International Management Practice Exam
Course Introduction
International Management explores the principles and practices essential for managing organizations in a global environment. This course covers topics such as cross-cultural communication, international strategy, global leadership, and ethical challenges faced by multinational enterprises. Students will analyze case studies, engage in discussions about international market entry modes, and examine how global economic, political, and legal factors influence managerial decision-making. Emphasis is placed on developing the skills needed to adapt management approaches to diverse cultural contexts and to effectively navigate the complexities of operating in multiple countries.
Recommended Textbook
Global Business 3rd Edition by Mike Peng
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17 Chapters
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1326 Flashcards
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Page 2
Chapter 1: Globalizing Business
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Sample Questions
Q1) A multinational enterprise is a firm that engages in foreign direct investment by directly managing value-added activities in other countries.
A)True
B)False
Answer: True
Q2) Which of the following is true of the Group of 20 (G-20)?
A) It only has 19 member countries.
B) It doesn't represent any European nation.
C) It meets annually to discuss environmental issues.
D) It includes many regional blocs.
Answer: A
Q3) Reverse innovation is an example of bottom up innovation.
A)True
B)False
Answer: True
Q4) Majority of the global GDP is contributed by the emerging markets.
A)True
B)False
Answer: False
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Chapter 2: Understanding Formal Institutions: Politics, Laws, and Economics
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Sample Questions
Q1) A copyright is an example of an intellectual property.
A)True
B)False Answer: True
Q2) The laws of a country are part of the formal institution.
A)True
B)False
Answer: True
Q3) Transitional economies have static institutions.
A)True
B)False
Answer: False
Q4) Economic systems are examples of formal institutions.
A)True
B)False
Answer: True
Q5) Disabling formal institutes does not affect transaction costs.
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 methods of understanding cultural differences characterizes sex role differentiation in cultures?
A) Humanistic Approach
B) Cluster Approach
C) Context Approach
D) Dimensional Approach
Answer: D
Q2) Dividing individuals of a society into hierarchical classes is an example of social stratification.
A)True
B)False
Answer: True
Q3) In ____ cultures,the unspoken context is as important as the words used during communication.
A) high-context
B) low-context
C) individualistic
D) collectivist
Answer: A
Page 5
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Chapter 4: Leveraging Resources and Capabilities
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Sample Questions
Q1) Which of the following is an example of innovation resources and capabilities of a firm?
A) Integrated management information systems
B) Possession of patents, trademarks, copyrights, and trade secrets
C) Formal planning, command, and control systems
D) Research and development capabilities
Q2) Which of the following is considered as an intangible resource of a firm?
A) The ability to raise external capital
B) The access to raw materials of production
C) The possession of patents to an invention
D) The managerial skills of an employee
Q3) Original equipment manufacturers are firms that design,manufacture,and market branded products.
A)True
B)False
Q4) Identify the four categories of tangible resources that a firm can possess.
Q5) Briefly explain outsourcing and its different types.
Q6) Give an account of the political argument against outsourcing practiced by US firms.
Q7) Articulate the benefits of offshoring.
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Chapter 5: Trading Internationally
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Sample Questions
Q1) Which of the following ideas is closely linked to the theory of absolute advantage?
A) All international trade must be closely regulated by governments.
B) Free market forces should determine how much to trade with minimal government intervention.
C) Governments should actively protect domestic industries from imports and vigorously promote exports.
D) Nations should specialize in economic activities in which they have comparative advantage.
Q2) Local content requirements require a certain proportion of the value of the goods made in one country to originate from that country.
A)True
B)False
Q3) Which of the following assumptions are present in the classical theories of international trade?
A) Different produces have different product life cycles
B) Transportation costs should underpin foreign trade
C) Resource mobility is not easy to achieve
D) No complications in foreign exchange transactions
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Chapter 6: Investing Abroad Directly
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Sample Questions
Q1) An FDI investment is not considered a zero-sum game.
A)True
B)False
Q2) Identify the benefits and costs of FDI to host countries.
Q3) What determines the success and failure of FDI around the globe?
Q4) Intrafirm trade refers to international transactions between two subsidiaries in a country controlled by two different MNEs.
A)True
B)False
Q5) Firms prefer FDI to licensing because FDI_____.
A) increases the chances of opportunism when dealing with a host nation entity
B) requires complete dissemination of technological know-how to host nation entity
C) protects the firm from economic agglomeration
D) provides the firm with direct ownership to its foreign assets
Q6) Which of the following is a benefit of FDI to home countries?
A) Decrease in competition between local firms
B) Capital outflow
C) Learning from operations
D) Creation of new jobs
Page 8
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Chapter 7: Dealing with Foreign Exchange
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Sample Questions
Q1) Which of the following methods is directly derived from the theory of purchasing power parity (PPP)?
A) The floating exchange rate
B) The fixed exchange rate
C) The stock market index
D) The Big Mac index
Q2) Governments adopting the floating exchange rate policy tend to set the exchange rate of a currency relative to other currencies.
A)True
B)False
Q3) 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
Q4) A weak dollar makes it more expensive for US tourists when traveling abroad.
A)True
B)False
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) TRIPS is a WTO agreement governing the international trade of services.
A)True
B)False
Q2) The GATT differed from the WTO in that the GATT was not considered an organization.
A)True
B)False
Q3) Which of the following is an example of a political union?
A) The EU
B) The United States
C) The British Commonwealth
D) The Andean Community
Q4) A free trade area _____.
A) imposes common external policies on nonparticipants in order to combat trade diversion
B) permits the free movement of goods and people among member nations
C) comprises a group of countries that remove trade barriers among themselves
D) coordinates and harmonizes economic policies in order to blend their economies into a single economic entity
Q5) Explain the formation of APEC.
