International Management
Mock Exam
Course Introduction
International Management explores the principles, practices, and challenges involved in managing organizations operating across national borders. The course covers topics such as cross-cultural communication, global strategy formulation, international organizational structures, multinational leadership, and the impact of economic, political, and legal environments on international business operations. Students will analyze case studies and real-world scenarios to develop skills in decision-making, negotiation, and adaptation in diverse cultural contexts. Emphasis is placed on understanding how global trends, ethical considerations, and emerging markets influence management strategies in an increasingly interconnected world.
Recommended Textbook
International Business The New Realities 4th Edition by S. Tamer Cavusgil
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17 Chapters
1641 Verified Questions
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Page 2
Chapter 1: Introduction: What Is International Business
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75 Verified Questions
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Sample Questions
Q1) Rosa Suarez reported on her analysis of cross-cultural risks involved with establishing the plant in Country C. Each of the following was most likely discussed in her report EXCEPT ________.
A)language barriers
B)lifestyle differences
C)religious beliefs
D)the level of national debt
Answer: D
Q2) In the past, international trade and investment activities were mainly conducted by companies that sold services.
A)True
B)False
Answer: False
Q3) Over the last few decades, export activity by nations has grown more quickly than has domestic production.
A)True
B)False
Answer: True
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3
Chapter 2: Globalization of Markets and the
Internationalization of the Firm
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98 Flashcards
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Sample Questions
Q1) The representative from Business A is most likely from ________.
A)China
B)United Kingdom
C)Mexico
D)Brazil
Answer: B
Q2) Technological advances have helped make internationalization affordable for all sizes of firms.
A)True
B)False
Answer: True
Q3) The representative from Business C is most likely from ________.
A)Italy
B)Brazil
C)the United States
D)France
Answer: B
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Page 4
Chapter 3: The Cultural Environment of International Business
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Sample Questions
Q1) As part of opening manufacturing units abroad, a U.S. apparel firm decided to send its apparel production coordinator Chris to Bangladesh. Chris is distressed that people don't come to meetings on time and finds it disrespectful when his team members stand too close to him. Chris may trigger a cross-cultural risk by a(n)________.
A)ethnocentric orientation
B)anthropocentric orientation
C)polycentric orientation
D)geocentric orientation
Answer: A
Q2) Managers can achieve effective cross-cultural interaction by ________.
A)resisting cultural homogeneity
B)keeping an open mind and being inquisitive
C)rushing into conclusions about other's behaviors
D)using business jargons to facilitate communication
Answer: B
Q3) English is the most common primary language in the world.
A)True
B)False
Answer: False
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Chapter 4: Ethics, Corporate Social Responsibility,
Sustainability and Corporate Governance
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93 Verified Questions
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Sample Questions
Q1) The Nike "swoosh" is an example of a ________.
A)patent
B)fad
C)copyright
D)trademark
Q2) An individual who believes in ethical normativism is most likely to view ethical behavioral standards as ________.
A)universal
B)constantly changing
C)dependent on societal norms
D)superior to religious beliefs
Q3) ________ confer the exclusive right to manufacture, use, and sell products or processes.
A)Patents
B)Trademarks
C)Trade secrets
D)Copyrights
Q4) Explain the five different approaches to examining ethical problems. What are the difficulties that are likely to arise while using these approaches?
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Chapter 5: Theories of International Trade and Investment
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Sample Questions
Q1) Which of the following was the analysis revealed by the "Leontief paradox"?
A)that despite having an abundant pool of labor, the U.S. was exporting capital-intensive goods
B)that the U.S. often exported labor-intensive goods and imported more capital-intensive goods
C)that international trade was simpler than perceived
D)that contrary to the popular belief, new products are more likely to originate in developing economies
Q2) Which of the following is an element of the comparative advantage principle?
A)per unit cost advantage
B)relative efficiency of production
C)absolute cost of production
D)negative balance of trade
Q3) Which of the following refers to a collaborative venture which results in a new legal entity?
A)non-equity-based strategic alliances
B)sole proprietorships
C)equity-based joint ventures
D)not-for-profit organizations
Q4) Explain the limitations of early trade theories. Discuss born global firms.
Page 7
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Chapter 6: Political and Legal Systems in National Environments
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Sample Questions
Q1) Which of the following is characteristic of an effective legal system?
A)a stable and rigid framework of rules and norms across nations
B)systematically enforced laws and regulations
C)political involvement in business transactions
D)universal emphasis on religious law over common and civil law
Q2) Common law is primarily judicial in origin and based on court decisions.
A)True
B)False
Q3) A foreign firm's entry strategy, operations, and performance are often dictated by foreign investment laws.
