International Management
Chapter Exam Questions
Course Introduction
International Management explores the complexities and strategic challenges that arise when businesses operate across national boundaries. The course examines topics such as cross-cultural communication, global leadership, international business strategy, and the management of multinational teams. Students will learn about the impact of cultural, economic, political, and legal environments on decision-making in a global context, as well as strategies for entering and competing in international markets. Emphasis is placed on adapting management practices to diverse environments and fostering global competencies essential for success in today's interconnected world.
Recommended Textbook
Global Business 3rd Edition by Mike Peng
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Page 2
Chapter 1: Globalizing Business
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Sample Questions
Q1) Majority of the global GDP is contributed by the emerging markets.
A)True
B)False
Answer: False
Q2) Liability of foreignness is the inherent disadvantage experienced by foreign firms in host counties because of their non-native status.
A)True
B)False
Answer: True
Q3) The strategy of treating the entire world as one market is known as localization.
A)True
B)False
Answer: False
Q4) Approximately 80 million people worldwide are employed by foreign-owned firms.
A)True
B)False
Answer: True
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Chapter 2: Understanding Formal Institutions: Politics, Laws, and Economics
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Q1) Cognitive pillar is the coercive power of governments.
A)True
B)False Answer: False
Q2) Patents are exclusive rights of firms to use specific names and brands.
A)True
B)False
Answer: False
Q3) The values and beliefs of a culture are examples of a formal institution.
A)True
B)False
Answer: False
Q4) Institutional framework only pertains to a firm's behavior.
A)True
B)False
Answer: False
Q5) The regulatory pillar supports both informal and formal institutions.
A)True
B)False
Answer: False
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Chapter 3: Emphasizing Informal Institutions: Cultures, Ethics,
and Norms
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Sample Questions
Q1) Which of the following is true of the GLOBE clusters?
A) It divides all the nations of the world into western and eastern cultures.
B) It divides the nations of the world into ten clusters.
C) It divides the nations of the world based on civilizations.
D) It divides the nations of the world based on their religious affinity.
Answer: B
Q2) _____ refers to the coexistence of both cultural divergence and cultural convergence.
A) Cultural concurrence
B) Covariance
C) Limited divergence
D) Crossvergence
Answer: D
Q3) Which of the following cultural clusters contains the group "Hindu"?
A) The GLOBE clusters
B) The Huntington civilizations
C) The Ronen and Shenkar clusters
D) The Kogut-Singh cultural index
Answer: B
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Chapter 4: Leveraging Resources and Capabilities
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Q1) Valuable and rare,but imitable,resources and capabilities give firms a permanently sustainable competitive advantage.
A)True
B)False
Q2) _____ is defined as turning over an organizational activity to an outside supplier that will perform it on behalf of the focal firm.
A) Deregulation
B) Outsourcing
C) Commoditizing
D) Securitization
Q3) Explain the different categories of intangible resources and capabilities that a firm could possess.
Q4) Which of the following is an example of a firm's technological resources and capabilities?
A) Location of plants, offices, and equipment
B) Managerial talents of employees
C) Possession of patents, trademarks, copyrights, and trade secrets
D) Reputation of employees as socially responsible citizens
Q5) Identify the four categories of tangible resources that a firm can possess.
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Chapter 5: Trading Internationally
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Sample Questions
Q1) Classical theories assume no foreign exchange complications.
A)True
B)False
Q2) Discuss the political arguments against free trade.
Q3) Which theory suggests that nations will develop comparative advantages based on their locally abundant factors?
A) Heckscher-Ohlin theory
B) Absolute advantage theory
C) Comparative advantage theory
D) Strategic trade theory
Q4) The concept of opportunity cost is crucial to the theory of comparative advantage.
A)True
B)False
Q5) Economist Adam Smith proposed the theory of comparative advantage.
A)True
B)False
Q6) Classical theories are based on the assumption of perfect resource mobility.
A)True
B)False
Page 7
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Chapter 6: Investing Abroad Directly
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Q1) An FPI does not provide management control rights to the investing firm.
