Global Strategic Management
Mock Exam
Course Introduction
Global Strategic Management explores the frameworks, tools, and concepts essential for formulating and executing strategies in the complex and dynamic environment of international business. The course examines how multinational firms analyze global markets, assess competitive positions, and leverage resources to gain sustainable advantages across borders. Topics include strategic planning, cross-cultural considerations, internationalization processes, and the impact of global economic, political, and technological trends. Through case studies and real-world examples, students develop the analytical skills and strategic mindset required to address the challenges and opportunities of managing organizations on a global scale.
Recommended Textbook
Global Business Today 7th Edition by
Charles W. L. Hill
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16 Chapters
2381 Verified Questions
2381 Flashcards
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Page 2
Chapter 1: Globalization
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151 Verified Questions
151 Flashcards
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Sample Questions
Q1) The NAFTA was formed between:
A)Canada,Mexico,and the United States.
B)Venezuela,Brazil,and Argentina.
C)Canada,Argentina,and Chile.
D)Peru,Venezuela,and Chile.
Answer: A
Q2) The GATT succeeded the World Trade Organization (WTO).
A)True
B)False
Answer: False
Q3) One concern of globalization opponents is that it undermines the influence of international organizations and promotes the sovereignty of individual nation-states.
A)True
B)False
Answer: False
Q4) In any society,the media are the primary conveyors of culture.
A)True
B)False
Answer: True
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Chapter 2: National Differences in Political Economy
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) How has the ideological conflict between collectivism and individualism shaped recent world history? Also,discuss the direction this conflict might take in the future.
Answer: Collectivism asserts the primacy of the collective over the individual;individualism asserts the opposite.This underlying ideological conflict shaped much of the recent history of the world.The Cold War,for example,was in many respects a war between collectivism,championed by the former Soviet Union,and individualism,championed by the United States.In practical terms,individualism translates into an advocacy for democratic political systems and free market economics,which in general creates a more favorable environment for international businesses to operate in.From the late 1980s until around 2005,the waning of collectivism was matched by the ascendancy of individualism.Democratic ideals and free market economics swept away socialism and communism in many states.However,from 2005 onward there have been signs of a swing back toward left-leaning socialist ideas in several countries,including several Latin America nations and Russia.The global financial crisis of 2008-2009 might cause some to reevaluate the trends of the past two decades,and perhaps the pendulum will tilt back the other way for a while.
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4
Chapter 3: Differences in Culture
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143 Verified Questions
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Sample Questions
Q1) Which of the following is a criticism of Hofstede's four cultural dimensions?
A)Hofstede has ignored the one-to-one correspondence between culture and the nation-state.
B)Most of Hofstede's findings are in direct conflict with standard Western stereotypes.
C)Hofstede assumes that most countries have more than one cultural dimension.
D)Certain social classes were excluded from Hofstede's sample.
Answer: D
Q2) A caste system differs from a class system in:
A)the degree to which an individual is the basic unit of social organization.
B)the degree of mobility between social strata.
C)the rituals and symbolic behavior practiced in both.
D)the degree of separation between the highest and the lowest income strata.
Answer: B
Q3) _____ is the mother tongue of the largest number of people in the world.
A)Chinese
B)Hindi
C)English
D)Spanish
Answer: A
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Page 5
Chapter 4: Ethics in International Business
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142 Verified Questions
142 Flashcards
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Sample Questions
Q1) A situation in which none of the available alternatives seems ethically acceptable constitutes a(n):
A)paradox.
B)tragedy of the commons.
C)Warnock's dilemma.
D)ethical dilemma.
Q2) A(n)_____ is a formal statement of the ethical priorities a business adheres to. A)mission statement
B)manifesto
C)code of ethics
D)accreditation
Q3) Situations in which none of the available alternatives seems ethically acceptable present an ethical dilemma.
A)True
B)False
Q4) Who are a firm's stake holders? What are the two types of stakeholders?
Q5) Kantian ethics hold that people should be treated as ends and never purely as means to the ends of others.
A)True
B)False
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Chapter 5: International Trade Theory
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151 Flashcards
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Sample Questions
Q1) A situation in which gains by all parties can be achieved is called a:
A)level playing field.
B)zero-sum game.
C)positive-sum game.
D)trade surplus.
Q2) According to Porter's theory of national competitive advantage,a firm should invest in upgrading advanced factors of production because it is in the best interest of business for a firm to do so.
A)True
B)False
Q3) Viewed from an Asian or European perspective,Vernon's argument that most new products are developed and introduced in the United States seems ethnocentric.
