NHÓM 1: ENTRY STRATEGY AND 6.

How many factors affect the choice of

STRATEGIC ALLIANCES entry mode including?
A. 4
1. There are the benefits of participating in B. 5
parallel with international business C. 6
activities, except: D. 7
A. Businesses can learn from foreign Answer: D
competitors 7. Which of the followings is NOT a basic
B. The price will lower decision that a firm contemplating
C. Private culture is protected by the law foreign expansion must make?
D. Businesses can achieve the economic A. Which markets to enter
efficiency of scale B. When to enter new markets
Answer: C C. How to withdraw from markets
2. Direct investment includes ………….. D. Scale of entry into markets
A. 100% foreign capital Answer: C
B. Export 8. One of the following is NOT among the
C. Import main internal factors affecting the choice
D. Commodity Exchange Activities for market entry mode:
Answer: A A. International experience
3. What is the disadvantage of export B. Demand uncertainty
activities? C. Product
A. High tax D. Firm size
B. Transportation cost Answer: C
C. Cultural Differences
D. All the answers are correct
Answer: D 9. One of the following is not a main
4. What is/are the advantage(s) of export external factor affecting the choice for
activity/activities? market entry mode:
A. New, potential customers A. Demand uncertainty
B. Market expansion B. Market size
C. Reducing the cost of production C. Intensity of experience
D. All the answers are correct D. Intensity of competition
Answer: D Answer: A

