Global Strategic Management Review
Questions
Course Introduction
Global Strategic Management explores the formulation and implementation of business strategies in an international context. The course examines the complexities and opportunities faced by organizations operating across national borders, focusing on topics such as competitive advantage, global market entry, cross-cultural management, international alliances, and the impact of global economic, political, and legal environments on strategic decision-making. Through case studies and real-world examples, students will develop analytical frameworks for assessing global competition, navigating diverse markets, and crafting strategies that leverage global opportunities while mitigating associated risks.
Recommended Textbook
Global Business 3rd Edition by Mike Peng
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17 Chapters
1326 Verified Questions
1326 Flashcards
Source URL: https://quizplus.com/study-set/324
Page 2
Chapter 1: Globalizing Business
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/5386
Sample Questions
Q1) Semiglobalization is primarily caused by the practice of total isolation.
A)True
B)False
Answer: False
Q2) The term "emerging economies" has replaced the term _____.
A) developed countries
B) developing countries
C) Triad markets
D) first-world markets
Answer: B
Q3) The institution-based view places emphasis on the external factors that could affect a firm.
A)True
B)False
Answer: True
Q4) The Group of 20 includes the European Union (EU)-a regional bloc.
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) Transitional economies have static institutions.
A)True
B)False
Answer: False
Q2) Which of the following is true of the civil law system?
A) It is the most widely distributed legal system around the world.
B) It originated in England, and was then spread as the legal system for all its former colonies.
C) It is shaped by precedents and traditions from previous judicial decisions.
D) It allows judges to interpret the law before making judicial decisions.
Answer: A
Q3) Contracts in civil law countries tend to be long and detailed compared to contracts in common law countries.
A)True
B)False
Answer: False
Q4) A mixed economy has elements of both a market economy and a command economy.
A)True
B)False
Answer: True
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Chapter 3: Emphasizing Informal Institutions: Cultures, Ethics, and Norms
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) 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
Q2) Members of a group or collective consider each other as _____.
A) in-group members
B) out-group members
C) individualistic members
D) cross-cultural members
Answer: A
Q3) Social mobility refers to the degree to which people can move from one area to another area in a country.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Leveraging Resources and Capabilities
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) The ability to raise external capital is an example of a firm's _____.
A) human resources
B) technological resources
C) financial resources
D) intangible resources
Q2) Illustrate with examples the difference between OEMs,ODMs,and OBMs.
Q3) According to the VRIO framework,only valuable and rare resources and capabilities have the potential to provide temporary competitive advantage for a firm.
A)True
B)False
Q4) Turning over an organizational activity to a domestic firm is called _____.
A) captive sourcing
B) onshoring
C) offshoring
D) nearshoring
Q5) The combination of resources and assets that enable a firm to gain a competitive advantage are referred to as supplementary assets.
A)True
B)False
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Chapter 5: Trading Internationally
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) The absolute advantage theory is considered as the forerunner of the free trade movement.
A)True
B)False
Q2) The _____ principle advocated that governments should actively protect domestic industries from imports and vigorously promote exports.
A) comparative advantage
B) absolute advantage
C) protectionism
D) factor endowment
Q3) The concept of opportunity cost is crucial to the theory of comparative advantage.
A)True
B)False
Q4) The product life cycle theory is the first dynamic theory to account for changes in the patterns of trade over time.
A)True
B)False
Q5) Elaborate on Michael Porter's "diamond" theory.
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Chapter 6: Investing Abroad Directly
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) _____ is a type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country.
A) Horizontal FDI
B) Vertical FPI
C) Backward vertical FDI
D) Platform FDI
Q2) Expropriation refers to the knowledge diffused from one firm to others among closely located firms.
A)True
B)False
Q3) A vertical FDI refers to a type of FDI in which _____.
A) a firm duplicates its home country-based activities at the same value chain stage in a host country
B) a firm invests in a portfolio of foreign securities but without active management of those foreign assets
C) a firm moves upstream or downstream at different value chain stages in a host country
D) a firm produces the same products or services in a host nation as it does at home
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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) _____ allow participants to buy and sell currencies now for future delivery.
A) Currency Swaps
B) Direct transactions
C) Spot transactions
D) Forward transactions
Q2) A country's current account deficit can only be financed using its savings.
A)True
B)False
Q3) Describe what it means for a country to peg its currency to another,and give two benefits to adopting this policy.
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
Q5) 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
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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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Explain possible benefits of global economic integration.
Q2) Which of the following is the economic trade agreement between Australia and New Zealand?
A) CER
B) ASEAN
C) APEC
D) CAFTA
Q3) All WTO members are obliged to follow WTO rulings on settlement disputes as law.
A)True
B)False
Q4) The WTO differs from "GATT 1948" in that the WTO _____.
A) has trade in services as its primary trade focus
B) has provisions that allows members to review other members' trade policies
C) has no rules governing intellectual property rights
D) has no mechanism to settle member disputes
Q5) Which of the following is an example of a political union?
A) The EU
B) The United States
C) The British Commonwealth
D) The Andean Community
10
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Chapter 9: Growing and Internationalizing the Entrepreneurial Firm
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Franchising is a type of internationalizing business model.
A)True
B)False
Q2) Franchising is typically used in manufacturing industries.
A)True
B)False
Q3) Is successful entrepreneurship based more on the "traits" of the entrepreneur or on the "institutions" at work in his or her environment?
Q4) SMEs tend to be less entrepreneurial than large firms.
