Core good IB 2024

3) There is nothing inherently "good" or "bad" about any color of the spectrum and all
associations and perceptions regarding color arise from culture. Which of the following
statements is not true?
A) Red is a popular color in most parts of the world.
B) Red color is associated with "active," "vibrant," and "emotional."
C) Red color is preferred in many countries since it is the color of blood.
D) Red color is highly preferred in some African countries.

81) In developing countries, globalization's opponents accuse companies of:

A) undermining local cultures.
B) placing intellectual property rights ahead of human rights.
C) promoting unhealthy diets and unsafe food technologies.
D) all of the above

9. Culture is the sum of all of these except for

a. beliefs
b. rituals
c. geography
d. symbols

5. It happens in the...........society that the chance for individuals to move from one
stratum to another is higher.
A. less populated
B. more populated
C. more stratified
D. less stratified
30) The allure of the Latin American market has been its:
A) lack of inflation.
B) considerable size.
C) rapid economic growth.
D) low foreign debt.

12) Market capitalism is an economic system in which:

A) individuals and firms allocate resources that are privately owned.
B) the state has broad powers to serve the public interest as it sees fit.
C) market resource allocation is commanded by both private and state ownership.
D) there is no correlation between economic freedom and a nation's economy.

16) A vice-president of an American software company introduced himself to a group of

Korean partners and added "you may just call me John." Although this verbal cue shows
the underlying reality that Americans have a high value on informality and equality, it
needs adaptation due to the reason that:
A) John is not a very popular name in Korea.
B) it is difficult to translate John in Korean language.
C) customs, hierarchies, and class structure of Korean culture have to be respected.
D) Korean culture requires that first and last name be used in addressing guests.

38. In relation to the PESTEL framework, which of the following statements is correct?
A. It assists in the assessment of organizational strengths and weaknesses.
B. It allows a detailed analysis of the structure of an industry.
C. It can be used as a checklist to understand the different environmental influences in the
macro-environment.
D. Takes a historical perspective on the main political, economic, sociocultural,
technological, environmental, and legal factors.

13 / __________ of economic policy is intended to promote the integration of Indian

economy with the global economy.
A. Globalisatioin
B. Liberalisation
C. Privatisation
D. None of the above

31. A country in the stage of traditional society is characterized by

A. existence of the traditional rule.
B. non-existence of industries.
C. predominance of agriculture.
D. complete absence of literacy.

43) A characteristic of a low-context culture which is prevalent in the United States,

Switzerland, and Germany is that:
A) less information is contained in verbal communication.
B) major emphasis is on a person's values and position in society.
C) the messages are explicit and specific.
D) a person's word is his or her bond.

3. This refers to the preference for behavior that promotes one's self interest
a. power distant index
b. uncertainty avoidance index
c. individualism/collectivism index
d. cultural values and consumer behavior
4. which place considers ribbons and bow as part of gift wrapping to be unattractive
a. Europe
b. United States
c. Russia
d. Japan

6. which one of these is one of the basic origins that shape culture
a. consequences
b. peers
c. consumption decisions and behaviors
d. social institutions

12. Which of the following is true of culture?

A. cultures are multifaceted
B. cultures are stable and unchanging
C. cultural knowledge is innate rather than learned
D. cultures give us one, single identity rather than saveral overlapping identities

25. Social stratification is done on the basis of

A. Income level.
B. caste.
C. education.
D. any of the above.

26. Social mobility is measured by

A. The extent to which an individual can move the strata to which he/she belongs.
B. The promptness with which an individual accepts foreign assignments.
C. The extent to which inter-caste marriage is encouraged by society.
D. The extent to which the society as a whole shifts its habitat.
2. If a company realizes that people in different countries are willing to buy the same
product, then the approach the company can apply is:

a. localization b. internationalization

c. trans-nationalization d. standardization

18) Which type of economy consists mostly of households with very low family
incomes?
A) post-industrial
B) developed
C) subsistence
D) industrial

33) Which of the following is true of exporting?

