International Corporate Strategy Exam Practice Tests
Course Introduction
International Corporate Strategy explores the development, implementation, and evaluation of strategies employed by organizations operating across national borders. This course examines the complexities of competing in global markets, including the analysis of international business environments, modes of market entry, strategic alliances, cross-cultural management, and the adaptation of products and services. Students will learn how multinational enterprises make strategic decisions related to location, investment, risk management, global integration versus local responsiveness, and the creation of sustainable competitive advantage in an international context. Case studies and practical applications provide insights into the strategic challenges faced by firms in diverse industries worldwide.
Recommended Textbook
Global Business Today 4th Edition by
Charles W. L. Hill
Available Study Resources on Quizplus 16 Chapters
2040 Verified Questions
2040 Flashcards
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Page 2
Chapter 1: Globalization
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) According to our textbook,e-commerce retail sales are expected to reach _____ by 2018 in the United states alone.
A) $1 billion
B) $50 billion
C) $500 billion
D) $750 billion
E) $1 trillion
Answer: C
Q2) It is commonly believed that globalization stimulates economic growth,creates jobs,and raises income levels.
A)True
B)False
Answer: True
Q3) The Tim Hortons case study is an example of what?
A) how easily Canadian firms can enter the US market
B) the similarity of Canadian and US consumer tastes
C) Canadian firms buying up US firms
D) protests against globalization
E) the difficulty of Canadian firms expanding internationally
Answer: E
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Chapter 2: Country Differences in Political Economy
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) Historically,the enforcement of intellectual property rights has been fairly consistent across countries.
A)True
B)False
Answer: False
Q2) _______________ allows for a more direct comparison of living standards in different countries.
A) PPP
B) UPN
C) EOC
D) IOF
Answer: A
Q3) A law system that is based primarily on religious teachings,refers to a A) civil law system.
B) theocratic law system.
C) common law system.
D) traditional law system.
E) canon law system.
Answer: B
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Page 4
Chapter 3: The Cultural Environment
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) All societies are stratified on a hierarchical basis into social categories,or:
A) social strata
B) norm based strata
C) social segments
D) norm based associations
E) class based hierarchies
Answer: A
Q2) What is meant by the Protestant work ethic? What impact has the Protestant work ethic had on the emergence of modern day capitalism?
Answer: In 1904 a German sociologist,named Max Weber,made a connection between Protestant ethics and "the spirit of capitalism." Weber drew this conclusion by observing that,in Western Europe,the business leaders and owners of capital were overwhelmingly Protestant.This relationship led Weber to conclude that there was a link between Protestantism and the emergence of modern capitalism.Weber argued that Protestant ethics emphasized the importance of hard work and wealth creation,which are the essential components of capitalism.Thus,Weber coined the term "Protestant work ethic" to denote the tendency on the part of Protestants to work hard and accumulate wealth,which are the underpinnings of capitalism.
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Page 5
Chapter 4: Ethics in International Business
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127 Verified Questions
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Sample Questions
Q1) Cultural relativism is typically associated with managers from developed nations.
A)True
B)False
Q2) The atmosphere and the oceans can be viewed as a _____________.
A) tragedy of the commons
B) global commons
C) vulnerable biota
D) pollution free
E) Different biospheres
Q3) Philosopher _________ argued that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage.
A) John Rawls
B) Lou Rawls
C) Immanuel Kant
D) Jane Jacobs
E) John Jacobs
Q4) Which article of the Universal Declaration of Human Rights relates directly to employment? Identify the provisions found within this particular article.
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Chapter 5: International Trade Theories
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) As the market in the U.S.and other advanced nations matures,the product becomes more standardized and price becomes:
A) governmentally regulated
B) greater
C) unimportant
D) the main competitive weapon
E) more differentiated
Q2) According to the textbook,historically the product-life-cycle theory is an:
A) accurate explanation of international trade patterns for manufactured goods but not for services
B) accurate explanation of international trade patterns
C) accurate explanation of international trade patterns in some countries but not in others
D) inaccurate explanation of international trade patterns
E) accurate explanation of international travel and transportation volumes
Q3) A situation in which a gain by one country results in a loss by another is a positive-sum game.
