MNP3701 EXAM PACK.

1. Anti-free trade arguments maintain that free trade agreements can result in: a. Exports exceeding imports in a country’s economy 2. Globalisation is often crystallised as “cross-border” trade and investments. But, this provides a limited perspective on what globalisation is. What then is globalisation? a. It represents a shift towards a more independent world economy 3. “kenya’s growth potential is a sure reflection of the high growth being experience in East African economies”. It all points to the drivers of globalisation at work. These drivers are: a. Changes in technological environment b. the region’s growing middle-class c. Advances in transportation technology 4. The function of the GATT was to: a. Lower barriers to the free flow of goods, services and capital among nations. 5. The primary purpose of the World bank is: a. Alleviate poverty and encourage economic development 6. The Bretton Woods agreement signified the following most noteworthy achievement: a. the provision of a US dollar-based monetary system. Ensuring the convertibility of other currencies into the US dollar 7. In terms of contemporary currency arrangements, an independent float refers to: a. Exchange rate determination through market forces. 8. Globalisation: a. Encourages market integration and WTO and IMF activities 9. National competitive advantage is determined through a combination of four broad attributes in the domestic environment, in which organisations compete. These attributes are often referred to as the so called Porter’s diamond of national competitive advantage. Which is a determinant: a. the conditions of available resources in the domestic economy b. The demand position of the country c. Firm strategies, structures and rivalry within the domestic economy 10. “anti-globalisation protest are escalating at an alarming rate. The recent violence and chaos that descended on the G20 summit in Hamburg, confirms this”. What is the principal rational motivating the protest action of anti-globalists? a. Its conviction that “globalisation” is not working 11. A Zimbabwean oil company is persisting with operations although they are polluting the local water resources. The company will be faced with serious ethical consequences if they persist with the operations. Which theory of business ethics would be applicable? a. Cultural relativism 12. Multinational mining companies have on occasions, violate the expectations their immediate communities. Failure to meet he moral expectations of some of its stakeholders holds the following ethical implications a. the application of Rawl’s “veil of ignorance” to business ethics 13. “Corporate social responsibility” hinges on: a. The impact of business activities on the environment and society 14. The question of “disclosure” in corporate social responsibility reporting refers to: a. The disclosure of information that is beneficial to stakeholders 15. “economic freedom” is espoused by most democratic economies. Which theories of business ethics reflects the promotion of economic freedom a. The friedman doctrine of social responsibility 16. The difference between FDI through acquisitions versus greenfields investments is that a. Acquisitions involve the procurement of valuable strategic assets 17. The gold standard and the confidence it elicited over many years, was ultimately abandoned due to: a. the advent of the oil crisis in 1973 18. The foreign exchange market is a worldwide financial market that provides the physical and institutional structure for foreign exchange transactions. The key functions of the foreign exchange market include the following: a. The transfer of purchasing power of one currency to another b. The provision of credit to individuals and multinational firms globally c. Minimising foreign exchange risk relating to cross-border trade and investments 19. Statement best describes the concept of purchasing power parity (PPP) a. PPP is the relative ability of two currencies to buy the same basket of goods and services in the two countries under consideration 20. The fact that the bilateral spot exchange rate for any two countries, should change in an equal amount, but in the opposite direction, to the difference in nominal interest rates between the two countries is referred to as: