Multiple Choice Questions

1. Which of the factors may encourage an organization to produce in foreign markets?

a. Closeness to its customers.
b. Unfavourable foreign tariffs or quotas.
c. Low production costs.

d. All of the above.

2. The formal difference between a joint venture and a strategic alliance is that the latter
one is typically a(n):
a. alliance involving an American organization.
b. equity alliance.
c. non-equity alliance.
d. foreign operation.

3. The term 'royalties' is closely associated with:

a. contract manufacturing.
b. direct exporting.
c. licensing.
d. piggybacking.

4. Strategic alliances often bring partners the following benefits:

a. rapidly achieve scale, critical mass and momentum as well as access to
partner's capital.
b. increased brand awareness through partner's channels.
c. access to their partner's distribution channels and international market
presence as well as reduced R&D costs and risks.
d. all of the above.

5. One of the international agreements by which an organization establishes local

production in foreign countries without capital investment is:
 a. licensing.
b. direct export.
c. joint-venture.
d. piggybacking.

6. One of the following lists the global market entry modes from the highest level of
risk/commitment to the lowest:
a. acquisition-joint venture-licensing-exporting.

b. joint venture-licensing-exporting-acquisition.
c. exporting-acquisition-joint venture-licensing.
d. exporting-licensing-joint venture-acquisition.

7. Franchising is a ______ method.

a. workforce-oriented
b. production-oriented
c. market-oriented
d. management-oriented

8. ______ is the cornerstone of international franchising.

a. Focus
b. Standardization
c. Adaptation
d. Concentration

9. Compared to licensing, franchising is a more advantageous entry mode because:

a. it is low-risk and low-cost.
b. it offers greater control.

c. it generates economies of scale in marketing to international customers.

d. of all the above.
10. Which of the following is not an element of culture?
a. Language.
b. Tax law.
c. Art.
d. Traditions

11. Which staffing policy is the most consistent with an international multidomestic
strategy?
a. Polycentric.
b. Ethnocentric.
c. Geocentric.
d. Regiocentric.

12. A strategy of ______ pricing involves using price as a competitive weapon in order to
push competitors out of a national market.
a. incremental
b. psychological
c. premium
d. predatory

13. One of the main advantages of an ethnocentric staffing policy in international markets
is:
a. it is cheaper.
b. it facilitates the transfer of core competencies to and among the firm's
foreign subsidiaries.
c. it results in very technically competent staff.
d. none of the above.

14. Implementing a global standardized advertising programme has the following

advantage(s) to a firm internationalizing:
a. economic advantages.
 b. lower costs.
c. creative talent can be more readily and efficiently tapped.
d. all of the above.

15. When training expatriates for a mission abroad, in either one of the organization's
subsidiaries or in one of the partner firms, ______ training should definitely be
included.
a. technical only
b. cultural, language and practical
c. legal and political
d. language only

16. Which of the following countries is the most culturally challenging for a Westernized
organization wishing to expand internationally?
a. The USA.
b. Japan.
c. France.
d. Germany.

17. Trade Related Investment Measures (TRIMS) doesn’t apply for

a. Measures that affect trade in goods.
b. Measures that lead to restrictions in quantities.
c. Discouraging measures that limit a company’s imports.
d. Discouraging measures that limit a company’s exports.

18. General Agreement on Trade in Services will not be applicable to

a. Services supplied from one country to another – cross border supply

b. Transaction of goods across the border – Export Import
c. Individuals traveling from own country to supply services in another –
presence of natural persons.
d. Consumers/firms making use of a service in another country – consumption
abroad.
e. Foreign company setting up subsidiary or branches to provide services in
another country – commercial presence.

19. As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider

 a. Direct payments to farmers are permitted.
b. Indirect assistance and support to farmers including R & D support by
govt. are not permitted.
c. Domestic policies which directly effect on production and trade have to be cut
back.
d. Least developed countries do not need to make any cuts.

