Exam 1 MANA 5360 questions n
answers graded A+
When entering a new market, a traditionally domestic company will most likely attempt to
implement in the new market - correct answer ✔✔The same business model and modus
operandi that was successfully applied in their home country
The following is a good example of foreign direct investment - correct answer ✔✔Intel decides
to acquire a local Costa Rican manufacturer, a 100-million-dollar deal, to offshore its production
of microprocessors
Which of the following is a consequence of globalization - correct answer ✔✔Increasing
offshoring of production and services
Which of the following is a GOOD example of OFFSHORING - correct answer ✔✔ArgCork, an
Argentine wine producer, buys three discontinued Mondavi locations in California and Oregon,
to establish its first US-based operation. They will import wine in bulk from its Argentine
headquarters, and bottle it in the US, to supply their expanding North America operations,
without the need to import finished products from Argentina into the US
Which of the following is a GOOD example of a multinational enterprise (MNE): - correct answer
✔✔SoupHeaven, a Vietnamese fast food chain, opens 20 restaurants they will own and operate
across Canada, their first international venture
When _________ is politically emphasised in a society, _______. - correct answer
✔✔Collectivism; an individual's right to do something may be restricted on the grounds that it
runs counter to "the good of society."
,In a _______ law system, _________. - correct answer ✔✔Common; a judges ruling may be
guided by interpretations made in prior legal cases
Which of the following statements is TRUE regarding totalitarian regimes - correct answer ✔✔It
is possible to have a totalitarian state that is hostile to collectivism and where some degree of
individualism is encouraged
Which of the following statements is TRUE about rule of law: - correct answer ✔✔The higher
the rule of law in a country, the better the chances laws and contracts will be enforceable.
Which of the following statements is TRUE about rule of law: - correct answer ✔✔Most
countries rule of law can and has been measured over the years by World Bank's Worldwide
Governance Indicators
You are an international business analyst studying a foreign market entry. You sell luxury goods,
such as Masseratti automobiles. In your case, to determine in which country to enter, it is
critical to account for the potential for that country to have the best market for that car,
meaning comparing the countries in terms of the market of people that can afford it. Assuming
the listed variables is all the information you have, you should: - correct answer ✔✔go to the
country with the highest GNI per capita at PPP (Gross national income per capita at PPP)
It has been proven that privatization may fail to deliver predicted benefits if the newly privatized
firms: - correct answer ✔✔Are sheltered from foreign competition
About the relationship between political economy and economic growth and development, the
following statement is TRUE: - correct answer ✔✔The state can expropriate the profits from
innovation, and thus decrease the incentives to innovate, through legal means.
The higher the level of economic freedom, the _______ incentives for _____ and, and thus, the
better the chances for economic growth and development - correct answer ✔✔higher
innovation, entrepreneurship
, A country has an absolute advantage in the production of a product when: - correct answer
✔✔it is more efficient than any other country in producing it
A country has an absolute advantage in the production of a product when it ____. - correct
answer ✔✔is more efficient than any other country in producing it
The concepts of absolute and comparative advantage show: - correct answer ✔✔why it is
beneficial for a country to engage in international trade even for products it is able to produce
for itself
Imagine your country can produce both products A and B more efficiently than any other
country. But also assume that you are more efficient in producing A than in producing B.
According to the concept of COMPARATIVE ADVANTAGE, your country should: - correct answer
✔✔produce A and not B, and import B from another country
Free trade refers to: - correct answer ✔✔a situation where a government does not attempt to
influence through quotas or duties what its citizens can buy from another country, or what they
can produce and sell to another country
Starting in 2018, a trade conflict between the US and China developed after the US imposed
tariffs on Chinese imports into the US, as a part of Trump's administration's intent to 'get jobs
back' and 'restore fair trade'. Responses and counter responses from both sides escalated and
by early 2019 the two nations had swapped tariffs on more than $200 billion of goods.
