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Jump 1 2025

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Mastering International Business and Trade
Revision of 20% and 80% Effectuated on 2025 (Series of 2025)
15 Test Questions [Duo (2.0) points each] = Total: 30 Points
Set 1 Jump

Instructions: Select the best answer for each question by carefully reading both the question
and all answer choices before marking your response. (The answer key is provided below.)

1. A Philippine streaming platform wants to acquire the exclusive Southeast Asian
distribution rights for Encantadia Chronicles: Sang’gre 2025. However, due to negative
fan backlash in the Philippines, the company plans to first release it in countries where
fantasy dramas have historically high viewership (e.g., Indonesia, Malaysia, Thailand)
before domestic release. This staggered market entry is an example of which entry
strategy in global business?

B) Licensing
L) Franchising
I) Exporting
N) Direct Investment
K) Strategic Alliance

2. A Singapore-based investor group buys 35% of a Philippine production company
responsible for Encantadia Chronicles: Sang’gre 2025 to gain influence over its creative
direction. This is considered which type of international investment flow?

B) Foreign Direct Investment (FDI)
L) Portfolio investment
I) Greenfield investment
N) Joint Venture capital
K) Cross-border franchise equity

3. After Sang’gre 2025 gets criticized for “disrespecting legacy characters,” GMA
Network decides to crowdfund an alternate ending, allowing fans worldwide to donate
in their local currencies. The company must manage foreign exchange risk due to
fluctuating USD–PHP rates. Which strategy would best protect them from this risk?

B) Floating exchange rate adoption
L) Switching to cryptocurrency payments
I) Hedging with forward contracts
N) Asking for donations only in pesos
K) Using a barter system for production materials

4. GMA Network considers co-producing a redemption season with a Korean
fantasy-drama studio to repair the Encantadia brand. This collaboration would involve

, sharing technology, creative input, and production costs. In entry strategy terms, what
is this?

B) Wholly Owned Subsidiary
L) Export Licensing
I) Management Contract
N) Strategic Alliance
K) Turnkey Project

5. The Encantadia brand team learns that in some Middle Eastern countries, depictions
of sorcery face strict legal censorship. If they still want to market the show there, they
must adapt certain plot elements and visuals. This is an example of which global
marketing strategy?

B) Product adaptation
L) Dual adaptation
I) Standardization
N) Countertrade
K) Localization

6. Fan backlash to Sang’gre 2025 has caused its merchandise sales to drop by 40%
domestically. To maintain revenue, the marketing team focuses on selling limited-edition
weapons replicas in Brazil, where cosplay events are booming. This is an example of:

B) Market diversification
L) Ethnocentric product orientation
I) Localization backlash
N) Product dumping
K) Export-led recovery

7. The writers of Sang’gre 2025 face accusations of condescending tone toward fans in
interviews. If the show is exported, such communication issues could harm brand image
due to differences in high-context and low-context cultures. According to cultural
environment theory, this is primarily an issue in:

B) Hofstede’s power distance index
L) Hall’s cultural dimensions
I) Trompenaars’ neutral–emotional dimension
N) Global communication ethics
K) Cross-border marketing law

8. A U.S. distributor threatens to sue the Philippine production company for “false
advertising,” claiming Sang’gre 2025 trailers promised certain legacy characters who
were later killed off early. This legal dispute is an example of:

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