A) It is the most complex way to enter a foreign market.
B) It involves the association of companies with host country partners.
C) It typically requires products to be extensively modified for the foreign market.
D) It involves the least change in a company's product lines.

1. One big impediment to exporting is the simple lack of ____________of the

opportunities available.

a. Knowledge

b. Understanding

c. Logistics

d. Strategy
2. Which aspect of globalization has led to the spread of international fast-food chains
and popular brands worldwide?
A. Cultural exchange
B. Technological advancements
C. Economic integration
D. Political cooperation

7. Internationalization stimuli refer to:

A. internal motives for foreign investment.
B. internal organizational factors arising from within the organization that influence a
firm's decision to initiate, develop, and sustain international business activities.
C. a multinational firm's motives for establishing an investment in a foreign location.
D. internal and external factors that influence a firm's decision to initiate, develop, and
sustain international business activities.

11. The market size ___.

A. is the single most important element of a country’s attractiveness.
B. must not be separated from purchasing power in an international business decision.
C. refers to how big the retail area is in a country.
D. is not important in an international business decision.

13. The potential future economic growth of a country ___

A. will mostly be a benefit to the late entrants of that market.
B. can be considered a first-mover disadvantage.
C. is related to pioneering costs.
D. will mostly be a benefit to the early entrants of that country.
12/ Globalization has the most direct impact on which of the following?
A. The firm's global sourcing contracts.
B.The offshoring potential of particular activities.
C. The firm's entire value chain.
D. The research and development costs facing the firm.

1. The stock of foreign direct investment (FDI) is measured as:

A/ the total amount received over a one year period.
B/ the total amount received over a five year period.
C/ the total amount of FDI to date.
D/ the current market value of FDI in a country.

3. Assume that country X has 12 official languages and appropriately 2,000 dialects.
Which of the following statements is most likely to be true?
A. Non-verbal communication is not quite effective in this country.
B. There are signs of differences in income and value exist among citizens of this
country.
C. MNEs should avoid country X due to costly adaptation needs.
D. Nationhood is the defining factor of the society in country X.

3. The political authority exercised at a higher level than the nation-state is termed:
A/ national sovereignty.
B/ sub-national governance.
C/ supra-national governance.
D/ globalization.
17. An “emerging middle class” refers to ___.
A. The growing number of people with significant purchasing power.
B. The growing number of rich people.
C. The growing number of poor people.
D. The growing number of the market size.

8. Defensive approaches to managing political risk focus on:

A/ reducing the probability of an adverse political event.
B/ maximizing the legal arguments that the MNE can mobilise.
C/ mitigating the costs of an adverse political event.
D/ extending risk insurance.

10. Liability of foreignness can result from:

A) challenges of coordination over distance.
B) lack of legitimacy in the host country.
C) economic nationalism in the host country.
D) all of the above.

19. Which of the following is NOT characteristic of the Latin American negotiating style?
A. impatience with documentation
B. hiding of emotions
C. impulsive decision making
D. loyalty to employer

2. Locally centralized value chains …

A/… aim at economies-of-scale.
B/ … use collective resources.
C/ … reconcile diversified local market needs.
D/ … leverage national differences in supply and production shortfalls.

9/ First mover advantage suggests that:

a) pioneering businesses are able to obtain higher profits and other benefits as the
consequence of early market entry.
b) first mover firms expand more rapidly in international markets than late movers in
international markets.
c) competing multinational firms enter an important market when a market is growing
very fast.
d) multinational firms with first mover advantages have greater strategic incentives for
investing in technical innovations than late movers.

High psychic distance can:

a) encourage the firm's international expansion into a given country.
b) encourage the firm's foreign investments in new international markets.
c) discourage the firm's use of strategic alliances.
d) discourage the firm's international expansion into a given country.

