International Management Exam Review
Course Introduction
International Management explores the strategies, structures, and operations of organizations functioning across national borders. The course examines the challenges and opportunities faced by managers in multicultural environments, including cultural diversity, global leadership, communication, international human resource management, and ethical issues. Students learn to analyze the external global environment, adapt management practices to diverse markets, and develop skills necessary to operate effectively within the complex and dynamic world of international business.
Recommended Textbook
Global Business 3rd Edition by Mike Peng
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17 Chapters
1326 Verified Questions
1326 Flashcards
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Page 2
Chapter 1: Globalizing Business
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Sample Questions
Q1) Without adjusting for PPP,emerging economies contribute about 26% of the global GDP.Adjusting for PPP,they now contribute approximately 45% of the global GDP.The reason there is a huge difference between the two measures is because:
A) the cost of living in emerging economies tends to be lower than that in developed economies.
B) the purchasing power parity is much higher in emerging countries.
C) the population in emerging economies is much higher than that in developed economies.
D) the deficit spending in emerging economies is much larger than that in developed economies.
Answer: A
Q2) The term "emerging economies" has replaced the term _____.
A) developed countries
B) developing countries
C) Triad markets
D) first-world markets
Answer: B
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Page 3
Chapter 2: Understanding Formal Institutions: Politics, Laws, and Economics
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Sample Questions
Q1) The Washington Consensus emphasizes using government intervention over state ownership in business.
A)True
B)False Answer: False
Q2) Firms operating in democracies never confront political risk.
A)True
B)False Answer: False
Q3) Islamic law is the only surviving example of a theocratic legal system that is formally practiced by some existing governments.
A)True
B)False Answer: True
Q4) According to the institution-based view,managers and firms make choices outside institutional constraints.
A)True
B)False
Answer: False
Page 4
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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 a characteristic of high masculinity societies?
A) Women are more likely to become politicians and soldiers.
B) Men frequently assume the role of nurses, teachers, and househusbands.
C) There is a sharp role differentiation along gender lines.
D) Managers are less visible, intuitive rather than decisive, and accustomed to seeking consensus.
Answer: C
Q2) Which of the following is one of the three "middle-of-the-road" guiding principles proposed by business ethicist Thomas Donaldson?
A) Firms should try to export its home-country ethics to the global market.
B) Firms should not base their ethics on local institutions.
C) Firms should be culturally sensitive when conducting business abroad.
D) Firms should follow a universal ethical business code regardless of geography.
Answer: C
Q3) Ethical imperialism suggests that all ethical standards are relative.
A)True
B)False
Answer: False
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Chapter 4: Leveraging Resources and Capabilities
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Sample Questions
Q1) Which of the following is true of OEMs?
A) It includes research and development in its value chain.
B) It does not include procurement of components in its value chain.
C) It does not include marketing in its value chain.
D) It does not include final assembly in its value chain.
Q2) Organizational culture is an example of _____.
A) human resources and capabilities
B) physical resources and capabilities
C) organizational resources and capabilities
D) technological resources and capabilities
Q3) The point at which an industry-specific activity becomes common across industries and the need to keep it proprietary no longer exists is called _____.
A) commoditization
B) monopolization
C) break-even point
D) captive sourcing
Q4) Explain the different categories of intangible resources and capabilities that a firm could possess.
Q5) Illustrate with examples the difference between OEMs,ODMs,and OBMs.
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Chapter 5: Trading Internationally
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Sample Questions
Q1) Which of the following is true of the strategic trade theory?
A) It provides direct policy advice.
B) It advocates complete deregulation of international trade.
C) It explains patterns of trade based on factor endowments.
D) It is the first theory to account for dynamic changes in trade patterns.
Q2) By trying to be self-sufficient and producing a wide range of goods,_____ policies reduce the wealth of a nation in the long run.
A) absolute advantage
B) laissez faire
C) free trade
D) mercantilist
Q3) Which of the following was the first international trade theory to account for changes in the patterns of trade over time?
A) Comparative advantage theory
B) Absolute advantage theory
C) Product life cycle theory
D) Factor endowment theory
Q4) Discuss the political arguments against free trade.
Q5) Discuss the characteristics of the modern trade theories.
