CONCEPCION HOLY CROSS

1 COLLEGE, INC.
SCHOOL OF BUSINESS ADMINISTRATION and ACCOUNTANCY
Minane, Concepcion, Tarlac
2 nd
Semester | A.Y. 2023 – 2024

#CTRL DAY TIME START CYS – ROOM PROCTOR NAME

MGT 3 - INTERNATIONAL BUSINESS & TRADE

FINAL EXAMINATION
Student No. Date:
Name: Instructor : Rodolfo R. Patdu Jr., LLB, LPT, RCrim
““Don’t study because you need to. Study because knowledge is power. Study because they can never take
it away from you. Study because you want to know more. Study because it enhances you. Study because
it grows you.”

TEST I. MULTIPLE CHOICE

Read the following questions carefully and choose the letter that best describes the answer. Write your
answer before each item number.

1. Statement No. 1: Domestic business is not affected by export-import procedure. Statement No. 2:
International business is affected by the export-import procedures of the various countries.
a. Only Statement No. 1 is true c. Both Statements are true
b. Only Statement No. 2 is true d. Both Statements are false
2. This system, does not distribute the existing wealth equally among people, but believes in full
employment and suitable rewards for the workers efforts.
a. Capitalistic Economic System c. Mixed Economic System
b. Communistic Economic System d. Socio-Economic System
3. Under this system, private properties and property rights to income are abolished.
a. Capitalistic Economic System c. Mixed Economic System
b. Communistic Economic System d. Socio-Economic System
4. This system provides for economic democracy and customer choice for product or service.
a. Socio-Economic System c. Communistic Economic System
b. Capitalistic Economic System d. Mixed Economic System
5. This system emphasizes on the philosophy of individualism, believing in private ownership of
production and distribution facilities.
a. Mixed Economic System c. Communistic Economic System
b. Capitalistic Economic System d. Socio-Economic System
6. Under this system, the State owns all the factors of production and distribution.
a. Communistic Economic System c. Mixed Economic System
b. Capitalistic Economic System d. Socio-Economic System
7. Under this system, major factors of production and distribution are owned, managed and controlled
by the State.
a. Mixed Economic System c. Communistic Economic System
b. Capitalistic Economic System d. Socio-Economic System
8. These countries are known as advanced countries, industrialized, postindustrialized or first world
countries.
a. Upper Middle Income Countries c. Lower Middle Countries
b. Low Income Countries d. High Income Countries
9. These countries are called industrializing countries.
a. High Income Countries c. Low Income Countries
b. Upper Middle Income Countries d. Lower Middle Countries
10. This country is also known as third world countries or pre industrial countries.
a. Low Income Countries c. Lower Middle Countries
b. Upper Middle Income Countries d. High Income Countries
11. These countries are known as less developed countries.
a. Lower Middle Countries c. Low Income Countries
b. Upper Middle Income Countries d. High Income Countries
12. The characteristics of these countries include the development of information sector, emphasis on
future plan, development of intellectual technology over machine technology and its aims to build a
information society.
a. High Income Countries c. Upper Middle Income Countries
b. Lower Middle Countries d. Low Income Countries
13. The characteristic of these countries are less dependency on agriculture, high exports, increase in
literacy, formal education, rapid economic development, occupation mobility of people from
agriculture to industry and increased wage rate.
a. High Income Countries c. Upper Middle Income Countries
b. Lower Middle Countries d. Low Income Countries