8. Power Distance is a cultural dimension about:

a. how much people want to achieve their goals
b. how much directors engage their subordinates in their decisions
c. how much in the future people plan
d. how important the community rather than the individual is

5. Which of the following characteristics cannot be attributed to culture?

A/ Mental programming
B/ Group phenomenon
C/ Shared meaning
D/ Personality

23. A multi-domestic MNC should use what type of controls on its foreign units?
A. Management should be given considerable latitude, but be required to meet some
predetermined performance targets.
B. Management should use a matrix structure allowing some limited autonomy of the
foreign unit.
C. Management needs to exert tight controls over its many units using a centralized
strategic operational decision-making format.
D. Management should use a functional approach assigning distinct and separate
responsibilities to each department throughout the MNC.

96) Many organizations no longer have a clearly defined home market. Nor do they have
home-office staffs. Instead, multicultural managers operate out of facilities located all
around the world, bringing diverse cultural perspectives to their brands and operations.
They are truly ________.
A) world product groups
B) geographical organizations
C) international subsidiaries
D) global organizations

25. Which of the following statements about global standardization is most accurate?
A. An enterprise realizes substantial scale economies.
B. An enterprise varies some aspect of its products but not its marketing messages.
C. An enterprise varies some aspect of its marketing messages but not its products.
D. An enterprise is taking into account local business systems and culture.

11/ Local responsiveness refers to _____.

A. the activities of communicating to the local customers.
B. hiring only local managers.
C. only satisfying local consumers.
D. the activities that aim at satisfying the evolution of local consumer’s needs and
preferences.

What strategy type is based on the idea of a shared vision and effective global
coordination, but also attempts to ensure adequate market adaptation or local
responsiveness?
A.Transnational strategy.
B.Multidomestic strategy.
C.International strategy.
D.Global strategy.

If Nissan realizes that many of its models in the US market are not selling well and
decides to discontinue them, it is engaging in:
A. value chain analysis.
B. environmental assessments.
C. control and evaluation.
D. information assessments.
The global MNC faces the dual challenge of achieving scale economies through
standardization while at the same time responding to
A. increased competition.
B. local customer differences.
C. higher prices.
D. global economics.

9. Bottom-of-Pyramid markets …
A/… are often underserved.
B/… are usually unprofitable.
C/… do not need marketing adaptation efforts.
D/ … are about low-income populations.

68) Which of the following is not a characteristic of global strategic alliances?

A) Participants maintain independence outside the framework of alliance.
B) Participants share benefits as well as control.
C) Participants make ongoing contributions in technology, products, and other areas.
D) Participants focus on an individual country market.

27. A company with a _______ predisposition allows the values and interests of the
parent company to guide strategic decisions.
A. ethnocentric
B. polycentric
C. geocentric
D. regiocentric

5. The idea that all countries are created equal and possess inalienable characteristics that
are neither superior nor inferior but simply there Headquarters and subsidiaries
collaborate to identify, transfer, and diffuse best practices is called?
a. Polycentric
b. Geocentric
c. Ethnocentric
d. Post polycentric

15. ......are residents of the international business's home country.

A. Parent country nationals
B. Host country nationals
C. Third country nationals
D. Primary country nationals

4. Firms with an ethnocentric orientation …

A/… give subsidiaries great autonomy.
B/… are driven by business activities in multiple countries.
C/ … adapt the marketing process to suit local market conditions
D/ … serve foreign markets without much adaptation

13/ Pioneering costs ________.

A. are lower for early entrants.
B. refer to the price of raw materials purchased in a new market.
C. also include the cost of educating customers.
D. are higher for later entrants.

17/ Which of the following is NOT a mode of entry into foreign markets?
a) Export
b) Internationalization
c) International joint venture
d) Franchising

15/ Large-scale entry _______.

A. limits a firm’s exposure to a market.
B. is less risky than small-scale entry.
C. is a slow way to enter a market.
D. is a proof that the company has strongly committed itself to that market.