A)True
B)False
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Page 7
Chapter 6: The Political Economy of International Trade
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) The main gains from subsidies accrue to importers,whose international competitiveness is increased as a result of them.
A)True
B)False
Q2) Perhaps the most common political argument for government intervention into the free flow of trade is that
A) it protects national pride.
B) politicians and their constituents tend to think that domestically produced products are. superior to products produced in another country.
C) it is necessary for protecting jobs and industries from foreign competition.
D) it is necessary to maintain domestic economic stability.
E) it is important for national security.
Q3) The D'Amato Act is legislation that allows Americans to sue foreign firms that use property in Cuba confiscated from them after the 1959 revolution.
A)True
B)False
Q4) What is a voluntary export restraint? Can countries use voluntary export restraints to avoid trade retaliation?
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Chapter 7: Foreign Direct Investment
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) When transportation costs are added to production costs,it becomes unprofitable to ship some products over a large distance.This is particularly true of products that have a(n):
A) high value-to-weight ratio
B) moderate value-to-weight ratio
C) low value-to-weight ratio
D) extremely high value-to-weight ratio
E) value to weight ratio
Q2) Radical writers believe that _____________ extract profits from the host country and take them to their home country,giving nothing of value to the host country in exchange.
A) FDI
B) MNEs
C) SNEs
D) PNCs
E) MNCs
Q3) An industry composed of a large number of large firms is referred to as an oligopoly.
A)True
B)False
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Page 9
Chapter 8: Regional Economic Integration
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) The United States,Japan,and China are among 21 members of a trade organization referred to as
A) AAFTC (American Asian Free Trade Congress).
B) APEC (Asia Pacific Economic Cooperation).
C) USAEU (United States Asian Economic Union).
D) ANAEPC (Asian-North American Economic and Political Coop).
E) SEATO (South East Asia Treaty Organization).
Q2) The following three countries implemented the North American Free Trade Agreement (NAFTA):
A) Panama, Mexico, and the United States
B) Canada, Brazil, and the United States
C) United States, Argentina, and Mexico
D) Canada, Mexico, and the United States
E) United States, Canada and Costa Rica
Q3) The free trade area known as MERCOSUR consists of the following four countries:
A) Chile, Mexico, Columbia, and Paraguay
B) Argentina, Brazil, Paraguay, and Uruguay
C) Chile, Brazil, Uruguay, and Columbia
D) Mexico, Columbia, Paraguay, and Uruguay
E) Argentina, Chile, Uruguay, and Brazil
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Chapter 9: The Foreign Exchange Market
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) The foreign exchange market:
A) is not located in any one place
B) is located in New York City
C) has offices in the Capitols of the five most powerful industrialized nations in the world
D) is located in London
E) is managed by the UN
Q2) Calculate the forward exchange rate using the following information.Spot exchange rate is $1.45 for 1 Euro.The nominal interest rate in Canada is 6 percent and the nominal interest rate in Europe is 4%.
A) 1.44
B) 1.43
C) 1.45
D) 1.41
E) 1.42
Q3) The market through which an individual or institution exchanges one currency into another is called the foreign exchange market.
A)True
B)False
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11
Chapter 10: The Global Monetary System
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Sample Questions
Q1) An IMF study concluded that countries with pegged exchange rate regimes had an average annual inflation rate of ______________,compared with 14 percent for intermediate regimes and 16 percent for floating regimes.
A) 4 percent
B) 18 percent
C) 14 percent
D) 8 percent
E) 0.8 percent
Q2) The Bretton Woods system called for fixed exchange rates against the U.S.dollar.
A)True
B)False
Q3) The IMF's system of adjustable parities,under the auspices of the Bretton Woods agreement,allowed for the devaluation of a country's currency of up to _______________ if the IMF agreed that the country's balance of payments is in fundamental disequilibrium.
A) 10%
B) 15%
C) 20%
D) 25%
E) 30%
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Chapter 11: Global Strategy
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) Which of the following two strategies suffer from a failure to exploit experience curve effects?
