34 questions
Investments made by MNCs are termed as:
Indigenous investment
Foreign investment
Entrepreneur’s investment
None of the above
The process of rapid integration or interconnection between countries through free trade, free mobility of capital and labour is called
Foreign trade
Liberalisation
Globalisation
Privatisation
A company that establishes a new operation in a foreign country has made:
An acquisition
A merger
A greenfield investment
A brownfield investment
Which of the following organisations lays stress on liberalisation of foreign trade and foreign investment?
International Labour Organisation
International Monetary Fund
World Health Organisation
World Trade Organisation
A business which believes that a success story in one country can translate to all other countries in which it operates is …..
Polycentricity
Ethnocentricity
Geocentricity
Egocentricity
Decision making is decentralised and key personnel need to be recruited from the nation being targeted is a feature of …..
Polycentric
Geocentric
Ethnocentric
Geocentric
Polycentric
Ethnocentric
Neocentric
Decision making is centralised and key personnel from headquarters are sent to oversee operations in other countries. This is a feature of …..
Polycentric
Geocentric
Ethnocentric
A firm following a geocentric approach to staffing will pursue a system
A) in which all key management positions are filled by parent company nationals
B) in which host-country nationals are recruited to manage subsidiaries while parent-company nationals occupy key positions at corporate headquarters
C) in which the best people, regardless of nationality, are recruited to fill key positions throughout the organization
D) in which corporate bureaucracy overwhelms the system leaving key positions to be filled in a haphazard manner
In ____________ approach, the firm accepts a regional marketing policy covering a group of countries which have comparable market characteristics such as economic, cultural or political similarities and formulates operational strategies based on region instead of countries.
Polycentric
Ethnocentric
Regiocentric
Geocentric
Which of the following is an example of political risk?
Putting a quota on the number of carsimported
Civil unrest/war
Having a custom’s duty on a product
Double-taxing a corporation Double-taxing a corporation
The country in which a multinational company is a guest is called the...
home country
headquarters
host country
Visitor's Nation Visitor's Nation
When two or more firms come together to create a new business entity that is legally separate and distinct from its parents it is known as
contract manufacturing
Franchising
Joint ventures
Licensing
Ethnocentricity can be defined as the ________.
A) scientific description of individual human societies
B) systematic study of an ethnic group's religious core
C) merging of all ethnic practices into one homogeneous culture
D) belief that one's own ethnic group or culture is superior to that of others
Features of international business that a organization may be exposed to
Exchange rates
Political risks
Foreign economic condition
All of the above
Which of the following characterizes country risk?
The political and legal systems of adjacent nations greatly impact the country risk of nations that host foreign firms.
Country risk will change only after the creation of laws and regulations that affect foreign firms.
A nation's country risk level remains fairly constant until the election and installation of a new political leader.
Country risk is always present, but its nature and intensity vary over time and from country to country.
Which is not the difference between Merger and Acquisition?
Merger: It is the mutual decision.
Acquisition: It can be friendly takeover or hostile takeover.
Merger: Less expensive.
Acquisition: More expensive (higher legal cost).
Merger: It is time-consuming and the company has to maintain so much legal issues.
Acquisition: It is faster and easier transaction.
Merger: Merging of two companies into one.
Acquisition: Buying one company by another.
Alliance between 2 companies, both
own a part of the company, share risks, technology and rewards
Foreign Direct Investment
Licensing
Joint Venture
Internet
Export
Riskiest way of entering a new market, because it involves buying an existing business or setting a new one
Foreign Direct Investment
Joint Venture
Licensing
Export
Internet
It is an easy way to enter markets with high trade restrictions as a company gives the right to use the property to another company in a new market in exchange for a fee
Foreign Direct Investment
Licensing
Joint Venture
Internet
Export
Involves selling a good or service in another country with a limited adaptation, there's no need to invest in factories
Foreign Direct Investment
Exporting
Licensing
Joint Venture
Internet
If one company takes over another company (the purchase of one company by another) and establishes itself as the new owner (no new company is formed) what is type of the corporate's strategy?
joint venture
merger
acquisition
new opening
refers to the unrestricted flow of goods, services, and productive resources between countries
free trade
balance of trade
trade surplus
trade deficit
Which of the following is NOT an argument in favor of protectionism?
Protectionism shields infant industries from foreign competition
Protectionism safeguards workers’ jobs
Protectionism promotes industries that are essential to national security
Protectionism makes domestic firms more competitive in the long run
Tariffs are used to protect “Infant Industries”
True
False
Over-production in developed countries may be released into the markets of developing nations, which undercuts domestic prices and domestic producers may be forced to leave the market. This is called....
Dumping
Quota
Tariffs
Embargo
Which of these is an international trade agreement/organization?
United Nations Educational, Scientific and Cultural Organization (UNESCO)
United Nations (UN)
World Trade Organization (WTO)
Student Nonviolent Coordinating Committee (SNCC)
A protective tariff is intended to "protect" the
Domestic consumer from higher prices on foreign goods.
Domestic consumer from higher priced goods produced within the country.
Domestic manufacturer from higher priced foreign goods
Domestic manufacturer or farmer from lower priced goods imported into the country.