40. A prior relationship with an alliance partner helps to develop

A. a level of trust.
B. a larger profit.
C. a stronger contractual agreement.
D. less need on negotiations.

30. General Electric is currently using a ________ strategy, as well as a _____ staffing
approach.
A. Global, geocentric
B. multidomestic, polycentric
C. regional, geocentric
D. transnational, ethnocentric

17. Which is not the key success factor of an expatriate?

A. self-orientation
B. perceptual ability
C. others-orientation
D. multi-tasking

10. What are societies least likely to converge on?

A/ Consumer preferences
B/Religion
C/ Cultural products (e.g., movies, arts, etc.)
D/ Attitudes to leisure

16. Companies that view themselves as multidomestic are more likely to...
A. provide visas to third country nationals
B. decentralize decision making
C. employ parent country nationals
D. centralize decision making

3.) Which of the following is a reason a company would want local to deal with their
foreign operations?
a) Cost containment
b) high turnover among locals
c) social integration
d) command and control
44. The ethnocentric approach to management is most likely used by firms that...
A. operate internationally the same way they do domestically
B. customize their operations for each foreign market in which they serve
C. analyze the needs of their customers worldwide and then adopt standardized operation
for all markets they serve
D. adapt their marketing strategies for foreign markets but not their finance strategy

Why do alliances between a large Western multinational firm and an emerging economy
firm often fail?
a) The cultural gap between partners is too large.
b) The partner objectives are very divergent.
c) The company size of partners is very different.
d) The organizational cultures of partners are different.

35. What is the key to the successful implementation of strategic alliances?

A. the selection of an appropriate country
B. the timing of the entry
C. the selection of the local partner
D. the size of the local partner firm

39. Choosing a wholly owned subsidiary ______.

A. is necessary for engaging in global strategic coordination.
B. allows to share the costs of operations with another business.
C. is the least costly method of serving a foreign market.
D. is the least risky way of serving a foreign market.

46. Which is not true of global functional division structure?

A. focuses the attention of key functions of the firm, wherein each functional department
or division is responsible for its activities around the world.
B. takes advantage of the expertise of each functional division
C. facilitates centralized control
D. in-charge of subsidiaries report to the head of the international division

51. The success of an international manager is least decided by which skills and abilities?
A. flexibility
B. extroversion
C. technical knowledge
D. emotional and physical health

Which orientation is a firm likely to have when its governance is top-down?

A) ethnocentric
B) polycentric
C) geocentric
D) regiocentric

Hofstede's cultural dimensions include all of the following except

A) power distance
B) masculinity
C) universalim
D) individualism
3) One benefit of a U.S. company entering a joint venture with an international firm is
that it
A) reduces the risks of expropriation by host country officials.
B) enhances the policy of the host country's takeover of the firm.
C) promotes skepticism among other countries not involved in the merger.
D) encourages competitors to work with the company.
20. Non-verbal communication
A. includes written communication.
B. has no place in international business.
C. includes body language.
D. should be learned by business managers to communicate with foreigners.

19. The following is not a component of culture

A. Attitudes.
B. Beliefs.
C. Education.
D. Life expectancy.

17. Countries/ regions with huge market size will attract

A. Market seeking FDI.
B. Efficiency seeking FDI.
C. Vertical FDI.
D. Created assets seeking FDI.

16. If a Thai company has branches in Vietnam and Malaysia, and has Thai people to
manage the branches in these two countries, then their approach is:
a. a franchise
b. ethnocentric
c. geocentric
d. an acquisition
53. The reasons that many American MNCs refer to use geocentric approach except ....
A. enabling the firm to make best use of its human resources
B. be able to build strong culture and informal management networks
C. immigration laws encourage the mobility of workers
D. build a cadre of international executives who feel at home working in a number of
different cultures.