10. The magnitude of the advantages and

5. If your company's product is disadvantages associated with an entry
snowboards, the leading potential market mode is NOT determined by:
will be in: A. The surface area of the country
A. Yemen B. The transport costs
B. Vietnam C. Trade barriers
C. Russia D. Economic and political risks
D. Thailand Answer: A
Answer: C
11. Which is the most traditional and well A. Piggybacking
established form of operating in foreign B. Joint – venture
markets? C. Exporting
A. Franchising D. Licensing
B. Exporting Answer: D
C. Joint – venture 16. Which of the following approaches is
D. Importing most appropriate for an organization
Answer: B with little experience in international
12. Exporting is attractive because markets?
A. It avoids the costs of establishing A. Joint venture
local manufacturing operations B. Acquisition
B. It helps the firm achieve experience C. Exporting
curve and location economies D. Strategic alliance
C. Both A and B Answer: C
D. Neither A nor B
Answer: C 17. Which of the following is a type of
selecting entry mode?
A. Technological Know-How
13. Franchising involves: B. Management Know-How
A. The transfer of patented information C. Both A & B
and trademarks, information and D. Neither A nor B
know-how as well as information Answer: C
needed to sell a product or service
B. The use of franchising for licensing 18. What is the difference between
new technologies in global markets Franchising and Licensing?
C. The transfer of a business concept, A. Low development costs and risks
with corresponding operational B. Inability to engage in global strategic
guidelines, to non-domestic parties coordination
for a fee C. Inability to realize location and
D. Greenfield investment in a experience curve economies
completely new facility, or D. None of the above
acquisition of or merger with an Answer: C
already established local firm 19. Which of the following is NOT an
Answer: C advantages of Wholly owned
14. Which of the following is NOT a mode subsidiaries?
of entry into foreign markets? A. Protection of technology
A. Export B. Ability to engage in global strategic
B. Internationalization coordination
C. International joint venture C. Politically acceptable
D. Franchising D. Ability to realize location and
Answer: B experience curve economies
15. Companies such as Coca-Cola and Answer: C
Disney have achieved growth through:
20. How does a franchise differ from a 24. Which is NOT the advantage of
license? Greenfield Ventures?
A. A franchise owner runs a business for A. Preempt competitors
the person who actually owns the B. Can build subsidiary it wants
license C. Possibly less risky
B. A license grants the right to use a D. A & C are correct
name or image on a product, while a Answer: D
franchise agreement provides that 25. Choosing Acquisition when have these
right plus marketing, training, and factors:
other support A. Well-established, incumbent firms;
C. A license grants the right to start a Competitors interested in entry
business and run it exactly as the B. Embedded skills, routines, culture;
licensor wants it to be, while a Competitors interested in entry
franchise agreement grants the right C. Embedded skills, routines, culture;
to use a name or image on a product No competitors
D. None are correct D. Well-established, incumbent firms;
Answer: B No competitors
Answer: A
21. The greater the pressure for cost 26. Which are the favorable of the foreign
reductions are, the more likely a firm markets?
will want to pursue some combination of A. Politically stable developed and
………………………… and wholly developing nations
owned subsidiaries. B. No dramatic upsurge in inflation or
A. Exporting private-sector
B. Franchising C. Politically unstable developing
C. Licensing nations with a mixed or command
D. Turnkey Projects economy or where speculative
Answer: A financial bubbles have led to excess
22. Which is the advantage of Acquisition? borrowing
A. Easy to establish operating routines D. A and B are correct answers
B. Can build subsidiary it wants Answer: D
C. Quick to execute 27. How many types of strategic alliances?
D. None are correct A. 2
Answer: C B. 3
23. Which is the disadvantage of Greenfield C. 4
Ventures? D. 5
A. Slow to establish Answer: C
B. Risky 28. The equity strategic alliance means
C. Preemption by aggressive A. An alliance in which 2 or more firms
competitors own different percentages of the
D. All of the above company they have formed by
Answer: D combining some of their resources
 B. Capabilities to create a competitive B. Nokia and Microsoft in alliance to
advantage make Zune phone
C. An alliance in which 2 or more firms C. Star Alliance – Airlines alliances
develop a contractual-relationship to D. All of the above
share some of their unique resources Answer: D
D. A and B are correct answers 33. How many are the various modes of
Answer: D entry?
29. Which is the non-equity strategic A. 3
alliance means? B. 4
A. An alliance in which 2 or more firms C. 5
own different percentages of the D. 6
company they have formed by Answer: D
combining some of their resources
B. Capabilities to create a competitive 34. Which is NOT the entry mode?
advantage A. Exporting
C. An alliance in which 2 or more firms B. Licensing
develop a contractual-relationship to C. Franchising
share some of their unique resources D. Direct
D. A and B are correct answers Answer: D
Answer: C 35. Which answer is the market entry
30. Which is the global strategic alliances methods?
means? A. Exporting/Importing
A. Working partnerships between B. Contractual Entry Modes
companies – across national C. A and B are correct answers
boundaries or May be between D. Manufacturing
foreign government Answer: C
B. Legally Independent Company 36. Which answer is the Core competencies
C. Own different % of the company for entry mode?
D. A contractual- relationship A. Technological Know-How
Answer: A B. Management Know-How
31. Which is the joint venture means? C. A and B are the correct answers
A. Working partnerships between D. Accountant Know-How
companies – across national Answer: C
boundaries or May be between 37. Which is the main factor to have the
foreign government success of an alliance?
B. Legally Independent Company A. Alliance structure
C. Own different % of the company B. Partner selection
D. A contractual- relationship C. Managing the alliance
Answer: B D. All the answers are correct
32. What is an example of alliance? Answer: D
A. Nestle and Fonterra Sign Agreement 38. To select a partner. What should the firm
on Dairy Alliance for the America do?
 A. Collect as much pertinent, publicly
available information on potential
allies as possible
B. Gather data from informed third
parties, including firms that have had
alliances with the potential partners,
investment bankers who have had
dealings with them and former
employees
C. Gather data from formed third
parties, including firms that have had
alliances with the potential partners,
investment bankers who have had
dealings with them and former
employees
D. A and B are the correct answers
Answer: D
39. Which of the following entry modes
allow(s) a company to engage in global
strategic coordination?
A. Wholly owned subsidiaries
B. Exporting
C. Licensing
D. Joint ventures
Answer: A
40. A key to making a strategic alliance
work is
A. Having one partner handle daily
operations
B. Sharing all knowledge
C. Enforcing one culture for both
partners
D. Reducing investment in the alliance
to a minimum
Answer: D
41. Which of the following is NOT a risk of
exporting?
A. Tariff barriers
B. Transportation costs
C. Delegation of marketing activities to
a local agent
D. Prime interest rates
Answer: C
42. Which of the following companies
increased company growth rates by
developing products at home and then
expanding sales of these products in
international markets?
A. Procter & Gamble
B. Ford
C. Toyota
D. All of the above
Answer: D
43. Firms should choose likely countries for
an international expansion effort based
on all of the following except the
A. Age of the country
B. Existing wealth of consumers in that
market
C. Likely future wealth of consumers in
that market
D. Political stability of that market
Answer: A
44. What are the risks associated with
licensing as a means of entering overseas
markets?
A. Licensing limits a company's ability
to coordinate strategic moves across
countries
B. A company may lose control of its
technology
C. A company may lose control over its
manufacturing, marketing, and
strategic functions
D. All of the above
Answer: D
45. A nation's companies gain competitive
advantage if their domestic customers
are
A. Non-demanding purchasers
B. Willing to spend money on novelties
C. Sophisticated and demanding
D. Able to obtain products or services in
other countries
Answer: B
46. Which one is not the advantage of the
strategy alliance?
A. Entry the foreign markets
B. Sharing the firm’s fixed cost and risk
C. Increase competition between the NHÓM 2
firms QUESTION OF CHAPTER 4 - THE
D. Establish the technological standards ORGANIZATION OF
for the industry INTERNATIONAL BUSINESS
Answer: C
Question 1: What factors should be
based on that to establish the
47. “One key to making the alliance work is organizational structure?
to select …. “ a. Corporate strategy.
A. Strong competitors b. Company size.
B. Abundant resources c. Industry characteristics.
C. Right markets d. Regional politics.
D. Right ally Question 3: What are the disadvantages
Answer: D of a functional organizational?
48. What is the most important essential a. Violating the principle of command
characteristic a good partner need to uniformity.
have? b. It is difficult to train and find
A. Helping achieve the goals managers to meet the needs of this
B. Sharing skills and knowledge for the model.
purpose the alliance c. The responsibility regime is not clear.
C. Loyalty d. b and c
D. All of the above Question 4: What are the advantages of
Answer: D a function organizational?
49. What activity should belong to make the a. Respect the principle of unity and
Alliance? command.
A. Partner Selection b. The parts easily coordinate with each
B. Alliance Structure other.
C. Managing Alliance c. Cost savings.
D. All of the above d. Use good professionals.
Answer: D Question 5: Which has a level of
50. What is the Relationship Capital? decentralization in line with international
A. The Firms’ Managers Relationship strategy?
B. Multinational Enterprises a. Centralization.
Relationship b. Decentralized.
C. International Human Resources c. Focus on managing core
Relationship competencies, decentralizing other
D. All of the above activities.
Answer: A
d. Centralized management of global
production centers, decentralized other
operations.
Question 6: In the classical global
matrix structure, horizontal differences
proceed in two dimensions:
a. Product division and geographical
area.
b. Product division and marketing
strategy.
c. Geographical area and marketing
strategy.
d. Strategy and business strategy.
Question 7: Which one is used to
building an organizational structure?
