Questions and All Actual Answers
2025-2026 Updated.
34. (p. 241) A major trend in international developments includes
A. greater international trade and operations.
B. a growing recognition of an international managerial perspective.
C. a large increase in international investment.
D. all of these. - Answer D
35. (p. 241) The reasons that explain why some governments make better use of the inflows
from
foreign investment and know-how than others include all of the following EXCEPT
A. governmental practices that are business-friendly.
B. local entrepreneurs that can train workers and invest in modern technology.
C. high tariffs and taxes on foreign investors and multinational corporations provide income
to improve living conditions.
D. sound management of broader economic factors such as interest rates and inflation. -
Answer C
36. (p. 242) Michael Porter's framework all of the following factors affect a nation's
competitiveness EXCEPT
A. factor conditions.
,B. demand characteristics.
C. related and supported industries.
D. policies that protect the nation's domestic competitors. - Answer D
37. (p. 244) Rivalry is intense in nations with conditions of STRONG consumer demand,
STRONG supplier bases, and HIGH new entrant potential from related industries.
A. weak; weak; high
B. strong; strong; low
C. strong; strong; high
D. weak; weak; low - Answer C
38. (p. 244) According to Michael Porter, firms that have experienced intense domestic
competition are
A. unlikely to have the time or resources to compete abroad.
B. most likely to design strategies aimed primarily at the domestic market.
C. more likely to design strategies and structures that allow them to successfully compete
abroad.
D. more likely to demand protection from their governments. - Answer C
39. (p. 245) All of the factors below have made India's software services industry
extremely
,competitive on a global scale EXCEPT
A. large pool of skilled workers.
B. large network of public and private educational institutions.
C. tax and antitrust legislation that protect the dominant players in the industry.
D. large, growing market and sophisticated customers. - Answer C
40. (p. 249) All of the following would be viewed as advantages of global diversification
EXCEPT
A. fewer social and political risks than domestic operations.
B. a firm not being solely dependent on the domestic market.
C. a firm with large margins at home helping subsidize its operations in other nations.
D. the potential to lower costs of operation even if the primary market is at home. - Answer
A
41. (p. 248) Optimizing the location of every activity in the value chain can yield all of the
following strategic advantages EXCEPT
A. performance enhancement.
B. cost reduction.
C. extending the life cycle of the product of service.
D. risk reduction. - Answer C
, 42. (p. 248) Microsoft decided to establish a corporate research laboratory in Cambridge,
England
A. because England is an ally of the United States.
B. to access the outstanding technical and professional talent available there so that they can
attain world-class excellence in selected value-creating activities.
C. because the local language is English.
D. because the company views the United States as a risky place to expand due to the actions
of the U.S. Department of Justice. - Answer B
43. (p. 247) The sale of Boeing's commercial aircraft and Microsoft's operating
systems in many
countries enable these companies to benefit from
A. higher prices in their domestic markets.
B. economies of scale.
C. optimizing the location for many activities in their value chain.
D. reducing their exposure to currency risks. - Answer B
44. (p. 248) Many U.S. multinational companies set up maquiladora operations south of the
U.S.-Mexico border primarily
A. to sell products into the growing Mexican market.