14. The characteristics of these countries include high birth rate, low literacy rate, political instability
and unrest, technological backwardness, underutilization of natural resources, excessive
unemployment and underemployment, and excessive dependency on imports.
a. Low Income Countries c. Upper Middle Income Countries
b. Lower Middle Countries d. High Income Countries
15. The characteristics of these countries include an early stage of industrialization, expansion of
consumer market, availability of cheap and motivated human resource, and production of
standardized products or exporting.
a. Low Income Countries c. Upper Middle Income Countries
b. Lower Middle Countries d. High Income Countries
16. It is exporting of products either in their original form or in the modified form to a foreign country
through another domestic company.
a. Intracorporate Transfer c. Indirect Exporting
b. Direct Exporting d. Intercorporate Transfer
17. It is the selling of products in a foreign country directly through the distribution arrangements of the
company or through its host country.
a. Indirect Exporting c. Direct Exporting
b. Intracorporate Transfer d. Intercorporate Transfer
18. It is the selling of products by a company to its affiliated company in host country.
a. Intercorporate Transfer c. Intracorporate Transfer
b. Direct Exporting d. Indirect Exporting
19. Under this export intermediary, the company acts as an export department of the exporting firm.
a. Cooperative Society c. Export Management
b. International Trading Company d. Foreign Forwarders
20. Under this export intermediary, the organization undertakes the exporting operations of its
members.
a. Export and Import Brokers c. International Trading Company
b. Cooperative Society d. Export Management
21. This export intermediary is engaged in direct exporting and importing by buying the goods from the
domestic companies and exports.
a. Cooperative Society c. Manufacturers’ Export Agent
b. Export Management d. International Trading Company
22. An advantage as to the Specialisation of labour in producing certain products leads to higher
productivity and less labour cost per unit of output.
a. Skilled Labour & Specialization c. Acquired Advantage
Advantage d. Special Advantage
b. Natural Advantage
23. An export intermediary engaged in soliciting domestic orders for foreign manufacturers on a
commission basis.
a. Manufacturers’ Export Agent c. Export and Import Broker
b. Manufacturers’ Agent d. Export Management
24. An export intermediary selling the domestic manufacturers’ products in the foreign markets and act
as their foreign sales department.
a. Manufacturers’ Export Agent c. Export and Import Broker
b. Manufacturers’ Agent d. Export Management
25. An export intermediary that helps the domestic manufacturers in exporting their goods by
transporting goods, arranging customs documents and arranging transportation services.
a. Export and Import Broker c. Export Management
b. International Trading Company d. Foreign Forwarder
26. Under this mode of entry to international business, the domestic manufacturer leases the right to
use its intellectual property.
a. Contract Manufacturing c. International Licensing
b. Turnkey Project d. Exporting
27. This is regarded as the simplest and widely used mode of entry to international business with
limited finance and risk involved.
a. International Licensing c. Exporting
b. Contract Manufacturing d. International Franchising
28. Under this form of licensing and mode of entry in international business, an independent
organization operates the business under the name of another company.
 CONCEPCION HOLY CROSS COLLEGE, INC.
SCHOOL OF BUSINESS ADMINISTRATION and ACCOUNTANCY
Minane, Concepcion, Tarlac
Semester | A.Y. 2023 – 2024

