MANA 5360 EXAM QUESTIONS WITH
100% CORRECT ANSWERS LATEST
VERSION 2025/2026.
When entering a new market, a traditionally domestic company will most likely attempt to
implement in the new market - ANS 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 - ANS 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 - ANS Increasing offshoring of
production and services
Which of the following is a GOOD example of OFFSHORING - ANS 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): -
ANS SoupHeaven, a Vietnamese fast food chain, opens 20 restaurants they will own and
operate across Canada, their first international venture
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,When _________ is politically emphasised in a society, _______. - ANS 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, _________. - ANS Common; a judges ruling may be guided by
interpretations made in prior legal cases
Which of the following statements is TRUE regarding totalitarian regimes - ANS 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: - ANS 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: - ANS 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: - ANS 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: - ANS Are sheltered from foreign competition
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, About the relationship between political economy and economic growth and development, the
following statement is TRUE: - ANS 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 - ANS higher innovation,
entrepreneurship
A country has an absolute advantage in the production of a product when: - ANS 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 ____. - ANS is
more efficient than any other country in producing it
The concepts of absolute and comparative advantage show: - ANS 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: - ANS produce
A and not B, and import B from another country
Free trade refers to: - ANS 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.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
100% CORRECT ANSWERS LATEST
VERSION 2025/2026.
When entering a new market, a traditionally domestic company will most likely attempt to
implement in the new market - ANS 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 - ANS 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 - ANS Increasing offshoring of
production and services
Which of the following is a GOOD example of OFFSHORING - ANS 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): -
ANS SoupHeaven, a Vietnamese fast food chain, opens 20 restaurants they will own and
operate across Canada, their first international venture
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,When _________ is politically emphasised in a society, _______. - ANS 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, _________. - ANS Common; a judges ruling may be guided by
interpretations made in prior legal cases
Which of the following statements is TRUE regarding totalitarian regimes - ANS 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: - ANS 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: - ANS 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: - ANS 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: - ANS Are sheltered from foreign competition
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, About the relationship between political economy and economic growth and development, the
following statement is TRUE: - ANS 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 - ANS higher innovation,
entrepreneurship
A country has an absolute advantage in the production of a product when: - ANS 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 ____. - ANS is
more efficient than any other country in producing it
The concepts of absolute and comparative advantage show: - ANS 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: - ANS produce
A and not B, and import B from another country
Free trade refers to: - ANS 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.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