a. Identify each part (unit).
b. Establish horizontal relationships
between units or divisions.
c. Establish organizational relationships.
d. All right.
Question 8: Which organizational
structure model is suitable for businesses
operating in highly competitive
environments, fluctuating production and
business situation, scarce resources and
changing customers?
a. Matrix model.
b. Function model.
c. Product division model in domestic
business.
d. International department model.
Question 9: Which one is the main
reason why an administrator should
subordinate?
a. Reduce work pressure.
b. Have time to focus on important
issues.
c. Train successors.
d. Create an effort for the staff
Question 10: Decentralization in
administration is the transfer of power
from superiors to subordinates in:
a. Certain limits
b. Certain regulations
c. certain structure.
d. Certain time.
11.____is a shared system of values
and norms among employees.
A) Organizational systems
B) Collective sensemaking
C)Organizational culture
D)Cultural sensitivity
12. Which of the following terms is
NOT included in the definition of
organizational culture ?
A . sensible procedures
B shared , often implicit assumptions
C . guides the behaviour and thinking of
organizational members
D . beliefs and values
13. Fill in the missing word in this
definition of culture “ the basic
assumptions and_____ which are
shared by members of in an
organization
A)Hopes
B ) Belief
C ) Fears
D ) Views
14.What, according to management
gurus Deal and Kennedy, is the main
reason that managers should be
interested in transforming their
culture?
A) it increases a firm's performance
B) It makes companies a happier place to
work in.
C) it saves time on training 19. The difference between using
regulations and corporate culture in
D) It helps employees cope with change.
the company is:
15.When an organization
A. Compulsory regulations, voluntary
becomes_____ it takes on a life of its
culture
own, apart from its founders or any of
its members. B. Mandatory voluntary culture and
culture
A)institutionalized
C. Regulation and culture are no
B) stabilized
different
C)cultured
D. The Regulation has a promulgated
D) mature text and a culture has no promulgated
documents
16. Which of the following is NOT a
characteristic of an organization's Question 20: The impact of
culture? Organizational culture is...
A) Outcome orientation A. Creating competitive advantage
B) Assertiveness B. Creates weakness
C) innovation and risk taking C. A&B are right
D)Attention to detail D. A&B are wrong
17. An enterprise with a strong culture Question 21: How many formal
and appropriate to its goals and integrating mechanisms?
strategies: a. 1
b. 2
A. Create pride for employees c. 3
B. make leadership easy to manage d. 4
C. Make employees comfortable and Question 22: Collocation the level of
proactive Formal Integrating Mechanisms
D. All of Them a. Direct contact - Liaison roles –
Teams - Matrix structure
18.The facilities are .... for businesses, b. Matrix structure – Liaison roles –
Organizational culture is ... for Teams – Direct contact
businesses. c. Liaison roles - Matrix structure -
A. value, value Direct contact – Teams
d. Teams - Liaison roles - Direct contact
B. Money, Property - Matrix structure
C)Corpse, Soul Question 23: ABC information, Inc -
operates in a rapidly changing high -
D, property, value
technology environment, which of these
would represent the most complex
integrating mechanism favored by ABC?
a. Matrix structure
b. Direct contact
c. Teams
d. Liaison roles
Question 24: The formal mechanisms
used to
a. Integrate subunits vary in complexity
from simple direct contact.
b. Integrate subunits vary in
complexity from simple direct contact
and liaison roles, to teams, to a matrix
structure
c. Integrate subunits vary in complexity
from simple direct contact and liaison
roles
d. Integrate subunits vary in complexity
from simple direct contact and liaison
roles to teams
Question 25: What is the truth about the
knowledge network?
a. A knowledge network is a network
for transmitting information within an
organization that is based not on
formal organization structure
b. A knowledge network is a network for
transmitting information within an
organization that is based on formal
organization structure
c. A knowledge network is based on
informal contacts between managers
within an enterprise and distributed
information systems
d. A and C
Question 26: Differences between
Informal Integrating Mechanism and
Formal Integrating Mechanisms
a. No Differences.
b. Integrating Mechanism is based not
on formal organization structure.
c. Formal Integrating Mechanisms is
based not on formal organization
structure.
d. Informal integrating Mechanism is not
used in general, and matrix structures in
particular.
Question 27: Managers at different
locations within the organization must be
linked to each other at least indirectly, in
which Integrating Mechanism is used in
this situation.
a. Informal Integrating Mechanism.
b. Formal Integrating Mechanisms.
c. No Integrating Mechanism.
d. A and B
Question 28: What are impediments to
Coordination.
a. Managers of the various subunits have
different orientations.
b. They don’t speak the same language.
c. They have differing goals.
d. All correct.
Question 29: What is true about
Integrating mechanisms?
a. Integrating mechanisms help increase
communication and coordination so that
different divisions can work together to
solve problems.
b. Integrating mechanisms are essential
for larger companies because
communication can get lost between the
various departments.
c. Integrating mechanisms have 2 types:
Informal Integrating Mechanism and
Formal Integrating Mechanisms.
d. All correct.
Question 30: Direct contact is:
a. The simplest integrating
mechanism.
b. The most complex integrating
mechanism.
c. Used when the need for coordination
is greater still.
d. Informal Integrating Mechanism.
Question 32:According to psychologist
Kurt Lewin, which of the following is
not a stage in the change process?
a. Unfreezing.
b. Mediating.
c. Changing.
d. Refreezing.
Question 33:What are sources of
organizational inertia?
a. The existing distribution of power and
influence within an organization.
b. Existing culture.
c. Institutional constraints.
d. All the above is correct.
Question 34:The basic principles for
successful organizational change:
a. Unfreezing the organization, moving
to the new state.
b. Unfreezing the organization,
moving to the new state, refreezing the
organization.
c. Refreezing the organization, moving
to the new state.
d. Unfreezing the organization,
Refreezing the organization.
Question 35:What are the most require
substantive changes in an organization?
a. Structure.
b. Distribution of power.
c. Influence within the organization.
d. All the above.
Question 36: What did shock therapy to
unfreeze the organization include?
a. Closing plants deemed uneconomic.
b. Announcing a dramatic structural
reorganization.
c. Both of them are wrong.
d. Both of them are right.
Question 37: Moving to the new state
require:
a. Taking action—closing operations;
reorganizing the structure.
b. Reassigning responsibilities; changing
control, incentive, and reward systems.
c. Redesigning processes; and letting
people go who are seen as an
impediment to change.
d. All the above.
Question 38: When must an
organization move to the New State?
a. Unfreezing.
b. Refreezing.
c. Changing.
d. Mediating.
Question 39: Which one takes time
longer than two others?
a. Unfreezing.
b. Refreezing.
c. Move to the new state.
d. None of them.
Question 40: How many kinds of
implementing organizational change are
there?
a. 2
b. 4
c. 3
d. 1
Question 41: How many kinds of
control systems are used in multinational
firms?
a. 3
b. 4
c. 5
d. 6
Question 42: Which of the following is
not one of Seven Spiritual Values?
a. Strategy update
b. Harmony and cooperation
c. Both A and B are right
d. Both A and B are wrong
Question 43: Which sentence is the
correct one when talking about the
incentive system?
a. Incentive systems can have
unintended consequences.
b. Strategic successful implementation in
multinational companies often requires
significant cooperation between
employees in the same subunit.
c. Incentives refer to devices that are
used to punish inappropriate employee
behavior.
d. All of the above are correct.
Question 44: Which sentence is not one
of Google's organizational culture:
(Normal)
a. Priority flexibility and creativity.
b. Focus on recruiting by personality
than skills.
c. Continuous development and
innovation.
d. Focus on tradition and nostalgia.
Question 45: The key to understanding
the relationship between international
strategy, control systems,
and_______systems is the concept of
performance_______.
a. Employees/quality.
b. Employees/ambiguity.
c. Incentive/quality.
d. Incentive/ambiguity.
Question 46: _________ is control
through a system of rules and procedures
that directs the actions of subunits.
a. Personal control.
b. Output control.
c. Bureaucratic control.
d. Output management.
Question 47: Which one is true when
talking about cultural control?
a. In a firm with a strong culture, hire
more employees can reduce the need for
other control systems.
b. Employees tend to control their
behavior, help reduce the need for
direct supervision.
c. Both A and Bright.
d. Both A and B wrong.
Question 48: Which one is not true
when talking about the process? (Hard)
a. Efficient and effective processes can
lower the costs of value creation and add
additional value to a product.
b. An organization’s processes can be
summarized by means through a flow
chart, which illustrates the various steps
and decision points involved in
performing work.
c. The core competencies or valuable
skills of a firm are embedded in its
processes.
d. Performing processes effectively
never requires the establishment of
formal integrating mechanisms and
incentives for cross-unit cooperation.
Question 49: When performance
ambiguity makes it difficult to judge the
performance of_________ as stand-alone
entities, linking the incentive pay
of_________ to the entity to which both
subunits belong can_________ the
resulting problems.
a. Subunits/senior managers/reduce.
b. Subunits/employees/reduce.
c. Subunits/reduce/senior managers.
d. Subunits/reduce/employees.
Question 50: Culture is maintained by a
variety of mechanisms. These include:
a. hiring and promotional practices of
the organization, reward strategies,
socialization processes, and
communication strategy.
b. hiring and promotional practices of the
organization, reward strategies, R&D,
interdependence.
c. hiring and promotional practices of the
organization, R&D, socialization
processes, and communication strategy.
d. hiring and promotional practices of the
organization, R&D, reward. strategies,
interdependence.
 3. Which of the followings occur
when the potential consumer evaluates
the message on the basis of status or
image of the sender
A. Cultural barriers
B. Noise levels
C. Country of origin effects
D. Source effects