a. International Licensing c. International Franchising

b. Contract Manufacturing d. Exporting
29. Under this mode of entry in international business, a company outsources part of or its entire
production and concentrate on marketing operations.
a. Turnkey Project c. International Franchising
b. Contract Manufacturing d. International Licensing
30. Under this mode of entry in international business, a firm agrees to fully design, construct and equip
a manufacturing, business, or service facility, and turns the project over the purchaser when it is
ready for remuneration.
a. Turnkey Project c. International Franchising
b. Contract Manufacturing d. International Licensing
31. Under this mode of entry in international business, a domestic company selects a foreign company
and merges itself with a foreign company.
a. Partnership c. Acquisition
b. Merger d. Fusion
32. Under this mode of entry in international business, the domestic company may purchase the
foreign company and acquires its ownership and control.
a. Partnership c. Acquisition
b. Merger d. Fusion
33. The following are the advantages of joint ventures, except:
a. They are suitable for major c. They make large projects and
projects. turnkey projects not feasible and
b. They provide large capital funds. not possible.
d. They provide synergy due to
combined efforts of varied parties.
34. A British Economist who expanded the Absolute Cost Advantage theory to clarify this situation and
developed the theory of Comparative Cost Advantage.
a. Eli Heckscher c. David Ricardo
b. Bertil Ohlin d. Adam Smith
35. It is the first International Trade Theory.
a. Mercantilism c. Comparative Cost Advantage
b. Absolute Cost Advantage Theory Theory
d. Heckscher- Ohlin Theory
36. He is the proponent of the Absolute Cost Advantage Theory.
a. Bertil Ohlin c. Adam Smith
b. David Ricardo d. Eli Heckscher
37. It is the oldest international trade theory that formed the foundation of economic thought during
about 1500 to 1800.
a. Mercantilism c. Comparative Cost Advantage
b. Absolute Cost Advantage Theory Theory
d. Heckscher- Ohlin Theory
38. An advantage in producing certain products due to climatic conditions, access to certain natural
resources etc.,
a. Skilled Labour & Specialization c. Acquired Advantage
Advantage d. Special Advantage
b. Natural Advantage
39. An advantage as to the suitability of the skills of the labour of the country in producing certain
products.
a. Skilled Labour & Specialization c. Acquired Advantage
Advantage d. Special Advantage
b. Natural Advantage
40. An advantage through technology and skills development.
a. Skilled Labour & Specialization c. Acquired Advantage
Advantage d. Special Advantage
b. Natural Advantage
41. Under this approach, Human Resources admininstation is conducted centrally, typically from a
headquarters.
a. Blended c. Decentralized
b. Centralized d. Hybrid
42. Under this approach, Human Resouces administration is handled regionally, and policies and
procedures reflect local differences.
a. Blended b. Centralized
 c. Decentralized d. Hybrid
43. Under this approach, Human Resources administration involves a mix of both centralized and
decentralized management.
a. Blended c. Decentralized
b. Centralized d. Hybrid
44. These HRM objectives are concerned with supporting employees to reach their individual goals.
a. Functional c. Personal
b. Organizational d. Societal
45. These objectives are aligned with the overarching business strategy and are therefore concerned
with hiring the right talent, facilitating growth, driving profit and/or implementing policies.
a. Functional c. Personal
b. Organizational d. Societal
46. These might relate to helping staff communicate effectively or collaborate across departments.
a. Functional c. Personal
b. Organizational d. Societal
47. These objectives are focused on upholding a business’s legal and ethical responsibilities to its
employees and society at large.
a. Functional c. Personal
b. Organizational d. Societal
48. These may involve introducing initiatives around recognition and reward for good work, skills
training, compensation or implementing policies to ensure a healthy work-life balance.
a. Functional c. Personal
b. Organizational d. Societal
49. These are high-priority objectives for HR professionals.
a. Functional c. Personal
b. Organizational d. Societal
50. Essentially, these objectives seek to ensure slick and effective ways of working across business
functions.
a. Functional c. Personal
b. Organizational d. Societal
51. For example, HRM teams should ensure a company’s adherence to labor laws around equal
opportunities and equal pay.
a. Functional c. Personal
b. Organizational d. Societal
52. It is the process of gathering information about a target market, including its customers’ needs and
behaviors, in order to market products to it effectively.
a. Marketing analytics c. Market logistics
b. Market coverage strategy d. Market research
53. It is the process of studying the metrics of specific marketing efforts, such as landing page sign-ups
