International Management Exam Solutions
Course Introduction
International Management explores the principles and practices necessary to effectively manage organizations operating across international borders. The course examines topics such as global strategic planning, cross-cultural communication, international human resource management, and the impact of global economic, legal, and political environments on business operations. Students will gain insights into managing international teams, adapting business strategies to different cultural contexts, and navigating the complexities of multinational enterprises. Through case studies and real-world examples, the course equips students with the skills and knowledge needed to address the challenges and seize the opportunities presented by the globalized business landscape.
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) Which of the following regions in the global economic pyramid would comprise developed nations?
A) The base
B) The Triad
C) The second tier
D) The outlier
Answer: B
Q2) Purchasing power parity (PPP)is calculated as the sum of value added by resident firms,households,and governments operating in an economy.
A)True
B)False
Answer: False
Q3) An international premium is a significant pay raise awarded to expatriate employees working abroad.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Understanding Formal Institutions: Politics, Laws, and Economics
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Sample Questions
Q1) In a pure market economy,the government only performs functions that the private sector cannot do.
A)True
B)False
Answer: True
Q2) Transitional economies have static institutions.
A)True
B)False
Answer: False
Q3) Theocratic totalitarianism refers to the monopolization of political power in the hands of one religious party.
A)True
B)False
Answer: True
Q4) Which of the following is true of a pure market economy?
A) All factors of production are owned by the government.
B) All factors of production are privately owned.
C) It has elements of both a market economy and a command economy.
D) Its policies are based on religious decree.
Answer: B
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Chapter 3: Emphasizing Informal Institutions: Cultures, Ethics, and Norms
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Sample Questions
Q1) 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
Q2) Which of the following profiles characterizes a person who may be mistaken for a native in a foreign country and is able to profitably balance insider skills with an outsider's perspective?
A) The Mimic
B) The Chameleon
C) The Analyst
D) The Natural
Answer: B
Q3) Managers in low uncertainty avoidance countries tend to rely more on rules than experience.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Leveraging Resources and Capabilities
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Sample Questions
Q1) The SWOT analysis exclusively focuses on the value and imitability aspects of the resources and capabilities of a firm.
A)True
B)False
Q2) Original design manufacturers are firms that both design and manufacture products.
A)True
B)False
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) The value chain exclusively deals with a firm's primary activities.
A)True
B)False
Q5) Captive sourcing is also known as foreign direct investment (FDI).
A)True
B)False
Q6) Describe the VRIO framework.
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Chapter 5: Trading Internationally
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Sample Questions
Q1) _____ are restrictions on the quantity of imports.
A) VERs
B) Import quotas
C) Subsidies
D) Antidumping duties
Q2) In the context of tariff barriers,deadweight costs = _____.
A) total inefficiency - net gain
B) net loss - net gain
C) total inefficiency - net loss
D) total inefficiency - net gain - net loss
Q3) In the context of NTBs,_____ are bureaucratic rules that make it harder to import foreign goods.
A) VERs
B) administrative policies
C) local content requirements
D) deregulation policies
Q4) Economist Adam Smith proposed the theory of comparative advantage.
A)True
B)False
Q5) Discuss the characteristics of the modern trade theories.
Page 7
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Chapter 6: Investing Abroad Directly
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Sample Questions
Q1) _____ refers to the deal struck by MNEs and host governments,which change their requirements after the initial FDI entry.
A) Obsolescing bargain
B) Integrative bargain
C) Automated bargain
D) Ongoing bargain
Q2) Costs that a firm has to endure even when its investment turns out to be unsatisfactory are referred to as _____.
A) switching costs
B) replacement costs
C) cost overruns
D) sunk costs
Q3) Investing in FDI will increase the home firm's exports of components and services.
A)True
B)False
Q4) Oligopoly happens when an industry is dominated by one company.
A)True
B)False
Q5) What determines the success and failure of FDI around the globe?
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Chapter 7: Dealing with Foreign Exchange
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Sample Questions
Q1) The foreign exchange markets are influenced only by economic factors and free from the effect of social or political pressures.
A)True
B)False
Q2) The _____ suggests the price for identical products in different countries would be the same,if trade barriers are absent.
A) theory of purchasing power parity
B) fixed exchange rate policy
C) Penn effect
D) Bretton Woods system
Q3) Capital flight is a phenomenon in which a large number of individuals and companies exchange _____.
A) domestic goods for gold
B) gold for domestic goods
C) foreign currency for a domestic currency
D) domestic currency for a foreign currency
Q4) The primary participants of the foreign exchange market are IMF and World Bank.
A)True
B)False
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Chapter 8: Capitalizing on Global and Regional Integration
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Sample Questions
Q1) GATT 1994 refers to the agreement governing the international trade of goods in the WTO.
A)True
B)False
Q2) Which of the following changes was introduced to the EU through the Lisbon Treaty?
A) Establishment a passport-free travel zone within the EU
B) Appointment of a long-term President of the European Council
C) Transformation of the EU into an FTA
D) Creation of a common currency for EU members
Q3) In which of the following types of economic integration systems will the establishment of a common currency be possible?
A) Customs union
B) Economic union
C) Free trade area
D) Common market
Q4) The former Soviet Union is an example of a political union.
A)True
B)False
Q5) Explain possible benefits of global economic integration.
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Chapter 9: Growing and Internationalizing the Entrepreneurial Firm
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Sample Questions
Q1) Individuals who discover,evaluate,and exploit previously unexplored opportunities are referred to as entrepreneurs.
A)True
B)False
Q2) The term for a global movement to help eradicate poverty by lending small sums used to start small businesses is referred to as _____.
