MAN 3600 Test 1 Questions

In helping identify ethical problems, the firm's code of conduct should be tailored to match the norms of each individual region from which the firm operates. True False

F

Large multinationals are not constrained by market forces because they can exert considerable influence on governments through lobbying. True False

F

Regional economic integration blocs ________. 1. reduce trade and investment barriers 2. reduce private investments 3. adopt a hostile stance toward the private sector 4. hinder the cross-border flow of factors of production

?

________ marked the end of the 50-year Cold War and smoothed the integration of former command economies into the global economy. 1. The end of the World War II 2. The Bolshevik Revolution in Russia 3. China's free-market reforms 4. China's move to join the WTO

?

________ refers to the transfer of assets to another country or the acquisition of assets in that country. 1. International investment 2. International trade 3. Importing 4. Exporting

?

Which of the following approaches to ethical standards for corporate governance reflects the view that the best action treats everyone equally and in a just manner? 1. fairness approach 2. virtue approach 3. utilitarian approach 4. rights approach

1

Governments have facilitated economic integration by ________. 1. increasing barriers to international trade and investment 2. developing supranational institutions to further reduce trade barriers 3. adopting different monetary and fiscal policies within the same regional economic integration blocs 4. standardizing consumer lifestyles and preferences

2

Which of the following statements is true about the firm-level consequences of market globalization? 1. The globalization of markets has narrowed down new business opportunities for internationalizing firms. 2. Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world. 3. A firm's value chain is not subject to internationalization. 4. Through offshoring, a firm relocates a major value-chain activity by establishing a factory or subsidiary in the home market.

2

Which of the following statements is true about value chain and international business? 1. Exporting firms perform most of the downstream value chain activities in the home market. 2. Exporting firms perform most of the upstream value chain activities in the home market. 3. Exporting firms perform most of the upstream value chain activities abroad. 4. Exporting firms perform most of the research and product development and production abroad.

2

As market globalization intensifies, ________. 1. the gap between the rich and the poor shrinks rapidly 2. the distance between consumers worldwide expands 3. individual firms respond to the challenges and new advantages that it brings 4. firms internationalize solely as a reaction to it

3

Which of the following is characteristic of globalization of markets? 1. lack of skilled labor 2. conservatism 3. declining trade barriers 4. diminishing gap between the rich and the poor

3

Which of the following benefits of IT is specific to smaller firms? 1. It mitigates organizational anarchy. 2. It creates competitive advantages by encouraging organizational learning. 3. It aids in the consolidation of market monopolies. 4. It allows firms to design and produce customized products they can target to narrow, cross-national market niches.

4

Which of the following would most likely be considered an appropriate action for a multinational company in meeting its global corporate social responsibility obligations? 1. lowering production costs for specific manufactured items 2. improving the efficiency of assembly line operations 3. developing a strategic plan to enter an emerging market 4. promoting rights for people with disabilities

4

Calexor is a telecommunications SME that has been highly successful despite its limited resources. Stakeholders attribute Calexor's success to its ability to serve niche markets. Which of the following, if true, would most strongly support the claim that Calexor's growth can be attributed to niche market sales? 1. Calexor developed an interest in serving niche markets through an R & D experiment. 2. Most of Calexor's sales are in specialty markets that larger competitors do not serve. 3. Calexor's sales in mainstream telecommunications markets have always been strong. 4. Calexor's growth soared after it entered its first overseas market and has continued to climb.

?

Convergence of consumer preferences has led to an enhanced emphasis on standardization which implies that ________. 1. the consistently rising prices of consumer goods have led to a demand vacuum in the market 2. the distance between consumers worldwide has increased with the advent of technology 3. the raw materials, parts, and components sourced by professional buyers are very similar in design and structure 4. the globalization of services has adversely affected the quality of service worldwide

?

In a typical value chain, the firm ________. 1. rarely conducts research and development 2. performs most upstream value-chain activities abroad, when exporting 3. performs marketing activities such as pricing, promotion, and selling 4. performs most downstream activities in the home market, when exporting

?

Evaluation of results is the last step of the framework for arriving at ethical decisions. True False

T

The most advanced companies monitor suppliers to ensure that they use sustainable practices. True False

T

The two primary types of international investment are portfolio investment and foreign direct investment. True False

T