and social media engagement, in order to increase return on investment.
a. Marketing analytics c. Market logistics
b. Market coverage strategy d. Market research
54. It is the most common approach to export pricing. Under this strategy, you keep your product’s
price flexible and responsive to market conditions like demand and supply, inflation etc.
a. Competition-based pricing c. Market-driven pricing
b. Marginal cost pricing d. Penetration pricing
55. It involves you charging a higher price for your product to recover preliminary expenses and reap
high profits but decreasing it to increase market share.
a. Market-driven pricing c. Pre-emptive pricing
b. Penetration pricing d. Skimming pricing
56. It requires you to charge a low price to penetrate the market and weed out competition.
a. Marginal cost pricing c. Penetration pricing
b. Market-driven pricing d. Pre-emptive pricing
57. It is like penetration pricing, except the exporter’s sole aim here is to discourage competition.
a. Marginal cost pricing c. Penetration pricing
b. Market-driven pricing d. Pre-emptive pricing
58. It is best adopted when the exporter considers only variable or direct costs in determining the price.
a. Marginal cost pricing c. Penetration pricing
b. Market-driven pricing d. Pre-emptive pricing
59. It may mean fixing your price lower than the cost of the product, on the assumption that in the long
run, market domination will help generate profits.
a. Marginal cost pricing c. Penetration pricing
b. Market-driven pricing d. Pre-emptive pricing
60. It is a variant of market-based pricing useful in markets with a ‘price leader’.
a. Competition-based pricing b. Marginal cost pricing
 c. Penetration pricing d. Pre-emptive pricing
61. This is particularly useful for commodities/products for well-established and stable markets; but
remember too much exposure to market forces can also cause instability in your pricing.
a. Marginal cost pricing c. Penetration pricing
b. Market-driven pricing d. Pre-emptive pricing
62. This is better adopted with products with established markets or high demand, as customers in a
new market might not be open to paying high prices initially.
a. Market-driven pricing c. Pre-emptive pricing
b. Penetration pricing d. Skimming pricing
63. This policy is often used for items of mass consumption and is also called ‘dumping’.
a. Market-driven pricing c. Pre-emptive pricing
b. Penetration pricing d. Skimming pricing
64. It may mean fixing your price lower than the cost of the product, on the assumption that in the long
run, market domination will help generate profits.
a. Market-driven pricing c. Pre-emptive pricing
b. Penetration pricing d. Skimming pricing
65. If you have no plans of recovering fixed and/or preliminary costs from your sales and shipments,
you can adopt this pricing strategy which allows for lower product prices at the risk of a slower
journey to breakeven and profits.
a. Marginal cost pricing c. Penetration pricing
b. Market-driven pricing d. Pre-emptive pricing
66. This strategy focuses on what is common in consumer needs in the marketplace and is affected by
presenting one product for all markets or presenting all of a company’s products in one market.
a. Concentrated c. Niche
b. Multi-segment or differentiated d. Undifferentiated
67. It is one where a company develops several different brands to meet the unique needs of each of
the consumer segments.
a. Concentrated c. Niche
b. Multi-segment or differentiated d. Undifferentiated
68. It is based on a decision to achieve maximum penetration in one or more segments to the exclusion
of the rest of the market.
a. Concentrated c. Niche
b. Multi-segment or differentiated d. Undifferentiated
69. It concentrates on a market segment that is not satisfactorily served or which is ignored by the
major players.
a. Concentrated c. Niche
b. Multi-segment or differentiated d. Undifferentiated
70. The market is treated as a whole.
a. Undifferentiated c. Concentrated
b. Multi-segment d. Niche
71. A company that produces breakfast cereals, for example, may produce a sweet cereal aimed at
children, an organic cereal for the health-conscious, and high-fiber cereal for dieters.
a. Concentrated c. Niche
b. Multi-segment or differentiated d. Undifferentiated
72. Instead of spreading itself thinly in many parts of the world, it decides to concentrate its forces on a
few clearly defined areas.
a. Concentrated c. Niche
b. Multi-segment or differentiated d. Undifferentiated
73. Such a strategy avoids direct and immediate competition with major firms.
a. Concentrated c. Niche
b. Multi-segment or differentiated d. Undifferentiated
74. Here, ‘price followers’ fix their price based on the leader’s pricing policy.
a. Competition-based pricing c. Penetration pricing
b. Marginal cost pricing d. Pre-emptive pricing
75. It involves selling the products you produce directly or indirectly to other countries.
a. Countertrading c. Licensing
b. Exporting d. Piggybacking
76. This market entry strategy involves asking other businesses whether you can add your product to
