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IB Rat Q's Flashcards

1
Q

The recent increase in tariffs on a wide list of imported to US products with an aim to
protect local industries and reduce the trade deficit is mostly associated with:
A. New Trade Theory
B. Comparative Trade Theory
C. Mercantilism
D. Theory of Absolute Advantage

A

C. Mercantilism

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2
Q

The theory that suggests that development is path-dependent and protectionism may be
advantageous is:
A. New Trade Theory
B. Comparative Trade Theory
C. Mercantilism
D. Theory of Absolute Advantage

A

A. New Trade Theory

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3
Q

The reason you have cookies from Canada, Denmark, Holland and the US in your
supermarket aisle is explained by:
A. New Trade Theory
B. Comparative Trade Theory
C. Mercantilism
D. Theory of Absolute Advantage

A

A. New Trade Theory

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4
Q

In his study dealing with the competitive advantage of nations, Porter
argued that a nation’s firms gain competitive advantage if their domestic
consumers are __________ and __________.
A) pretentious, passive
B) smart, active
C) lazy, kind
D) sophisticated, demanding

A

D) sophisticated, demanding

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5
Q

The existence of highly skilled workers in an industry is
captured under the heading of:
A. Factor conditions
B. Home-country demand
C. Related and supporting industries
D. Competitiveness of the home industry

A

A. Factor conditions

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6
Q

The existence of a luxury high power car manufacturing industry in
Germany is best explained by:
A. Theory of Absolute advantage
B. Porter’s Diamond
C. Mercantilism
D. Leontief Paradox

A

B. Porter’s Diamond

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7
Q

Which theory explains why Trade occurs between two countries because one is more specialized
in producing a good A and the other is more specialized in producing a good B?
A. New Trade Theory
B. Comparative Trade Theory
C. Mercantilism
D. Theory of Absolute Advantage

A

D. Theory of Absolute Advantage

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8
Q

If a country A cannot produce products more efficiently than another country B then:
A. Trade should no longer occur between them
B. Trade may still occur based on Comparative Trade Advantage theory
C. Trade may still occur based on the Theory of Absolute Advantage
D. Trade may still occur based on Mercantilist Trade Theory

A

B. Trade may still occur based on Comparative Trade Advantage theory

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9
Q

The Heckscher-Ohlin Theory explains:
A. That countries have an absolute advantage
B. That countries have a relative advantage
C. That countries have a relative advantage in areas where they have a large
supply of resources
D. That countries have a relative advantage in areas where they have a large demand for
certain resources

A

C. That countries have a relative advantage in areas where they have a large
supply of resources

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10
Q

The Leontief Paradox refers to the fact that:
A. The US Exports more labor-intensive goods than it
imports
B. The US Exports more capital-intensive goods than it imports
C. Russia Exports more labor-intensive goods than it imports
D. Russia Exports more capital-intensive goods than it imports

A

A. The US Exports more labor-intensive goods than it
imports

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11
Q

Stefan Lindner’s Country Similarity Theory is most similar to:
A. New Trade Theory
B. Comparative Trade Theory
C. Mercantilism
D. Theory of Absolute Advantage

A

A. New Trade Theory

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12
Q

The book “Wealth of Nations” is about:
A. Theory of Absolute Advantage
B. New Trade Theory
C. Comparative Trade Theory
D. Mercantilism

A

A. Theory of Absolute Advantage

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13
Q

According to the product life-cycle theory the inclination to international trade
is higher when the product is:
A. new
B. maturing
C. standardized
D. discontinued

A

C. standardized

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14
Q

Strategic Rivalry Theory focuses on:
A. Countries and the ways how they compete
B. Born-global firms and the ways how they start-up
C. MNCs and the ways those seek competitive advantage
D. People and the way how they behave in the international work environment

A

C. MNCs and the ways those seek competitive advantage

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15
Q

The other name for the Heckscher-Ohlin Theory is:
A. Demand conditions theory
B. Factor conditions theory
C. Input proportion model
D. None of the above

