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1
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Over half of all world trade and about 80% of all foreign direct investment is carrie out by 500 largest firms in the world. These firms are called; |
| | A) | multibusiness enterprises |
| | B) | international enterprises |
| | C) | multinational enterprises |
| | D) | foreign enterprises |
| | E) | multienvironmental enterprises |
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2
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Capital invested in other nations by MNEs through their control of their foreign subsidiaries and affiliates is termed: |
| | A) | Foreign Capital Investment |
| | B) | International Investment |
| | C) | Foreign Aid |
| | D) | Foreign Direct Investment |
| | E) | None of the above |
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3
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The body that deals with the rules of trading among member countries is: |
| | A) | The General Agreement on trade and tariffs (GATT) |
| | B) | World Trade Organization (WTO) |
| | C) | The Organization for Economic Co-operation and Development (OECD) |
| | D) | Competition Commission (CC) |
| | E) | National Government |
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4
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Porter (1990) found that the success of nations and their individual firms is determined by factor (supply) conditions, demand conditions, related and supporting industries and market (industry) structure. He called this the: |
| | A) | Five Forces Model |
| | B) | Value chain analysis |
| | C) | The 7S Framework |
| | D) | Competitive rivalry model |
| | E) | Diamond of national advantage |
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5
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There are many reasons why companies decide to take the plunge and take on the new, often unfamiliar, risks facing a multinational company. One of these reasons is to `follow` a competitor. |
| | A) | True |
| | B) | False |
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6
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Global markets lead to product differences and diversity, whereas multidomestic markets lead to standard products. |
| | A) | True |
| | B) | False |
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7
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There are 5 drivers of globalization. These are: |
| | A) | Cultural homogenization, convergence of markets, globalization of customers, cost drivers, changes in industry structure |
| | B) | Tariff barriers, convergence of markets, cost drivers, globalization of customers, Information technology |
| | C) | Information technology, cultural homogenization, convergence of markets, globalization of customers, cost drivers. |
| | D) | Non tariff barriers, convergence of markets, globalization of customers, cost drivers, changes in industry structure |
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8
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Which of the following is not a characteristic of being global? |
| | A) | learning and transfer opportunities of best practice |
| | B) | access to technology |
| | C) | scale |
| | D) | ability to tailor products to meet local demands |
| | E) | ability to anticipate moves of global competitors |
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9
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Global strategies can create advantage only if the:
1) change the economics of the industry
2) serve local markets better than the local incumbents
3) are hard to emulate
4) are sustainable
5) are capable of further development |
| | A) | None of the above |
| | B) | All of the above |
| | C) | 1,3 4 and 5 |
| | D) | 1, 2 and 4 only |
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10
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Strategies which are country centres with extensive customization for local markets are termed: |
| | A) | Global |
| | B) | International |
| | C) | Multidomestic |
| | D) | Multinational |
| | E) | Centralized |
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11
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Which statement best describes the “Transnational” strategy? |
| | A) | Treats the world as a single integrated unit |
| | B) | Treats foreign operations as offshoots of domestic strategy |
| | C) | The world of integrated variety |
| | D) | Treats the world as a portfolio of local/national markets |
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12
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“Exploit experience-based cost economies and location economies, transfer distinctive competences within the company, and at the same time pay attention to pressures for local responsiveness (Bartlett and Ghoshal, 1989). This quote refers to the: |
| | A) | Global strategy |
| | B) | International strategy |
| | C) | Multidomestic strategy |
| | D) | Transnational strategy |
| | E) | None of the above |
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13
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Firm-specific advantage (FSA) is a term used in international business to describe the unique capabilities of an organization and is identical to the concept of core competence. |
| | A) | True |
| | B) | False |
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14
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Firms that co-operate in networks of key suppliers, customers’ competitors and unions, universities and governments, in order to create value are termed: |
| | A) | diamond firms |
| | B) | network firms |
| | C) | flagship firms |
| | D) | competitive firms |
| | E) | none of the above |
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15
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In managing international firms, placing line managers in situations where they have two bosses and are required to meet the needs of both, is termed: |
| | A) | divisional structure |
| | B) | product structure |
| | C) | geographic structure |
| | D) | matrix structure |
| | E) | none of the above |
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