BUS 5571: Business Strategy 2 | Exam MCQ | Answered 100% Correct latest 2026 updated - Humber College.

BUS 5571: Business Strategy 2 | Exam MCQ | Answered 100% Correct latest 2026 updated - Humber College. MCQ 1) All of the following are examples of moral courage except __________. A. whistle blowing B. saying no to supervisors who want an employee to act unethically C. walking away from profit making deals D. competing with your colleagues for promotions E. all of these answers are correct 4 2) One reason more firms are not proactive about seeking export opportunities is that: A. they are very familiar with foreign market opportunities B. they are intimidated by complexities and mechanics of exporting C. there are too many opportunities available domestically D. they have concluded foreign markets are not profitable E. they do not have enough time to serve both the domestic and export markets 13 3) A company that makes it difficult for people to effectively complain about an unethical situation is doing what? A. showing moral courage B. displaying righteous moralism C. showing cultural relativism D. displaying moral intent E. taking an obstructionist stance 4 4) Despite some observed convergence in consumer tastes among industrialized nations, Levitt`s vision of global markets can be a long way off due to: A. the continues development of markets. B. the segmentation of markets. C. national differences in product and technological standards. D. the changing nature of consumer demands. E. highly localized markets. 5) When a specialized third-party trading house is used in a countertrade arrangement, it is called: A. counter-purchase B. offset C. managed barter D. buyback E. switch trading 13 6) A push strategy is favoured by firms that sell:A. services B. commodities C. consumer products or other standardized products D. industrial products or other complex products E. through distributors 14 7) Which of the following straw man arguments claims that a multinational`s home-country standards of ethics are the appropriate ones for companies to follow in foreign countries? A. Cultural relativism B. The righteous moralist C. The Friedman doctrine D. The Indignant Moralist E. The Naïve Immoralist 8) ________________ is a powerful force that drives the world toward a converging commonalty. A. Technology B. Production C. Culture D. Distribution E. Globalization 14 9) All of the following are reasons why expatriate managers may experience increased pressure to violate their personal ethical standards. Except? A. they are away from their ordinary social context B. they place a high value on adherence to human rights C. they are geographically away from the parent company D. they are challenged by exorbitant goals set by the company E.they recognize that there is an accepted code of behaviour in the country that is different from their own 4 10)Quantitative methods of data collection include all of the following EXCEPT? A. Recording events B. Administering surveys with closed-end questions C. Experiments D. Clinical trials E. In-depth interviews 11) As a ______________, a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge.A. contract B. receipt C. document of title D. letter of credit E. cargo document 13 12) What is the attraction to firms of exporting? A. larger revenue B. larger profits C. the ability to gain cultural awareness D. all of these answers are correct E. both larger revenue and larger profits 13 13) Which one of the following could be considered a reason why organizations may make decisions that ultimately lead to unethical business actions being undertaken? A. They are governed by the laws of the home and host countries B. They are appreciative of human rights concerns C. They do not incorporate ethics into business decision making D. They do not solely base decisions on business variables such as input cost per unit of output E. They have a CEO and a Chief Ethics Officer 4 14) Unlike their German and Japanese competitors, Canadian firms are still somewhat ____________ when they seek export opportunities. A. information disadvantaged B. money strapped C. regulation-bound D. much better prepared E. overly cautious 13 15) The effectiveness of a firm's international communication can be jeopardized by three potentially critical variables. These are A. technological barriers, geographic barriers, and political barriers. B. economic factors, political-legal barriers, and noise levels. C. technological factors, source effects, and noise levels. D. cultural barriers, source effects, and noise levels. E. language barriers, noise levels, and religious beliefs. 14 16) Mechanisms for financing exports and imports have evolved over the centuries in response to a problem that can be particularly acute in international trade: ________________. A. the letter of credit B. the lack of trust C. government regulationsD. undeveloped international political system E. currency exchange rate differences 13 17) In order for the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions to be truly effective, what must happen? A. further UN actions must be taken B. the convention must be translated into laws by each signatory nation C. the OECD ethical code must be implemented D. The Friedman Doctrine must be signed into law E. Facilitation payments must be outlawed 4 18) __________ are situations in which none of the available alternatives seem ethically acceptable. A. Ethical behaviours B. Moral obligations C. Social responsibilities D. Ethical dilemmas E. Personal crises 4 19) Derik, a grocery store owner, has been dealing with Cheryl's Cheesecake Distributors for 20 years. Michael wants to create a contract with Derik so Derik will carry his cheesecakes. Michael will find this a difficult task because of the ________________ distribution channel Derik has with Cheryl's Cheesecakes. A. fragmented B. concentrated C. short D. exclusive E. managed 14 20) When a firm builds a plant in a country—or supplies technology, equipment, training, or other services to the country—and agrees to take a certain percentage of the plant's output as partial payment for the contract, it is called: A. counter-purchase B. offset C. switch trading D. buyback E. industrial barter 1321) A business owner is trying to decide what they should customize and what they should standardize. What should they carefully examine to make this decision? A. The features and benefits of her products B. The cost and benefits of each element in the marketing mix C. The supply and demand of the products D. The government regulations on advertising and economic conditions of the country E. The consumer preferences and the cultural differences 14 22) In the international business setting, the most common ethical issues involve all of the following Except? A. employment practices B. human rights C. corruption D. border control E. environmental protection 4 23) When outsourced firms provide products at a lower cost, a consideration is how the provider: A. Is likely to stay in business B. Is in a Western country C. Is doing it cheaper D. Is funded E.Is doing it better 24) Common pitfalls for new businesses attempting to export their products all of the following except: A. poor understanding of competitive conditions B. problems securing financing C. poor market analysis D. intimidating the foreign customers E. failure to customize the product 13 25) In terms of their distribution strategies, countries differ along three main dimensions. These are A. end-user identification, channel integration, and transportation strategy. B. customer concentration, channel breadth, and warehousing strategy. C. wholesale concentration, channel depth, and transportation strategy. D. retail concentration, channel length, and channel exclusivity. E. retail levels, channel organization, and channel quality. 1426) What is the main attraction of countertrade? A. it is the least expensive method of trading with foreign businesses. B. it is easy to structure C. it gives a firm a way to finance and export deal when there are no other means D. it is the most popular way of doing an export deal E. there are virtually no consequences of default. 13 27) Moral theorists argue that fundamental human rights form the basis for the ________ that managers should use when making decisions that have an ethical component. A. immoral compass B. moral compass C. amoral compass D. mortality compass E. personal compass 4 28) If a consumer in Italy paid $45,000 for a BMW and a consumer in Great Britain paid $60,000 for the identical vehicle that would be an example of what? A. standardized pricing B. price discrimination C. global pricing D. predatory pricing E. country specific pricing 14 29) A firm can increase the probability of exporting successfully by taking which of these steps? A. avoid hiring EMCs to contain costs B. hire home country personnel to build commitment C. enter on a small scale D. wait for the export opportunities to come to you E. make extensive investments in building regional contacts 13 30) The continuing persistence of ________________ differences between nations acts halts any trend toward global consumer tastes and preferences. A. technological and communication B. product standard C. cultural and economic D. production and distribution E. language and historical 14CASE: (4 Marks; 15 Minutes) Read the case below and answer the questions that follow. Would you be willing to take meat as payment for barber services? You might if you live in Venezuela. Indeed, Alvreda Silva, a Venezuelan barber, does just that. He asks clients to pay for their haircuts, valued at about one million bolivars, by purchasing meat for him from the local butcher. Stuck in the midst of an economic and financial crisis, Venezuelans are being forced to find more creative ways of paying for the things they need. Now, liquidity issues are making things especially difficult, prompting many Venezuelans to turn to barter— the age-old basic means of transacting with others. On a recent day in Rio Chico, Marvin Guaramato waited at the docks hoping to trade a carload of flour and oil for