4. Which of the following helps a

firm overcome cultural barriers?
NHÓM 3
A. Develop cross-cultural
1. The effectiveness of a firm's literacy
international communication depends B. Use foreign input
upon potentially critical variables. These C. A is incorrect and B is
variables can be seen to fall into three correct
main groups D. Both A&B are correct
A. Channel length, cultural
barriers, and retail concentration 5. This is the place that are not
B. Noise levels, channel limited to independent trading houses;
exclusivity, and channel quality. any firm with a strong local reputation
C. Channel length, source could serve as well.
effects, and cultural barriers A. Sole agents
D. Noise levels, source B. Exclusive distributor
effects, and cultural barriers C. Export agents
D. Import agents
2. Distributors do not carry the
products of competing firms. In return, 6. The quality of retailers in
they are guaranteed an attractive markup emerging markets and less developed
by the manufacturer. The correct of nations from Russia to Indonesia,
distribution strategy is: channel quality is:
A. Retail concentration A. The same
B. Source effects B. Variable at best
C. Channel exclusivity C. Extremely good
D. None of them D. Very bad
7. If you were a consumer of goods 10. One of two conditions which is
made in Japan instead of in Chinese necessary for profitable price
whether the quality of goods was better, discrimination is:
what would the factor affect you? A. The firm must be able to
A. Cultural barriers keep its national markets
B. Source effects separate
C. Country of origin effects B. The firm must be not able
D. Noise levels to keep its national markets
separate
C. The firm must be able to
8. Which is/are NOT the benefits of keep its national markets
using a longer channel? connected
A. market access-the ability to D. All are incorrect
enter an exclusive channel.
B. cuts selling costs when
the retail sector is not 11. .......... is a measure of the
fragmented. responsiveness of demand for a product
C. Both A&B are correct. to change in price. Fill in the blank.
D. Both A&B are incorrect. A. The price elasticity of use
B. The price elasticity of
9. Cultural barriers can make it … to import
communicate messages across cultures. C. The price elasticity of
Because of cultural differences, a export
message that means … thing in one D. The price elasticity of
country may mean something quite … in demand
another.
A. Difficult – one – different
B. Different – one – difficult 12. A strategy of ______ pricing
C. Difficult – two – different involves using price as a competitive
weapon in order to push competitors out
D. Different – two – difficult
of a national market.
A. Incremental
B. Predatory
C. Psychological
D. Premium
13. New product development stage 15. A firm may charge .........for its
in which concept is tested whether idea product in a country where competition
has strong appeal is called is ....... than in one where competition is
A. concept development ...... (E)
B. concept testing A. A higher price/ intense/
C. material testing limited
D. market screening B. A lower price/ intense/
limited
C. A higher price/ limited/
14. What are the objectives of intense
strategic pricing? D. A lower price / limited /
(1) To intense
gain a
competitive
advantage 16. Which of following is incorrect
over rivals. A. The elasticity of demand
(2) To for a product in a given country is
become a determined by a number of
monopoly in factors, of which income level and
a market and competitive conditions are the two
maximize the most important
profits B. Price elasticity tends to
(3) To be greater in countries with
achieve the high income levels
market’s C. Demand is said to be
share and inelastic when a large change in
prevent of price produces only a small
competition. change in demand
A. (1) & (2) D. All are incorrect
B. (2)
C. (1) & (3)
17. The marketing mix is comprised
D. (1), (2) & (3) of:
A. Product attributes and
Pricing strategy
B. Distribution strategy
C. Communication strategy
D. All are correct
18. Which is not the type of market 21. The modern view of technological
segmentation? advance is that it is
A. Geographic segmentation. A. rooted in the independent
B. Demographic advancement of science
segmentation. B. best stimulated through
C. Personality segmentation. government R&D spending
D. Behavioral segmentation C. a result of intense rivalry
among individuals and firms
D. a random outside force to
19. The first discovery of a product or which the economy adjusts
process through the use of imagination,
ingenious thinking, and experimentation
and the first proof that it will work is 22. Consumers will buy a new
A. process innovation product only if
B. product innovation A. it has a lower marginal
C. creative destruction utility per dollar spent than
D. invention another product
B. there is a substantial
budget for promotion and
20. The major difference between marketing
entrepreneurs and other innovators is C. it can be sold at a lower
A. innovators work in teams, price than that for a competing
but entrepreneurs do not product
B. innovators manage start- D. it increases the total
ups, but entrepreneurs do not utility they obtain from their
C. entrepreneurs bear limited income
personal financial risk, but
innovators do not
D. entrepreneurs invent new
products and processes, but
innovators do not
23. In which of the following 26. Fill in the blanks below. "The
situations do geographical structures best most important aspect of cultural
serve firms wishing to internationalize? differences is probably the impact of ..."
A. When firms have A. History
diversified products lines and B. Geography
extensive R&D activities C. Tradition
B. When companies are more D. Ethnicity
experienced with international
markets and business 27. One major advantage of being the
C. When firms have a first to develop a product is the
homogeneous range of products A. use of the fast-second
that need fast and efficient strategy
worldwide distribution B. increase in retained
D. None of the above earnings
C. lower interest-rate costs of
funds
24. .……………. refers to identifying
D. potential for profitable
distinct groups of consumers whose
buyouts
purchasing behavior differs from others
in important ways
A. Market segmentation 28. Technological advance as
B. Product Attributes embodied in process innovation typically
C. The Globalization of A. decreases allocative
Markets efficiency
D. The Globalization of B. increases allocative
Brands efficiency
C. decreases productive
efficiency
25. Fill in the blanks below. "A ... is a
D. increases productive
system in which there are many retailers
efficiency
and none of them occupy a large market
share in the market."
A. Exclusive distribution 29. The team-based new-product
channel system. development approach is faster because
B. Agent system. departments work closely together
C. Fragmented retail through
system. A. Departmentalization
D. Supplier system. B. cross-functional teams
C. team efforts
D. a step-by-step process
30. A firm can obtain new products in 34. . …………………….. is an
two ways. First, it can develop them by important component of the overall
using its own research and development international marketing mix?
department. Second, it can A. Standardized Advertising
A. Steal them B. Cultural differences
B. Get them through C. International pricing
acquisition strategy
C. Transfer them between D. Price discrimination
divisions
D. Copy Them
35. Push strategies tend to be
emphasized:
31. What example was one of the A. For industrial products or
most successful Standardized campaigns complex new products.
in history? B. When distribution channels
A. Marlboro cigarette are short.
B. Coca-Cola C. When few print or
C. Kellogg Cornflakes electronic media are available.
D. American Express D. All are correct

