failure of FDI around the globe?
Q3) Identify the benefits and costs of FDI to host countries.
Q4) In Round Two of FDI negotiation process between MNEs and host governments,_____.
A) the government may demand renegotiations of the deal
B) the MNE is not willing to enter in the absence of some government assurance
C) the previous deal becomes obsolete
D) the MNE enters the host market and earns profits
Q5) MNEs' possession and leveraging of certain valuable,rare,hard-to-imitate,and organizationally embedded (VRIO)assets overseas in the context of FDI refer to _____.
A) location
B) ownership
C) internalization
D) market imperfections
Page 8
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Chapter 7: Dealing with Foreign Exchange
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78 Flashcards
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Sample Questions
Q1) Which of the following conditions will attract foreign funds into a country?
A) If the country has high trade deficits
B) If the country's interest rate is relatively high compared to other countries
C) If the country's currency is depreciated
D) If the country is experiencing high levels of inflation
Q2) A foreign exchange rate refers to the price of buying and selling commodities for future delivery.
A)True
B)False
Q3) Which of the following was true of the Bretton Woods system?
A) All currencies in the system had floating exchange rates.
B) All currencies were pegged at a fixed rate to the dollar.
C) All currencies were maintained by fixing their prices in terms of gold.
D) All currencies in the system were required to be gold convertible.
Q4) Hedging protects firms from spot market unpredictability.
A)True
B)False
Q5) Describe what it means for a country to peg its currency to another,and give two benefits to adopting this policy.
Q6) What determines the success and failure of currency management around the globe?
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Chapter 8: Capitalizing on Global and Regional Integration
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Sample Questions
Q1) Which of the following is referred to as a multilateral trading system?
A) WTO
B) EU
C) NAFTA
D) ASEAN
Q2) The _____ was the only round of trade negotiations sponsored by the WTO to reduce agricultural subsidies,slash tariffs,and strengthen intellectual property protection.
A) Copenhagen Consensus
B) WTO Ministerial Conference of 1999
C) Uruguay Round
D) Doha Round
Q3) Inspired by the EU's success,ASEAN set up an FTA called _____ in 1992.
A) NAFTA
B) ACFTA
C) AFTA
D) CAFTA
Q4) The GATT system is an example of a strictly bilateral trading system.
A)True
B)False
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Chapter 9: Growing and Internationalizing the Entrepreneurial Firm
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Sample Questions
Q1) The word "entrepreneurs" mostly refers to founders and owners of new businesses or managers of existing firms.
A)True
B)False
Q2) Explain the institution-based views in light of their effect on entrepreneurial success.
Q3) Family background and educational attainment correlate with entrepreneurship.
A)True
B)False
Q4) Entrepreneurial firms can internationalize while staying in domestic markets through indirect exports.
A)True
B)False
Q5) Franchising is typically used in manufacturing industries.
A)True
B)False
Q6) Identify and explain the dilemma behind transaction costs and international entrepreneurial opportunities.
Q7) Explain the concept of microfinance.
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Chapter 10: Entering Foreign Markets
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Sample Questions
Q1) The resource-based view suggests that firms need to take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries.
A)True
B)False
Q2) Which of the following characterizes an MNE from a non-MNE?
A) It enters foreign markets via non-equity modes.
B) It exports or imports with or without FDI.
C) It enjoys OLI advantages.
D) It enters foreign markets through FPI.
Q3) Indirect exports are the most basic mode of entry,capitalizing on economies of scale in production concentrated in the home country.
A)True
B)False
Q4) The resource-based view argues that foreign firms need to deploy overwhelming resources and capabilities to offset their liability of foreignness.
A)True
B)False
Q5) Compare and contrast between the strategies of direct and indirect exports.
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Chapter 11: Managing Global Competitive Dynamics
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Sample Questions
Q1) Low barriers to entry into an industry make collusion between firms difficult.
A)True
B)False
Q2) The price leader in a market possesses the capacity to punish.
A)True
B)False
Q3) A _____ antirust policy would protect established firms that have already invested and nurtured an industry from new entrants.
A) pro-imitability
B) pro-incumbent
C) pro-competition
D) pro-consumer
Q4) The American antitrust policy is considered to be _____.
A) pro-incumbent
B) pro-producer
C) pro-collusion
D) pro-consumer
Q5) Explain the possible outcomes of an antidumping investigation in the United States.