55. MNCs within European Union refer to use geocentric staffing policy because...
A. it helps to protect currency rates
B. it promotes worker mobility
C. it ensures consensus building
D. it helps to maintain reasonable wage rates

56. Which of the following is not a phase of the process of acculturation?

A. honeymoon
B. acceptance
C. adaptation
D. biculturalism

58. Which of the following is a trend we are seeing with expatriation?

A. Expatriate jobs have increased due to globalization
B. Support packages beginning to be denied for an expatriate’s partner
C. Decreased benefits for legal and financial stumbling blocks
D. Increased compensation

57. Using....will most likely improve a subsidiary's ability to adjust to changes in local
economic and political conditions.
A. parent country nationals
B. host country nationals
C. third country nationals
D. home contry nationals

37) Which of the following does not contribute to the establishment of an international
division?
A) An organizational unit should be headed by a committed senior manager.
B) Complexity of international operations to make its own decisions.
C) Recognition of the need for internal specialists.
D) A lack of desire by management to scan the globe for opportunities and threats.

39) A company with headquarters in the United States and operational units in the
Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n):
A) regional management center.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.

41) The advantages that a regional management center can offer include all of the
following except:
A) pan-regional decision making.
B) coordinated regional planning.
C) considerable cost saving.
D) coordinated control.

43) One of the potential drawbacks of a regional management center is that:

A) pan-regional coordination efforts can suffer.
B) the cost can be prohibitive.
C) there is a lack of coordinated decision making.
D) regional management may take a one-sided approach when implementing corporate
objectives.

44) Under the geographical and product division structures, for the company with French
origins, France is:
A) the headquarter country market.
B) simply another geographic market.
C) a special unit of the European market.
D) a divisional market in Europe.

47) Which form of organization design is capable of integrating geographic knowledge,

product knowledge, functional competencies, and customer knowledge?
A) matrix structure
B) international division structure
C) geographic structure
D) worldwide product division structure

48) Having established that the matrix organizational structure is appropriate,

management can expect to integrate the following competency on a worldwide basis:
A) geographic knowledge.
B) product knowledge and know-how.
C) functional competence in finance, production and marketing.
D) knowledge of customer or industry and its needs.

85) Nike came under fire from critics who alleged poor working conditions in the
factories that make the company's athletic shoes. This is an example of the demand for:
A) labor unions.
B) equal opportunity employment.
C) corporate social responsibility.
D) standards for working conditions.

86) The universal concerns for global companies established by the United Nations
Global Compact consist of the following three dimensions:
A) factor conditions, demand conditions, industry conditions.
B) human rights, animal rights, and the environment.
C) content domain, human conditions and animal rights.
D) human rights, labor, and the environment.
7) While some food preferences remain deeply embedded in culture, there is plenty of
evidence that global dietary preferences are converging. Examples of such a change can
be predicted from the:
A) popularity of Domino's Pizza in Italy.
B) preference for local hamburgers from a local chain, Jollibee's, in the Philippines.
C) growing number of McDonald's restaurants globally.
D) increased sales of soups and noodles in Thailand.
8. An example of Aesthetics is
a. Language
b. funerals
c. folklore
d. cultural empathy

2) Suppose you have a friend from India who is a lifelong vegetarian and who does not
like McDonald's because the company sells hamburgers in many countries. Which of the
following describes your friend?
A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude
B) "vegetarianism" represents an attitude, "dislike McDonald's" represents a value
C) "vegetarianism" and "dislike McDonald's" both represent an attitude
D) "vegetarianism" represents a value, "dislike McDonald's" represents a belief

62) The Walt Disney Company's decision to build a theme park in France provides an
excellent vehicle to understanding SRC (Self-Reference Criterion). All of the statements
listed below portray this meaning except:
A) Disney executives believed there is virtually unlimited demand for American cultural
exports.
B) French are sensitive about American cultural imperialism.
C) Consuming wine with the midday meal is a long-established custom which was not
realized by Disney executives.
D) Disney executives were blinded by their prior success and ethnocentrism.