A

D. None of the above

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16
Q

The following statement is true:
A. Thomas Friedman claims the world is not flat
B. Pankaj Ghemawat claims the world is flat
C. Thomas Friedman and Pankaj Ghemawat agree with each other about the globalized state of the
world
D. Thomas Friedman and Pankaj Ghemawat disagree with each other about the
globalized state of the world

A

D. Thomas Friedman and Pankaj Ghemawat disagree with each other about the
globalized state of the world

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17
Q

The BEST answer that reflects what Pankaj Ghemawat’s CAGE framework represents is:
A. The Cultural, Administrative, Geographic, and Economic distances between
nations
B. The Cultural, Administrative, Geographic, and Economic factors of a nation
C. The Costs, Advantages, Goods, Economic risks of foreign trade
D. The Costs, Advantages, Goods, Services, and Economic risks of foreign trade

A

A. The Cultural, Administrative, Geographic, and Economic distances between
nations

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18
Q

Globalization can be driven by the:
A. Convergence of customer needs
B. Local adaptation
C. Customization
D. All of the above answers

A

A. Convergence of customer needs

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19
Q

Globalization is normally associated with the:
A. Liberalization of trade
B. The introduction of non-tariff restrictions to trade
C. The introduction of tariff restriction to trade
D. None of the above

A

A. Liberalization of trade

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20
Q

Globalization 2.0 is considered to have been dominated by:
A. Nations
B. People
C. Software technologies
D. MNCs

A

D. MNCs

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21
Q

Globalization:
A. Should be measured at the global level
B. Should not be measured at the global level
C. Has a universally acknowledged index
D. Is unavoidable and irreversible

A

B. Should not be measured at the global level

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22
Q

The factor that is usually thought to help Globalization is:
A. Protecting cultural identities
B. Supporting language diversity
C. Religious differences
D. Revolution in communication technologies

A

D. Revolution in communication technologies

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23
Q

The administrative distance between countries refers to:
A. Identity
B. Institutional differences
C. Differences in the time zones
D. Differences in education

A

B. Institutional differences

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24
Q

A cultural stereotype is a:
A. Perception that people have a certain culture
B. A concept that refers to how and why we think and function as a
group of people
C. A concept that reflects your understanding of Globalization
D. A superstition

A

A. Perception that people have a certain culture

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25
Q

Ethnocentrism is a:
A. Perception that all cultures are different
B. Perception that all cultures are equal
C. Perception that personality is more important than culture
D. Perception that some cultures are better than others

A

D. Perception that some cultures are better than others

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26
Q

Geert Hofstede measured culture based on:
A. The acceptance of ranked relationships
B. How people use their body language
C. The attitude to space
D. The acceptance of basic Human Rights

A

A. The acceptance of ranked relationships

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27
Q

Cosmopolitan cities are typically characterized by:
A. High diversity level
B. Low inflation
C. Slow economy
D. Rural locations

A

A. High diversity level

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28
Q

What are the factors that homogenize us:
A. Tourism
B. Global challenges
C. Trade
D. All the other options

A

D. All the other options

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29
Q

What is a balance of payments:
A. A record of country’s import-export relationships with the other
countries
B. All the country’s economic transactions with the rest of
the world in a given year
C. A balance reflecting the country’s internal debt
D. A balance reflecting the country’s payments on the external debt

A

B. All the country’s economic transactions with the rest of
the world in a given year

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30
Q

Foreign-direct investment balance reflects:
A. The difference between the inward direct investments made by
residents and non-residents in a given year
B. The difference between the outward direct investments made by
residents and non-residents in a given year
C. The difference between the inflows and the outflows of
FDI to and from a given country in a given year
D. The total value of foreign-direct investments a country makes in a
given year

A

C. The difference between the inflows and the outflows of
FDI to and from a given country in a given year

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31
Q

When a tourist exchanges one currency into another, he/she is participating in the:
A. foreign barter market
B. foreign exchange market
C. foreign replacement market
D. foreign swap market

A

B. foreign exchange market

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32
Q

Floating exchange rates are determined by:
A. market forces
B. the IMF
C. the World Bank
D. an international commission on exchange rate parity

A

A. market forces

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33
Q

___________ typically involves the movement of funds from one currency to another in the
hopes of profiting from shifts in exchange rates.
A. Capital venturing
B. Currency speculation
C. Investment contemplation
D. Currency conversion