A)True
B)False
Q4) Which of the following statements is true of country risk?
A)Its nature remains constant over time and across nations.
B)Its intensity seldom varies over time and across nations.
C)It is present only in poor nations.
D)It is always present.
Q5) What is transparency? Explain how transparency varies around the world.
Page 8
Q6) Describe how the political and legal systems of a host country can both harm and benefit a foreign firm.
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Page 9
Chapter 7: Government Intervention and Regional Economic Integration
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101 Verified Questions
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Sample Questions
Q1) ________ are checkpoints at the ports of entry in each country where government officials inspect imported products and levy tariffs.
A)Nontariff trade barriers
B)Customs
C)Quotas
D)Subsidies
Q2) Export-led development refers to government policies that impose high tariffs and quotas on imports from the developed world.
A)True
B)False
Q3) Which of the following best supports maintaining the existing cotton quota?
A)Zanzi cotton growers are protected from cheaper cotton imports.
B)Zanzi cotton growers have an advantage when they export cotton fabric to other countries.
C)The local fabric manufacturer pays high prices for cotton.
D)The local fabric manufacturer uses mostly Zanzi-grown cotton.
Q4) In a short essay, describe two methods of government intervention and explain the four major defensive motives for government intervention.
Page 10
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Chapter 8: Understanding Emerging Markets
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Sample Questions
Q1) Counterfeiting is fairly uncommon in China, Indonesia, and Russia.
A)True
B)False
Q2) When sourcing relies on foreign suppliers or production bases, it is known as global sourcing or offshoring.
A)True
B)False
Q3) ________ in developing economies deter firms from these countries from participating in the global economy.
A)Low trade volumes
B)Bureaucracy and red tape
C)High inward FDI
D)Lack of a rich cultural heritage
Q4) Which of the following is likely to be the most beneficial to Maximus if it builds a manufacturing facility in India?
A)legal precedents
B)low-cost labor pool
C)government regulations
D)solid infrastructure
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Chapter 9: The International Monetary and Financial Environment
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Sample Questions
Q1) The 2008 global financial crisis began in the United States and quickly spread around the world.
A)True
B)False
Q2) The monetary authority in each country that regulates the money supply, issues currency, and manages the exchange rate of the nation's currency relative to other currencies is called the World Bank.
A)True
B)False
Q3) The purpose of the Bretton Woods Agreement was to ________.
A)enable the U.S. Government to monetarily recover after WWII
B)control the fluctuating price of gold used for global trading
C)oversee the importing and exporting of international traders
D)govern the exchange rates of major international currencies
Q4) Currency risk can best be defined as the risk that occurs when ________.
A)currency values remain constant for prolonged periods
B)one currency changes in relation to another currency
C)buyers and sellers disagree over which currency to use
D)fluctuations in the stock market affect all exchange rates
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Chapter 10: Financial Management and Accounting in the Global Firm
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) ________ are currency traders who seek to minimize their risk of exchange-rate fluctuations, often by entering into forward contracts or similar financial instruments.
A)Venture capitalists
B)Arbitragers
C)Hedgers
D)Speculators
Q2) The NYSE and the NASDAQ Stock Market are the largest in terms of volumes of shares traded.
A)True
B)False
Q3) Capital budgeting is intended to ________.
A)assist in the means by which subsidiaries and affiliates charge each other as they exchange goods and services
B)help managers decide which international projects provide the best financial return
C)defer payment for goods and services received from the parent firm
D)eliminate the need for international accounting experts
Q4) Describe three methods used to transfer funds within an MNE.
Q5) How has technology affected foreign exchange trading?
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Chapter 11: Strategy and Organization in the International Firm
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Sample Questions
Q1) With a global strategy, headquarters seeks substantial control over its country operations in order to minimize redundancy and achieve maximum efficiency, learning, and integration worldwide.
A)True
B)False
Q2) Global IT infrastructure and tools such as intranets, the Internet, and electronic data interchange ensure that distant parts of the global network share knowledge and learn from each other.
A)True
B)False
Q3) Firms that emphasize global integration make and sell ________.
A)unique products that follow a multilocal strategy
B)an excessive variety of complex products
C)products that require minimal adaptation
D)products designed specifically for local markets
Q4) Firms that want to become globally competitive must seek simultaneously three strategic objectives-efficiency, flexibility, and learning.
A)True
B)False
Page 14
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Chapter 12: Global Market Opportunity Assessment
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Sample Questions
Q1) Global market opportunities depend on timing and location, and they often enhance a firm's performance.
A)True
B)False
Q2) Born-global companies seldom venture into countries outside their comfort zone.