A)True
B)False
Q2) _____ refers to the ability to extract favorable outcome from negotiations due to one party's strengths.
A) Expropriation
B) Bargaining power
C) Compromising power
D) Accommodating power
Q3) Which of the following economic perspectives on FDI has its principles rooted in Marxism?
A) Pragmatic nationalism
B) Laissez-faire
C) The free market view
D) The radical view
Q4) What determines the success and failure of FDI around the globe?
Q5) Investing in FDI will increase the home firm's exports of components and services.
A)True
B)False
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Chapter 7: Dealing with Foreign Exchange
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Q1) Which of the following is true of the bid rate in foreign exchange markets?
A) It is always higher than the offer rate.
B) It is always lower than the offer rate.
C) It is always equal to the offer rate.
D) It does not affect the spread of the exchange.
Q2) _____ refers to non-financial companies spreading out its activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions.
A) Currency hedging
B) Currency pegging
C) Strategic hedging
D) Currency swapping
Q3) If one country's interest rate is high relative to other countries,the country will attract foreign funds.
A)True
B)False
Q4) List the five underlying building blocks that determine the supply and demand of foreign exchange.
Q5) Compare and contrast the advantages and disadvantages of a strong and a weak dollar.
9
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Chapter 8: Capitalizing on Global and Regional Integration
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Q1) European Economic Community is the official title of European economic integration since 1993.
A)True
B)False
Q2) Which of the following is the economic trade agreement between Australia and New Zealand?
A) CER
B) ASEAN
C) APEC
D) CAFTA
Q3) NAFTA is a free trade agreement between Latin American countries.
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) Discuss how the institution-based perspective accounts for the success of MNEs by focusing on regional opportunities.
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Chapter 9: Growing and Internationalizing the Entrepreneurial Firm
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Q1) Both formal and informal institutional constraints,as rules of the game,affect entrepreneurship.
A)True
B)False
Q2) Franchising is a type of internationalizing business model.
A)True
B)False
Q3) Licensing is mostly used in the service industries.
A)True
B)False
Q4) Foreign firms interested in becoming licensees or franchisees have to put their own capital up front.
A)True
B)False
Q5) Whether entrepreneurship is facilitated or retarded significantly depends on formal institutions governing how entrepreneurs start up new firms.
A)True
B)False
Q6) Explain the concept of microfinance.
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Chapter 10: Entering Foreign Markets
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Q1) According to the stage model,firms will enter culturally distant countries for their first internationalization.
A)True
B)False
Q2) Emerging MNEs primarily lack proprietary ownership of technology compared to MNEs from developed economies.
A)True
B)False
Q3) The distinction between _____ is what defines an MNE from a firm that merely exports or imports.
A) direct and indirect exports
B) licensing and franchising
C) small- and large-scale of entry
D) equity and non-equity modes of entry
Q4) Indirect exports are the most basic mode of entry,capitalizing on economies of scale in production concentrated in the home country.
A)True
B)False
Q5) Compare and contrast between the strategies of direct and indirect exports.
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Chapter 11: Managing Global Competitive Dynamics
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Sample Questions
Q1) What is resource similarity? How does it affect firm rivalries?
Q2) Market commonality refers to the degree of similarity between two rival's products.
A)True
B)False
Q3) Identify and describe two of the arguments that exist against the practice of imposing antidumping restrictions on foreign firms.
Q4) _____ is defined as a plan to raise prices after eliminating local rivals.
A) Dumping
B) Dodging
C) Collusion
D) Forbearing
Q5) In order to win a predation case in the US,"an attempt to monopolize" must be proved against the accused.
A)True
B)False
Q6) Antitrust policies aim to balance efficiency and fairness in trade.
A)True
B)False
Q7) 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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Q1) The formal institution-based view that drives mergers and alliances is based on the normative and cognitive pillars.
A)True
B)False
Q2) Managers involved in alliances require collaborative relationship skills.