A

B. Currency speculation

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34
Q

Most countries abandoned convertibility and the gold standard in 1931 because
A. there was a sharp decline in the amount of gold mined
B. the Bretton Woods Agreement was signed
C. of the economic effects of the Great Depression
D. of the preference for a managed float system

A

C. of the economic effects of the Great Depression

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35
Q

The practice of pegging currencies to gold and guaranteeing convertibility was
referred to as the ____________.
A. premium standard
B. gold standard
C. metal standard
D. federal reserve standard

A

B. gold standard

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36
Q

The American currency quoting standard is:
A. X USD for one unit of some currency.
B. X USD for oil barrel
C. X USD for one ounce of gold
D. X USD for a medium food basket in a country

A

A. X USD for one unit of some currency.

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37
Q

An importer enters into a 60-day forward exchange rate for converting dollars
into yuan. The spot exchange rate is 5.28 yuan for 1 dollar. The forward exchange
rate is 5.27 yuan for 1 dollar. How many yuan would the importer get for 50,000
dollars
A. 264,000
B. 364,000
C. 353,500
D. 263,500

A

D. 263,500

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38
Q

The value of a currency is determined by:
A. the interaction between the demand and supply of that currency relative to
the demand and supply of other currencies.
B. the World Trade Organization.
C. negotiations between the central banks of the leading five industrial powers of the
world.
D. currency speculators

A

A. the interaction between the demand and supply of that currency relative to
the demand and supply of other currencies.

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39
Q

Since the collapse of the Gold Standard, the global monetary system operates as a
_____________:
A. mixed-turbulence system.
B. random monetary system.
C. regulated standard system.
D. managed-float system

A

D. managed-float system

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40
Q

The Gold Standard presumed __________ exchange rates against the U.S. dollar.
A. variable
B. floating
C. fixed
D. fluctuating

A

C. fixed

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41
Q

The great strength claimed for the gold standard was that it contained a powerful
mechanism for simultaneously achieving a __________ for all countries.
A. balance-of-trade equilibrium
B. economic stability
C. interest rate parity
D. equal tariff levels

A

A. balance-of-trade equilibrium

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42
Q

Which of the following is NOT one of the main uses that international businesses
have for the foreign exchange market?
A. International businesses use foreign exchange markets to convert money they
earn in foreign currencies to their home currencies
B. International businesses use foreign exchange markets in determining
domestic wage rates
C. International businesses use foreign exchange markets when they have spare
cash that they wish to invest for short terms in money markets
D. Currency speculation

A

B. International businesses use foreign exchange markets in determining
domestic wage rates

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43
Q

A(n) __________ is purchase and sale of a given amount of foreign exchange for two
different value dates, at the same time.
A. currency swap
B. economic fund
C. short selling
D. arbitrage group

A

A. currency swap

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44
Q

If the prices differed in London and New York and a dealer spent $1 million to
purchase ¥ 125 million, then sold that ¥ 125 immediately for $1.046666 million, the
trader would earn a profit of $46,666 on the transaction. This is accomplished
through _________.
A. arbitrage.
B. skimming.
C. FDI.
D. Pre-exchange agreements.

A

A. arbitrage.

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45
Q

Triffin Paradox consists in the fact that:
A. The more of American Dollars are out in circulation – the
higher the fear that this bubble will burst.
B. The more Gold was deposited in the countries’ national reserves,
the more problems they faced in their economic development.
C. The more positive is getting the countries’ trade balance, the
more expensive their currency is.
D. The more FDI a country receives, the higher the level of a
country’s corruption is getting.

A

A. The more of American Dollars are out in circulation – the
higher the fear that this bubble will burst.

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46
Q

The primary goal of the World Bank is to:
A. maintain order in the international monetary system.
B. set interest rates in member states.
C. establish a world currency.
D. promote economic development.

A

D. promote economic development.

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47
Q

This initial goal of this institution was to finance the building of Europe’s economy
after World War II by providing low-interest loans:
A. The World Trade Organization.
B. The World Bank.
C. The European National Bank.
D. The International Monetary Fund.

