Fall SemeSter 2025 – mNB3701 GloBal BuSiNeSS
maNaGemeNt ia | aSSiGNmeNt 3 ComPlete
aNSWerS | uPdated 2025/2026 editioN | VeriFied
uNiSa Study Guide | due 27 NoVemBer 2025 | 100%
aCCurate aNd exam-ready PortFolio material
Question 1:
What is the primary goal of international business strategy?
A) To minimize costs
B) To maximize market share
C) To achieve competitive advantage in global markets
D) To ensure compliance with local regulations
Correct Option: C) To achieve competitive advantage in global markets
Rationale: The primary goal of an international business strategy is to leverage
resources and capabilities to create a competitive advantage in various global markets.
While minimizing costs and maximizing market share are important, they are often
means to the end of achieving a sustainable competitive advantage.
Question 2:
Which of the following is a key factor influencing global market entry strategy?
A) Market size
B) Cultural differences
C) Currency exchange rates
D) Supply chain logistics
Correct Option: B) Cultural differences
Rationale: Cultural differences play a crucial role in determining how a business enters
a global market. Understanding local customs, consumer behavior, and societal norms
is essential for successful market entry, as it influences marketing strategies, product
development, and overall business operations.
Question 3:
In the context of global supply chain management, what does 'just-in-time' (JIT)
inventory mean?
A) Producing goods in large quantities to reduce costs
B) Keeping minimal inventory to reduce holding costs
C) Delivering products only when they are needed in the production process
D) A strategy to ensure goods arrive exactly when required
,Correct Option: D) A strategy to ensure goods arrive exactly when required
Rationale: Just-in-time (JIT) inventory management aims to have materials arrive
precisely when needed for production, thereby reducing inventory costs and improving
efficiency. This approach requires strong relationships with suppliers and precise
demand forecasting.
Question 4:
What is the main benefit of adopting a transnational strategy in global business?
A) Lower operational costs
B) Flexibility to adapt to local markets while leveraging global efficiencies
C) Simplified management of international operations
D) Enhanced brand recognition in home markets
Correct Option: B) Flexibility to adapt to local markets while leveraging global
efficiencies
Rationale: A transnational strategy allows companies to balance global efficiency with
local responsiveness. This strategy enables firms to tailor their offerings to meet local
market demands while still benefiting from global operational efficiencies.
Question 5:
Which of the following best describes ‘glocalization’?
A) The process of reducing global business operations
B) Standardizing products for all international markets
C) Adapting global products to local markets
D) Combining global and local strategies in business operations
Correct Option: D) Combining global and local strategies in business operations
Rationale: Glocalization refers to the practice of conducting business according to
both local and global considerations. It involves adapting products and marketing
strategies to fit local tastes and preferences while maintaining a consistent global
brand.
Question 6:
Which international trade theory emphasizes the advantages of producing goods in
large quantities?
A) Absolute Advantage
B) Comparative Advantage
C) Economies of Scale
D) Factor Proportions Theory
,Correct Option: C) Economies of Scale
Rationale: Economies of scale suggest that as production increases, the cost per unit
decreases, allowing firms to operate more efficiently and competitively in international
markets.
Question 7:
What is a primary risk associated with foreign direct investment (FDI)?
A) Market expansion
B) Political instability
C) Increased brand recognition
D) Access to local talent
Correct Option: B) Political instability
Rationale: Political instability in a host country can jeopardize investments, leading to
potential loss of capital and disruption of business operations.
Question 8:
What does the acronym SWOT stand for in strategic planning?
A) Strengths, Weaknesses, Opportunities, Threats
B) Strengths, Weaknesses, Objectives, Tactics
C) Strategies, Weaknesses, Options, Trends
D) Solutions, Weaknesses, Objectives, Threats
Correct Option: A) Strengths, Weaknesses, Opportunities, Threats
Rationale: SWOT analysis is a strategic planning tool used to identify and evaluate the
internal strengths and weaknesses of a company, along with external opportunities and
threats in the market.
Question 9:
Which of the following best describes ‘outsourcing’?
A) Internal production of goods
B) Merging with local firms
C) Expanding into new markets
D) Contracting external companies to perform services
Correct Option: D) Contracting external companies to perform services
, Rationale: Outsourcing refers to the practice of delegating business processes or
services to external firms, often to reduce costs or focus on core business activities.
Question 10:
What is the primary purpose of a global marketing strategy?
A) To minimize operational costs
B) To create a unified brand image while tailoring products to local markets
C) To avoid legal complications in foreign markets
D) To focus solely on online marketing channels
Correct Option: B) To create a unified brand image while tailoring products to local
markets
Rationale: A global marketing strategy aims to achieve a cohesive brand presence
globally while adapting products and marketing efforts to meet the unique needs of
local consumers.
Question 11:
In international business, what does ‘currency risk’ refer to?
A) The risk of product failure in new markets
B) The risk of fluctuating commodity prices
C) The risk of changes in exchange rates affecting profitability
D) The risk of political changes impacting trade agreements
Correct Option: C) The risk of changes in exchange rates affecting profitability
Rationale: Currency risk arises from the potential for exchange rate fluctuations to
impact the value of international transactions, affecting overall financial results.
Question 12:
Which of the following is a characteristic of emerging markets?