their overseas inventory. If your company and an international company agree to this arrangement,
both parties share the profit for each sale.
a. Countertrading c. Licensing
b. Exporting d. Piggybacking
77. It functions as a barter system in which companies trade each other's goods instead of offering their
products for purchase.
a. Countertrading b. Joint Venture
 c. Licensing d. Piggybacking
78. It occurs when one company transfers the right to use or sell a product to another company.
a. Countertrading c. Outsourcing
b. Licensing d. Greenfield investment
79. These attempt to minimize the risk of entering an international market by creating ventures with
other companies that plan to sell in the global marketplace.
a. Company Ownership c. Joint Venture
b. Franchising d. Licensing
80. If your company plans to sell a product internationally without managing the shipment and
distribution of the goods you produce, you might consider purchasing an existing company in the
country in which you want to do business.
a. Company Ownership c. Franchising
b. Countertrading d. Joint Venture
81. It consists of a chain retail company in which an individual or group buyer pays for the right to
manage company branches on the company's behalf.
a. Exporting c. Greenfield investment
b. Franchising d. Licensing
82. It involves hiring another company to manage certain aspects of business operations for your
company.
a. Countertrading c. Outsourcing
b. Franchising d. Piggybacking
83. These involve buying the land and resources to build a facility internationally and hiring a staff to
run it.
a. Franchising c. Outsourcing
b. Greenfield investments d. Turnkey projects
84. These apply specifically to companies that plan, develop and construct new buildings for their
clients. The idea is that the client can simply turn a key in a lock and enter a fully operational facility.
a. Franchising c. Outsourcing
b. Greenfield investments d. Turnkey projects
85. The society's endorsement of inequality, and its inverse as the expectation of relative equality in
organizations and institutions .
a. Human Heartedness c. Power distance
b. Moral Discipline d. Uncertainty Avoidance
86. The tendency of individuals primarily to look after themselves and their immediate families and its
inverse is the integration of people into cohesive groups.
a. Confusian Dynamism c. Integration
b. Individualism d. Uncertainty Avoidance
87. An assertive or competitive orientation, as well as sex role distribution and its inverse is a more
modest and caring attitude towards others.
a. Individualism c. Uncertainty Avoidance
b. Masculinity d. Human Heartedness
88. It taps a feeling of discomfort in unstructured or unusual circumstances whilst the inverse show
tolerance of new or ambiguous circumstances.
a. Confusian Dynamism c. Power distance
b. Individualism d. Uncertainty Avoidance
89. It is the degree of tolerance, harmony and friendship a society endorses, at the expense of
competitiveness.
a. Integration c. Power distance
b. Moral Discipline d. Uncertainty Avoidance
90. The rigid distancing from affairs of the world.
a. Confusian Dynamism c. Integration
b. Human Heartedness d. Moral Discipline
91. It refers to tools, artifacts and technology.
a. Aesthetics c. Material culture
b. Language d. Social Organization
92. It reflects the nature and values of society through communication.
a. Aesthetics c. Language
b. Education d. Material culture
93. It refers to the ideas in a culture concerning beauty and good tastes as expressed in the arts.
a. Aesthetics c. Material culture
b. Attitudes and Values d. Language
94. It refers to the transmission of skills, ideas and attitudes as well as training in particular disciplines.
a. Aesthetics c. Education
b. Material culture d. Social Organization
 CONCEPCION HOLY CROSS COLLEGE, INC.
SCHOOL OF BUSINESS ADMINISTRATION and ACCOUNTANCY
Minane, Concepcion, Tarlac
Semester | A.Y. 2023 – 2024

95. It provides the best insight into a society's behavior and helps answer the question why people
behave rather than how they behave.
a. Aesthetics c. Material culture
b. Attitudes and Values d. Religion
96. It refers to the way people relate to each other, for example, extended families, units, kinship, etc.
a. Aesthetics c. Religion
b. Education d. Social Organization
97. Under this category, positions are held from months to years.
a. Position trader c. Day trader
b. Swing trader d. Scalp trader
98. Under this category, positions are held from days to weeks.
a. Position trader c. Day trader
b. Swing trader d. Scalp trade
99. Under this category, positions are held throughout the day only with no overnight positions.
a. Position trader c. Day trader
b. Swing trader d. Scalp trade
100. Under this category, positions are held for seconds to minutes with no overnight.
a. Position trader c. Day trader
b. Swing trader d. Scalp trade

Prepared by: Approved by:

RODOLFO R. PATDU JR., LLB, LPT, RCrim JONATHAN G. PACIFICO, LPT, JD

Instructor Program Chair