Global Business Management
Test Questions
Course Introduction
Global Business Management explores the strategies, structures, and operations of businesses operating in an international context. The course covers topics such as cross-cultural communication, global market entry strategies, international finance, global supply chains, and management of multicultural teams. Students analyze how economic, political, legal, and technological environments influence multinational corporations, and develop skills for navigating complex ethical and regulatory landscapes worldwide. Through real-world case studies and contemporary examples, the course prepares students to make informed managerial decisions in the dynamic global business environment.
Recommended Textbook
Global Business Today 3rd Canadian Edition by Charles Hill Thomas McKaig
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16 Chapters
2010 Verified Questions
2010 Flashcards
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Page 2
Chapter 1: Globalization
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) Many critics of globalization argue that outsourcing leads to increased use of _________ labour practices in developing countries.
A)exploitive
B)fair
C)underground
D)neo-colonialist
E)non-competitive
Answer: A
Q2) Which of the following statements is not true regarding the majority of Latin American countries?
A)governments are selling state-owned enterprises to private investors
B)foreign investment is welcome
C)debt and inflation are down
D)neither democracy nor free market reforms have seemed to take hold
E)None of these answers is correct
Answer: D
Q3) General Agreement on Tariffs and Trade is what the acronym GATT stands for.
A)True
B)False
Answer: True
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Chapter 2: Country Differences in Political Economy
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141 Verified Questions
141 Flashcards
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Sample Questions
Q1) Property rights refer to the bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource.
A)True
B)False
Answer: True
Q2) The __________ movement started in Britain in the early 1980s when then-Prime Minister Margaret Thatcher started to sell state-owned assets.
A)modification
B)simplification
C)privatization
D)deregulation
E)anti-nationalization
Answer: C
Q3) Canada is not a part of the World Intellectual Property Organization (WIPO).
A)True
B)False
Answer: False
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Page 4
Chapter 3: The Cultural Environment
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) Norms are abstract ideas about what a group believes to be good, right, and desirable.
A)True
B)False
Answer: False
Q2) The largest faith based group in Canada is ____________.
A)Protestantism
B)Islam
C)Judaism
D)Hinduism
E)Roman Catholicism
Answer: E
Q3) Which of Hofstede's dimensions looked at the relationship between gender and work roles?
A)power distance
B)masculinity versus femininity
C)individualism versus collectivism
D)uncertainty avoidance
E)time orientation
Answer: B
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Chapter 4: Ethics in International Business
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123 Verified Questions
123 Flashcards
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Sample Questions
Q1) ____________ asserts that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either.
A)The Kantian ethicist
B)The righteous moralist
C)The naïve moralist
D)The righteous immoralist
E)The naïve immoralist
Q2) The climate in some businesses does not encourage people to think through the ethical consequences of business decisions.
A)True
B)False
Q3) Expatriate managers may experience more than the usual degree of pressure to violate their _______?
A)Ethical imperialism
B)Cultural ethics
C)Public ethics
D)Personal ethics
E)Cultural imperialism
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Page 6
Chapter 5: International Trade Theories
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) Frankel and Romer found that on average, a _______ percent increase in the ratio of a country's trade to its gross domestic product increases income per person by at least one-half percent.
A)10
B)27
C)1
D)50
E)2
Q2) The importance to firms of building and exploiting first-mover advantages is suggested by the new trade theory.
A)True
B)False
Q3) Which of the following international trade scholars was the first to explain why unrestricted free trade is beneficial to a country?
A)Adam Smith
B)Bertil Ohlin
C)Eli Heckscher
D)Paul Krugman
E)David Ricardo
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Page 7
Chapter 6: The Political Economy of International Trade
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) An alleged example of __________ occurred in 1997, when two Korean manufacturers of semiconductors, LG Semicon and Hyundai Electronics, were accused of selling dynamic random access memory chips in the U.S.market at below their costs of production.
A)dumping
B)forcing
C)slicing
D)subsidizing
E)skimming
Q2) Consumers are benefited by quotas.
A)True
B)False
Q3) The ______________ was a multilateral agreement whose objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like.