fish, while fisherman Reinaldo Armas looked for opportunities to swap his fish for household products. Scenes like this can be found across Venezuela where inflation rates as high as 25,000 percent a month make cash transactions impossible. What brought Venezuela to this state? Years of mismanagement and poor decisions by the country’s leaders together with a period of falling oil prices has led to economic chaos in the country and recently even to the brink of complete failure. The collapse of Venezuela’s currency, the bolivar, has forced its citizens, many of whom are quite literally starving, to find alternatives to the bolivar. In fact, acquiring food through various barter arrangements has become the daily focus for most Venezuelans. Venezuela’s former president, Hugo Chavez supported barter as a preferred means of exchange to a cash society. Indeed, he considered a society based on cash an evil of capitalism. Today in Venezuela, it is not unusual to find baguettes being exchanged for parking fees or a cab ride being paid for with a carton of cigarettes, and so on. In keeping with the digital economy, some citizens are advertising swap opportunities on social media sites like Facebook. In fact, it seems that the possibilities for trading are seemingly endless. And with no end in sight to the country’s economic and political woes, it is likely that trading goods and services for goods and services will continue at least for the short term.Multinational companies doing business in Venezuela have had to rethink their strategies entirely. Many have chosen to withdraw from the country entirely, while others are still trying to be paid for products they have sold. For these companies, the collapse of the bolivar and related shortage of dollars has created new and wanted challenges. Venezuela’s health minister recently offered to pay a group of pharmaceutical companies a mix of diamonds, gold, and coltan to settle a $5 million debt, an offer that perplexed the corporate officials who had no policies in place for accepting goods in exchange for their products. 31.The increase in the use of barter in Venezuela has been prompted by: a) A government policy banning the use of cash b) A new trade agreement with neighboring countries c) The introduction of a stronger Venezuelan currency d) An increase in global oil prices e) The collapse of the bolivar 32.Why did Venezuela’s Health Minister offer to settle a $5 million bill to pharmaceutical companies in the form of diamonds, gold, and coltan rather than cash? a) Venezuela had excess supplies of these resources b) The companies preferred receiving payments in precious materials c) The Venezuelan government banned cash payments for foreign transactions d) The companies refused to accept the bolivar as payment e) The dollar shortage in Venezuela made paying the bill in dollars very difficult 33. Given what you know about countertrade from your text, along with the information provided in the case above, identify which situation is most likely to be present in Venezuela. a) A decline in barter and an increase in cash transactions b) Venezuelan firms relying solely on cryptocurrency for trade c) An increase in cash reserves held by the Venezuelan government d) Venezuelan businesses using more U.S. dollars for local transactions e) Increasing levels of countertrade activities involving Venezuelan firms 34.Venezuela’s new reliance on barter as a mechanism for exchange reflects in part:a) The country’s increasing global competitiveness b) The strengthening of the Venezuelan bolivar c) The reduction of inflation in the country d) The rise of cash-based transactions in Venezuela e) The economic impact of the drop in global oil prices Q-1 Pricing in a foreign market is determined by many different environmental factors, including competition, internal company objectives, and legal restrictions. Your company has just developed a new production method, for window air conditioning units that are 35% cheaper than your closest competitors. The owners of your company want to recover the investment made in developing this new production process and they also want to increase their market share. The company has the opportunity to enter the Italian, French and Spanish markets. What pricing strategy would you use in these markets and why? Q-2 You are a senior manager at Gildan Canada, which manufactures t-shirts, active wear, and socks and underwear and distributes these products in North America, Asia-Pacific, and Latin America. You are in charge of continuing to grow the international component of your firm. Explain what is meant by distribution strategy. What are the main differences among countries' distribution systems? Q-3 Why do many new exporters have problems when first trying to do business abroad? What are the common pitfalls of new exporters? Q-4 Identify and discuss the five things that an international business and its managers can do to make sure ethical issues are considered in business decisions. Q-1 You are a senior manager at Gildan Canada, which manufactures t-shirts, active wear, and socks and underwear and distributes these products in North America, Asia-Pacific, and Latin America. You are in charge of continuing to grow the international component of your firm. Ideally, is it better for a firm to sell the same product worldwide or would a firm rather customize its products for each individual market? 