This is an example of: - correct answer ✔✔protectionist US policies triggering retaliatory
interventions in free trade responses by the Chinese
Strategic trade policy suggests that a government should use _____________ to support
promising firms that are active in newly emerging industries, and thus helping them
_____________: - correct answer ✔✔subsidies; gain first-mover advantages
answers graded A+
When entering a new market, a traditionally domestic company will most likely attempt to
implement in the new market - correct answer ✔✔The same business model and modus
operandi that was successfully applied in their home country
The following is a good example of foreign direct investment - correct answer ✔✔Intel decides
to acquire a local Costa Rican manufacturer, a 100-million-dollar deal, to offshore its production
of microprocessors
Which of the following is a consequence of globalization - correct answer ✔✔Increasing
offshoring of production and services
Which of the following is a GOOD example of OFFSHORING - correct answer ✔✔ArgCork, an
Argentine wine producer, buys three discontinued Mondavi locations in California and Oregon,
to establish its first US-based operation. They will import wine in bulk from its Argentine
headquarters, and bottle it in the US, to supply their expanding North America operations,
without the need to import finished products from Argentina into the US
Which of the following is a GOOD example of a multinational enterprise (MNE): - correct answer
✔✔SoupHeaven, a Vietnamese fast food chain, opens 20 restaurants they will own and operate
across Canada, their first international venture
When _________ is politically emphasised in a society, _______. - correct answer
✔✔Collectivism; an individual's right to do something may be restricted on the grounds that it
runs counter to "the good of society."
,In a _______ law system, _________. - correct answer ✔✔Common; a judges ruling may be
guided by interpretations made in prior legal cases
Which of the following statements is TRUE regarding totalitarian regimes - correct answer ✔✔It
is possible to have a totalitarian state that is hostile to collectivism and where some degree of
individualism is encouraged
Which of the following statements is TRUE about rule of law: - correct answer ✔✔The higher
the rule of law in a country, the better the chances laws and contracts will be enforceable.
Which of the following statements is TRUE about rule of law: - correct answer ✔✔Most
countries rule of law can and has been measured over the years by World Bank's Worldwide
Governance Indicators
You are an international business analyst studying a foreign market entry. You sell luxury goods,
such as Masseratti automobiles. In your case, to determine in which country to enter, it is
critical to account for the potential for that country to have the best market for that car,
meaning comparing the countries in terms of the market of people that can afford it. Assuming
the listed variables is all the information you have, you should: - correct answer ✔✔go to the
country with the highest GNI per capita at PPP (Gross national income per capita at PPP)
It has been proven that privatization may fail to deliver predicted benefits if the newly privatized
firms: - correct answer ✔✔Are sheltered from foreign competition
About the relationship between political economy and economic growth and development, the
following statement is TRUE: - correct answer ✔✔The state can expropriate the profits from
innovation, and thus decrease the incentives to innovate, through legal means.
The higher the level of economic freedom, the _______ incentives for _____ and, and thus, the
better the chances for economic growth and development - correct answer ✔✔higher
innovation, entrepreneurship
, A country has an absolute advantage in the production of a product when: - correct answer
✔✔it is more efficient than any other country in producing it
A country has an absolute advantage in the production of a product when it ____. - correct
answer ✔✔is more efficient than any other country in producing it
The concepts of absolute and comparative advantage show: - correct answer ✔✔why it is
beneficial for a country to engage in international trade even for products it is able to produce
for itself
Imagine your country can produce both products A and B more efficiently than any other
country. But also assume that you are more efficient in producing A than in producing B.
According to the concept of COMPARATIVE ADVANTAGE, your country should: - correct answer
✔✔produce A and not B, and import B from another country
Free trade refers to: - correct answer ✔✔a situation where a government does not attempt to
influence through quotas or duties what its citizens can buy from another country, or what they
can produce and sell to another country
Starting in 2018, a trade conflict between the US and China developed after the US imposed
tariffs on Chinese imports into the US, as a part of Trump's administration's intent to 'get jobs
back' and 'restore fair trade'. Responses and counter responses from both sides escalated and
by early 2019 the two nations had swapped tariffs on more than $200 billion of goods.
This is an example of: - correct answer ✔✔protectionist US policies triggering retaliatory
interventions in free trade responses by the Chinese
Strategic trade policy suggests that a government should use _____________ to support
promising firms that are active in newly emerging industries, and thus helping them
_____________: - correct answer ✔✔subsidies; gain first-mover advantages