A)True
B)False
Q3) The buying power of the country's residents is termed as ________.
A)market intensity
B)market size
C)market consumption capacity
D)market receptivity
Q4) Describe the four factors that contribute to the likelihood of success for a product or service in an international market.
Q5) A favorable global market opportunity for a firm would most likely lead to ________.
A)a change in product packaging
B)the procurement of new distributors
C)the establishment of a production facility
D)the sale of corporate stock
Page 15
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Chapter 13: Exporting and Global Sourcing
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Sample Questions
Q1) The recent economic turndown is expected to pressure advanced-economy firms to seek further ways to reduce costs.
A)True
B)False
Q2) A focal firm's overreliance on suppliers can potentially lead to ________.
A)reduced control over important value-chain tasks
B)added competitive advantage for the focal firm
C)an excessive burden on home-country suppliers
D)consolidation of the focal firm's network of intermediaries
Q3) How do firms decide whether or not to outsource? In a short essay, describe the factors that contribute to the decision to internalize or externalize business activities.
Q4) The exporter usually first issues a quotation or pro forma invoice upon request by potential customers.
A)True
B)False
Q5) In a short essay, explain how global sourcing can affect home-country employees.
Q6) The Internet provides the means to export pure services.
A)True
B)False
Page 16
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Chapter 14: Foreign Direct Investment and Collaborative Ventures
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90 Verified Questions
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Sample Questions
Q1) Compared to small firms, large companies usually can access capital at lower cost.
A)True
B)False
Q2) Describe the four primary challenges faced by retailers when they expand overseas. Provide examples of mistakes made by retailers in foreign markets.
Q3) A(n)________ is a project-based, usually nonequity venture initiated by multiple partners to fulfill a large-scale project.
A)greenfield investment
B)acquisition
C)merger
D)consortium
Q4) Which of the following is a trend seen in the modern international economy?
A)Firms from both advanced and emerging economies employ FDI.
B)Emerging markets are the sole recipient countries for FDI.
C)Companies primarily use acquisitions to enter foreign markets.
D)Firms in the service sector use e-commerce exclusively to enter foreign markets.
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Chapter 15: Licensing, Franchising, and Other Contractual Strategies
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Sample Questions
Q1) Which of the following is true about franchising as an entry strategy?
A)It provides firms with minimum control over foreign operations.
B)It is an ownership-based international business activity.
C)It restricts a firm's ability to expand more rapidly abroad.
D)It is typically characterized as an unstable, short-term entry strategy.
Q2) Which of the following is characteristic of a know-how agreement?
A)exclusive rights to reproduce original art work
B)permission to use manufacturing facilities for a fee
C)exchanging technological or management information for royalties
D)trading the use of a name brand for management advice
Q3) Which of the following statements is true of leasing?
A)It is an arrangement in which a contractor supplies managerial know-how to operate a hotel, hospital, airport, or other facility in exchange for compensation.
B)The lessor transfers ownership of the property in exchange for a lump-sum payment.
C)It is a high-risk and high-cost method of entering a foreign market.
D)A major advantage for the focal firm is the ability to gain quick access to target markets, while putting assets to use in earning profits.
Q4) Describe the guidelines for protecting intellectual property.
Page 18
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Chapter 16: Marketing in the Global Firm
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102 Verified Questions
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Sample Questions
Q1) Commodities, industrial equipment, and technology products are difficult to standardize.
A)True
B)False
Q2) MNEs typically centralize transfer pricing under the direction of the chief financial officer at corporate headquarters.
A)True
B)False
Q3) A firm can reduce its marketing and advertising costs substantially by focusing on numerous national brands instead of a single global brand.
A)True
B)False
Q4) Brand equity can best be defined as the ________.
A)market value of a brand
B)attractiveness of a brand name
C)durability of a brand
D)lack of customer confidence in a brand
Q5) What is global account management? Briefly describe the role of global account management in international business.
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Chapter 17: Human Resource Management in the Global Firm
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Sample Questions
Q1) The problem of noncomparable outcomes arises because of differences in economic, political, legal, and cultural variables.
A)True
B)False
Q2) International experience tends to ________.
A)lower sensitivity
B)lower cross-cultural awareness
C)enhance problem-solving and crisis management skills
D)enhance a greater unease in traveling on foreign assignments
Q3) ________ is a formal process for assessing how effectively employees perform their jobs.
A)Performance planning
B)Performance management
C)Performance appraisal
D)Performance guarantee
Q4) In expatriate compensation, tax equalization is a special consideration.
A)True
B)False
Page 20
Q5) Discuss the reasons why labor union membership has declined in recent years.
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