Top 250+ Solved Management of International Business MCQ Questions Answer
Q. Globalization can create problems for business because:
a. It can result in more competition.
b. It increases vulnerability to political risk and uncertainty when operating abroad.
c. It means that they can increase prices.
d. All of the options given are correct.
Q. How does international law facilitate international trade and investment?
a. It makes it easier to resolve contract disputes for firms involved in international trade and investment.
b. It allows business to choose the most favorable national legal system to institute proceedings.
c. The terms used in international conventions are open to differing interpretations.
d. The Uniform Commercial Code favors big US multinationals.
Q. Laws relating to The Single Market Program allow EU-based companies to:
a. Move goods and services from any member state to another.
b. Transfer managers to any member state.
c. Invest anywhere in the EU.
d. All of the options given.
Q. Competition Law in the EU means that firms:
a. Are free to set up international cartels.
b. May be refused permission to take over a US competitor.
c. Can not be made to repay government financial assistance.
d. Can cross-subsidise loss-making services from profitable activities.
Q. Within an international context, what are 'economies of scope' synonymous with?
a. Reusing a resource from one business/country in additional businesses/countries.
b. Decreased cost per unit of output.
c. Buying components in a bulk.
d. Any of the above.
Q. Globalization refers to:
a. A more integrated and interdependent world
b. Less foreign trade and investment
c. Global warming
d. Lower incomes worldwide
Q. Which of the following could be defined as a multinational company?
a. A firm that owns shares in a foreign company but does not participate in the company's decision making.
b. A UK based internet package holiday firm specializing in selling tours to Turkey to German customers.
c. A firm owning a chain of supermarket outlets outside its country of origin.
d. A finance company transferring its HQ and all its activities from the UK to the US.
Q. Geographical indication specifies:
a. Place of origin of goods only
b. Special characteristics of product associated with place of origin.
c. Both (a) and (b)
d. none
Q. Strategic alliance cannot be between:
a. Manufacturer and supplier
b. Competitors
c. Non- competitors
d. None of the above
Q. The mode of entry into international business with least risk to the firm is
a. Export house
b. Trading house
c. A manufacturing exporter
d. Merchant exporter.
Q. A global company can----------- its experience to expand its global operations
a. Contract
b. Expand
c. Minimize
d. Leverage
Q. Governmental regulations can affect the viability & ----------- of a company using theinternet as a foreign market entry mode.
a. Effectiveness
b. Association
c. Performance
d. None of the above
Q. ______ typically offer more flexibility in international markets.
a. SMEs
b. LSEs
c. MNEs
d. None of the above
Q. Which of the following is not a driver of globalization?
a. The fragmentation of consumer tastes between countries.
b. The competitive process.
c. Multinational companies successfully persuading governments to lower trading barriers.
d. The need to gain economies of scale.
Q. Globalization is beneficial for firms because:
a. It protects them against foreign competition.
b. It cushions them from the effects of events in other countries.
c. It opens up new market opportunities.
d. It increases the risk and uncertainty of operating in a globalizing world economy.