32. What is the limitation of 36. Which of the following statements

Standardized Advertising? is correct when mentioning about pulling
A. Cultural Differences strategies is often emphasized?
B. Standardized advertising A. When distribution channels
increases the cost of value are short.
creation B. When sufficient print and
C. Restrictions on media electronic media are available to
D. A&B are correct carry the marketing message.
C. A&B are correct.
D. A&B are incorrect
33. What aspects are mentioned in the
International pricing Strategy?
A. Price Discrimination
B. Strategic pricing
C. Government-mandated
price controls
D. All are correct
37. Which of the following is correct
when mentioning about a pull strategy?
A. A pull strategy depends
more on mass media advertising
to communicate the marketing
message to potential consumers.
B. A pull strategy emphasizes
personal selling rather than mass
media advertising in the
promotional mix.
39. Price discrimination exists
whenever consumers in ......... countries
are charged ........ prices for the same
product or for slightly ........ variations of
the product. Fill in the blank
A. different/ same /different
B. different different/ same
C. different/ same/ same
D. different/ different/
different

C. A pull strategy refers to the 40. Which of the following is true?

expertise, competencies, and
skills of established retailers in a
nation, and their ability to sell and
support the products of
international business.
D. A pull strategy becomes an
issue when two or more
international businesses compete
against each other in two or more
national markets.
(H)
A. Both predatory pricing and
experience curve pricing can’t run
afoul of antidumping regulations
B. Antidumping rules set a
floor under export prices and
limit firms’ ability to pursue
strategic pricing
C. Dumping occurs whenever
a firm sells a product for a price
that is more than the cost of
producing it
D. All are incorrect

38. Segments that transcend national

borders exist in certain _____________ 41. The inverted-U theory of R&D
markets but are rare in _____________ suggests that R&D effort is at best weak
markets. in
A. consumer; industrial A. low-concentration
B. industrial; consumer industries only
C. service; industrial B. high-concentration
industries only
D. consumer; service
C. low- and high-
concentration industries
D. low- to middle-
concentration industries
42. Global branding is a branding 45. How many main arguments are
alternative that bears great advantages there in the advantages of standardized
such as: advertising?
A. Reduction of advertising A. 1
costs B. 2
B. Uniform worldwide image C. 3
C. Elimination of brand D. 4
confusion, easy identification and
recognition
D. All of the above
46. What is the main content of
Dealing with Countries Differences?
43. In international marketing it is
much easier to: A. Apply only local
Advertising
A. standardize the core
product benefits across markets B. Combine some features
rather than to standardize the of advertising campaign and
support services. localize features
B. standardize the after-sales C. Apply Standardized
service of a product across Advertising
markets than it is to standardize D. All are incorrect
staff behavior.
C. standardize the brand
47. Some firms are experimenting
across markets rather than to
with capturing some benefits of global
standardize the core product
standardization while recognizing
benefits.
differences in ……………………….
D. standardize the quality of a
A. Countries’ culture &
product across markets than it is
legal environments
to standardize its image.
B. Countries’ culture &
human behaviors
44. Innovation is a major factor in C. Legal environments &
competition because it can human behaviors
A. be patented to protect the D. Countries’ culture &
investment of the developers advertising content
B. enable firms to make
competitors' products obsolete
C. guarantee the monopoly
position of innovative firms
D. reduce research and
development costs for firms
48. Which of following is correct 51. Which of the following is correct?
when talking about the main purpose of A. The most important aspect
International advertising? of culture is probably tradition.
A. To assist business B. Tradition is especially
executives to make profitable important with food and drink
international advertising products.
decisions for their specific C. A&B are incorrect
products and services D. A&B are correct
B. to inform the consumers
about their product and convince
customers that a company's 52. Which of the following is the
services or products are the best main difference between the distribution
C. to set overall goals for your systems?
business and to develop a plan to A. Concentration in the retail
achieve them industry.
D. is to identify the specific B. Channel length.
goals and needs of customers and C. Exclusive channels and
to guide the creation of products channel quality.
or services to fulfill them D. All are correct

49. Demand is said to be elastic when

A. a small change in price
produces only a small change in
demand
B. a large change in price
produces a large change in
demand
C. A&B are correct
D. A&B are incorrect