Q6) Explain how interaction differs between tacit collusion and explicit collusion.
Page 13
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Chapter 12: Making Alliances and Acquisitions Work
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Sample Questions
Q1) In which type of equity-based alliance does one firm invest in another?
A) Hubristic investment
B) Cross-shareholding
C) Licensing
D) Strategic investment
Q2) Licensing is a form of equity-based alliance.
A)True
B)False
Q3) The degree of tacitness is low in non-equity-based alliances.
A)True
B)False
Q4) Cross-border mergers are more common than acquisitions.
A)True
B)False
Q5) A(n)____ is an investment in real operations as opposed to financial capital.
A) real account
B) hubris
C) real option
D) foreign direct investment
Q6) Elaborate on the institution-based view of alliances and acquisitions.
Page 14
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Chapter 13: Strategizing,Structuring,and Learning around the World
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Sample Questions
Q1) Knowledge acquisition,one of the knowledge management elements,faces the common problem of _____.
A) "How does it help me? " syndrome
B) failure to share and integrate external knowledge
C) "Not invented here " syndrome
D) absorptive capacity
Q2) The _____ structure allows for consolidation on a worldwide or regional basis and reduces inefficient duplication in multiple countries.
A) geographic area
B) global matrix
C) international division
D) global product division
Q3) The relationship between strategy and structure is reciprocal.
A)True
B)False
Q4) Absorptive capacity refers to the informal benefits that individuals and organizations derive from their social structures and networks.
A)True
B)False
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Chapter 14: Competing on Marketing and Supply Chain Management
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Sample Questions
Q1) In the context of achieving alignment,supply chain members of less standing exercise greater bargaining power.
A)True
B)False
Q2) During the Industrial Revolution in the 18?? and 19?? centuries,residual service activities was often the secondary sector for organized economic activities.
A)True
B)False
Q3) _____ is the set of firms that facilitate the movement of goods from producers to consumers.
A) Stock keeping unit
B) Production channel
C) Distribution channel
D) CIF
Q4) In a broad sense,every supply chain is a strategic alliance involving a variety of players,each of which is a profit-maximizing,stand-alone firm.
A)True
B)False
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Chapter 15: Managing Human Resources Globally
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Sample Questions
Q1) MNEs with a _____ strategic orientation follow a geocentric staffing approach.
A) home replication
B) localization
C) transnational
D) regionalization
Q2) _____ entails the evaluation of employee's work for promotion,retention,or termination purposes.
A) Benchmarking
B) Replacement chart
C) Performance appraisal
D) Open-book management
Q3) Integrating individuals from two (parent and host)countries is a lot more complex than molding managers from a variety of nationalities.
A)True
B)False
Q4) What are the problems related with inpatriation?
Q5) Briefly describe going rate and balance sheet approach used to properly compensate,motivate,and retain expatriates.
Q6) Analyze managing labor relations at home and abroad.
Page 17
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Chapter 16: Financing and Governing the Corporation
Globally
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Sample Questions
Q1) Ranging from entrepreneurial start-ups to multinational enterprises (MNEs),all firms need to raise capital.
A)True
B)False
Q2) Corporations in _____ are market-oriented,high-tension systems.
A) Japan
B) continental Europe
C) the United States
D) China
Q3) The conflicts between controlling shareholders and minority shareholders are called
A) owner-manager conflicts
B) agent-agent conflicts
C) principal-agent conflicts
D) principal-principal conflicts
Q4) _____ refers to a firm's failure to satisfy the terms of a loan obligation.
A) Debt
B) Dissolution
C) Default
D) Defeasance
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Chapter 17: Managing Corporate Social Responsibility
Globally
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Sample Questions
Q1) An accommodative strategy focuses on regulatory compliance.
A)True
B)False
Q2) 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
Q3) _____ is the consideration of,and response to,issues beyond the narrow economic,technical,and legal requirements of the firm to accomplish social benefits along with the traditional economic gains a firm seeks.
A) Corporate social responsibility
B) Capitulation
C) Social networking service
D) Corporate personhood
Q4) Failing to heed to certain CSR imperatives may be self-defeating in the long run.
A)True
B)False
Q5) Elaborate on the proactive strategy to confront CSR pressures.
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