15) The Swedish government has significant holdings in key business sectors and has a
hybrid economic system that incorporates:
A) market capitalism and centrally planned socialism.
B) centrally planned socialism and market socialism.
C) centrally planned socialism and capitalism.
D) market socialism and market capitalism.
35 Social structure is best defined as....
A. means by which a society's members communicate with each other
B. attitudes of MNEs towards corporate social responsibility on a global scale
C. overall framework that determines the roles of individuals within a society
D. behavior of and opportunities available to MNC's operating in a given society

37) Prahalad and Hammond have identified several assumptions and misconceptions
about the "bottom of the pyramid" (BOP) that need to be corrected. All of the following
mistaken assumptions are correct except:
A) The poor are too concerned with fulfilling basic needs to "waste" money on
nonessential goods.
B) The goods sold in developing markets are so expensive that there is no room for a new
market entrant to make a profit.
C) The poor have no money.
D) People in BOP markets cannot use advanced technology.

3.(Silent Languages) consist of all the above except?

A. Time
B. Space Friendships
C. Family
D. Friendships

7. Hinduism stresses all of the following except....

A. spirituality
B. frugality
C. purity
D. consumption
10. _____ is an unconscious reference to one’s own cultural values, experiences, and
knowledge as a basis for decisions.

a. Ethnocentrism
b. Self-reference criterion
c. Cognitive bias
d. None of the above

17. An example of cultural factor that can affect international business is

A. the weather is too hot for selling icecream products without refrigeration units
B. consumer protection laws require expensive packaging
C. the major religion prohibits the use of alcohol in any food products
D. the change in interest rate of the commercial banks

36) The success of Uniqlo's retail stores can be attributed to it's decision to:
A) remain in Japan.
B) locate in high population density areas.
C) locate in low population density areas.
D) manufacture most of their products in Japan.

45/ The potential future economic growth of a country ___

A. will mostly be a benefit to the late entrants of that market.
B. can be considered a first-mover disadvantage.
C. is related to pioneering costs.
D. will mostly be a benefit to the early entrants of that country.

39) Companies that fail to formulate adequate responses to the challenges and
opportunities of globalization will face all of the following consequences except:
A) getting absorbed by visionary enterprises.
B) getting absorbed by dynamic enterprises.
C) becoming locally profitable enterprises.
D) undergoing wrenching transformations.

In an industry that is, or is rapidly becoming global, the riskiest possible posture is to
A) become a global competitor.
B) remain a domestic competitor.
C) remain a global competitor.
D) expand beyond the role of domestic competitor.

All of the following are potential advantages to initiating, continuing, and/or expanding
international operations EXCEPT
A. firms can gain new customers for their products.
B. foreign operations can absorb excess capacity, reduce unit costs, and spread economic
risks over a wider number of markets.
C. foreign operations can allow firms to establish low-cost production facilities in
locations close to raw materials and/or cheap labor.
D. foreign operations could be seized by nationalistic factions.

34 / The strategy to use joint ventures has several advantages which do not include:
A. risk sharing.
B. reduced financial risk.
C. reward sharing.
D. achieve synergy.

30) In the fast changing, competitive environment, new global realities are emerging,
which include all of the following needs except:
A) to be cost effective.
B) to deliver success.
C) to deliver best quality.
D) to deliver quickly.
Which of the following is not an example of foreign portfolio investment?
A. The purchase of a US stock by a US citizen
B. The purchase of a US Treasury bond by a German citizen
C. The purchase of a US mutual funds by a US citizen
D. The purchase of a Japanese factory by a French citizen

31) In today's dynamic global competitive environment, organizations need to develop

new forms of:
A) ethnocentrism and myopia.
B) flexibility, efficiency, and responsiveness.
C) export department structure.
D) self-reference criterion.

