International Business Review
Questions
Course Introduction
International Business explores the principles and practices of conducting commerce in a global environment. The course covers key topics such as cross-border trade, international finance, cultural differences, global marketing strategies, foreign direct investment, and the impact of government policies and international institutions on business operations. Students will analyze case studies and real-world examples to develop an understanding of how organizations navigate the complexities and opportunities of international markets, as well as the ethical and legal considerations involved in global business decision-making.
Recommended Textbook
Transnational Management Text Cases and Readings in Cross Border Management 7th Edition
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8 Chapters
245 Verified Questions
245 Flashcards
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Page 2
Chapter 1: Expanding Abroad: Motivations, Means, and Mentalities
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) _________ suggests that in the first stage innovations are produced in the home developed country; in the second stage they are exported to other similarly developed countries; in the third stage, they start being produced in these developed countries; in the fourth stage they start being produced in low-wage developing countries.
A) Vernon's product cycle theory
B) Johanson and Vahlne's stages theory
C) Dunning's eclectic theory
D) Levitt's globalization theory
Answer: A
Q2) For an MNE to exist, first foreign countries must provide location-specific advantages to attract the company to invest there, second the company must have ownership-specific advantages that counteract its liability of foreignness, third the company must have the organizational capability to leverage its strategic advantages more effectively internally than externally.
A)True
B)False
Answer: True
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3
Chapter 2: Understanding the International Context:
Responding to Conflicting Environmental Forces
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31 Verified Questions
31 Flashcards
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Sample Questions
Q1) A multinational industry is characterized by low national responsiveness and high global integration.
A)True
B)False
Answer: False
Q2) What are the main forces that drive MNEs such as Nokia, the mobile communications company, to innovate and learn on a global scale?
A) Economic and political forces.
B) Political and social forces.
C) Social and informational forces.
D) Technological and informational forces.
Answer: D
Q3) The three conflicting environmental forces that MNEs encounter are cross-border integration and coordination, national differentiation and responsiveness, and worldwide innovation and learning.
A)True
B)False
Answer: True
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Chapter 3: Developing Transnational Strategies: Building
Layers of Competitive Advantage
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29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/4795
Sample Questions
Q1) Which of the following explain why cost reduction occurs in the context of scope economies?
A) high production volumes.
B) high production volumes and similarities in the resource requirements for different products.
C) high production volumes and the tendency of the firm to fully exploit its existing resources.
D) similarities in resource requirements for different products, as well as the tendency of the firm to fully exploit its existing resources.
Answer: D
Q2) Cost reductions due to scale-economies are static and constant over time and few dynamic benefits are associated with scale economies.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Developing a Transnational Organization:
Managing Integration, Responsiveness, and Flexibility
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) Which of the following strategy-structure combinations cannot be paired?
A) Coordinated federation and multinational strategy.
B) Decentralized federation and international strategy.
C) Centralized hub and global strategy.
D) Integrated network and transnational strategy.
Q2) In a transnational organization, the asset and capability configuration can be described as dispersed, specialized and interdependent.
A)True
B)False
Q3) In the transnational organization, capable managers situated in the national subsidiaries act as the primary source for sensing and analysing worldwide opportunities and threats.
A)True
B)False
Q4) Companies that pursue a multinational strategy are inclined to adopt the decentralized federation organizational model.
A)True
B)False
Page 6
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Chapter 5: Creating Worldwide Innovation and Learning:
Exploiting Cross Border Knowledge Management
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) In developing differentiated coordination processes in a transnational organization, which of the following factors would be most important for an MNC manager to consider?
A) How the company sources its raw materials, transfers technologies, and manages scarce resources.
B) How the company is structured and how decision-making authority is assigned.
C) The environment in which the firm operates and the nature of competition in that environment.
D) The portfolio of products that the MNE offers and the markets in which it offers them.
Q2) Mr. Smith is the recently appointed CEO of a diversified MNE operating in 22 countries on four continents and in multiple industries ranging from bulk chemicals to consumer packaged goods. He became concerned that in his very decentralized organization, all businesses were managed primarily by the national subsidiaries. With a poor record in innovation, Smith wondered what he could do to improve the innovation process. What two or three changes would you recommend he consider?
Q3) There is no one best way to manage innovation in MNEs. Please comment.
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Chapter 6: Engaging in Cross-Border Collaboration:
Managing across Corporate Boundaries
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34 Verified Questions
34 Flashcards
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Sample Questions
Q1) Equality between partners is essential, regardless of the governance structure.
A)True
B)False
Q2) A car manufacturer and a multinational computer technology corporation intend to combine their strengths to develop intelligent sound systems for cars. Assuming that both companies will have a moderate to high level of interaction, what would be the most suitable form of alliance to adopt?
A) The firms should develop an R&D consortium, combining teams from both companies.
B) The firms should create an equity joint venture, combining assets from both companies.
C) The firms should create a licensing agreement to exploit the new application.
D) The firms should develop production facilities to be shared between the partners.
Q3) Flexibility is often the key in a strategic alliance. Please comment.
Q4) A vast majority of successful cross-border collaborations are founded and maintained by firms that acquire the other partner's knowledge without sharing their own knowledge.
A)True
B)False
Page 8
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Chapter 7: Implementing the Strategy: Building
Multidimensional Capabilities
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34 Verified Questions
34 Flashcards
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Sample Questions
Q1) In light of the dramatic changes in the organizational form of MNEs, which of the following do not receive enough attention from those who manage modern MNEs
A) a review of the new roles and responsibilities of the firm's managers.
B) the analysis of new international environmental forces.
C) the refinement of global strategy.
D) the study of characteristics that contribute to effective transnational organizations.
Q2) The role of the geographic (country) subsidiary manager has become more difficult in an era of global business units and global customers due to the fact that the manager is accountable for results, but exercises limited authority over the employees and assets situated within the country.
A)True
B)False
Q3) The global business manager does not need to be located in the MNE's home country.
A)True
B)False
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9
Chapter 8: The Future of the Transnational: An Evolving Global Role
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Which of the following characteristics are not typically associated with transactional MNEs
A) they are generally sensitive not to promote socially or economically unsuitable products towards emerging market consumers.
B) they tend to conform to labor laws and workplace regulations but avoid sweatshop-like conditions.
C) they strive to employ non-exploitive attitudes towards the local communities in which they operate.
D) they acknowledge the need to restrain their profit-maximizing behaviour when engaged in negotiations with indigenous suppliers.
Q2) The relationship between transactional MNEs and non-governmental organizations (NGOs) is frequently characterized by confrontation and accusation.
A)True
B)False
Q3) In the past, many MNEs exhibited behaviour that was significantly exploitive or transactional.
A)True
B)False
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