50. How many aspects of Strategic

Pricing?
A. 2
B. 3
C. 4
D. 5
53. Which of the following is the
incorrect statement about fragmented
retail?
A. Countries with
fragmented retail systems tend
not to have long distribution
channels, restricting the use of
multiple intermediaries.
B. Japan is the place where
there are usually 2 or 3
intermediaries for distribution
between the company and
retailers.
C. In England, Germany,
USA - where the retail system is
concentrated, the distribution
channels are shorter.
D. As the retail sector is very
focused, it makes more sense for a
company to distribute directly to
retailers.
NHÓM 4
1. Which factors should firm consider
when locating manufactured plants?
A. Country factors
B. Technological factors
C. Product factors
D. All of the answers are correct
2. How many factors are important
when making location decision?
A. 1
B. 2
C. 4 A. Specialized asset
D. 3 B. Turnkey project
3. The level of output at which most
plant-level scale economies are
exhausted is know as
A. Mass customization
B. Minimum efficient scale
C. Lean production
D. All of the answers above
4. Which of the following is an
objective of lean production?
A. Reducing the quality of a product
to keep unit costs low
B. Reducing setup times for
complex equipment
C. Replacing product variety with
standardized output
D. Decreasing utilization of
individual machines through
scheduling
5. Mass customization reconciles the
two goals of
A. Centralized production and long
production runs
B. High fixed costs and multiple
production facilities
C. Low cost and product
customization
D. Local responsiveness and
decentralized production.
6. Which of the following includes a
grouping of various types of
machinery, a common materials
handler, and a computer to control the
production of a family of parts or
products?
C. Flexible machine cells
 D. Dynamic capability locations. The major brakes on this
trend are
7. Which of the following is a
consequence of using flexible machine A. Differences in endowment factors.
cells? B. Transportation costs and trade
barriers.
A. It fails to adapt to the production C. Rising national differences in
of different products. consumer tastes and preferences.
B. It generally results in stockpiles of D. Growing free trade areas and
partly finished products. democracy.
C. It improves capacity utilization
and reduces wastes. 11. Which is the advantages of make?
D. It increases setup time for
complex equipment. A. Lowering costs, Facilitating
specialized investments,
8. Flexible manufacturing technologies improving scheduling
are specially targeted at enabling B. Protecting proprietary product
companies to technology
C. Lowering costs,Protecting
A. Establish multiple manufacturing proprietary product
facilities in each major nationan technology,Facilitating
market. specialized investments,
B. Build large inventories. Improving scheduling
C. Achieve product standardization D. Lowering costs, Strategic
across markets. flexibility,Protecting proprietary
D. Produce customized products product technology, Facilitating
without a significant cost specialized investments,
penalty. Improving scheduling
9. Which of the following terms refers 12. To maintain control over firm’s
to the production of a variety of end technology, the firm should:
products at a unit cost that could once
be achieved only through bulk A. “Make” decision
production of a standardized output? B. “Buy” decision
C. Entering strategic alliances with
A. Lean production suppliers
B. Just-in-time inventory D. All are correct
C. Mass customization
D. Specialized asset 13. What does specialized assets
mean?
10. Technological factors are making it
feasible for firms to concentrate A. An asset designed to perform a
manufacturing facilities at optimal specific task, whose value
 significantly reduced in its next-
best use
B. An asset invested to do business
with another enterprise and it has
high value
C. An asset whose value is
contingent upon a particular
relationship persisting
D. An asset uniquely designed
systems requires investments in
equipment that can be used only
for a purpose
14. Why does the supplier decline to
make the investment in specialized
equipment?
A. Depend on other suppliers
B. Lack of trust, squeezed down
price
C. Supplier will be offered a high
price
D. All are correct
15. Why does the firm prefer to make
the component internally rather than
contract it out to a supplier?
A. Too depend on supplier
B. Lack of trust, the supplier takes
advantage of the bargaining
power to demand higher prices
C. The firm cannot easily contract to
other supplier to switch its orders
D. All of the answers are correct
16. Vertical integration is necessary
for:
A. Protecting proprietary product
technology
B. Strategic flexibility
C. Lowering costs, offsets and
protecting proprietary product
technology
D. Facilitating specialized
investments
17. An organisation's supply chain can
be viewed from a system's perspective
that starts with the acquisition of
resources which are then transformed
into products or services. Simply, put
the sequence is represented:
A. Inputs - process - outputs
B. Process – inputs – outputs
C. Sourcing – inputs – process –
outputs
D. Inputs – sourcing – process –
outputs
18. Which of the following statements
is true?
A. Transportation and logistic are
same
B. Physical distribution and logistic
are same
C. Logistic is a subset of supply
chain
D. Supply chain is a subset of
logistic
19. Which functional role does IT not
play in supply chain management?
A. Supply chain restructuring
B. Transaction execution
C. Collaboration and coordination
D. Performance measurement and
reporting
20. For ensuring effective adoption of
IT in supply chain management, a
firm should go through the six stages 23. What is the initial strategic role of
in which the following sequence? foreign factories?

A. Strategy formulation → Business A. To differentiate the product

case preparation → Business offering across geographic
process design → Determination markets to account for local
of functional requirements → differences
Implementation → Post- B. To produce labor-intensive
implementation audit products at as low a cost as
B. Strategy formulation → possible
Business process design → C. To produce a product that serves
Determination of functional universal needs
requirements → Business case D. To produce more products than
preparation → Implementation domestic rivals
→ Post-implementation audit
C. Strategy formulation →
Determination of functional
requirements → Business case 24. When the business establishes
preparation → Business process factories in the low labor cost areas,
design → Implementation → what kind(s) of the product does it
Post-implementation audit want to produce?
D. Strategy formulation → Business
A. Labor-intensive products
process design → Business case B. Luxury goods
preparation → Determination of C. Capital-intensive products
functional requirements → D. A, B, and C are correct
Implementation → Post-
implementation audit 25. What is the strategic role of foreign
factories after development?
21. Which strategy does the
development of foreign factories A. To help the firm establish
consistent with? technological standards for the
industry that will benefit the firm
A. Global Standardization Strategy B. Playing a vital role in bringing
B. Localization Strategy foreign currencies to the company
C. Transnational Strategy C. The important centers for the
D. International Strategy
design and final assembly of
22. How many stages does the strategic products for the global
role of foreign factories evolve? marketplace
D. A, B, and C are correct
A. 2
B. 3 26. How many resources lead to the
C. 4 upgrade capabilities of many foreign
D. 5 factories?
 A. 2 economy, and national culture on
B. 3 production costs, along with the
C. 4 presence of location externalities.
D. 5
27. Which resources lead to the
upgrade capabilities of many foreign
factories?
A. Pressure from the center to
improve a factory’s cost structure
and/or to customize a product to
the demands of consumers in a
particular nation
B. The increasing abundance of
advanced factors of production in
the nation where the factory is
located
C. A and B are correct
D. A and B are wrong
28. Which of the following statements
is incorrect?
A. Foreign factories can improve
their capabilities over time, which
can be of immense strategic
benefit to the firm.
B. Two basic strategies for locating
production facilities:
Concentrating them in
centralized location and serving
the world market from there, or
Decentralizing them in various
regional or nation locations that
are close to major markets.
C. Core competencies and skills
should only be developed in the
home country. Thus, the flow of
skills and product offerings
should be one way, from home
country to foreign subsidiary.
D. Country factors include the
influence of factor costs, political
29. Which of the following is NOT one
of the benefits of flexible machine
cells?
A. Creating a global web of
activities
B. Improving efficiency
C. Lowering cost.
D. Customizing products to the
demand of small consumer
groups.
30. Which product should NOT be
produced in multiple locations close to
the major markets?
A. Refined sugar
B. Pharmaceuticals
C. Bulk chemicals
D. Petroleum
31. What are two product features
affects location decisions?
A. Low level of fixed costs and high
level of fixed costs.
a B. Concentrating or decentralizing
for locating production facilities.
C. Product’s value-to-weight ratio
and whether the product serves
Universal needs.
D. Differences between countries in
factor costs, political economy,
culture and trade barriers.
32. Which of the following is NOT one
of the key factors that influence the
decision of where to produce?
A. Country factors
 B. Product factors
C. Demographic factors
D. Technological factors
33. When does it make sense to
concentrate production at a few choice
locations?
A. The product’s value-to-weight
ratio is low.
B. Volatility in important exchange
rates is expected.
C. Both fixed costs and the minimum
efficient scale of production are
relatively low.
D. Flexible manufacturing
technologies are available.
34. What allows firms to increase
efficiency by improving capacity
utilization and reducing work-in-
progress?
A. Mass customization
B. Six Sigma technology
C. ISO 9000
D. Flexible machine cells
35. Firms should produce in multiple
locations when:
A. Fixed costs are substantial
B. The minimum efficient scale of
product is high
C. The production technology has
low fixed costs
D. Flexible manufacturing
technologies are available
36. How can production and logistics
lower the costs of value creation?
A. Disperse the production to the
most efficient locations
B. Manage the global supply chain
efficiently to better match supply
and demand.
C. Both A&C are correct
D. Both A&C are incorrect.
37. When _____, firms will favor
decentralized production:
A. There are substantial differences
in political economy and culture.
B. Fixed costs are high
C. The product’s value-to-weight
ratio is high
D. Exchange rates are volatile
38. What are two basic strategies for
locating production facilities:
A. Low level of fixed costs or high
level of fixed costs.
B. Concentrating or
decentralizing.
C. Lowering costs or improving
quality.
D. Differences between countries in
factor costs, political economy,
culture and trade barriers.
39. Systems to economize on inventory
holding costs by having materials
arrive at a manufacturing plant just in
time to enter the production process
and not before.
A. Flexible Machine Cells
B. Mass Customization
C. Just-In-Time (JIT)
D. Total Quality Management
40. Production of a wide variety of end
products at a unit cost that could once
be achieved only through mass
production of a standardized output.
 A. Six Sigma D. Firms should locate production
B. Just-In-Time (JIT)
C. Make or Buy Decisions 45. Certification process that requires
D. Mass Customization certain quality standards must be met.

41. Statistically based philosophy that A. Logistics

aims to reduce defects, boost B. Six Sigma
productivity, eliminate waste, and cut C. Production
costs throughout a company. D. ISO 9000

A. Logistics 46. Management philosophy that takes

B. Six Sigma as its central focus the need to improve
C. ISO 9000 the quality of a company's products
D. Mass Customization and services.

42. Activities involved in making a A. Minimum Efficient Scale

product B. Total Quality Management
(TQM)
A. Production C. Mass Customization
B. Location, Strategy, and D. Global Learning
Production
C. Country Factors 47. Statistically based methodology for
D. Logistics improving product quality.