A)Multinational Agreement on Globalization
B)United Nations Charter on Free Trade
C)World Agreement on Trade and Free Commerce
D)International Market Fund
E)General Agreement on Trade and Tariffs
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Page 8
Chapter 7: Foreign Direct Investment
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) When ________________, a firm will favor FDI over exporting as an entry strategy, according to the textbook.
A)interest rates or government policy make exporting unattractive
B)transportation costs or trade barriers make exporting unattractive
C)cultural barriers or trade barriers make exporting unattractive
D)cultural barriers or government policy make exporting unattractive
E)internalization theory is not applicable
Q2) The largest source country for FDI is Japan.
A)True
B)False
Q3) Offshore production refers to FDI undertaken to serve the home market.
A)True
B)False
Q4) The members of the Organization for Economic Cooperation and Development include
A)most South American countries, Japan, France, and Germany.
B)most North American countries, Great Britain, France, and Germany.
C)most Asian countries, the United States, Canada, and Mexico.
D)most European countries, the United States, Canada, Japan, and South Korea.
E)most European countries, the United States, Canada, Japan and China
Q5) Name three reasons that licensing may not be an attractive option.
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Chapter 8: Regional Economic Integration
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) In 1999, the move toward a _______________ in the EU was given a further push by the adoption of a common currency, _______________, among a majority of the EU's member states.
A)single market; the Euro
B)regional economic market; Pound Sterling
C)cross-cultural market; Franc
D)global market; the Rupee
E)transparent border; the Ecu
Q2) Which of the following statements is true in regard to economic unions?
A)The NAFTA is the only successful economic union in the world today
B)The popularity of economic unions has increased over the years, and there are now more than 10 Successful economic unions in existence
C)The EU is the only successful economic union in the world today
D)There are no true economic unions in the world today
E)The EU has decided to limit the strength of the economic union
Q3) The acronym BRIC stands for Britain, Russia, India and China. HYPERLINK ""
A)True
B)False
Q4) Describe the difference between a free trade area and a common market?
Page 10
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Chapter 9: The Foreign Exchange Market
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141 Verified Questions
141 Flashcards
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Sample Questions
Q1) In the context of forecasting exchange rate movements, describe the difference between fundamental analysis and technical analysis.Which approach is preferred by economists? Why?
Q2) ______________ refers to a range of barter-like agreements by which goods and services can be traded for other goods and services.
A)Separate trade
B)Reciprocal trade
C)Counter trade
D)Alternative trade
E)Cashless trade
Q3) Without the ____________ market, international trade and international investment on the scale that we see today would be impossible.
A)foreign exchange
B)financial barter
C)foreign resale
D)monetary replacement
E)capital market
Q4) Why do companies prefer not to use counter trade if it can be avoided?
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Chapter 10: The Global Monetary System
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) Over the past 30 years, the activities of the IMF have
A)expanded.
B)declined.
C)expanded in developed countries but declined in underdeveloped countries.
D)expanded in underdeveloped countries but declined in developed countries.
E)been increasingly criticized as being an instrument of the U.S.government
Q2) Two features of the IMF helped build in limited flexibility: IMF lending facilities and adjustable paraties.
A)True
B)False
Q3) Under a floating exchange rate regime, market forces have produced
A)a near fixed U.S.dollar exchange rate.
B)a predictable U.S.dollar exchange rate.
C)a stable U.S.dollar exchange rate.
D)a volatile U.S.dollar exchange rate.
E)a controlled dynamic U.S.dollar exchange rate
Q4) The official name of the World Bank is the International Bank for Reconstruction and Development.
A)True
B)False
Page 12
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Chapter 11: Global Strategy
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) A firm that realizes location economies by dispersing each of its value creation activities to its optimal location should have a comparative advantage vis-à-vis a firm that bases all of its value creation activities at a single location.
A)True
B)False
Q2) Describe the concept of "core competence." What types of core competencies are the most valuable for penetrating foreign markets?
Q3) The reduction in unit costs achieved by producing a large volume of a product is referred to as economies of scale.