A) international and transnational
B) multidomestic and international
C) transnational and global
D) global and international
E) multidomestic and multinational
Q2) One of the principle risks with strategic alliances is:
A) that they bring together the complementary skills of alliances partners
B) alliances may facilitate entry into foreign markets
C) a firm can give away more than it receives
D) that they allow firms to share fixed costs
E) can establish technological standards that are not compatible with one of the partners
Q3) A simple example of _______ is rate of return on sales.
A) strategy
B) economies of scale
C) profitability
D) primary activity
E) profit
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Chapter 12: Entering Foreign Markets
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Sample Questions
Q1) Generally,the most inexpensive method of serving a foreign market is establishing a wholly owned subsidiary.
A)True
B)False
Q2) By licensing its technology to competitors,the firm may deter them from developing their own,possibly superior technology.
A)True
B)False
Q3) Management know-how is what most industrial firms base their competitive advantage upon.
A)True
B)False
Q4) The managerial hypothesis suggests that top managers typically overestimate their ability to create value from an acquisition,primarily because rising to the top of a corporation has given them an exaggerated sense of the own capabilities.
A)True
B)False
Q5) In what situation would you choose exporting over wholly owned subsidiary?
Q6) What are pioneering costs? When do these costs arise?
Page 14
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Chapter 13: Exporting,Importing,and Countertrade
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110 Verified Questions
110 Flashcards
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Sample Questions
Q1) According to the UN report on trade and development,a typical international trade transaction may involve __________ parties,___________ original documents,and ___________ document copies.
A) 25; 35; 225
B) 2; 9; 18
C) 10; 3; 30
D) 15; 180; 60
E) 30; 60; 360
Q2) Countertrade is most attractive to small firms.
A)True
B)False
Q3) The Business Development Bank of Canada focuses on Canadian exporting businesses and provides financial assistance mainly for export specific purposes as a way to facilitate the exchange of goods between Canada and other countries.
A)True
B)False
Q4) The probability of exporting successfully can be increased dramatically by taking eight strategic steps.What are these steps?
Q5) What is the difference between a sight draft and a time draft?
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Chapter 14: Global Marketing and Randd
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) Developed countries tend to have less retail concentration than developing countries.
A)True
B)False
Q2) A(n)_____________ marketing strategy that views the world's consumers as similar in their tastes and preferences is consistent with the mass production of a standardized output.
A) domestic
B) multinational
C) indigenous
D) national
E) global
Q3) A global marketing strategy,which views the world's consumers as similar in their tastes and preferences,is inconsistent with the mass production of a standardized output.
A)True
B)False
Q4) Discuss the concept of predatory pricing.Is predatory pricing ethical? What,if anything,should governments do to limit the influence predatory pricing by importers on domestic industries?
Page 16
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Chapter 15: Global Manufacturing and Materials Management
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) Placing manufacturing facilities in one concentrated location makes sense for all of the following reasons except:
A) trade barriers are high
B) the product serves universal needs
C) important exchange rates are expected to remain relatively stable
D) the production technology has high fixed costs or a high minimum efficient scale or a flexible manufacturing technology exists
E) product's value-to-weight ratio is high
Q2) What are make-or-buy Decisions? What are the advantages of make versus buy and vice--versa? Are these decisions harder for international opposed to strictly domestic firms?
Q3) The greatest advantage of buying component parts from independent suppliers is:
A) lower costs
B) offsets
C) supports TQM
D) strategic flexibility
E) increased market penetration
Q4) Describe the concept of "Just-In-Time" manufacturing.What are the advantages and disadvantages of the Just-In-Time system?
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Chapter 16: Global Human Resource Management
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) How is total compensation calculated?
A) salary
B) salary + bonus
C) salary + fringe benefits
D) salary + bonus - fringe benefits
E) salary + bonus + benefits
Q2) Which of the following strategies is most compatible with a polycentric staffing policy?
A) international strategy
B) global strategy
C) multidomestic strategy
D) transnational strategy
E) pan-national
Q3) One task of the _____________ function is to foster harmony and minimize conflict between the firm and organized labour.
A) marketing
B) exporting
C) human resource management
D) production
E) host country management
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