A

B. The World Bank.

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48
Q

What are the benefits of Trade Agreements over Wars:
A. Higher supply of qualified labor
B. Higher risks of a sudden change in the rules of the game
C. Higher volatility in the currency exchange rates
D. Higher price volatility

A

A. Higher supply of qualified labor

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49
Q

The predecessor of the UN is:
A. Union for Peace
B. All-country Forum
C. League of Nations
D. General Assembly

A

C. League of Nations

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50
Q

The official languages of the UN include all the following except:
A. Arabic
B. Hindi
C. French
D. Chinese

A

B. Hindi

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51
Q

The Security Council of the UN includes ____ permanent members:
A. 7
B. 10
C. 15
D. 5

A

D. 5

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52
Q

The key goals of the UN Global Compact’ principles include all the following
themes except for:
A. Human Rights
B. Environment
C. Economic development
D. Corruption

A

C. Economic development

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53
Q

The predecessor of WTO collapsed primarily because:
A. It was not an organization but a set of agreements
B. It did not have an enforcement mechanism
C. It was expecting too much of compliance
D. It was undermining democracy and the will of people in the member states

A

B. It did not have an enforcement mechanism

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54
Q

The WTO member can ignore the NTR principles if:
A. This country is one of top 5 contributors to the WTO’s budget
B. If this country may justify the threat that a given country poses to its
national security
C. If the country is facing a negative trade balance
D. All the options

A

B. If this country may justify the threat that a given country poses to its
national security

55
Q

The IMF often conditions its loans on the introduction of _______:
A. Austerity measures
B. Risk factor analysis in the Social Security System
C. External control over the banking system
D. The Gold Standard

A

A. Austerity measures

56
Q

MIGA is a part of:
A. UN
B. WBG
C. IMF
D. EU

A

B. WBG

57
Q

The key difference between IMF and WBG:
A. IMF pursues economic development, while WBG focuses on the macroeconomic
stability
B. IMF focuses on maintaining a strong global monetary system, while
WBG deals with infrastructure
C. IMF is located in New York, while WBG in Washington
D. One is public, one is private

A

B. IMF focuses on maintaining a strong global monetary system, while
WBG deals with infrastructure

58
Q

CUSMA is a:
A. Free trade Area
B. Customs Union
C. Common Market
D. Monetary Union

A

A. Free trade Area

59
Q

Trade diversion is:
A. A major disadvantage of the regional economic integration
B. An advantage of the regional economic integration
C. Is a phenomenon, which relates to the employment shifts occurring as a result of
the regional economic integration
D. Is a phenomenon, which relates to the loss of sovereignty occurring as a result of
the regional economic integration

A

A. A major disadvantage of the regional economic integration

60
Q

EU is a:
A. Customs Union
B. Federation
C. Common Market
D. Monetary Union

A

D. Monetary Union

61
Q

The General Agreement on Tariffs and Trade (GATT)
A. Is no longer used
B. Is distinct and separate from the WTO
C. Has been suspended by Donald Trump
D. Is the cause for trade negotiations between China and
the US

A

A. Is no longer used

62
Q

The WTO:
A. Can settle trade disputes
B. Cannot settle trade disputes
C. Only covers goods and not services
D. Does not cover Intellectual Property Rights

A

A. Can settle trade disputes

63
Q

Mercosur, an economic and political bloc comprising Argentina,
Brazil, Paraguay, Uruguay, and Venezuela, is:
A. A Free trade area
B. A Customs Union
C. A Common Market
D. An Economic Union

A

B. A Customs Union

64
Q

Trade diversion refers to:
A. When member countries trade more with other less efficient members
than with more efficient nonmember nations
B. When outsourcing reduces the domestic manufacturing base of a country
C. When trade shifts to non-member nations
D. When trade shifts to low cost nations

A

A. When member countries trade more with other less efficient members
than with more efficient nonmember nations

65
Q

The official languages at the UN are:
A. Arabic; Chinese; English; French; Russian; Spanish
B. Arabic; Chinese; English; Hindi; Russian; Spanish
C. German; Chinese; English; Hindi; Russian; Spanish
D. French; Chinese; English; German; Russian; Spanish