A)True
B)False
Q3) Acquisition premium is the difference between the acquisition price and the market value of the acquiring firm.
A)True
B)False
Q4) Which of the following reasons for cross-border acquisition failure is associated with pre-acquisition?
A) Failure to address multiple stakeholder groups' concerns
B) Poor organizational fit
C) Nationalistic concerns against foreign takeovers (political and media levels)
D) Clashes of organizational cultures
Q5) Describe the four driving forces that influence the choice of a contract or an equity approach in the formation of alliances.
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Chapter 13: Strategizing,Structuring,and Learning around the World
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Q1) Summarize the advantages and disadvantages of the home replication strategy.
Q2) Many firms phase out the international division structure after their initial stage of overseas expansion.
A)True
B)False
Q3) Summarize the advantages and disadvantages of the transnational strategy.
Q4) Flow of knowledge is limited in the home replication strategy.
A)True
B)False
Q5) The transnational strategy is usually the easiest strategy for an MNE to implement and the first one adopted when the firm ventures abroad.
A)True
B)False
Q6) Knowledge retention faces the common problem of absorptive capacity. A)True B)False
Page 15
Q7) 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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Q1) Within a single product category,product attributes are standardized.
A)True
B)False
Q2) During the Industrial Revolution in the 18?? and 19?? centuries,residual service activities was often the secondary sector for organized economic activities.
A)True
B)False
Q3) Alignment refers to the grouping of interests of various players involved in the supply chain.
A)True
B)False
Q4) Explain the four Ps of marketing.
Q5) In the context of segmentation based on customer categories,global citizens are always skeptical about whether global brands deliver high quality goods.
A)True
B)False
Q6) Elaborate on the triple As in supply chain management.
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Q7) Elaborate on the major concerns faced by MNEs doing business around the world.
Chapter 15: Managing Human Resources Globally
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Q1) _____ entails the evaluation of employee's work for promotion,retention,or termination purposes.
A) Benchmarking
B) Replacement chart
C) Performance appraisal
D) Open-book management
Q2) Disregarding nationality,a(n)_____ approach focuses on finding the most suitable managers,who can be PCNs,HCNs,or TCNs.
A) polycentric
B) ethnocentric
C) geocentric
D) regiocentric
Q3) An MNE following a _____ strategy is more likely to hire a mix of parent-,host-,and third-country nationals as managers in their local subsidiary.
A) home replication
B) global standardization
C) regionalization
D) localization
Q4) How do institutions and resources affect human resource management?
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Chapter 16: Financing and Governing the Corporation
Globally
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Sample Questions
Q1) In an agency relationship,a person who delegates authority is called a(n)_____.
A) principal
B) agent
C) manager
D) employee
Q2) Private equity utilizes the stock market,as opposed to the bond market,to discipline managers.
A)True
B)False
Q3) Outline the principal-agent problems in an agency relationship.
Q4) A member of the board who is a top executive of the firm is called a(n)_____.
A) outside director
B) executive manager
C) inside director
D) co-manager
Q5) Equity capital invested in non-public companies is called _____.
A) preferred equity
B) common equity
C) shared equity
D) private equity
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Chapter 17: Managing Corporate Social Responsibility
Globally
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Q1) Which of the following is one of the underlying motivations behind MNEs voluntary "green practices"?
A) CSR demands satisfied by customers in developing countries
B) Strong military and legal supervision in the host countries
C) Requirements of MNE headquarters for worldwide compliance of higher CSR standards
D) Constant interference in collective bargaining
Q2) The free market school has provided much of the intellectual underpinning for globalization spearheaded by MNEs.
A)True
B)False
Q3) Elaborate on the resource-based view to CSR.
Q4) An accommodative strategy focuses on regulatory compliance.
A)True
B)False
Q5) Social issue participation qualifies as a value-adding firm resource.
A)True
B)False
Q7) Elaborate on the stakeholder view of the firm. Page 19
Q6) Elaborate on the environmental standards debate concerning CSR.
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