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Chapter 6: Investing Abroad Directly
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Sample Questions
Q1) A firm establishing a manufacturing plant in a foreign country due to the cheap labor costs in that country is an example of the _____ advantage that the firm enjoys.
A) location
B) ownership
C) internalization
D) externalization
Q2) Which of the following political perspectives maintains the view that FDI has both pros and cons and can only be approved when its benefits outweigh costs?
A) Pragmatic nationalism
B) Protectionism
C) The radical view of FDI
D) The free market view of FDI
Q3) OLI advantages refers to a firm's quest for outsourcing (O)advantages,licensing (L) advantages,and importing (I)advantages.
A)True
B)False
Q4) Identify the benefits and costs of FDI to home countries.
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Chapter 7: Dealing with Foreign Exchange
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Sample Questions
Q1) The post-Bretton Woods system is a system of flexible exchange rate regimes with
A) the Japanese yen as its common denominator
B) the American dollar as its common denominator
C) gold as its common denominator
D) no official common denominator
Q2) Which of the following is an advantage of a strong US dollar?
A) US importers will find it easier to compete with low-cost imports.
B) US exporters will find it easier to compete on price abroad.
C) US firms will experience less competitive pressure to keep prices low.
D) US tourists will find it more expensive when traveling abroad.
Q3) A currency board is a monetary authority that issues notes and coins convertible into a key foreign currency at a _____ exchange rate.
A) clean floating
B) dirty floating
C) fixed
D) target
Q4) Compare and contrast the two primary strategies companies use to cope with the currency risks.
Q5) 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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Sample Questions
Q1) Which of the following is an effect of adopting the euro as a currency for EU members?
A) It implements independent monetary policies for each nation.
B) It provides unlimited flexibility in fiscal policy making.
C) It increases currency conversion costs.
D) It facilitates direct and transparent price comparison.
Q2) In a(n)____,members coordinate and harmonize monetary,fiscal,and taxation policies.
A) customs union
B) common market
C) economic union
D) free trade area
Q3) The GATT system is an example of a strictly bilateral trading system.
A)True
B)False
Q4) The Multifibre Arrangement (MFA)was in violation of the GATT.
A)True
B)False
Q5) Discuss the formation of GATT and the issues that precipitated the formation of the WTO (Post GATT).
10
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Chapter 9: Growing and Internationalizing the Entrepreneurial Firm
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Sample Questions
Q1) Becoming a licensee or franchisee of a foreign brand does not internationalize the licensee or franchisee firm.
A)True
B)False
Q2) Direct exports are the sale of products made through export intermediaries.
A)True
B)False
Q3) Which of the following is one of the methods by which entrepreneurial firms internationalize by staying in domestic markets?
A) Through harvest and exit sell-offs to foreign entrants
B) Through direct exports
C) Through strategic alliances by FDI
D) Through greenfield wholly owned subsidiaries abroad
Q4) Which of the following nations has the lowest level of VC investment,as a percentage of GDP,in the world?
A) Sweden
B) The United States
C) Greece
D) South Africa
Page 11
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Chapter 10: Entering Foreign Markets
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Sample Questions
Q1) The country-of-origin effect refers to _____.
A) the inherent advantages domestic firms experience in their home countries
B) the inherent disadvantages foreign firms experience in home countries
C) the positive or negative perception of firms and products from a certain country
D) only the negative perception of firms and products from a certain country
Q2) What are turnkey projects? What are its advantages and disadvantages compared to other modes of entry?
Q3) Turnkey projects cannot be established without FDI.
A)True
B)False
Q4) Which of the following is an equity mode of entry?
A) Indirect exports
B) Wholly owned subsidiaries
C) R&D contracts
D) Licensing/franchising
Q5) Co-marketing has the ability to reach more customers but with limited control and coordination.
A)True
B)False
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Chapter 11: Managing Global Competitive Dynamics
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Sample Questions
Q1) An industry with heterogeneous products,in which rivals are forced to compete on price,is likely to lead to collusion.
A)True
B)False
Q2) A price leader is a firm that ____ in the industry.
A) sets the highest prices and has a low market share
B) sets the lowest prices
C) sets acceptable prices and has a dominant market share
D) sets the globally consistent price
Q3) Combining resource similarity and market commonality helps yield a framework of competitor analysis for any pair of rivals.