A

A. Arabic; Chinese; English; French; Russian; Spanish

66
Q

The main goals of the Global Compact is to promote:
A. Human rights, care for the environment, and eradication of corruption in
the global business environment
B. Economic growth, access to education, and economic and social equality
C. Equal treatment of business actors regardless of their country of origin
D. Business interests of its members in dealing with the Governments of the countries
in which they have presence

A

A. Human rights, care for the environment, and eradication of corruption in
the global business environment

67
Q

The rules of the WTO:
A. Are equally applicable to all the countries regardless of their level of development
B. Extend to all the industries with no exceptions
C. May be disregarded in the interest of national security
D. Are mandatory for the members, but there is no an enforcement instrument to
control their implementation

A

C. May be disregarded in the interest of national security

68
Q

It is generally considered that this country had to win the most from the NAFTA
agreement:
A. USA
B. Canada
C. Mexico
D. Cuba

A

C. Mexico

69
Q

WIPO is an international organization dealing with:
A. Intellectual Property rights registration and protection
B. International Investments and protection of interests of foreign investors
C. Human rights protection in regions with low income and poverty
D. Promotion of Western Ideology across the Globe

A

A. Intellectual Property rights registration and protection

70
Q

By its rank in the top trading partners, ASEAN ranks as the:
A. 1st largest trading block
B. 2nd largest trading block
C. 3rd largest trading block
D. 4th largest trading block

A

C. 3rd largest trading block

71
Q

The EU was started with an agreement of:
A. Germany and UK
B. France and UK
C. Germany and France
D. Germany, France, and UK

A

C. Germany and France

72
Q

Venezuela is a member of:
A. NAFTA
B. CAFTA-DR
C. ASEAN
D. MERCOSUR

A

D. MERCOSUR

73
Q

Which is the most advanced stage of the Regional Economic Integration:
A. Free Trade Area
B. Customs Unions
C. Economic and Monetary Union
D. Common Market

A

C. Economic and Monetary Union

74
Q

The most influential decision-making body within the UN’s structure is:
A. General Assembly
B. Defense group
C. Security Council
D. NATO

A

C. Security Council

75
Q

If in Japan the Per Capita GDP (Nominal) is 42,500 and the Per Capita GDP (PPP) is 34,200,
whereas in Germany the Per Capita GDP (Nominal) is 40,500 and the Per Capita GDP (PPP) is
35,900, then this implies that:
A. In Japan, you can buy more for each dollar
B. In Germany, you can buy more for each dollar
C. In Japan, the Per Capita GDP (Nominal) is higher, so they must have a lower population
D. In Germany, the Per Capita GDP (PPP) is higher, so they must have a higher population

A

B. In Germany, you can buy more for each dollar

76
Q

Which of these measures a countries average achievement in health, knowledge, and a decent
standard of living?
A. GDP
B. HDI
C. GDI
D. HPI

A

B. HDI

77
Q

In terms of the global economy the US economy
accounts for nearly:
A. 10% of global GDP
B. 15% of global GDP
C. 20% of global GDP
D. 25% of global GDP

A

D. 25% of global GDP

78
Q

The term Emerging Economies was originally referred
to:
A. The BRIC Countries
B. The STONE Countries
C. The BRIC and STONE Countries
D. Nigeria and South Africa

A

A. The BRIC Countries

79
Q

When Law is primarily based on historical application, this is
called:
A. Civil Law
B. Common Law
C. Religious Law
D. None of the other answers

A

B. Common Law

80
Q

A political system is a set of:
A. Religion, history, traditions
B. Rules, regulations, institutions, and attitudes
C. Social and economic reforms
D. Norms of behavior for Diplomats

A

B. Rules, regulations, institutions, and attitudes

81
Q

Sanctioning companies that sell their products below market
is referring to:
A. Anti-trust regulations
B. Anti-dumping regulation
C. Fair-play regulation
D. Rule of thumb regulation

A

B. Anti-dumping regulation

82
Q

An example of tariff-related intervention is:
A. Quotas
B. Subsidies
C. Export financing
D. Ad-valorem taxes