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Chapter 9: Growing and Internationalizing the Entrepreneurial Firm
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Sample Questions
Q1) ____ is the sale of products made by entrepreneurial firms in their home country to customers in other countries.
A) Direct exports
B) Letters of credit
C) Licensing
D) Indirect exports
Q2) Microfinance emerged in response to the lack of financing for entrepreneurial opportunities in many developing countries.
A)True
B)False
Q3) 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
Q4) A letter of credit increases transaction costs by increasing transaction risks.
A)True
B)False
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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) Emerging MNEs primarily lack proprietary ownership of technology compared to MNEs from developed economies.
A)True
B)False
Q3) The preemption of scarce resources is a first mover advantage.
A)True
B)False
Q4) Which of the following characterizes an MNE from a non-MNE?
A) It enters foreign markets via non-equity modes.
B) It exports or imports with or without FDI.
C) It enjoys OLI advantages.
D) It enters foreign markets through FPI.
Q5) What are the two schools of thought that have emerged concerning cultural distances?
Page 12
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Chapter 11: Managing Global Competitive Dynamics
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Sample Questions
Q1) Tacit collusions typically lead to a cartel or trust.
A)True
B)False
Q2) Market commonality refers to the degree of similarity between two rival's products.
A)True
B)False
Q3) Antitrust policies aim to balance efficiency and fairness in trade.
A)True
B)False
Q4) The process of anticipating rivals' actions in order to both revise a firm's plan and prepare to deal with rivals' response is called _____.
A) mutual forbearance
B) multimarket competition
C) competitor analysis
D) prisoners' dilemma
Q5) Patenting adds value to a firm's resources when engaging with rivals.
A)True
B)False
Q6) Under what conditions would a firm adopt a contender strategy?
Page 13
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Chapter 12: Making Alliances and Acquisitions Work
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Sample Questions
Q1) The set of informal institutions that stresses the cognitive pillar lays emphasis on
A) establishing wholly owned subsidiaries
B) granting more liberal policies
C) copying reputable organizations to ensure a low-cost way to gain legitimacy
D) the internalized taken-for-granted values and beliefs that guide firm behavior
Q2) In the context of acquisitions,synergistic motives destroy value while hubris and managerial motives add value.
A)True
B)False
Q3) Mergers and acquisitions represent the largest proportion of foreign direct investment (FDI)flows.
A)True
B)False
Q4) The more hard to describe the capabilities of a firm in an alliance,the greater the preference for an equity involvement.
A)True
B)False
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Chapter 13: Strategizing,Structuring,and Learning around the World
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Sample Questions
Q1) In theory,a global matrix structure supports the goals of the _____ strategy.
A) transnational
B) localization
C) global standardization
D) home replication
Q2) The geographic area structure is appropriate for a transnational strategy.
A)True
B)False
Q3) The integration-responsiveness framework allows managers to deal with the pressures for both global integration and local responsiveness.
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
Q5) The relationship between strategy and structure is reciprocal.
A)True
B)False
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Chapter 14: Competing on Marketing and Supply Chain Management
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Sample Questions
Q1) ____ refers to the ability to change supply chain configurations in response to long-term changes in the environment and technology.
A) Aggregation
B) Agility
C) Alignment
D) Adaptability
Q2) Price elasticity refers to the changes in demand when price changes.
A)True
B)False
Q3) List a few do's and don'ts to avoid blunders in international marketing.
Q4) MNEs dealing with global dreamers can market localized products and services under local brands.
A)True B)False
Q5) Ethnocentrism should be encouraged in international marketing.
A)True B)False
Q6) Elaborate on the various aspects marketers have to consider to enhance promotion.
Q7) Elaborate on the major concerns faced by MNEs doing business around the world.
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Chapter 15: Managing Human Resources Globally
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Sample Questions
Q1) The going rate approach is the most widely used method in expatriate compensation.
A)True
B)False
Q2) In staffing,elimination of language and cultural barriers is an advantage of hiring
A) multinationals
B) third-country nationals
C) parent-country nationals
D) host-country nationals
Q3) Which of the following is an advantage of hiring parent-country nationals?
A) Lesser international exposure for managers
B) Eliminates cultural and language barriers
C) Bridges gap between headquarters and subsidiary
D) Facilitates control and coordination by headquarters
Q4) Identify different staffing approaches for subsidiaries.
Q5) What are the potential issues that arise during repatriation?
Q6) MNEs only hire host-country nationals to work at a local subsidiary.
A)True
B)False
Page 17
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Chapter 16: Financing and Governing the Corporation
Globally
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Sample Questions
Q1) Executives on the top management team (TMT)are led by the _____.
A) chief executive officer (CEO)
B) chief financial officer (CFO)
C) board of directors
D) chief operating officer (COO)
Q2) The conflicts between controlling shareholders and minority shareholders are called _____.
A) owner-manager conflicts
B) agent-agent conflicts
C) principal-agent conflicts
D) principal-principal conflicts
Q3) In the principal-agent relationship,principals are managers to whom authority is delegated.
A)True
B)False
Q4) _____ refers to a firm's failure to satisfy the terms of a loan obligation.
A) Debt
B) Dissolution
C) Default
D) Defeasance
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Chapter 17: Managing Corporate Social Responsibility
Globally
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Sample Questions
Q1) A code of conduct is also called _____.
A) code of defense
B) code of legitimacy
C) code of ethics
D) code of reactivity
Q2) A strategy that endeavors to do more than is required in CSR is called a(n)_____ strategy.
A) accommodative
B) proactive
C) defensive
D) reactive
Q3) A(n)_____ strategy is indicated by relatively little or no support by top management of CSR causes.
A) proactive
B) defensive
C) accommodative
D) reactive
Q4) An accommodative strategy focuses on regulatory compliance.
A)True
B)False
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