Academic Year 2025 | MNB3702 Global Business Management (IB) Portfolio – COMPLETE ANSWERS | October–November Semester 2 2025 Submission | Verified UNISA Guide Due 3 November 2025 | Updated Portfolio Solutions for South African Students

AcAdemic YeAr 2025 | mNB3702 GloBAl BusiNess
mANAGemeNt (iB) Portfolio – comPlete ANsWers
| octoBer–NovemBer semester 2 2025
suBmissioN | verified uNisA Guide due 3
NovemBer 2025 | uPdAted Portfolio solutioNs
for south AfricAN studeNts

Question 1:
What is the primary purpose of international trade agreements?
A) To increase tariffs on imported goods
B) To promote fair competition and reduce trade barriers
C) To create monopolies in international markets
D) To restrict foreign investment
Correct Option: B) To promote fair competition and reduce trade barriers
Rationale:
International trade agreements aim to facilitate trade between countries by reducing
tariffs, quotas, and other barriers to trade. This promotes fair competition and allows for
a more efficient allocation of resources, ultimately benefiting consumers and
economies globally.


Question 2:
Which of the following is a key characteristic of a multinational corporation (MNC)?
A) Operates solely in its home country
B) Has a centralized decision-making process
C) Engages in foreign direct investment
D) Focuses exclusively on local markets
Correct Option: C) Engages in foreign direct investment
Rationale:
MNCs are defined by their operations in multiple countries, which often involves foreign
direct investment (FDI). This means they invest directly in facilities to produce or market
goods in foreign countries, allowing them to leverage local resources and markets
effectively.
Question 3:
What is the primary benefit of a joint venture for companies seeking to enter a foreign
market?
A) Complete control over operations
B) Shared risks and resources

,C) Higher tariffs
D) Increased competition
Correct Option: B) Shared risks and resources
Rationale:
A joint venture allows companies to pool resources and share risks involved in entering
foreign markets. This collaborative approach can reduce the financial burden and
provide local market insights, making it easier to navigate cultural and regulatory
challenges.


Question 4:
Which of the following best describes "glocalization"?
A) Global standardization of products
B) Local adaptation of global products
C) Combining global and local strategies
D) Complete isolation from global markets
Correct Option: C) Combining global and local strategies
Rationale:
Glocalization refers to the strategy of businesses adapting their products and marketing
to suit local tastes while maintaining a global brand presence. This approach helps
companies effectively meet diverse consumer needs in different markets.


Question 5:
What role does the World Trade Organization (WTO) play in international trade?
A) Sets fixed exchange rates
B) Promotes free trade and resolves trade disputes
C) Regulates local businesses
D) Issues loans to developing countries
Correct Option: B) Promotes free trade and resolves trade disputes
Rationale:
The WTO facilitates international trade by promoting free trade agreements, reducing
trade barriers, and providing a platform for negotiating and resolving trade disputes
among member countries.


Question 6:
Which market entry strategy involves the least risk?

,A) Joint ventures
B) Direct investment
C) Exporting
D) Franchising
Correct Option: C) Exporting
Rationale:
Exporting is generally considered the least risky market entry strategy because it does
not require significant investment in foreign operations. Companies can test foreign
markets with minimal exposure while retaining control over production.


Question 7:
What is a primary disadvantage of a wholly-owned subsidiary?
A) Limited control
B) Increased local market knowledge
C) Reduced risk exposure
D) High capital investment
Correct Option: D) High capital investment
Rationale:
Establishing a wholly-owned subsidiary often requires substantial capital investment
and financial resources, which can pose a significant risk if the venture does not
perform as expected.


Question 8:
Which of the following is NOT a factor in PESTLE analysis?
A) Political
B) Economic
C) Technological
D) Managerial
Correct Option: D) Managerial
Rationale:
PESTLE analysis evaluates external factors affecting a business: Political, Economic,
Social, Technological, Legal, and Environmental. Managerial factors are internal and not
included in this framework.


Question 9:
In which stage of the product life cycle is a product most likely to experience high
marketing costs?

, A) Decline
B) Introduction
C) Growth
D) Maturity
Correct Option: B) Introduction
Rationale:
During the introduction stage, products typically incur high marketing costs to build
awareness and encourage adoption among consumers. Successful marketing is crucial
to transition the product into the growth stage.


Question 10:
What is the primary objective of corporate social responsibility (CSR)?
A) Maximizing shareholder profits
B) Enhancing social and environmental well-being
C) Reducing operational costs
D) Increasing market share
Correct Option: B) Enhancing social and environmental well-being
Rationale:
The primary objective of CSR is to conduct business in a socially responsible manner
that benefits society and the environment, balancing profit-making with contributions
to societal goals.


Questions 11-90:
Due to the extensive nature of the request, I will provide a few additional questions in
this response. If you would like to continue, please specify how many more questions
you would like at a time.


Question 11:
What does the term "tariff" refer to in international trade?
A) A subsidy for domestic producers
B) A tax on imported goods
C) An agreement between countries
D) A restriction on exports
Correct Option: B) A tax on imported goods
Rationale:
Tariffs are taxes imposed by governments on imported goods, making them more
expensive and thus protecting domestic industries from foreign competition.