A)True
B)False
Q5) Which of the following is a popular way to enter into international service markets?
A) Licensing
B) Harvest and exit
C) Franchising
D) Indirect exporting
Q6) Explain the institution-based views in light of their effect on entrepreneurial success.
Q7) Explain the concept of microfinance.
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Chapter 10: Entering Foreign Markets
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) 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
Q2) Natural resource-seeking firms have compelling reasons to enter culturally and institutionally distant countries.This is a counter example of _____.
A) the stage model
B) large-scale entry
C) the equity mode of entry
D) the country-of-origin effect
Q3) _____ refers to the clustering of economic activities in certain locations
A) Joint venture
B) Agglomeration
C) Expropriation
D) Intrafirm trade
Q4) Non-equity modes of entry include acquisitions and wholly-owned subsidiaries.
A)True
B)False
Q5) How do foreign firms crack new markets against strong local competition?
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Chapter 11: Managing Global Competitive Dynamics
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/5396
Sample Questions
Q1) An industry without a price leader makes it easier for firms in that industry to form collusions.
A)True
B)False
Q2) Firms whose units are loosely controlled are better mutual forbearers than more centrally coordinated firms.
A)True
B)False
Q3) ____ is the strategy that focuses on a firm engaging in rapid learning and then expanding overseas.
A) Defender strategy
B) Extender strategy
C) Dodger strategy
D) Contender strategy
Q4) Competitive dynamics are the actions and responses undertaken by competing firms.
A)True
B)False
Q5) What is resource similarity? How does it affect firm rivalries?
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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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Acquisition premium is the difference between the acquisition price and the market value of the acquiring firm.
A)True
B)False
Q2) Influence of formal institutions is low in both equity- and non-equity-based alliances.
A)True
B)False
Q3) Which is the best-case scenario for an equity-based alliance?
A) High tacitness and high importance to direct organizational monitoring and control
B) Low potential as real options and low influence of formal institutions
C) High tacitness and low influence of formal institutions
D) Low tacitness and high importance to direct organizational monitoring and control
Q4) The act of investigating prior to signing contracts is called _____.
A) due diligence
B) strategic fit
C) relational capability
D) hubristic motive
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Chapter 13: Strategizing,Structuring,and Learning around the World
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Innovations only flow from the host countries to the home country in a transnational strategy.
A)True
B)False
Q2) The _____ strategy focuses on a number of foreign countries/regions,each of which is regarded as a standalone market worthy of significant attention and adaptation.
A) global
B) home replication
C) localization
D) transnational
Q3) Which element of knowledge management faces the common problem of absorptive capacity?
A) Knowledge inflow
B) Knowledge transmission
C) Knowledge outflow
D) Knowledge retention
Q4) The global standardization strategy lacks local responsiveness.
A)True
B)False
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Chapter 14: Competing on Marketing and Supply Chain Management
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/5399
Sample Questions
Q1) Localization is appealing,but expensive.
A)True
B)False
Q2) Marketing and supply chain management activities can be evaluated based on the VRIO criteria.
A)True
B)False
Q3) For which of the following customer categories are firms advised to leverage the global brands and their relatively more standardized products and services?
A) Global dreamers and antiglobals
B) Global citizens and global dreamers
C) Antiglobals and global agnostics
D) Global agnostics and global citizens
Q4) Agility focuses on flexibility that can overcome short-term fluctuation in the supply chain.
A)True
B)False
Q5) Discuss how institutions and resources affect marketing and supply chain management.
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Chapter 15: Managing Human Resources Globally
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/5400
Sample Questions
Q1) Returning expatriates are referred to as _____.
A) crossovers
B) inbounds
C) repatriates
D) inpatriates
Q2) The best way to reduce expatriate turnover is a career development plan.
A)True
B)False
Q3) Briefly describe going rate and balance sheet approach used to properly compensate,motivate,and retain expatriates.
Q4) How do institutions and resources affect human resource management?
Q5) Repatriation,if not managed well,can be traumatic for expatriates and their families,but not for the firm.
A)True
B)False
Q6) MNEs with a _____ strategic orientation follow a geocentric staffing approach.
A) home replication
B) localization
C) transnational
D) regionalization
Page 17
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Chapter 16: Financing and Governing the Corporation
Globally
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) A form of corporate theft that diverts resources from the firm for personal or family use is called _____.
A) tunneling
B) swapping
C) flipping
D) paging
Q2) The vast majority of large firms throughout continental Europe,Asia,Latin America,and Africa feature _____ ownership.
A) concentrated state
B) concentrated family
C) diffused family
D) diffused state
Q3) Private equity utilizes the stock market,as opposed to the bond market,to discipline managers.
A)True
B)False
Q4) Information asymmetries exist between principals and agents.
A)True
B)False
Q5) Differentiate between concentrated and diffused ownership.
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Chapter 17: Managing Corporate Social Responsibility
Globally
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) A defensive strategy would only respond to CSR causes when required by disasters and outcries.
A)True
B)False
Q2) Suppliers and customers are secondary stakeholders.
A)True
B)False
Q3) A _____ is a set of written policies and standards outlining the proper practices for a firm.
A) code of point
B) code of defense
C) code of legitimacy
D) code of conduct
Q4) Any group or individual who can affect or is affected by the achievement of the organization's objectives is called a(n)_____.
A) debtor
B) stakeholder
C) arbitrageur
D) broker
Q5) Elaborate on the resource-based view to CSR.
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