A)True
B)False
Q4) Advocates of free trade rely on Ricardo's theory of comparative advantage as a major intellectual weapon.
A)True
B)False
Q5) Describe Adam Smith's concept of absolute advantage.
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Chapter 6: The Political Economy of International Trade
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152 Verified Questions
152 Flashcards
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Sample Questions
Q1) Which of the following historical events signified the first official embracing of free trade as a government policy by Great Britain?
A)The Union of the Crowns in 1603
B)The repeal of the Corn Laws by the British Parliament in 1846
C)The Treaty of American Independence in 1783
D)The Industrial Revolution of the 18<sup>th</sup> and 19<sup>th</sup> centuries
Q2) With the development of the _____ and _____,the economic arguments for government intervention have undergone a renaissance in recent years.
A)technology;WTO
B)free trade;democratic governments
C)new trade theory;strategic trade policy
D)democratic governments;anti-globalization movement
Q3) Describe briefly,with examples,the use of trade policies by governments to support their foreign policy objectives.
Q4) Japan has a long history of supporting inefficient domestic producers with farm subsidies.
A)True
B)False
Q5) Why is the WTO meeting in Seattle considered a watershed?
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Chapter 7: Foreign Direct Investment
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151 Verified Questions
151 Flashcards
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Sample Questions
Q1) Host governments use a range of controls to restrict inward FDI.The two most common are:
A)monetary restraints and prohibition on investing in certain countries.
B)voluntary export restrictions and employment restraints.
C)ownership restraints and performance requirements.
D)tax concessions and government-backed insurance.
Q2) One of the concerns harbored by host nations regarding FDI is that foreign firms will:
A)aggressively court domestic investment.
B)transfer profits to their home countries.
C)take skilled workers out of the country.
D)aggressively compete to invest in the country.
Q3) A critical competitive feature of an oligopoly is the independence of the major players.
A)True
B)False
Q4) What are the types of industries for which licensing is not a good option?
Q5) Name three reasons why licensing may not be an attractive option.
Q6) Briefly describe the trends in the ideological shift in attitudes toward FDI as evidenced in countries across the globe.
Page 9
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Chapter 8: Regional Economic Integration
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149 Flashcards
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Sample Questions
Q1) A pan-European,euro-dominated capital market effectively decreases the range of investment options open to both individuals and institutions.
A)True
B)False
Q2) What are the primary impediments to regional economic integration?
Q3) Which of the following observations is true?
A)The past two decades have witnessed a decline in the number of regional trade blocs.
B)World Trade Organization members are not required to notify the organization of any regional trade agreements in which they participate.
C)By entering into regional agreements,groups of countries aim to reduce trade barriers more rapidly than can be achieved under the auspices of the WTO.
D)The total number of regional trade agreements currently in force is around 40.
Q4) On average,studies indicate that NAFTA's overall impact has been positive and significant.
A)True
B)False
Q5) Discuss the benefits associated with the euro.
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Page 10
Chapter 9: The Foreign Exchange Market
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) A government increasing the money supply is analogous to:
A)giving people more money.
B)increasing interest rates.
C)discouraging spending.
D)reducing price inflation.
Q2) A common kind of swap is spot against forward.
A)True
B)False
Q3) Describe the efficient and inefficient market schools of thought.What conflicting theories do these schools offer?
Q4) Companies can deal with the nonconvertibility problem by engaging in:
A)price discrimination.
B)countertrade.
C)cartelization.
D)price skimming.
Q5) Technical analysis does not rely on a consideration of economic fundamentals. A)True B)False
Q6) Differentiate between a lead strategy and a lag strategy.
Q7) Differentiate between spot exchange rates and forward exchange rates.
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Chapter 10: The International Monetary System
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Sample Questions
Q1) A big bank follows rash lending policies for short-term gains because it knows that it will be bailed out because it is too big to fail.This behavior illustrates:
A)the lemon problem.
B)information asymmetry.
C)a moral hazard.
D)the banking paradox.
Q2) A floating exchange rate is a system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply and demand.
A)True
B)False
Q3) According to the Plaza Accord of 1985,the Group of Five major industrial countries pledged to:
A)intervene in the foreign exchange markets to sell dollars.
B)let their currencies depreciate against the U.S.dollar.
C)revert to a system of fixed exchange rates.
D)donate more funds to the IDA scheme of the World Bank.
Q4) How was the "debt bomb" partly responsible for the Asian crisis of 1997?
Q5) Explain the concept of a currency board.How successful is this system?