43. How can trust be built between A. ISO 9000

firm and supplier? B. Production
C. Logistics
A. Adding more value to the D. Six Sigma
products
B. Pursuing the suppliers strategy 48. Why should firms BUY the
C. Making credible commitment to component parts to go into its final
continue purchasing from a product?
supplier on reasonable terms
D. Sharing key technological know- A. Gives the firm greater flexibility
how to the suppliers. B. Helps drive down the firm's cost
structure
44. Procurement and physical C. Helps the firm capture orders
transmission of material through the from international customers
supply chain, from suppliers to D. All of the answers are correct
customers is:
49. An asset designed to perform a
A. Location, Strategy, and specific task, whose value is
Production significantly reduced in its next-best
B. Production use is:
C. Logistics
 A. Specialized Asset
B. Just-in-Time (JIT) Inventory
C. Flexible Manufacturing
Technology (Lean Production)
D. Global Learning
50. Improved quality control reduces
costs in several ways:
A. Increasing productivity because
time is not wasted producing
poor-quality products that cannot
be sold, leading to a direct
reduction in unit costs
B. Lowering rework and scrap costs
associated with defective
products.
C. Reducing the warranty costs and
time associated with fixing
defective products.
D. All of the answers are correct.
51. What does logistics mean?
A. The activity that controls the
transmission of physical
materials though the value
chain, from procurement
though production and into
distribution
B. As the activities involved in
creating a product
C. A step add value by better serving
customer needs
D. All are correct.
52. In addition to lowering costs and
improving quality, two other
objectives have particular importance
in international businesses are:
A. Must be able to accommodate
demands for local responsiveness
B. Must be able to respond quickly
to shifts in customer demand
C. Both A&B are correct
D. Both A&B are incorrect
53. Which of the following is NOT one
of the relationship between quality
and costs?
A. Improves Performance Reliability
B. Lowers Service Costs
C. Lowers Manufacturing Costs
D. Increases Advertising Costs
54. Important strategic goals related to
the function of production and
logistics:
A. Lower costs
B. Increase product quality
C. Both A&B are correct
D. Both A&B are incorrect
55. What are the advantages of buy?
A. Strategic flexibility
B. Lower costs
C. Offset
D. All of the answers are correct
NHÓM 5
1. According to the Charles Hill,
success also requires HRM ... to be
congruent with the firm's strategy
 A. Performance
B. Policy
C. International
D. Strategy
2. Human resource management (HRM)
refers to:
A. The activities such as planning,
performance evaluation.
B. Achieve its primary strategic goals
of reducing the costs of value
creation.
C. The activities using its human
resources effectively.
D. All are correct.
3. The strategic role of HRM is more
complex in International business,
where activities such as Staffing,
compensation are:
A. Complicated by profound
differences between countries.
B. Complicated by profound
differences in strategy.
C. Complicated by profound
differences in political.
D. Complicated by profound
differences between corporation.
4. How many major tasks of the HRM
function?
A. 3
B. 4
C. 6
D. 5
5. According to one study of
competitiveness among 326 large
multinationals, the Author have
suggested:
A. Ethnocentric policy as the best
way to maintain a unified corporate
culture.
B. Staffing policy can be a tool for
promoting the desired corporate
culture.
C. Improving international HRM
practices might have substantial
benefit.
D. Good corresponding would better
transfer a core competency to
subsidiaries.
6. HRM includes determining the firm's
human resource strategy,
management development,
compensation, labor relations AND:
A. Planning, performance evaluation.
B. Staffing, increasing performance.
C. A&B are correct.
D. Staffing, performance
evaluation.
7. Staffing Policy is concerned with:
A. The selection of employees for
particular jobs.
B. The selection of employer for
particular jobs.
C. Rule for a company to select their
staffs for the firm’s positions.
D. All are correct.
8. According to Charles Hill, people are
the linchpin of a firm's organization
architecture, because:
A. People play an important role of
the whole process.
B. It is necessary for a firm to
outperform its parent company.
C. They might be the competitive
advantage to outperform firm’s
rivals.
D. All are incorrect.
9. The reason caused to misunderstand
the effort to encourage female
employees of Mitsubishi’s managers
as sexual harassment:
A. Japanese women is easy-going.
B. American women love money.
C. The “cross-cultural” and the
legal policy.
D. Japanese managers are perverts.
10. All senior managers in Sheraton
hotel in Vietnam are filled by parent
country, JW Marriot, which could
lead to:
A. Increase turnover among that
group.
B. Resentment, lower productivity.
C. A & B are correct.
D. Compete between employees to
develop their career.
11. Which is the correct answer for The
Polycentric Approach?
A. All key management positions are
filled by parent country nationals.
B. Requires host-country nationals
to be recruited to manage
subsidiaries, while parent-country
nationals occupy key positions at
corporate headquarters.
C. Seeks the best people for key jobs
throughout the organization,
regardless of nationality.
D. A and B are correct.
12. Which is the correct answer for The
Geocentric Approach?
A. All key management positions are
filled by parent country nationals.
B. Requires host-country nationals to
be recruited to manage
subsidiaries, while parent-country
nationals occupy key positions at
corporate headquarters.
C. Seeks the best people for key
jobs throughout the
organization, regardless of
nationality.
D. A and C are correct.
13. What is called an expatriate
manager?
A. An american manager of Mexican
headquarters reported directly to
the parent company in the US.
B. An american manager is working
abroad at a subsidiary of the Yoga
Califonia company in Vietnam.
C. A manager has favorable working
conditions in Germany, is a
British national, and reports to the
parent company.
D. All of above correct.
14. Unions’s bargaining power is derived
largely from their ability to :
A. Threaten to disrupt production.
 B. A strike or some other forms of
work protest.
C. A and B are correct.
D. None of them.
15. What is the strategy of organized
labor doing?:
A. Trying to establish international
labor organizations.
B. Lobbying for national legislation
to restrict multinationals.
C. Trying to achieve international
regulations on multinationals
through such organizations as the
United Nations.
D. All are correct.
16. Historically, most international
businesses have decentralized
international labor relation activities
to their foreign subsidiaries because:
A. Labor laws and the nature of
collective bargaining
homogeneous so much from
country to country.
B. Labor laws, union power, and
the nature of collective
bargaining varied so much from
country to country.
C. Labor laws and the nature of
collective bargaining varied so
much from country to country.
D. Labor laws, union power, and the
nature of collective bargaining
homogeneous so much from
country to country.
17. From a strategic perspective, the
main issue in international labor
relations is:
A. Foster harmony and minimize
conflict between the firm and
organized labor.
B. The degree to which organized
labor can limit the choices of an
international business.
C. Look at how organized labor has
tried to deal with these concerns.
D. Look at how international
businesses manage their labor
relations to minimize labor
disputes.
18. One task of the HRM function is:
A. Foster harmony and minimize
conflict between the firm and
organized labor.
B. Review organized labor’s
concerns about multinational
enterprises.
C. Look at how organized labor has
tried to deal with these concerns.
D.Look at how international
businesses manage their labor
relations to minimize labor disputes.
19. The general rise in competitive
pressure in industry after industry has
made it more important for firms to
control their costs because:
A. Production costs account for such
a large percentage of the total
costs
B. Freight flow costs account for
such a large percentage of the
total costs
C. Labor costs account for such a
large percentage of the total
costs
D. None of them
20. Labor unions generally try to get
better pay, greater job security, better
working conditions for their members
by:
A. Increasing salary
B. Doing collective bargaining with
management.
C. A and B are correct
D. None of them.
21. The firms offer language training
programs for expatriates to do the
following:
A. Better integrate into the culture of
the host country
B. Improve manager’s effectiveness
C. A & B are correct
D. A & B are incorrect
22. Why do firms organize practical
training?
A. Ease into day-to-day life
B. Salary increase
C. Make a network of friends
D. A & C are correct
23. The training programs
compulsory for expatriates:
A. Cultural training
B. Language training
C. Practical training
D. All are correct
24. What's important in the repatriation
of the expatriates?
A. Multicultural training for
repatriated employees
B. Preparing new positions for
repatriated employees
C. Organizing reintegration
programs for repatriated
employees
D. A & B are correct
25. What firms shouldn’t do to solve the
problem of expatriates quitting after
repatriation?
A. Developing good programs for
reintegrating expatriates
B. Preparing for reintegrating
expatriates changes in their physical
and professional landscape
C. Using the knowledge expatriates
acquired abroad
D. Creating standby positions for
repatriated employees
26. In evaluating performances of
expatriates, what host-nation
managers are often biased by?
A. Culture frame of reference and
expectations
B. Expectations and distance
C. Distance and lack of experience
are
D. Lack of experience and culture
frame of reference
27. In evaluating performances of
expatriates, what home-country
managers are often biased by?
A. Culture frame of reference and
expectations
B. Expectations and distance
C. Distance and lack of experience
D. Lack of experience and culture
frame of reference
28. Which dimension is related to
strengthen the expatriate’s self-
esteem, self-confidence, and mental
well-being?
A. Self-orientation.
B. Others-orientation.
C. Perceptual ability.
D. Cultural toughness.
29. Which dimension is related to
enhance the expatriate’s ability to
interact effectively with host-country
nationals?
A. Self-orientation.
B. Others-orientation.
C. Perceptual ability.
D. Cultural toughness.
30. Which dimension is related to
understand why people of other
countries behave the way they do?
A. Self-orientation.
B. Others-orientation.
C. Perceptual ability.
D. Cultural toughness.
31. Which dimension related to the
relationship between the country of
assignment and how well an
expatriate adjusts to a particular
posting?
A. Self-orientation.
B. Others-orientation.
C. Perceptual ability.
D. Cultural toughness.
32. Which is the dimension that a
comparison of cultures can give
managers a feeling for?
A. Self-orientation.
B. Others-orientation.
C. Perceptual ability.
D. Cultural toughness.
33. Which sentence is not true?
A. A global mindset is characterized
by cognitive complexity and a
cosmopolitan outlook, is the
fundament attribute of global
manager.
B. A review of the family situation
should be part of the expatriate
selection process.
C. Standard psychological tests can
be used to assess the first three of
these dimensions.
D. Increasingly, spouses wonder
why they shouldn’t sacrifice
their own career to further that
of their partner.
34. Which sentence is not true?
A. Cultural training seeks to foster an
appreciate for the host country’s
culture.
B. Understanding a host country’s
culture will help the manager
empathize with the culture.
C. Managers should receive
training before they sent on
foreign posting.
D. The whole family should be
included in cultural training
programs.
35. In many respects, a polycentric
approach is a response to the … of an
ethnocentric approach?
A. Disadvantages
B. Gaps
C. Shortcomings
D. Deficiencies
36. Which strategy does The Polycentric
Approach fit into?
A. International Strategy
B. Global Standardization Strategy
C. Localization Strategy
D. Transnational Strategy
37. Which strategy does The Geocentric
Approach fit into?
A. Global Standardization Strategy
B. International Strategy
C. Transnational Strategy
D. A and C are correct
38. Which is the advantage of The
Polycentric Approach?
A. Overcomes lack of qualified
managers in host nation
B. Uses human resources efficiently
C. Inexpensive to implement
D. Helps transfer core competencies
39. Which is the disadvantage of The
Geocentric Approach?
A. Limits career mobility
B. National immigration policies
may limit implementation
C. Helps build strong culture and
informal management
D. Can lead to cultural myopia
40. Which staffing policy should the firm
choose if they want to transfer core
competencies or to pursue experience
curve and location economies
effectively?
A. The Ethnocentric Approach
B. The Geocentric Approach
C. The Polycentric Approach
D. B and C are correct
41. How to Mitigate the Causes of
Expatriate Failure
A. Satisfaction Surveys: One
difficult tool for avoiding expat
issues on assignment is a satisfaction
survey. This can be administered
regularly to identify any problems
that could lead to early repatriation or
poor performance.
B. Budget and Expense Monitoring:
Unusual or excessive expenses can
not be avoided by monitoring the
assignment budget at least monthly.
While some costs are fixed, others
are subject to variation and can
impact the overall ROI of the
assignment.
C. Business Objectives: One of the
most obvious metrics to measure
assignment success is the business
goals are being met on assignment.
Even if the expatriate is happy and
costs are contained, there remains the
risk of failure due to business
reasons. The goals for the assignment
should be tracked with milestones
