Trade Quiz 1

Where a single firm has control of the market it is called: A. A monopoly B. An oligopoly C. An oligarchy D. A monarchy.

A. A monopoly

Emergent strategy can be defined as: A. A pattern realized which was not expressly intended B. Deliberate strategy C. A pattern which reflects strategic planning D. Adaptation of the strategic plan in response to the changing environment

A. A pattern realized which was not expressly intended

The European Union (EU) is committed to which of the following? A. A single market B. Strong national governments in member states C. Enlargement D. The social market economic model

A. A single market

Those in favour of free trade argue that: A. All countries benefit from the lowering of tariff barriers. B. Domestic employment is a priority for trade policies. C. National strategic concerns should dominate trade policies. D. Consumers prefer locally produced goods.

A. All countries benefit from the lowering of tariff barriers.

Which of the following is a push factor which would influence a company to internationalize? A. Difficulty in finding skilled staff in the home country B. The need to be close to key resources C. Low-cost labour in other countries D. Financial incentives from governments in emerging markets

A. Difficulty in finding skilled staff in the home country

The PEST analysis is used to represent: A. Multiple dimensions of the external environment. B. The company's place in the marketplace. C. A country's political and economic environment. D. The institutions and processes which determine a country's level of development.

A. Multiple dimensions of the external environment.

A business, whether national or international, contains the following activities or functions: A. Operations, Human Resource Management, Accounting B. Production, Human Resource Management, Accounting, Marketing, and Research and Development. C. Production, Human Resources, Finance, Sales and Marketing, Research and Development. D. Operations, Human Resource Management, Accounting, Sales, Research and Development.

A. Operations, Human Resource Management, Accounting

Which of the following has been the most influenced by globalization? A. Production networks B. Consumer markets C. Labour markets D. National cultures

A. Production networks

The Asian model of capitalism features which of the following? A. Strong state intervention and bureaucratic regulation of business B. Strong corporate governance mechanisms C. Insider control of companies D. Links between business and political leaders

A. Strong state intervention and bureaucratic regulation of business

To which body within the company is the CEO answerable? A. The board of directors B. The employees C. The shareholders' annual general meeting D. The company's trade union representatives

A. The board of directors

Why is rising inflation a concern for government? A. The country's exports will become less competitive in global markets. B. Workers will demand higher wages. C. Consumers will go deeper into debt. D. Unemployment will rise.

A. The country's exports will become less competitive in global markets.

Purchasing power parity (PPP) is used in conjunction with GNI and GNP as it more accurately reflects: A. The relative living standards in different countries. B. The earnings of consumers in different countries. C. The level of development of different countries. D. The personal wealth of individuals in different countries.

A. The relative living standards in different countries.

Product divisions are preferred in many MNEs' organizational structures because: A. They allow the firm to produce and market a line worldwide. B. They adapt well to different regional needs. C. They facilitate the building of global markets. D. Most managers are happier focusing on a single product.

A. They allow the firm to produce and market a line worldwide.

'Emerging market' refers to: A. Any developing country B. A fast-growing developing country C. Any growing consumer market D. China and India

B. A fast-growing developing country

An oligopoly is defined as: A. A cartel B. A few large producers who dominate a market C. A group of consumers who can dictate conditions to the producers D. A sector of the market dominated by game theory

B. A few large producers who dominate a market

Applying Hofstede's cultural dimensions, which of the following combines high power distance and collectivism? A. American society B. Asian societies C. European societies D. Scandinavian societies

B. Asian societies

Why is sustainability becoming important for global corporate strategy? A. Because emerging markets are not likely to carry on growing. B. Because MNEs face possible scarcity of raw materials. C. Because governments in developing countries are encouraging pollutant industries. D. Because consumers in developing countries are concerned about the environment.