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Chapter 11: The Strategy of International Business
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) Which of the following is an important caveat that is likely to discourage global expansion?
A)Economies of scale
B)Cost of production
C)Trade barriers
D)Mass customization
Q2) _____ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.
A)Reports
B)Controls
C)Rewards
D)Incentives
Q3) Which of the following statements about the efficiency frontier is true?
A)Positions outside the efficiency frontier are easily attainable.
B)Not all positions on the efficiency frontier are viable.
C)The efficiency frontier is a function of the cost and revenue of a product.
D)Sufficient demand exists for all positions on the efficiency frontier.
Q4) What is the experience curve? How can an involvement in overseas markets help a firm capture experience curve advantages more rapidly?
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Chapter 12: Entering Foreign Markets
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) A certain liability is associated with being a foreigner,and this liability is greater for foreign firms that:
A)are late entrants to a market.
B)use countertrade agreements.
C)enter a national market early.
D)ride down the experience curve behind their rivals.
Q2) Screening a potential acquisition enterprise can do all of the following EXCEPT:
A)help make sure the firm does not pay too much for the acquired unit.
B)ensure elimination of competition in the foreign market.
C)reduce the chance of uncovering any nasty surprises.
D)ensure that the firm does not acquire a firm whose culture is antagonistic to its own.
Q3) It is much easier to change the culture of an acquired unit than it is to build an organization culture from scratch.
A)True
B)False
Q4) Discuss the influence of pressures for cost reductions on a firm's choice of entry mode.
Q5) What are pioneering costs? When do these costs arise?
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Chapter 13: Exporting,Importing,and Countertrade
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) In domestic transactions,the buyer can often obtain possession of the merchandise without signing formal documents acknowledging his/her obligation to pay.
A)True
B)False
Q2) As a collateral,the bill of lading:
A)can be used to advance funds to the exporter by its local bank before or during shipment.
B)specifies that the carrier is obligated to provide a transportation service in return for a certain charge.
C)can be used to obtain payment or a written promise of payment before the merchandise is released to the importer.
D)states that the bank will pay a specified sum of money to a beneficiary,normally the exporter,on presentation of particular,specified documents.
Q3) Why is lack of trust such a critical issue for firms engaged in international trade? How can firms engaged in trade reduce lack of trust issues?
Q4) What are the pros and cons of countertrade?
Q5) Briefly describe the mechanisms for financing export and imports.
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Page 15
Chapter 14: Global Production,Outsourcing,and Logistics
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) An argument for making a product in-house is that it makes the planning,coordination,and scheduling of adjacent processes easier.
A)True
B)False
Q2) Discuss the two basic strategies for locating production facilities.When is it better to centralize production,and when is it better to decentralize production?
Q3) The availability of proprietary software solutions to implement EDI systems is making Web-based applications obsolete.
A)True
B)False
Q4) The concept of economies of scale tells us that as plant output expands,unit costs increase.
A)True
B)False
Q5) Discuss the role played by ISO 9000 certification in improving product quality.
Q6) What are make-or-buy decisions? List the advantages of both options.
Q7) Describe the concept of "just-in-time" inventory systems.What are the advantages and disadvantages of the just-in-time system?
Page 16
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Chapter 15: Global Marketing and RD
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Sample Questions
Q1) When a large change in price produces only a small change in demand,demand is said to be
A)perfectly elastic demand
B)high-end demand
C)inelastic
D)elastic
Q2) A firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market.This refers to:
A)dumping.
B)predatory pricing.
C)experience curve pricing.
D)multipoint pricing.
Q3) The more fragmented the retail system,the less expensive it is for a firm to make contact with each individual retailer.
A)True
B)False
Q4) How do economic differences between countries affect the importance of different product attributes?
Q5) Discuss the factors that lead to a greater rate of new-product development.
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Chapter 16: Global Human Resource Management
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) What is ITS? What are the impediments to the strategies used by organized labor?
Q2) How has organized labor responded to the increased bargaining power of multinational corporations?
Q3) The most common approach to expatriate pay is the income statement approach.
A)True
B)False
Q4) Which of the following is an advantage of a geocentric approach to staffing for international businesses?
A)It permits better corporate center control.
B)It is inexpensive to implement.
C)It helps build a strong culture.
D)It helps transfer core competencies.
Q5) There is now a trend toward greater centralized control.
A)True
B)False
Q6) What are management development programs? How can international businesses use management development programs as a strategic tool?
Q7) What is expatriate failure? What is the common rate at which it occurs? Cite the main reasons why it occurs for U.S.multinationals.
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