A)True
B)False
Q4) A business strategy that seeks experience-based economies and location economies, transfers distinctive competencies within the firm, and pays attention to pressures for local responsiveness is a transnational strategy.
A)True
B)False
Q5) What is the difference between learning effects and economies of scale?
Q6) What are strategic alliances? Are strategic alliances on the rise or decline?
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Chapter 12: Entering Foreign Markets
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116 Verified Questions
116 Flashcards
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Sample Questions
Q1) maintain tight control over its operations.
A)Licensing
B)Franchising
C)Wholly owned subsidiary
D)Turnkey operation
E)Acquisition
Q2) The choice of what foreign market to enter should, according to the textbook, be driven by an assessment of:
A)relative long-run growth and profit potential.
B)geographic proximity and friendliness of host government.
C)climate and economic stability of host government.
D)friendliness of host government and profit potential.
E)relative long-run profit and the risk of losses
Q3) What are pioneering costs? When do these costs arise?
Q4) Pioneering costs are costs that an early entrant has to bear that a later entrant can avoid.
A)True
B)False
Q5) What is meant by the term, "first-mover advantage?" Describe several first-mover advantages.
14
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Chapter 13: Exporting, Importing, and Countertrade
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) A good EMC will have all of these except:
A)a network of contacts in potential markets.
B)a good knowledge of different business mores.
C)multilingual employees.
D)the financing available for client firms.
E)an understanding of the ins and outs of the exporting process
Q2) What percent of world trade by value in 1998 was in the form of countertrade?
A)Less than 5 percent
B)Approximately 42 percent
C)More than 20 percent
D)About 33 percent
E)About 12 percent
Q3) A draft is sometimes referred to as a:
A)bill of exchange.
B)letter of credit.
C)bill of lading.
D)counter purchase.
E)payment order.
Q4) What is the difference between a sight draft and a time draft?
Q5) What is countertrade? Give an example of when it can be used.
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Chapter 14: Global Marketing and RD
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) In the context to barriers to international communication, _____________ refer(s) to the number of other messages competing for a potential consumer's attention.
A)alternative signals
B)source effects
C)noise
D)channels effects
E)ad effects
Q2) Strategic pricing has three aspects: predatory pricing, multipoint pricing, and segment curve pricing.
A)True
B)False
Q3) A recent study found that _____________ percent of new products did not meet their profitability goals.
A)17
B)63
C)45
D)90
E)28
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Chapter 15: Global Production, Outsourcing, and Logistics
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Describe the terms flexible manufacturing and mass customization.
Q2) Among the reasons for establishing wholly owned subsidiaries was the requirement for rigorous quality control.TQM is one of the approaches that companies use to manage and control quality.TQM requires a very high degree of cooperation between all of the members of the value chain if it is to be effective.Discuss this.
Q3) The advantages of buying component parts from independent suppliers are that it gives the firm the following advantages:
A)it may help the firm to capture orders from international customers, facilitates the scheduling of adjacent processes and, greater flexibility.
B)greater flexibility, facilitates the scheduling of adjacent processes and, protects proprietary production technology.
C)facilitates investments in highly specialized assets, protects proprietary product technology and, facilitates the scheduling of adjacent processes.
D)greater flexibility, it can help drive down the firm's cost structure and, it may help the firm to capture orders from international customers.
E)provides offsets, improved costs and new technologies
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Chapter 16: Global Human Resource Management
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) Adam Cowgill works for Dell Computer (a U.S.based firm) but is assigned to Dell's sales office in Germany.Under these circumstances, Mr.Cowgill would be called a(n) _____ manager.
A)ethnocentric
B)cross-cultural
C)expatriate
D)cross-divisional
E)foreign
Q2) All of the following were identified by R.L.Tung as a reason for expatriate failure among U.S.expatriate managers except
A)manager's personal or emotional maturity.
B)inability to cope with larger overseas responsibility.
C)inability of spouse to adjust.
D)poor working conditions overseas.
E)other family problems
Q3) Staffing policy can be a tool for developing and promoting corporate culture.
A)True
B)False
Q4) What is the purpose of cultural training for an expatriate? How can "culture shock" be avoided?
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