B. Because MNEs face possible scarcity of raw materials.

Why is globalization often perceived as a threat in developed countries? A. Because countries with authoritarian governments are becoming more powerful. B. Because low-skilled jobs in advanced economies are at risk. C. Because emerging markets are importing fewer goods from the developed countries. D. Because MNEs from developed countries are facing stiff competition in emerging markets.

B. Because low-skilled jobs in advanced economies are at risk.

Why have bilateral agreements proliferated in recent years? A. Because they benefit countries more that multilateral agreements B. Because they can be negotiated more quickly than multilateral agreements C. Because they are preferred by MNEs D. Because countries tend to be of equal bargaining power

B. Because they can be negotiated more quickly than multilateral agreements

How does stakeholder management theory contribute to value creation for the firm? A. By serving customers better B. By helping managers to focus on divergent stakeholder groups C. By interacting more with employees D. By developing better communications with suppliers

B. By helping managers to focus on divergent stakeholder groups

The liberal market economy emphasizes which of the following? A. Strong government B. Capitalist free markets C. High taxes D. Social welfare

B. Capitalist free markets

David Ricardo (1817) developed the theory of: A. Competitive advantage B. Comparative advantage C. Absolute advantage D. First-mover advantages

B. Comparative advantage

What is the main reason for the collapse of the Doha round of multilateral negotiations? A. Unwillingness of the US to open markets to products from developing countries B. Differing perspectives of developed and developing countries C. Disagreement over labour and environmental standards D. The activities of anti-globalization protesters

B. Differing perspectives of developed and developing countries.

Which of the following are not key players in Porter's five forces model of competitive strategy? A. Potential entrants B. Governments C. Buyers D. Suppliers

B. Governments

Porter's diamond theory focuses on all but which one of the following? A. Factor conditions B. Location advantages C. Firm strategy and structure D. Government policies

B. Location advantages

Resource-based theories of the firm focus on which firm resources? A. Physical resources and intellectual property B. Physical, human and organizational resources C. Physical and human resources D. Human resources and corporate skills

B. Physical, human and organizational resources.

Economic activity can be divided into which three broad types? A. Retail sector, manufacturing sector, service sector. B. Primary production, secondary production and services. C. Agricultural sector, manufacturing sector and retail sector. D. First sector, second sector, third sector.

B. Primary production, secondary production and services

Fiscal policy concerns which of the following: A. Exchange rates B. Public spending and taxation policies C. Interest rates D. The consumer price index

B. Public spending and taxation policies.

"Pull" factors of migration include: A. Escape from natural disasters B. Real or imagined job opportunities C. Escape from political persecution D. Escape from religious persecution

B. Real or imagined job opportunities

Which of the following characterizes the social market economy? A. Individualism B. Strong state role in welfare services C. A national health service D. High taxes

B. Strong state role in welfare services

Organisational structures can be divided into the following three broad categories: A. Large, medium, small. B. Structures based on functions, divisions and matrix C. Strict hierarchy, board control, devolved control D. Collective control, co-operative arrangements, shareholder control.

B. Structures based on functions, divisions and matrix.

The concept of kaizen is: A. Another word for just-in-time (JIT) systems B. The Japanese philosophy of continuous improvement C. A system of manufacturing devised in South Korea D. An inter-firm network

B. The Japanese philosophy of continuous improvement

Vernon's theory of the international product life cycle explains: A. The stages of globalization B. The growth in overseas production C. The importance of the US in the global economy D. The need for innovation in consumer products

B. The growth in overseas production.

Where is the fastest population growth taking place? A. Developed regions B. The least-developed countries C. Developing countries D. Asia

B. The least-developed countries

The joint venture is a favoured entry mode because: A. It involves partnership with another firm. B. The local partner has knowledge of local markets. C. The foreign partner lacks the management expertise to carry through the FDI project. D. There is usually a good relationship between the two partner firms.

B. The local partner has knowledge of local markets.

Unemployment is defined as: A. The section of the population that are on state benefits. B. The section of the population willing to work but unable to find employment. C. The section of the population that are waiting to be employed. D. The section of the population that are without the skills needed by employers.