Entering a new market on a small scale ________.

A. is never a good advice.
B. increases the risks of failure.
C. is a choice sometimes taken even by large firms.
D. is a good advice but only for small companies.

13 / An example of foreign direct investment (FDI) would be which of the following?

a. Fiat manufacturing plants in Brazil
b. China purchasing US government bonds
c. American investment firms investing in Thailand’s stock market
d. Venezuela buying Mexican Pesos

Mode of Entry :
2) Which of the following is not true about a personal visit to size up the market firsthand
and begin the development of an actual export-marketing program?
A) Confirm assumptions regarding market potential
B) Contradict assumptions regarding market potential
C) Arrange a face-to-face meeting and avoid going to trade shows
D) Develop a marketing plan in cooperation with local agents

In alliance management, differences in management methods are often related to

differences in:
A. Culture
B. Communication skills
C. Management model
D. Management level

20) ________ is the most important aspect of a company's international orientation.

A) Experience
B) Commitment
C) Dynamism
D) Confidence

5. When McDonalds makes a hamburger with mutton instead of beef in India is called:
a. globalization
b. standardization
c. segmentation
d. localization

1) For Starbucks and other companies whose business models include a service
component, it is not recommended that they use one of the following methods for going
global.
A) joint ventures
B) licensing
C) 100-percent ownership
D) exporting

2) For Walt Disney Company, the best mode for going global is by:
A) joint ventures.
B) licensing.
C) 100-percent ownership.
D) exporting.

3) One of the advantages of licensing is:

A) licensees have limited control.
B) licensees have considerable autonomy.
C) license agreements have short life.
D) licensees can develop similar products.

Firms that emphasize location are attempting to create value by highlighting:

A. high level of brand consciousness.
B. early repatriation.
C. persistent ethnocentrism.
D. local responsiveness.

5) ________ represents a market entry strategy whereby one company permits a foreign
company to make use of its patents, know-how, technology, company name, or other
intangible assets in return for a royalty payment.
A) A joint venture
B) One-hundred-percent ownership
C) Licensing
D) Exporting

6) ________ provides technical specifications to a subcontractor or local manufacturer,

who then oversees production.
A) A joint venture
B) Contract manufacturing
C) Licensing
D) Exporting

6) ________ provides technical specifications to a subcontractor or local manufacturer,

who then oversees production.
A) A joint venture
B) Contract manufacturing
C) Licensing
D) Exporting
Which of the following market entry modes allows the organization to exercise the
highest levels of involvement and control?
A. Joint ventures
B. Mergers
C. Wholly owned subsidiaries
D. Licensing and franchising

29) Honda has invested $550 million in building an assembly plant in Greensburg,
Indiana; IKEA spent nearly $2 billion to open stores in Russia; and South Korea's LG
Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of:
A) acquisition.
B) licensing.
C) franchising.
D) FDI.

8) The advantages of "contract manufacturing" include all of the following except:

A) access to technical specifications by subcontractors.
B) access to technical specifications by local manufacturers.
C) considerable commitment of management resources.
D) limited commitment of financial resources.

10) Would-be franchisors ask all of the following questions except one before expanding
overseas:
A) How tough is the local competition?
B) Does the government respect trademark and copyrights?
C) Can profits be easily repatriated?
D) Can products be easily counterfeited?

12) The agreements that allow McDonald's franchisees around the globe to use
McDonald's trademarked name and menu items represent, in essence, which form of
market entry?
A) joint ventures
B) franchising
C) 100% ownership
D) exporting

Design Area:
9) As a company's initial international business involvement becomes too much for a
single manager or export department to handle, the next step is typically to establish a(n):
A) matrix structure.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.