A) foreign direct investments
B) microfinance
C) venture capital investment
D) preferred financing
Q3) Microfinance emerged in response to the lack of financing for entrepreneurial opportunities in many developing countries.
A)True
B)False
Q4) SMEs tend to be less entrepreneurial than large firms.
A)True
B)False
Q5) Explain the resource-based views in light of their effect on entrepreneurial success.
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Chapter 10: Entering Foreign Markets
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Sample Questions
Q1) In the LLL framework,_____ refers to an emerging MNE's ability to identify and bridge gaps in its market.
A) leverage
B) linkage
C) learning
D) location
Q2) An advantage of joint ventures is the shared costs,risks,and profits.
A)True
B)False
Q3) Explain briefly the meaning of liability of foreignness.Why is it difficult for companies to succeed in foreign markets?
Q4) A greenfield operation refers to _____.
A) a new corporate entity created and jointly owned by two or more parent companies
B) a wholly owned subsidiary created by building a new factory and offices from scratch
C) a wholly owned subsidiary created by acquisition
D) an outsourcing agreement in R&D between firms
Q5) Compare and contrast between the strategies of direct and indirect exports.
Q6) Identify the advantages and disadvantages that pertain to first movers.
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Chapter 11: Managing Global Competitive Dynamics
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Sample Questions
Q1) Making a rival aware of an attack makes it easier for the attacker to achieve its objective.
A)True
B)False
Q2) A thrust on rivals' core markets likely to result in a bloody price war is referred to as
A) a red ocean
B) a blue ocean
C) mutual forbearance
D) cross-market retaliation
Q3) A low degree of market commonality suggests that if a firm attacks in one market,its rivals may engage in cross-market retaliation.
A)True
B)False
Q4) In order to win a predation case in the US,"an attempt to monopolize" must be proved against the accused.
A)True
B)False
Q5) Under what conditions would a firm adopt a contender strategy?
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Chapter 12: Making Alliances and Acquisitions Work
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Sample Questions
Q1) Mergers and acquisitions represent the largest proportion of foreign direct investment (FDI)flows.
A)True
B)False
Q2) At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach?
A) Stage 1
B) Stage 2
C) Stage 3
D) Stage 4
Q3) Licensing is a form of equity-based alliance.
A)True
B)False
Q4) Which of the following is a disadvantage of alliances?
A) Lack of learning race
B) Partner opportunism
C) Value as real options
D) Scale up and scale down of investments
Q5) One of the merits of alliances is to use them as real options.Elaborate.
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) Which are the two primary pressures MNEs confront?
A) Ethics and governance
B) Cost reductions and local responsiveness
C) Liability of foreignness and investment risk
D) Ethics and local responsiveness
Q2) ____ innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation.
A) Collaborative
B) Open
C) Closed
D) Absorptive
Q3) The terms knowledge management and information management can be used interchangeably.
A)True
B)False
Q4) A global matrix structure alleviates the disadvantages associated with both geographic area and global product division structures.
A)True
B)False
Page 15
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Chapter 14: Competing on Marketing and Supply Chain Management
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Sample Questions
Q1) Elaborate on the various aspects marketers have to consider to enhance promotion.
Q2) Although the word "product" originally referred to a physical product,its modern use has included services.
A)True
B)False
Q3) ____ refers to the expenditures a customer is willing to pay for a product.
A) Total cost
B) Price
C) Total cost of ownership
D) Price elasticity
Q4) MNEs dealing with global dreamers can market localized products and services under local brands.
A)True
B)False
Q5) Total cost of ownership is often explicitly evaluated prior to purchase decisions.
A)True
B)False
Q6) List a few do's and don'ts to avoid blunders in international marketing.
Page 16
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Chapter 15: Managing Human Resources Globally
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Sample Questions
Q1) When expatriates evaluate HCNs,cultural difference may create problems.In ____ countries,performance appraisals based on subordinate expressions could potentially undermine the power and status of supervisors.
A) high individualism
B) high power-distance
C) high uncertainty avoidance
D) high masculinity
Q2) Analyze managing labor relations at home and abroad.
Q3) An MNE with transnational strategy typically staffs host-country nationals.
A)True
B)False
Q4) In general,the failure rates of expatriates are very low.
A)True
B)False
Q5) In countries with a high context culture,younger expatriates may be ineffective. A)True
B)False
Q6) Identify different staffing approaches for subsidiaries.
Q7) Identify the four Cs of the Human Resource Manager.
Q8) What are the problems related with inpatriation?
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Chapter 16: Financing and Governing the Corporation
Globally
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78 Verified Questions
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Sample Questions
Q1) Which of the following statement concerning principal-agent versus principal-principal conflicts is true?
A) Formal institutional protection is often lacking in principal-agent conflicts.
B) Courts are more protective of minority shareholder rights in principal-principal conflicts.
C) Manifestations in principal-agent conflicts take the form of expropriation.
D) Considering ownership pattern in principal-principal conflicts, often greater than 50 percent of equity is controlled by the largest shareholders.
Q2) Corporations in _____ are market-oriented,high-tension systems.
A) Japan
B) continental Europe
C) the United States
D) China
Q3) Explain the role of the Board of Directors.
Q4) For equity,the cost of capital is the interest.
A)True
B)False
Q5) Describe how institutions and resources influence corporate governance.
Page 18
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Chapter 17: Managing Corporate Social Responsibility
Globally
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Sample Questions
Q1) Reactive firms actively participate in regional,national,and international policy and standards discussions.
A)True
B)False
Q2) 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
Q3) Adopting a code of conduct is a tangible indication of a firm's willingness to accept CSR.
A)True B)False
Q4) From a CSR perspective,the best firms embrace an accommodative strategy. A)True
B)False
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