PRINCIPLES OF GLOBAL BUSINESS MANAGEMENT)
SEMESTER 2
ASSIGNMENT 01 20228 – UNIQUE NUMBER 840047
This assignment consists of 30 multiple-choice questions that cover various chapters of the prescribed
book. You may require additional resources to complete the assignment, essentially given that some of the
assignment questions are practical-orientated.
Question 1
Both the concepts of globalisation and economic openness are underpinned by a common ideology. Which
one of the following best describes that commonness?
1. Global reduction in income per capita.
2. Global increase income disparity.
3. Global increase in trade agreements;
4. Global decrease in productivity growth.
Question 2
Which one of the following options is at odd with the documented forces that drive globalisation?
1. The liberalisation of cross-border trade and resource movements.
2. The development of services that support international business.
3. The recent advances in technological systems and equipment.
4. The growing nature of consumer pressure on taste and fashion.
Question 3
It is a known fact that globalisation has faced immense pressure from various groups and interests over the
past decade. Which of the following encapsulates the major motivation for the ever-growing adversary
towards globalisation?
1. The conviction that terrorism thrives on poverty, which is easily attributed to globalisation.
2. Symbiotic trading arrangements between nation states that have resulted into national loss of
sovereignty.
3. The complexity of that pervades the operating environment of international business.
4. The increasing nature of antagonism towards trade liberalisation and free market system.
Page 1 of 8
, Question 4
The major purpose for the establishment of the World Trade Organisation (WTO) is to:
1. encourage the economical dispersion of production activities;
2. promote global free trade and the interplay of price mechanism;
3. monitor the partial exportation of finished products across borders;
4. regulate international production costs and ultimately, consumer prices.
Question 5
MNCs can realise location economies by:
1. ensuring cost and quality improvements in their global supply chains;
2. achieving low-cost, value creation locales, for manufacturing purposes;
3. locating all of its value-creating activities, in a single location;
4. dispersing its manufacturing and product design processes to different international locations.
Question 6
The Porter’s diamond of national competitive advantage illustrates a theory that states that:
1. The location of production facilities that serve world markets is a function of the product life cycle.
2. MNC’s create new products in response to market conditions in their home market.
3. Demand and factor conditions are conducive to determining a country’s competitive advantage.
4. Differences in countries’ endowments of labour compared to land and capital, explain the differences in the
cost of production factors.
Question 7
“China’s Zengzhou region is planning to develop a massive logistics hub around its airport. Clearly this is an
open invitation for prospective FDI projects to be established at such a hub.” From your understanding of the
theories of FDI, which of the following would influence the initiatives earmarked for such an offshore
business location?
1. The availability of comparative resources at competitive prices.
2. The extent to which the initiative would improve production efficiency of MNCs.
3. The location-specific opportunities offered to leverage subsidiary skills.
4. The availability of government incentives to specifically attract investors.
Page 2 of 8
SEMESTER 2
ASSIGNMENT 01 20228 – UNIQUE NUMBER 840047
This assignment consists of 30 multiple-choice questions that cover various chapters of the prescribed
book. You may require additional resources to complete the assignment, essentially given that some of the
assignment questions are practical-orientated.
Question 1
Both the concepts of globalisation and economic openness are underpinned by a common ideology. Which
one of the following best describes that commonness?
1. Global reduction in income per capita.
2. Global increase income disparity.
3. Global increase in trade agreements;
4. Global decrease in productivity growth.
Question 2
Which one of the following options is at odd with the documented forces that drive globalisation?
1. The liberalisation of cross-border trade and resource movements.
2. The development of services that support international business.
3. The recent advances in technological systems and equipment.
4. The growing nature of consumer pressure on taste and fashion.
Question 3
It is a known fact that globalisation has faced immense pressure from various groups and interests over the
past decade. Which of the following encapsulates the major motivation for the ever-growing adversary
towards globalisation?
1. The conviction that terrorism thrives on poverty, which is easily attributed to globalisation.
2. Symbiotic trading arrangements between nation states that have resulted into national loss of
sovereignty.
3. The complexity of that pervades the operating environment of international business.
4. The increasing nature of antagonism towards trade liberalisation and free market system.
Page 1 of 8
, Question 4
The major purpose for the establishment of the World Trade Organisation (WTO) is to:
1. encourage the economical dispersion of production activities;
2. promote global free trade and the interplay of price mechanism;
3. monitor the partial exportation of finished products across borders;
4. regulate international production costs and ultimately, consumer prices.
Question 5
MNCs can realise location economies by:
1. ensuring cost and quality improvements in their global supply chains;
2. achieving low-cost, value creation locales, for manufacturing purposes;
3. locating all of its value-creating activities, in a single location;
4. dispersing its manufacturing and product design processes to different international locations.
Question 6
The Porter’s diamond of national competitive advantage illustrates a theory that states that:
1. The location of production facilities that serve world markets is a function of the product life cycle.
2. MNC’s create new products in response to market conditions in their home market.
3. Demand and factor conditions are conducive to determining a country’s competitive advantage.
4. Differences in countries’ endowments of labour compared to land and capital, explain the differences in the
cost of production factors.
Question 7
“China’s Zengzhou region is planning to develop a massive logistics hub around its airport. Clearly this is an
open invitation for prospective FDI projects to be established at such a hub.” From your understanding of the
theories of FDI, which of the following would influence the initiatives earmarked for such an offshore
business location?
1. The availability of comparative resources at competitive prices.
2. The extent to which the initiative would improve production efficiency of MNCs.
3. The location-specific opportunities offered to leverage subsidiary skills.
4. The availability of government incentives to specifically attract investors.
Page 2 of 8