A

D. Ad-valorem taxes

83
Q

The key types of the legal systems are:
A. Common Law, Joint Law, Theocratic Law
B. Civil law, Common Law, Religious Law
C. Joint Law, Theocratic Law, Common Law
D. Supreme Law, Middle Law, Basic Law

A

B. Civil law, Common Law, Religious Law

84
Q

IHDI is a(n):
A. Intrinsic Human Devotion Index
B. Intellectual Human Development Index
C. Index of Health Development Initiatives
D. Income-adjusted Human Development Index

A

D. Income-adjusted Human Development Index

85
Q

CPI is:
A. An index expressing a subjective level of corruption in a country
B. An index expressing an objective level of corruption in a country
C. An index expressing an objective level of civil rights development in a
country
D. An index expressing a subjective strength of the constitutional rights in
a country

A

A. An index expressing a subjective level of corruption in a country

86
Q

A low GDP/capita suggests that:
A. A country is not a good internationalization option
B. A country has a high level of corruption
C. A country is characterized by significant income inequality
D. None of the above

A

D. None of the above

87
Q

GDP is typically quoted in:
A. The currency of a given country adjusted for PPP
B. The American currency for any country except for
developed economies
C. The American currency
D. A harmonized number expressing a universal level of
economic development comparable across countries

A

C. The American currency

88
Q

The key difference between Totalitarian and Authoritarian
political systems is:
A. Source of power
B. Authoritarian system is guided by ideology
C. Totalitarian system is less democratic
D. No difference

A

A. Source of power

89
Q

The key difference between Capitalism and Communism is in:
A. Attitude to Democracy
B. Attitude to Freedoms
C. Attitude to Trade
D. Ownership and control over means of productions

A

D. Ownership and control over means of productions

90
Q

When a company invests internationally to provide
input into its core operations in its home country, this
is called:
A. Backward Vertical FDI
B. Forward Vertical FDI
C. Horizontal FDI
D. None of the other answers

A

A. Backward Vertical FDI

91
Q

The downside of exporting is:
A. Little control over marketing and distribution
B. No investment in foreign production facilities
C. Requires few long-term commitments
D. Most costs are marketing expenditures

A

A. Little control over marketing and distribution

92
Q

The most conservative Market entry mode among the following is:
A. Licensing products
B. Entering an alliance
C. Making an acquisition
D. Opening a subsidiary

A

A. Licensing products

93
Q

Outsourcing is best reflected by:
A. Moving production to a subsidiary
B. Hiring foreign-born workers
C. Contracting a call-center for customer support services
D. Building a new plant and delegating a part of activities

A

C. Contracting a call-center for customer support services

94
Q

Offshoring is best reflected by:
A. Engagement in tax evasion practices
B. Delegating manufacturing of some parts to some third party overseas
C. Repatriating the profits earned overseas back to home country
D. Building a holding structure

A

B. Delegating manufacturing of some parts to some third party overseas

95
Q

It is recommended that you begin your learning about internationalization
from:
A. Exporting
B. Importing
C. Franchising
D. Licensing

A

B. Importing

96
Q

The primary purpose of service-level agreements is to:
A. Ensure some quality standards while contracting some activities at third parties
B. Ensure stability of the currency exchange rate
C. Fix the prices for the goods you import from overseas
D. Express an intent to delegate some services to a foreign-owned
firm

A

A. Ensure some quality standards while contracting some activities at third parties

97
Q

The key advantage of exporting type of entry consists in:
A. Keeping control over distribution chain
B. The speed of the market entry
C. The absence of need to do any market analysis
D. The absence of need to pay any corporate taxes on a foreign
territory

A

B. The speed of the market entry

98
Q

The primary disadvantage of franchising consists in:
A. The pace of the market entry
B. The difficulty to warrant high quality standards
C. The costs of expansion
D. The need to pay franchisees’ corporate taxes

A

B. The difficulty to warrant high quality standards

99
Q

Which of the following entries is characterized by the greatest
commitment:
A. Brownfield
B. Alliance
C. Acquisition
D. Licencing

A

A. Brownfield

100
Q

The principal difference between FDI and portfolio investment
consists in:
A. The amount of capital invested
B. The amount of leadership invested
C. The amount of shares acquired
D. The amount of risk diversification