2. A firm's organizational design typically aims to accomplish the following purposes

except....
A. allocating organizational resources
B. assigning tasks to employees
C. determining division of profits
D. employees learn about performance expectation

4. Overseeing international operations, marketing products, processing orders, working

with foreign distributors, and arranging financing when necessary are responsinlities of...
A. corollary approach
B. export department
C. global production team
D. international department

2. Konica has three divisions. One division focuses on selling high-quality film to film
studios. Another divition sells to professional and amateur photographers. Finally, its
new business division targets emerging markets. What organizational design does Konica
ultilize?
A. global product design
B. global customer design
C. global area design
D. global matrix design

12) When an organization assigns regional or worldwide product responsibility to its

product divisions, there are several advantages except:
A) manufacturing standardization can occur.
B) products can be tailored to local market needs.
C) can result in significant economies.
D) can result in saving development costs.

18. Which is not true of global functional division structure?

A. focuses the attention of key functions of the firm, wherein each functional department
or division is responsible for its activities around the world.
B. takes advantage of the expertise of each functional division
C. facilitates centralized control
D. in-charge of subsidiaries report to the head of the international division

1. Which of the following is not one of the managerial philosophies that guide the
approach to functions like organizational design and marketing?
A. ethnocentric approach
B. transnational approach
C. polycentric approach
D. geocentric approach

46) Boeing has reorganized its commercial transport design and manufacturing engineers
from functional lines into a matrix organization. This new design is expected to have all
of the following benefits except:
A) lower costs and quick updates.
B) facilitate problem solving.
C) unite engineering and manufacturing processes.
D) provide customer contacts.

2/ Which of the following is an organization structure that blends two or more

organizational responsibilities?
A. Matrix structure.
B. Global functional structure.
C. Global product structure.
D. All of the above.

4. Ford has five basic divisions, each one presents a different area of the world. Which
organization design does Ford use?
A. global product design
B. global customer design
C. global area design
D. global functional design

5 Which one of the following best describes a divisional structure?

A. Work is divided into subunits on the basis of such functions as manufacturing,
marketing, finance, and human resources.
B. This is most appropriate for large corporations with many product lines in several
related industries, with employees acting as functional specialists attempting to gain
synergy among divisional activities.
C. This is most appropriate for small, entrepreneur-dominated companies with one or two
product lines that operate in a small niche market, with employees acting as jack-of-all
trades.
D. Employees have two or more superiors, a project manager and a functional manager.

36) As a company's initial international business involvement becomes too much for a
single manager or export department to handle, the next step is typically to establish a(n):
A) matrix structure.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.
11. .........is the term referring to the process of linking and integrating functions and
activities of different groups, units, or divisions.
A. decentralization
B. coordination
C. subsidizing
D. channeling

3. A centralized organization means that

a. all the decisions are taken by the middle managers
b. decisions are taken only if all the departments agree
c. all the decisions are taken by the top management
d. each department decides of their own strategy

Geocentric MNEs are likely to have:

A. home country based mass production.
B. host country based batch production.
C. flexible manufacturing for global products with local variations.
D. flexible manufacturing with standardized products within a region.

4. One of the issues with global product structure is:

A. carrying out product modifications so as to meet rapidly changing customer needs in
diverse markets
B. replicating various functional activities and multiplicity of staff
C. enabling close coordination the technological and marketing aspects of various
markets
D. managing diversified product line

41) The advantages that a regional management center can offer include all of the
following except:
A) pan-regional decision making.
B) coordinated regional planning.
C) considerable cost saving.
D) coordinated control.

International control system starts with:

A. setting control standards for performance
B. measuring actual performance
C. comparing performance against standards
D. discussing deviations with employees

3. Which is the disadvantage of the global product design?

A. management skill
B. efficient production
C. global marketing
D. corporate learning

12. Which is not kind of organizational control?

A. Responsibility center control
B. Generic organizational control
C. Planning process control
D. Technical control

5. Term refers to a group of managers from different part of the world who are connected
to each other in some way:
A. liaison
B. task force
C. informal management network
D. formal management network