A) Highly developed infrastructure
B) Stable political environments
C) High per capita income
D) Rapid economic growth with increasing consumer demand
Correct Option: D) Rapid economic growth with increasing consumer demand
Rationale: Emerging markets are typically characterized by fast economic growth, rising
incomes, and a growing middle class, making them attractive for global businesses.
maNaGemeNt ia | aSSiGNmeNt 3 ComPlete
aNSWerS | uPdated 2025/2026 editioN | VeriFied
uNiSa Study Guide | due 27 NoVemBer 2025 | 100%
aCCurate aNd exam-ready PortFolio material
Question 1:
What is the primary goal of international business strategy?
A) To minimize costs
B) To maximize market share
C) To achieve competitive advantage in global markets
D) To ensure compliance with local regulations
Correct Option: C) To achieve competitive advantage in global markets
Rationale: The primary goal of an international business strategy is to leverage
resources and capabilities to create a competitive advantage in various global markets.
While minimizing costs and maximizing market share are important, they are often
means to the end of achieving a sustainable competitive advantage.
Question 2:
Which of the following is a key factor influencing global market entry strategy?
A) Market size
B) Cultural differences
C) Currency exchange rates
D) Supply chain logistics
Correct Option: B) Cultural differences
Rationale: Cultural differences play a crucial role in determining how a business enters
a global market. Understanding local customs, consumer behavior, and societal norms
is essential for successful market entry, as it influences marketing strategies, product
development, and overall business operations.
Question 3:
In the context of global supply chain management, what does 'just-in-time' (JIT)
inventory mean?
A) Producing goods in large quantities to reduce costs
B) Keeping minimal inventory to reduce holding costs
C) Delivering products only when they are needed in the production process
D) A strategy to ensure goods arrive exactly when required
,Correct Option: D) A strategy to ensure goods arrive exactly when required
Rationale: Just-in-time (JIT) inventory management aims to have materials arrive
precisely when needed for production, thereby reducing inventory costs and improving
efficiency. This approach requires strong relationships with suppliers and precise
demand forecasting.
Question 4:
What is the main benefit of adopting a transnational strategy in global business?
A) Lower operational costs
B) Flexibility to adapt to local markets while leveraging global efficiencies
C) Simplified management of international operations
D) Enhanced brand recognition in home markets
Correct Option: B) Flexibility to adapt to local markets while leveraging global
efficiencies
Rationale: A transnational strategy allows companies to balance global efficiency with
local responsiveness. This strategy enables firms to tailor their offerings to meet local
market demands while still benefiting from global operational efficiencies.
Question 5:
Which of the following best describes ‘glocalization’?
A) The process of reducing global business operations
B) Standardizing products for all international markets
C) Adapting global products to local markets
D) Combining global and local strategies in business operations
Correct Option: D) Combining global and local strategies in business operations
Rationale: Glocalization refers to the practice of conducting business according to
both local and global considerations. It involves adapting products and marketing
strategies to fit local tastes and preferences while maintaining a consistent global
brand.
Question 6:
Which international trade theory emphasizes the advantages of producing goods in
large quantities?
A) Absolute Advantage
B) Comparative Advantage
C) Economies of Scale
D) Factor Proportions Theory
,Correct Option: C) Economies of Scale
Rationale: Economies of scale suggest that as production increases, the cost per unit
decreases, allowing firms to operate more efficiently and competitively in international
markets.
Question 7:
What is a primary risk associated with foreign direct investment (FDI)?
A) Market expansion
B) Political instability
C) Increased brand recognition
D) Access to local talent
Correct Option: B) Political instability
Rationale: Political instability in a host country can jeopardize investments, leading to
potential loss of capital and disruption of business operations.
Question 8:
What does the acronym SWOT stand for in strategic planning?
A) Strengths, Weaknesses, Opportunities, Threats
B) Strengths, Weaknesses, Objectives, Tactics
C) Strategies, Weaknesses, Options, Trends
D) Solutions, Weaknesses, Objectives, Threats
Correct Option: A) Strengths, Weaknesses, Opportunities, Threats
Rationale: SWOT analysis is a strategic planning tool used to identify and evaluate the
internal strengths and weaknesses of a company, along with external opportunities and
threats in the market.
Question 9:
Which of the following best describes ‘outsourcing’?
A) Internal production of goods
B) Merging with local firms
C) Expanding into new markets
D) Contracting external companies to perform services
Correct Option: D) Contracting external companies to perform services
, Rationale: Outsourcing refers to the practice of delegating business processes or
services to external firms, often to reduce costs or focus on core business activities.
Question 10:
What is the primary purpose of a global marketing strategy?
A) To minimize operational costs
B) To create a unified brand image while tailoring products to local markets
C) To avoid legal complications in foreign markets
D) To focus solely on online marketing channels
Correct Option: B) To create a unified brand image while tailoring products to local
markets
Rationale: A global marketing strategy aims to achieve a cohesive brand presence
globally while adapting products and marketing efforts to meet the unique needs of
local consumers.
Question 11:
In international business, what does ‘currency risk’ refer to?
A) The risk of product failure in new markets
B) The risk of fluctuating commodity prices
C) The risk of changes in exchange rates affecting profitability
D) The risk of political changes impacting trade agreements
Correct Option: C) The risk of changes in exchange rates affecting profitability
Rationale: Currency risk arises from the potential for exchange rate fluctuations to
impact the value of international transactions, affecting overall financial results.
Question 12:
Which of the following is a characteristic of emerging markets?
A) Highly developed infrastructure
B) Stable political environments
C) High per capita income
D) Rapid economic growth with increasing consumer demand
Correct Option: D) Rapid economic growth with increasing consumer demand
Rationale: Emerging markets are typically characterized by fast economic growth, rising
incomes, and a growing middle class, making them attractive for global businesses.