20. Quantitative restrictions refer to limit set by countries to curb

a. Imports
b. Exports
c. Imports & exports
d. None of the above

21. A Most Favored nation status doesn’t necessarily refers to

a. Same and equal economic treatment
b. Non-discriminatory treatment
c. Same tariff rates applicable
d. Uniform civil code

22. The world trade organization was formed in the year _________ with GATT as it
basis.
a. 1993
b. 1994
c. 1995
d. 1996

23. Which of the following is the most spoken language in the world
a. English
b. Spanish
c. Cantonese
d. Mandarin

24. The degree to which people in a society feel uncomfortable with risk and uncertainty
is called
a. individualism.
b. masculinity.
c. power distance.
d. uncertainty avoidance.

25. Individual managers from cultures that score high on the ________ dimensions are
likely to be viewed by those from other cultures as _______.
a. power distance; autocratic
b. performance orientation; autocratic
c. ascription orientation; indecisive
d. future orientation; indecisive
26. The Japanese tend to emphasize:
a. social networks.
b. mechanistic and functional views of the firm.
c. the importance of shareholders.
d. all of the above

27. Which of the following is true of geocentric firms?

a. It acts like a federation of semi-autonomous organizations.
b. Top management is dominated by home-country nationals.
c. There is a belief in cultural diversity.
d. All of the above.

28. Typically, people who are at the first stages of international expansion:
a. set up an international business unit.
b. hire a consulting firm to create a large subsidiary in the foreign country.
c. treat their foreign business as an extension of domestic operations.
d. create an internationalization department.

29. Which of the following is a type of organizational structure?

a. International division.
b. Subsidiaries.
c. Export department.
d. All of the above.

30. Which of the following structures creates a management team that prioritizes overseas
operations?
a. International division.
b. Marketing department.
c. Export department.
d. All of the above.

31. Which of the factors effect International HRM

a. Cultural Differences
b. Attitude towards employment
c. Differences in regulatory environment
d. All the above

32. Industrial Democracy involves

a. Training of Employees
b. Elections in Industries
c. Rights of Employees to participate in significant management decisions
d. Free Labour

33. Which of the following is not the force of Porter’s Five Forces of Competition
a. Bargaining Power of Buyers
b. Bargaining Power of Employees
c. Bargaining Power of Suppliers
d. Threat of Substitutes

34. Porter’s Competitive Strategy emphasizes on

 a. Internationalization
b. Cost Leadership
c. Differentation
d. Focus

35. Selection criteria of Expatriates includes

a. Competence
b. Adaptability
c. Personal Characteristics
d. All the above

36. Translator’s role in Oral Translation can be

a. Simultaneous
b. Sequential
c. Both a and b
d. Neither a nor b

37. Adventure Managers are related to

a. Startup Stage
b. Hockeystick Stage
c. Professional Stage
d. Declining Stage

38. Warrior Managers are related to

a. Startup Stage
b. Hockeystick Stage
c. Professional Stage
d. Declining Stage

39. Hunter Managers are related to

a. Startup Stage
b. Hockeystick Stage
c. Professional Stage
d. Declining Stage

40. Farmer Managers are related to

a. Startup Stage
b. Sustaining Stage
c. Mature & Consolidation Stage
d. Declining Stage

41. Politician Managers are related to

a. Startup Stage
b. Sustaining Stage
c. Professional Stage
d. Declining Stage

42. Visionary Managers are related to

a. Startup Stage
b. Sustaining Stage
 c. Professional Stage
d. Declining Stage

43. Project Personalities are dependent on the following Project Positions

a. Bet the Farm
b. Market Extending
c. Experimental
d. All the Above

44. Which one is not a stage in Corporate Life Cycle

a. Courtship
b. Infancy
c. Internationalization
d. Prime

45. Competitive Advantage of Nations is written by

a. Michael Porter
b. C.K. Prahalad
c. Philip Kotler
d. Stephen P. Robbins