A

B. The amount of leadership invested

101
Q

Horizontal FDI is best reflected by:
A. Building a plant in another country to source local manufacturing
process
B. Opening a similar plant overseas
C. Opening a subsidiary in another country to arrange distribution in that
market
D. Acquiring stocks in similar companies overseas

A

B. Opening a similar plant overseas

102
Q

Building a new plant in a foreign country is labeled as:
A. Greenfield
B. Grayfield
C. Whitefield
D. Redfield

A

A. Greenfield

103
Q

Whitefield is a label that best reflects:
A. Building a new plant from scratch in a foreign country
B. Acquiring an existing plant in a foreign country
C. This is a label that refers to portfolio and not FDI investments
D. This label does not have any meaning in the context of FDIs

A

D. This label does not have any meaning in the context of FDIs

104
Q

Countries discourage FDI by:
A. Reducing corporate taxes
B. Building infrastructure
C. Reducing corruption
D. Imposing ownership restrictions

A

D. Imposing ownership restrictions

105
Q

Companies that merely export their value propositions to foreign
markets often face ____-related challenges:
A. Arbitrage
B. Adaptation
C. Aggregation
D. All of the above

A

B. Adaptation

106
Q

If a company uses economies of scale & scope, has migrated to
low-cost production bases, invests heavily in country-focused
marketing campaigns, it is using an:
A. ‘A’ strategy
B. ‘AA’ strategy
C. ‘AAA’ strategy
D. ‘AAAA’ strategy

A

C. ‘AAA’ strategy

107
Q

Disaggregating operational processes and focusing each activity in the
most advantageous location alludes to the following strategy:
A. Arbitrage
B. Adaptation
C. Aggregation
D. None of the above

A

A. Arbitrage

108
Q

When a company decides to make its first foreign market entry, it should consider
how to change or adapt its _____________.
A. Retroactive business model
B. International business model
C. Domestic business model
D. Agnostic business model

A

C. Domestic business model

109
Q

Deciding what business to enter and how to enter is the task of
firm’s:
A. Corporate strategy
B. Business strategy
C. Functional strategy
D. None of the above

A

A. Corporate strategy

110
Q

PESTEL framework is most closely linked (resembles) to:
A. CAGE analysis
B. SWOT analysis
C. AAA framework
D. POLC framework

A

A. CAGE analysis

111
Q

Identifying the ways in which environmental threats can be
addressed by organizational strengths is best reflected by:
A. CAGE analysis
B. SWOT analysis
C. AAA framework
D. POLC framework

A

B. SWOT analysis

112
Q

Engaging in high-risk innovative activities in mature
organizations is labeled as:
A. Corporate strategy
B. Business strategy
C. Entrepreneurship
D. Intrapreneurship

A

D. Intrapreneurship

113
Q

POLC stands for:
A. Performing; Optimizing; Learning; Creating
B. Planning; Optimizing; Learning; Controlling
C. Performing; Organizing; Leading; Creating
D. Planning; Organizing; Leading; Controlling

A

D. Planning; Organizing; Leading; Controlling

114
Q

Strategizing is the process of:
A. Strategy formulation
B. Strategy implementation
C. Strategy evaluation
D. All of the above

A

A. Strategy formulation

115
Q

An example of giving preference to “doing well” over “doing
good” is:
A. Improving product quality at the cost of financial performance
B. Price discrimination to maximize profitability
C. Investing in energy-efficient technologies
D. Misreporting accounting information in the annual statements

A

B. Price discrimination to maximize profitability

116
Q

What is ethical for an organization is also:
A. Culturally desirable in the organization’s external markets
B. Legal in the organization’s markets
C. Indisputably beneficial to the organization’s shareholders
D. None of the above

A

D. None of the above

117
Q

The benefits associated with an increase in the volume of the
same product output from the same equipment is typically
labeled as:
A. Economies of scale
B. Economies of scope
C. Economies of depth
D. Economies of breadth