B. The section of the population willing to work but unable to find employment.

National culture is based on: A. The nation-state B. The sense of belonging of a people C. The territory of the state D. Language

B. The sense of belonging of a people

Which of the following best describes the role of a company's directors: A. They take day-to-day management decisions. B. They have ultimate responsibility for how the company is run. C. They aim to maximize the wealth of the investors. D. They are the company's main investors.

B. They have ultimate responsibility for how the company is run.

Nearshoring can be defined as: A. Locating production in a low-cost environment B. Type of outsourcing which focuses on a location near to major markets C. Type of offshoring which has tax advantages D. Type of cost reduction strategy for MNEs

B. Type of outsourcing which focuses on a location near to major markets

A low-context culture is: A. A culture where much goes unsaid. B. A culture in which body language and 'reading between the lines' are important C. A culture in which communication is clear and direct D. A culture where ambiguity is the norm, and directness is avoided

C. A culture in which communication is clear and direct

In marketing, a distinctive group of consumers is known as: A. A selection. B. A class. C. A segment. D. An emerging market.

C. A segment

Fordism was characterized by all but one of the following features. Which one is out of place? A. Vertically integrated system B. Bureaucracy C. Adaptability to consumer needs D. Poor industrial relations

C. Adaptability to consumer needs

Why is China classified as a mixed economy? A. Because it relies on a five-year plan B. Because it is decentralized C. Because it has market elements and state controls D. Because it is authoritarian

C. Because it has market elements and state controls

Which of the following is out of place in a planned economy? A. State control of prices B. Authoritarian government C. Democracy D. State control of production

C. Democracy

All but which one of the following is not an FDI investment? A. Acquisition of an existing company B. A joint venture with a foreign partner C. Exporting the company's products to new markets D. A greenfield project in another country

C. Exporting the company's products to new markets

All but which one of the following are tools of government trade policy? A. Tariffs B. Non-tariff barriers C. Multilateral agreements D. Import quotas

C. Multilateral agreements

Which of the following is a free trade area? A. Mercosur B. Ecowas C. Nafta D. The EU

C. NAFTA

In the following list of ways by which governments exert control over businesses, which one is out of place? A. Full ownership of a company B. Partial stake in a public company C. Privatization of a nationalized company D. Sovereign wealth fund

C. Privatization of a nationalized company

Characteristics of organizational culture include all but which one of the following? A. Common language, terminology and norms of behaviour B. Preference for formal or informal communication C. Sustainability policies D. Rulebook of do's and don'ts for staff

C. Sustainability policies

Strong economic growth is associated with all but which one of the following: A. Rising standards of living B. Industrialization C. Sustainable development D. Strong capital investment

C. Sustainable development

Why would an MNE contemplating FDI prefer an acquisition to a greenfield investment? A. The greenfield investment is a higher risk. B. The acquisition often involves cultural tensions between the acquired company and new owner. C. The acquisition is quicker to get up and running. D. The company has less control over a greenfield investment.

C. The acquisition is quicker to get up and running.

Which of the following is the least appropriate in describing the ethnocentric organization? A. The corporate culture is one of confidence in what the firm stands for. B. The staff share corporate values. C. The management welcome new ideas from other cultures. D. The organization has a strong sense of identity.

C. The management welcome new ideas from other cultures.

The current account of the balance of payments is made up of: A. Trade in goods and services by a country's businesses. B. Current sales overseas for either products or services. C. The merchandise trade account and service account plus the profits and interest earned from overseas assets. D. Transactions involving the sale and purchase of assets.

C. The merchandise trade account and service account plus the profits and interest earned from overseas assets.

Gross national income (GNI) is defined as: A. The total income produced by businesses in the in the country, whether locally owned or owned by foreigners B. The country's total industrial output C. The total income from all the final products and services produced by the national economy, including income of national residents from their overseas investments D. The total income produced by the country's resident businesses.