and numerical targets.
D. All of above are correct
42. Which country is the best place for
expatriates to live according to the
foreign expert survey of HSBC in
2018?
A. Singapore
B. New Zealand
C. German
D. Canada
43. Many dimensions seem to predict
success in a foreign posting. How
many dimensions are there?
A. 1.
B. 2.
C. 3.
D. 4.
44. Which of the following is not true?
A. One way to reduce expatriate
failure rates is by improving
selection procedures to screen out
inappropriate candidates.
B. HRM managers tend to equate
domestic performance with
overseas performance potential.
 C. Domestic performance and turnover
overseas performance are not the c. Improves performance
same thing. d. All of the above
D. An executive who performs well 50. Successful defenders use
in domestic company is easily to performance appraisal for identifying
adapt to managing any ____________.
subsidiaries in other country a. Staffing needs
which is totally different in b. Job behavior
culture. c. Training needs
45. ______ is an objective assessment of d. None of the above
an individual's performance against 51. Analyzers tend to emphasize both
well-defined benchmarks. ______ and _______ and employee
a. Performance Appraisal extensive training programs.
b. HR Planning a. Skill building and skill
c. Information for goal identification acquisition
d. None of the above b. Current performance and past
performance
46. What is linked with performance
c. Strategy and behavior
appraisal?
d. None of the above
a. Job Design
b. Development 52. What do successful analyzers tend to
c. Job analysis examine?
d. None of the above a. Division and corporate
performance evaluation
47. Which of the following is an
b. Current performance with past
alternative term that used for
performance
performance appraisal?
c. Ideal appraisal process
a. Quality and quantity of output
d. None of the above
b. Job knowledge
c. Employee assessment
d. None of the above
48. Which of these is the main purpose
of employee assessment?
a. Making correct decisions MULTIPLE CHOICE QUESTION
b. To effect promotions based on OF GROUP 6
core competence and performance
c. Establish job expectations Question 1: Capital budgeting quantifies
d. None of the above the benefits, _____, and risks of an
investment
49. How can performance appraisal
contribute to a firm's competitive A. Costs
advantage? B. Prices
a. Ensures legal compliances C. Interest rate
b. Minimize job dissatisfaction and D. Dividends
 Answer: A Question 5: Political and economic risk
can be incorporated into the capital
Question 2: What risks can significantly
budgeting process by:
change the value of foreign investment
according to capital budgeting? A. Revising the discounted rate
downward or revising the future
A. Political Risks
cash flow downward
B. Economic Risks
C. Foreign Exchange Risks
B. Revising the discounted rate
D. All correct
upward or revising the future
Answer: D
cashflow downward
Question 3: What must be done when
using capital budgeting techniques to C. Both A and B are correct
evaluate a potential foreign project? D. Both A and B are incorrect
Answer: B
A. Recognize the connection
between the cash flows to the Question 6: How many factors are there
parent and the source of financing when considering options for financing?
B. Distinct the cash flow to the
A. 1
project from the cash flow to the
B. 2
parent
C. 3
C. Recognize the specific risks
D. 4
arising from the project's foreign
Answer: C
location
D. All correct Question 7: What financing decisions
Answer: D should we make whether the local
currency is expected to depreciate on the
Question 4: Which statement is NOT
foreign exchange market?
correct according to Capital Budgeting?
A. Using the initial cost of capital.
A. The cash flow will be positive at
B. Local borrowing.
first, because the firm will be
C. Foreign borrowing.
investing heavily in production
D. Doing nothing.
facilities
Answer: A
B. After some initial period, the cash
flow will become positive as Question 8: Filling the blank:
investment cost decline and
If the firm is going to seek external
revenues grow
financing for a project, it will want to
C. The cash flow must be discounted
borrow___ from the lowest-cost source
to determine their net present
of capital available.
value
D. The net present value is greater A. Resources
than zero, the firm should go B. Funds
ahead with the project C. Materials
Answer: A D. All Correct
 Answer: B
Question 9: Firms based in different
countries have____ financial structures
A. Less
B. Many
C. Similar
D. Different
Answer: D
Question 10: Which of the following is
the technique that financial managers use
to try to quantify the benefits, costs, and
risks of an investment
A. Local currency is expected to
depreciate on the foreign
exchange market
B. Internal forward rate
C. Capital budgeting
D. Financial Accounting Standards
Board
Answer: C
Question 11: To manage money with
efficiency objectives, the business needs:
A. Minimizing cash balances
B. Reducing transaction costs
C. There is no method to help the
business
D. A&B are correct
Answer: D
Question 12: When a company holds a
certain cash balances for a certain period
of time, this shows:
A. The firm does not sit on its cash
reserves
B. The willingness to response to the
short-term obligation of the
company
C. Readiness to serving any accounts
and notes payable during that
period and as a contingency
against unexpected demands on
cash
D. None are correct
Answer: C
Question 13: What is the function of
Multilateral netting?
A. Reducing the number of
transactions between the firm’s
subsidiaries
B. Reducing the total transactions
costs arising from foreign
exchange dealings and transfer
fees
C. Making payment processes
between the firm’s subsidiaries
more efficient
D. All correct
Answer: D
Question 14: According to the lesson,
through the centralized depository, an
international business can:
A. Trade currencies between its
subsidiaries
B. Reduce the amount of funds it
must hold in liquid accounts and
thereby increase its rate of return
on its cash reserves
C. Buy currencies in larger lot sizes
D. Eliminate intermediaries like
banks
Answer: B
Question 15: “Colgate-Palmolive
operates in 218 countries. Much of its
manufacturing operations are centralized
rather than being located in numerous
countries around the world. As a result,
subsidiaries do a lot of business with
each other. Colgate headquarters requires
that all subsidiaries submit and settle
their payments to each other on the same
day. By directing all settlements to one
day, Colgate maximizes the benefits of
multilateral netting and saves on the
spread. This reduces the transaction costs
as well as the risk of currency
fluctuations”. What does the example
refer to?
A. The function of Transaction costs
B. The function of Multilateral
netting
C. The function of Centralized
depository
D. A deferral principle
Answer: B
Question 16: What are the principal
objectives of global management?
A. To utilize the firm’s cash resource
in the most efficient manner
B. To minimize the firm’s global tax
liabilities
C. A and B are incorrect
D. A and B are correct
Answer: D
Question 17: ______occurs when the
income of a foreign subsidiary is taxed
both by the host-country government and
by the company’s home country
government.
A. Tax treaty
B. Tax credit
C. Tax havens
D. Double taxation
Answer: D
Question 18: How does double taxation
mitigate?
A. Income tax
B. Tax credit, tax treaty and deferral
principle
C. Tax havens
D. Deferral principle
Answer: B
Question 19: What can the business do
to minimize global tax liability?
A. Transfer prices and fronting loans
B. Use Tax havens
C. Revenue is remitted from a
foreign subsidiary to the parent
company
D. All answers are correct
Answer: D
Question 20: How does the international
business avoid or defer income tax?
A. Using tax credit, tax treaty and
deferral principle
B. Establishing a wholly owned,
nonoperating subsidiary in the tax
haven
C. Transferring prices and fronting
loans
D. All correct
Answer: B
Question 21: How many approaches
used by multinational companies to
transfer liquid funds across borders?
A. 1
B. 2
C. 3
D. 4
Answer: D
Question 22: Which is the most
prevalent method used to move funds out
of a foreign subsidiary to the parent
company?
A. Fronting loans
B. Transfer prices
C. Dividend remittances
D. Royalty payments and fees
Answer: C
Question 23: Royalties can be levied as
a fixed monetary amount per unit of the
product___by the subsidiary or as a
proportion of the
subsidiary’s____revenues
A. Purchased-gross
B. Sold-net
C. Purchased-net
D. Sold-gross
Answer: D
Question 24: What is the purpose of
transfer prices used by multinational or
transnational company?
A. Reducing tax burdens
B. Maximizing profit
C. Gaining access to customers
D. Both A & B are correct
Answer: D
Question 25: Regarding to foreign
exchange risk, foreign subsidiaries based
in “high-risk” are sometimes required to
hasten the transfer of funds to the parent
company through
A. Reducing royalty payments and
fees
B. Expediting dividend payments
C. Both are correct
D. Both are incorrect
Answer: B
Question 26: What is Fronting loans?
A. A loan on which the interest is
reduced by an explicit or hidden
subsidy.
B. A loan in which the borrower
pledges some asset (e.g. a car or a
house) as collateral.
C. A loan between a parent and its
subsidiary channeled through a
financial intermediary.
D. A short-term, high-cost loan that
is typically due by your next
payday.
Answer: C
Question 27: What are problems with
Transfer Pricing?
A. Few governments like it
B. Inconsistent with a profit center.
C. Managers can hide inefficiencies.
D. All of the above
Answer: D
Question 28: Which clause is correct?
A. In a fronting loan, the parent
company lends cash directly to
the foreign subsidiary and the
subsidiary repays it later.
B. A fronting loan does not provide
any tax advantage.
C. Fronting loans can circumvent
host-country restrictions on the
remittance of funds from a foreign
subsidiary to the parent company.
 D. A fronting loan is a loan on which B. The government is also
the interest is reduced by an borrowing money from that
explicit or hidden subsidy. bank and wants a larger loan
Answer: C before they choose to default.
C. Corrupt government officials
Question 29: A_____ loan, also known
have accounts at the bank and
as _____is a parent-to-affiliate loan
they have made an under-the-
channeled through a financial
table agreement not to
intermediary such as a large commercial
withhold funds from that bank.
bank.
D. None of the above.
A. fronting; link financing Answer: A.
B. parallel; a back-to-back loan
Question 32: How many techniques
C. fronting; a back-to-back loan
firms used to manage global cash
D. link financing; parallel loan
resources in the most efficient manner?
Answer: A
A. 1
Question 30: Which of the following is
B. 2
NOT a typical characteristic of a fronting
C. 3
loan made to an international subsidiary?
D. 4
A. The parent makes a deposit Answer: B
equal to the size of the desired
Question 33: The reasons that each
loan into a large commercial
subsidiary should hold its own cash
bank.
balance at a centralized depository?
B. The bank lends to the
subsidiary firm an amount A. By pooling, firm can deposit
equal to the parent deposit at a larger cash amounts and earn
slightly higher interest rate. higher interest rates.
C. The lending back is located in B. If centralized depository
the subsidiary’s country. located in a major financial
D. All of the above are typical center, it can get information
characteristics of a fronting on good investment
loan. opportunities.
Answer: C C. Can reduce the total size of
cash pool and invest larger
Question 31: Government authorities are
reserves in higher paying, long
more likely to allow subsidiary
term, instruments.
repayment of a loan to a large
D. All answers are correct
international bank than to a parent firm
Answer: D
because:
A. Stopping payment to an
international bank would have
Question 34: The use of centralized
a negative impact on the credit
depositories is increase thanks to:
image of the country.
 A. The globalization of the world Question 38: Multilateral netting is an
capital market extension of ___ netting.
B. The general removal of
A. Multilateral
barriers to the free flow of
B. Unilateral
cash across borders
C. Bilateral
C. Both A and B are incorrect.
D. None of the above
D. Both A and B are correct.
Answer: C
Answer: D
Question 39: What does the figure
Question 35: By holding cash at a
below show?
centralized depository, the firm may be:
A. The figure is a payment matrix
A. Invest its cash reserves more
that summarizes the
efficiently.
obligations among the
B. Increase the total size of the
subsidiaries.
cash pool that it needs to hold
B. The figure shows how the
in highly liquid accounts,
payment schedule might look
thereby freeing cash for
at the end of a given month.
investment in higher-interest-
C. The figure shows the results of
bearing (less liquid) accounts
cash flows after multilateral
or in tangible assets.
netting.
C. Both A and B are correct.
D. None of the above.
D. Both A and B are incorrect.
Answer: B
Answer: B
Question 36: ___netting allows a
multinational firm to reduce the
transaction costs that arise when many
transactions occur between its
subsidiaries
A. Bilateral
B. Unilateral
C. Multilateral
D. None of them
Answer: C
Question 37: Netting reduces transaction
costs by reducing the number of ...
A. Foreign exchange
commissions Question 40: What does the figure
B. Transactions below show?
C. Transfer fees
D. Both A and C are correct. A. The figure is a payment matrix
Answer: B that summarizes the
 obligations among the
subsidiaries.
B. The figure shows how the
payment schedule might look
at the end of a given month.
C. The figure shows the results of
cash flows after multilateral
netting.
D. None of them.
Answer: A

Question 41: What does the figure

below show?
A. The figure is a payment matrix
that summarizes the
obligations among the
subsidiaries
B. The figure shows how the
payment schedule might look
at the end of a given month.
C. The figure shows the results of
cash flows after multilateral
netting.
D. None of them
Answer: C