14Q-2 You are a senior manager at Gildan Canada, which manufactures t-shirts, active wear, and socks and underwear and distributes these products in North America, Asia-Pacific, and Latin America. You are in charge of continuing to grow the international component of your firm. Explain what is meant by distribution strategy. What are the main differences among countries' distribution systems? 14 Q-3 The probability of exporting successfully can be increased dramatically by taking eight strategic steps. What are these steps? 13 Q-4 Identify the most common ethical issues that may arise in the international business setting. Discuss the roots of these issues. Discuss how managers of international firms should address such issues. 4 CASE 1: (4 Marks; 15 Minutes) Read the case and answer the questions that follow. Coca-Cola is one of the most recognizable brands in the world. CocaCola is the iconic American drink that has become a global staple. The company sells its flagship brand in more than 200 countries worldwide across six operating regions: Asia Pacific, Europe, Africa, Middle East, Latin America, and North America. A significant part of Coca-Cola’s success has always been its emphasis on brand over product. Coke doesn’t sell a drink in a bottle, it sells “happiness” in a bottle. Coke sells consumers the experience and lifestyle associated with its brand. Despite its success as a global icon, Coca-Cola has long understood that it has to find a way to speak to consumers at a more personal, localized level. This is not always easy. A few years ago, the company was struggling with declining sales for its flagship brand. One problem was that the company was not connecting with millennials. A possible solution to this problem was identified in Australia. There, the local marketing team believed they had developed a disruptive idea that would make headlines and capture the country’s attention: a name-driven campaign designed to resonate with Australia’s young adults and inspire shared moments of happiness in the real and virtual world. What they came up with was a marketing campaign that became known as “Share a Coke.” Other ideas were still yet powerful—toreplace the Coca-Cola logo on a can or bottle with names. They started with the 150 most popular names in Australia, plus generic nicknames such as “Champ” and “Mate” and family names like “Mom” and “Dad.” They made the campaign about giving a Coke to someone else, rather than keeping it yourself. The idea was to share happiness by giving someone a Coke with their name printed on it instead of the traditional logo. They matched the offering of physical cans or bottles with the ability to send a virtual Coke with their name on it to someone else via Facebook or Instagram. Launched in 2012, the overwhelming demand for personalized cans of Coke surprised even the marketing team that had come up with the idea. The cans quickly became must-have objects of desire. Coke sent traveling kiosks to major shopping malls across Australia, where customers could customize a can of Coke. Lines often stretched around the block; the personalized cans became the Christmas gift of the year (Christmas in Australia occurs during the summer months). That summer, Coke sold more than 250 million named bottles and cans in a nation of 23 million people. Consumption among teenagers grew by 7 percent and overall sales rose by 3 percent, with two out of five people in the country buying a “Share a Coke” pack. The campaign was an unqualified success. The campaign has since made its way around the world, reaching more than 80 countries over seven years. Coca-Cola teams from Great Britain, Turkey, China, and the United States have put their own local creative spin on the concept while preserving the core idea to “Share a Coke with (insert name).” In Britain, for example, Coke celebrated the birth of the royal baby by inviting the public to “Share a Coke with Wills and Kate.” In Holland, the local marketing team opened pop-up stores that exclusively sold personalized bottles and cans of Coke. Germany set up online stores where you could order personalized bottles for home delivery. The great strength of the campaign? It gave consumers the opportunity to express themselves through a bottle of Coke and to share that experience with someone else. Answer the following questions related to the case 31) Coca-Cola’s “Share a Coke” campaign in Australia reflects a. a standardized product with a customized message.b. a fully homogenous market. c. a standardized message. d. the reality of Coca-Cola’s ability to transcend markets. e. the challenges of market segmentation. 