A)True
B)False
Q4) Mutual forbearance refers to retaliatory attacks on a competitor's other markets if this competitor attacks a firm's original market.
A)True
B)False
Q5) Under what conditions would a firm adopt a contender strategy?
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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Sample Questions
Q1) A(n)____ is an investment in real operations as opposed to financial capital.
A) real account
B) hubris
C) real option
D) foreign direct investment
Q2) The combination of operations and management of two firms to establish a new legal entity is called a(n)_____.
A) joint venture
B) merger
C) contractual alliance
D) acquisition
Q3) Importance of direct organizational monitoring and control is low in equity-based alliances.
A)True
B)False
Q4) Describe the stages in the formations of alliances.
Q5) The degree of tacitness is low in non-equity-based alliances.
A)True
B)False
Q6) Elaborate on the factors that may influence alliance performance.
Page 14
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Chapter 13: Strategizing,Structuring,and Learning around the World
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Sample Questions
Q1) The _____ structure is appropriate for a localization strategy.
A) international division
B) global product division
C) geographic area
D) global matrix
Q2) The terms knowledge management and information management can be used interchangeably.
A)True
B)False
Q3) Summarize the advantages and disadvantages of the home replication strategy.
Q4) MNEs adopting the _____ strategy may designate centers of excellence.
A) global
B) home replication
C) localization
D) transnational
Q5) The global product division structure supports the _____ strategy.
A) transnational
B) global matrix
C) multidomestic
D) global standardization
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Chapter 14: Competing on Marketing and Supply Chain Management
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Sample Questions
Q1) In the context of achieving alignment,if a recognized leader in a supply chain exercises power,it facilitates legitimacy and efficiency of the whole supply chain.
A)True
B)False
Q2) Adaptability in supply chain management refers to the ability to quickly react to unexpected shifts in supply and demand.
A)True
B)False
Q3) Which of the following is one of the triple As in supply chain management?
A) Accountability
B) Accessibility
C) Applicability
D) Alignment
Q4) In international marketing,the country-of-origin effect refers to the positive or negative perception of firms and products from a certain country.
A)True
B)False
Q5) Elaborate on the triple As in supply chain management.
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Chapter 15: Managing Human Resources Globally
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Sample Questions
Q1) What are the potential issues that arise during repatriation?
Q2) Briefly describe going rate and balance sheet approach used to properly compensate,motivate,and retain expatriates.
Q3) The most widely used method in expatriate compensation is _____.
A) going rate approach
B) balance sheet approach
C) pay-per-impression
D) employee's request approach
Q4) A compensation approach that pays expatriates the prevailing rate for comparable positions in a host country is called the _____ approach.
A) pay-per-impression
B) balance sheet
C) merit rate
D) going rate
Q5) In 2007,the (US)House of Representative passed a new Employee Free Choice Act,designed to make it easier to organize unions in the United States.
A)True
B)False
Q6) Analyze managing labor relations at home and abroad.
Page 17
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Chapter 16: Financing and Governing the Corporation
Globally
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Sample Questions
Q1) Information asymmetries exist between principals and agents.
A)True
B)False
Q2) The main external governance mechanism is the _____.
A) market for corporate control
B) market for product competition
C) market for private equity
D) market for stock options
Q3) 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
Q4) The basic laws in supply and demand suggest that in general,the larger the pool of capital providers:
A) the lower the cost of capital.
B) the higher the rate of return.
C) the more likely a firm will default on loan obligations.
D) the higher the ROI for investors.
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Chapter 17: Managing Corporate Social Responsibility
Globally
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Sample Questions
Q1) The best-performing firms are likely to be those that can integrate CSR activities into the core economic functions of the firm while addressing social and environmental concerns.
A)True
B)False
Q2) Global sustainability refers only to a sustainable social and natural environment.
A)True
B)False
Q3) Which of the following corporate social responsibilities with regard to employment practices is recommended for MNEs by international organizations?
A) Restrict collective bargaining
B) Give advance notice of plant closures and mitigate the adverse effects
C) Refrain from improper or illegal involvement in local politics
D) Consult governmental authorities and national employers' and workers' organizations to ensure conformance to the economic and social development policies
Q4) Elaborate on the stakeholder view of the firm.
Q5) Elaborate on the resource-based view to CSR.
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