IBA EXAM #1 QUESTIONS & ANSWERS
From the trade theories perspective, the main reason that firms internalize value-chain
activities is to ________. - Answer -gain and sustain competitive advantage
The technology for television sets was invented in the United States, and production
began in the 1940s. Sales grew until TVs became standardized. Then production
shifted overseas, and now the United States imports its television sets. This is an
example of ________. - Answer -The international product life cycle
Which of the following represents the trend of economic disaster spreading from one
country to another? - Answer -Contagion
Which of the following is a societal consequence of globalization? - Answer -Offshoring
and the flight of jobs
Which of the following would be a cross-cultural risk in internationalization? - Answer -
Different Languages
In ________, people are primarily concerned with their own self-interest, and ties
among individuals are fairly loose. - Answer -individualistic societies
Which of these describes a strategy that involves a firm's establishing a presence
overseas by acquiring productive assets such as land, plants, equipment, capital, and
technology? - Answer -Foreign direct investment
Which of the following is NOT a limitation of the absolute and comparative advantage
theories? - Answer -Large-scale production provides economies of scale.
Which term refers to the trend of corporations to methodically expand their worldwide
business activities? 1 - Answer -Internationalization
What technology has had the greatest effect in developing economies? - Answer -
Mobile Phones
________ involves the allocation of assets to another country or the attainment of
assets in that particular country. - Answer -International investment
Societies that score low on uncertainly avoidance ________. - Answer -take risks and
make decisions quickly
Advances in ________ have resulted in an expansion of the global marketplace for
small- and medium-sized enterprises (SMEs). - Answer -communications
, Which of the following is NOT an economic integration bloc? - Answer -World Trade
Organization (WTO)
________ is the tendency to view other cultures through the lens of one's own culture. -
Answer -Self-reference criterion
Acculturation refers to the process of ________. - Answer -adapting to a culture other
than one's original culture
________ involves the passive ownership of foreign securities such as stocks and
bonds for the purpose of generating financial returns. - Answer -International portfolio
investment
When a company transfers its value-chain activities by launching a subsidiary in a
foreign country, it is called ________. - Answer -offshoring
Established in 2010, Instagram quickly found an international market for its photo- site.
Currently, only a small fraction of Instagram's customers are from the United States.
Instagram is an example of a(n) ________. - Answer -born global firm
Acme Ethical Standards (Scenario)
Four senior managers of Acme International meet to discuss strategies for improving
ethical practices in the company's worldwide operations. Jang heads the company's
manufacturing division in China, while Luis and Marta are based in the Finland and U.S.
sales divisions, respectively. Geoff manages the research and development office,
based in Brazil.
The managers discuss various ethical problems commonly encountered in their local
territories.
Who among the following managers is most likely to raise concern over the ban on
advertising directed at children in his/her country? - Answer -Luis
ABC Enterprises transferred some of its manufacturing and other value-chain activities
to a more cost-effective location in China five years ago. Recently, ABC Enterprises has
undergone a change in management, and the new manager has decided to move those
value-chain and manufacturing activities back to the home country. In which of the
following is ABC participating? - Answer -Reshoring
________ is a religion that is not associated with one particular prophet. It is an open-
hearted faith that fully accepts other faiths and is inspired by central concepts called
dharma and karma. - Answer -Hinduism
What is the most complex entry strategy for engaging in global business? - Answer -
Foreign direct investment
________ describes using one's own culture as a basis for judging other cultures. -
Answer -Ethnocentric orientation
From the trade theories perspective, the main reason that firms internalize value-chain
activities is to ________. - Answer -gain and sustain competitive advantage
The technology for television sets was invented in the United States, and production
began in the 1940s. Sales grew until TVs became standardized. Then production
shifted overseas, and now the United States imports its television sets. This is an
example of ________. - Answer -The international product life cycle
Which of the following represents the trend of economic disaster spreading from one
country to another? - Answer -Contagion
Which of the following is a societal consequence of globalization? - Answer -Offshoring
and the flight of jobs
Which of the following would be a cross-cultural risk in internationalization? - Answer -
Different Languages
In ________, people are primarily concerned with their own self-interest, and ties
among individuals are fairly loose. - Answer -individualistic societies
Which of these describes a strategy that involves a firm's establishing a presence
overseas by acquiring productive assets such as land, plants, equipment, capital, and
technology? - Answer -Foreign direct investment
Which of the following is NOT a limitation of the absolute and comparative advantage
theories? - Answer -Large-scale production provides economies of scale.
Which term refers to the trend of corporations to methodically expand their worldwide
business activities? 1 - Answer -Internationalization
What technology has had the greatest effect in developing economies? - Answer -
Mobile Phones
________ involves the allocation of assets to another country or the attainment of
assets in that particular country. - Answer -International investment
Societies that score low on uncertainly avoidance ________. - Answer -take risks and
make decisions quickly
Advances in ________ have resulted in an expansion of the global marketplace for
small- and medium-sized enterprises (SMEs). - Answer -communications
, Which of the following is NOT an economic integration bloc? - Answer -World Trade
Organization (WTO)
________ is the tendency to view other cultures through the lens of one's own culture. -
Answer -Self-reference criterion
Acculturation refers to the process of ________. - Answer -adapting to a culture other
than one's original culture
________ involves the passive ownership of foreign securities such as stocks and
bonds for the purpose of generating financial returns. - Answer -International portfolio
investment
When a company transfers its value-chain activities by launching a subsidiary in a
foreign country, it is called ________. - Answer -offshoring
Established in 2010, Instagram quickly found an international market for its photo- site.
Currently, only a small fraction of Instagram's customers are from the United States.
Instagram is an example of a(n) ________. - Answer -born global firm
Acme Ethical Standards (Scenario)
Four senior managers of Acme International meet to discuss strategies for improving
ethical practices in the company's worldwide operations. Jang heads the company's
manufacturing division in China, while Luis and Marta are based in the Finland and U.S.
sales divisions, respectively. Geoff manages the research and development office,
based in Brazil.
The managers discuss various ethical problems commonly encountered in their local
territories.
Who among the following managers is most likely to raise concern over the ban on
advertising directed at children in his/her country? - Answer -Luis
ABC Enterprises transferred some of its manufacturing and other value-chain activities
to a more cost-effective location in China five years ago. Recently, ABC Enterprises has
undergone a change in management, and the new manager has decided to move those
value-chain and manufacturing activities back to the home country. In which of the
following is ABC participating? - Answer -Reshoring
________ is a religion that is not associated with one particular prophet. It is an open-
hearted faith that fully accepts other faiths and is inspired by central concepts called
dharma and karma. - Answer -Hinduism
What is the most complex entry strategy for engaging in global business? - Answer -
Foreign direct investment
________ describes using one's own culture as a basis for judging other cultures. -
Answer -Ethnocentric orientation