32) Which element in the marketing mix was affected by Coca-Cola’s campaign to share happiness by giving someone a personalized can of Coke? a. product b. promotion c. price d. place e. process 33) Which type of strategy best characterizes Coca-Cola’s communication strategy? a. A push strategy b. A multipoint strategy c. A predatory strategy d. A pull strategy e. A product type strategy 34) Coca-Cola’s “Share a Coke” campaign targeting millennials can best be described as segmenting the market by ___________ factors. a. demographic b. geographic c. sociocultural d. psychological e. purchasing power CASE: (4 Marks; 15 Minutes) Read the case below and answer the questions that follow. Would you be willing to take meat as payment for barber services? You might if you live in Venezuela. Indeed, Alvreda Silva, a Venezuelan barber, does just that. He asks clients to pay for their haircuts, valued at about one million bolivars, by purchasing meat for him from the local butcher. Stuck in the midst of an economic and financial crisis,Venezuelans are being forced to find more creative ways of paying for the things they need. Now, liquidity issues are making things especially difficult, prompting many Venezuelans to turn to barter— the age-old basic means of transacting with others. On a recent day in Rio Chico, Marvin Guaramato waited at the docks hoping to trade a carload of flour and oil for fish, while fisherman Reinaldo Armas looked for opportunities to swap his fish for household products. Scenes like this can be found across Venezuela where inflation rates as high as 25,000 percent a month make cash transactions impossible. What brought Venezuela to this state? Years of mismanagement and poor decisions by the country’s leaders together with a period of falling oil prices has led to economic chaos in the country and recently even to the brink of complete failure. The collapse of Venezuela’s currency, the bolivar, has forced its citizens, many of whom are quite literally starving, to find alternatives to the bolivar. In fact, acquiring food through various barter arrangements has become the daily focus for most Venezuelans. Venezuela’s former president, Hugo Chavez supported barter as a preferred means of exchange to a cash society. Indeed, he considered a society based on cash an evil of capitalism. Today in Venezuela, it is not unusual to find baguettes being exchanged for parking fees or a cab ride being paid for with a carton of cigarettes, and so on. In keeping with the digital economy, some citizens are advertising swap opportunities on social media sites like Facebook. In fact, it seems that the possibilities for trading are seemingly endless. And with no end in sight to the country’s economic and political woes, it is likely that trading goods and services for goods and services will continue at least for the short term. Multinational companies doing business in Venezuela have had to rethink their strategies entirely. Many have chosen to withdraw from the country entirely, while others are still trying to be paid for products they have sold. For these companies, the collapse of the bolivar and related shortage of dollars has created new and wanted challenges. Venezuela’s health minister recently offered to pay a group of pharmaceutical companies a mix of diamonds, gold, and coltan to settle a $5 million debt, an offer that perplexed the corporate officials who had no policies in place for accepting goods in exchange for their products.31.The increase in the use of barter in Venezuela has been prompted by: a) A government policy banning the use of cash b) A new trade agreement with neighboring countries c) The introduction of a stronger Venezuelan currency d) An increase in global oil prices e) The collapse of the bolivar 32.Why did Venezuela’s Health Minister offer to settle a $5 million bill to pharmaceutical companies in the form of diamonds, gold, and coltan rather than cash? a) Venezuela had excess supplies of these resources b) The companies preferred receiving payments in precious materials c) The Venezuelan government banned cash payments for foreign transactions d) The companies refused to accept the bolivar as payment e) The dollar shortage in Venezuela made paying the bill in dollars very difficult 33. Given what you know about countertrade from your text, along with the information provided in the case above, identify which situation is most likely to be present in Venezuela. a) A decline in barter and an increase in cash transactions b) Venezuelan firms relying solely on cryptocurrency for trade c) An increase in cash reserves held by the Venezuelan government d) Venezuelan businesses using more U.S. dollars for local transactions e) Increasing levels of countertrade activities involving Venezuelan firms 34.Venezuela’s new reliance on barter as a mechanism for exchange reflects in part: a) The country’s increasing global competitiveness b) The strengthening of the Venezuelan bolivar c) The reduction of inflation in the country d) The rise of cash-based transactions in Venezuela e) The economic impact of the drop in global oil prices