A

A. Economies of scale

118
Q

Looking for a good candidate for an expat position, the HR
should opt for the candidate with high:
A. Self-esteem; Temper; Perseverance
B. Self-efficacy; Sociability; Adaptability
C. Self-esteem; Sociability; Diligence
D. Self-efficacy; Sociability; Rigidity

A

B. Self-efficacy; Sociability; Adaptability

119
Q

An important dilemma that HR departments face when working
on firms’ foreign expansion via high-commitment approaches is
generically labelled as:
A. Make or Build
B. Build or Borrow
C. Build or Bring
D. Make or Buy

A

D. Make or Buy

120
Q

Key advantage of a single set of international accounting standards for a
firm is in:
A. Financial benefits to a firm in the form of tax subsidies for credible
accounting
B. Lower costs of preparing consolidated statements for global
firms

A

B. Lower costs of preparing consolidated statements for global
firms

121
Q

The key accounting standard in the US is:
A. IASB
B. IFRS
C. GAAP
D. ASPE

A

C. GAAP

122
Q

The main advantage of GAAP as opposed to IFRS would consist in:
A. Lower taxation in the periods of inflation
B. The benefits of FIFO accounting method
C. Cheaper accountants
D. Annual report simplicity

A

A. Lower taxation in the periods of inflation

123
Q

When consolidating the financial reports of foreign subsidiaries, firms need
to decide which currency exchange method to use by picking between:
A. The current rate and the rate at entry
B. The temporal rate and the rate at entry
C. The current rate and the rate at the date of reporting
D. An averaged rate throughout the year and the rate in a given season

A

A. The current rate and the rate at entry

124
Q

A reduction of costs from cross-border payments
between subsidiaries is carrying a label of:
A. Multidimensional aggregation
B. Multilateral consolidation
C. Multilateral netting
D. Multidimensional arbitration

A

C. Multilateral netting

125
Q

Which of the factors is not seen to be key in the context of
determining the location of R&D centers:
A. Labor Cost
B. Proximity to material resources and infrastructure
C. Intellectual Property protection
D. Population size

A

D. Population size

126
Q

The difference between fiscal management and tax evasion:
A. Is often determined on a case-by-case basis
B. Is always very obvious
C. Is always clearly stated in the legislation
D. Is often hard to observe, but is clearly explained in the IFRS

A

A. Is often determined on a case-by-case basis

127
Q

Transfer pricing in known as a(n):
A. Tax avoidance practice
B. Mechanism for managerial control
C. Approach to arbitration
D. Logistical tool

A

A. Tax avoidance practice

128
Q

The protection of the visual appearance of the finished goods (ex:
mechanical tool) is primarily ensured with the use of a:
A. Patent
B. Trademark
C. Copyright
D. Industrial design

A

D. Industrial design

129
Q

A trademark is protected under international legislation only when:
A. Actively and consistently used in the trade
B. Registered in Madrid database
C. Registered in the USPTO database
D. Registered in all the international classes of products and services

A

A. Actively and consistently used in the trade

130
Q

To denote a trademark with a TM symbol it is required that
you:
A. Register this trademark
B. Pay the fees to WIPO
C. Legalize your trademark with the help of a patent
attorney
D. None of the above

A

D. None of the above

131
Q

A domain name registration is:
A. A great way to save on the trademark registration while
providing you with the same legal protection
B. Subject to existing trademark laws
C. Free in the case you extend you trademark registration into the
35th class
D. Specific only to e-commerce firms

A

B. Subject to existing trademark laws

132
Q

The main criteria for a patent is:
A. Novelty, utility, and innovativeness
B. Inventiveness, novelty, cost-effectiveness
C. Cost-effectiveness, novelty, innovativeness
D. Utility, novelty, inventiveness

A

D. Utility, novelty, inventiveness

133
Q

What is the key benefit of a trade secret over a patent:
A. Trade secret is cheaper to register and maintain
B. Trade secret provides a better legal protection
C. Trade secret prevents knowledge diffusion on the
technology used
D. Trade secret sounds fancier to consumers

A

C. Trade secret prevents knowledge diffusion on the
technology used

134
Q

The key disadvantage of open innovation is:
A. High cost
B. Low speed of research and development
C. Difficulty to scare
D. None of the above

A

D. None of the above

IB (1 decks)

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