C. The total income from all the final products and services produced by the national economy, including income of national residents from their overseas investments.

In what ways are government subsidies protectionist? A. They keep out imports B. They help domestic producers C. They give domestic producers an advantage in global markets D. They help create employment

C. They give domestic producers an advantage in global markets.

What is the aim of the WTO's dispute resolution process? A. To punish countries which trade unfairly B. To impose anti-dumping penalties C. To resolve trade disputes through impartial panels D. To resolve trade disputes through judicial procedure

C. To resolve trade disputes through impartial panels.

The G8 is made up of: A. China, USA, France , UK, Germany, Italy, Russia and Japan. B. EU, Asean Group, NAFTA, Russia, China, Japan and Canada. C. UK, USA, Russia, Germany, France, Italy, Canada, Japan. D. Japan, China, Italy, France, Germany, Russia, USA, and UK.

C. UK, USA, Russia, Germany, France, Italy, Canada, Japan.

Over which of the following does the MNE parent company have most control? A. An affiliate company B. A strategic partner C. A subsidiary in which it owns 60% of the shares D. A wholly-owned subsidiary

D. A wholly-owned subsidiary

Which countries are involved in Apec? A. Asian countries and Australia B. Asian, North American and South American countries C. Asian countries, North American countries and Australia D. Countries bordering on the Pacific

D. Countries bordering on the Pacific

Which of the following is not one of the challenges associated with ageing societies? A. Costs of pensions and healthcare B. Need for managers to accommodate older workers C. Need for governments to raise the legal pension age D. Equal opportunities for all ethnic and religious minorities

D. Equal opportunities for all ethnic and religious minorities.

Which of the following is not linked with outsourced production? A. Manufacturing under licence B. Production in a low-cost country C. Subcontracted manufacturing for a well-known brand D. Franchising

D. Franchising

Which of the following religions is polytheistic? A. Christianity B. Islam C. Judaism D. Hinduism

D. Hinduism

Urbanization is generally associated with: A. Economic decline B. Infrastructure improvements C. Centralization of government D. Industrialization

D. Industrialization

The SWOT analysis aids the company in assessing: A. Internal threats, opportunities, strengths and weaknesses B. Internal strengths as well as external weaknesses and threats C. External strengths and weaknesses plus internal opportunities and threats. D. Internal strengths and weaknesses as well as external threats and opportunities.

D. Internal strengths and weaknesses as well as external threats and opportunities.

Elements of HRM as a business function include all but which one of the following? A. Motivating the workforce B. Management of rewards C. Training and development D. Overseeing quality management

D. Overseeing quality management

Which of the following is not among the GATT principles? A. Most favoured nation B. Reciprocity in tariff reduction C. Principle of national treatment D. Principle of safeguarding national interests

D. Principle of safeguarding national interests.

The short term fluctuations of the business cycle are divided into four phases that are: A. Expansion, Recession, Depression, Development B. Maturity, Decline, Depression, Regeneration C. Prosperity, Decline, Depression, Recovery D. Prosperity, Recession, Depression, Recovery

D. Prosperity, Recession, Depression, Recovery

The OLI paradigm is known as the 'eclectic' paradigm because: A. Ownership and internalization advantages were added to the theory later. B. The three variables are unrelated to each other. C. Internalization advantages encompassed location factors. D. The three variables derive from different theories.

D. The three variables derive from different theories.

Operations as a function within the company concerns: A. Controlling the revenues and outgoings of the business B. Making tangible products. C. Delivering products to the customer D. The whole process of producing and delivering a product, a service, or the combination of both to a customer.

D. The whole process of producing and delivering a product, a service, or the combination of both to a customer

The research of Hofstede and Trompenaars suggests that: A. All societies are tending to become more individualistic. B. Norms in one culture can be transferred to another. C. Globalization is reducing national differences. D. There is no 'one best way' of managing and organizing people.

D. There is no 'one best way' of managing and organizing people.