Student’s name_____________

Chapter 1
1) Which of the following terms is defined as the process of social, political, economic, cultural,
and technological integration among countries around the world?
A) internationalization
B) offshoring
C) globalization
D) outsourcing

2) _________ is the process of applying management concepts and techniques in a

multinational environment and adapting management practices to different economic,
political, and cultural contexts.
A) Strategic management
B) Internationalization
C) Globalization
D) International management

3) To qualify as a multinational corporation (MNC), a firm must meet all of the following
criteria except
A) operations in more than one country.
B) international sales.
C) a mix of nationalities among managers and owners.
D) sales of at least one million dollars per year.

4) Critics of globalization believe that

A) the offshoring of business services jobs to lower-wage countries inherently creates
greater opportunities at home.
B) growing trade deficits and slow wage growth are damaging economies.
C) when production moves to countries to take advantage of less-regulated
environments, an upward pressure is created on wages and working conditions.
D) the main winners of globalization are the low-wage workers.

5) The subcontracting or contracting out of activities to external organizations that had

previously been performed within the firm is called_________.
A) homesourcing
B) insourcing
C) offshoring
D) outsourcing
6) _________ is the process by which companies undertake some activities at foreign locations
instead of in their countries of origin.
A) Homesourcing
B) Insourcing
C) Offshoring
D) Globalization

7) The_________ is the global organization of countries that oversees rules and regulations for
international trade and investment, including agriculture, intellectual property, services,
competition, and subsidies.
A) WTO
B) NAFTA
C) WIPO
D) ITO

8) The_________ is a free trade agreement among the United States, Canada, and Mexico that
has removed most barriers to trade and investment among these countries.
A) AFTA
B) EFTA
C) CAFTA
D) NAFTA

9) Identify a true statement about the "Development Round," a new round of negotiations
successfully launched by the members of the World Trade Organization (WTO) at Doha,
Qatar in November 2001.
A) The WTO members agreed upon the opening of government procurement markets to
companies in the developed nations.
B) There was a lack of consensus among WTO members regarding agricultural
subsidies.
C) There was a lack of consensus among WTO members regarding unbalanced
population pyramids.
D) The WTO members agreed upon the issues of competition.

10) The United States, Canada, and Mexico make up the_________, which removed most
barriers to trade among these countries and created the world's largest free trade zone.
A) General Agreement on Tariffs and Trade
B) North American Common Market
C) North American Free Trade Agreement
D) North American Trade Union
11) Agreements like NAFTA/USMCA and CAFTA-DR
A) not only reduce barriers to trade but also require additional domestic business and
legal reforms in developing nations to protect property rights.
B) do not include supplemental commitments like the FTAA does on labor and the
environment to encourage countries to upgrade their working conditions and
environmental protections.
C) rely exclusively on MNCs exporting or setting up operations locally rather than
buying out a domestic firm.
D) provide firms with enough security so they cannot go out of business, which simply
encourages a lack of efficiency or incentive to monitor costs.

12) In the context of the changing global demographics, identify a change that will be seen in
developed nations.
A) Developed Asian nations will be able to easily replace the retiring, aging population.
B) In Japan, the number of nonworkers will be nearly equal to that of workers by 2050.
C) In South Korea, the immigration policy will ease by 2050.
D) In Germany, there will be a removal of restrictions on agricultural products, auto
parts, and energy goods.

13) According to some critics, agreements like NAFTA/USMCA and CAFTA-DR

A) have been successful in ensuring environmental standards.
B) have been successful in preventing the decline of the global working-age population.
C) do not go far enough in ensuring worker rights.
D) do not go far enough in protecting property rights.

14) The Asian economic block, made up of Indonesia, Malaysia, the Philippines, Singapore,
Brunei, Thailand, Cambodia, Laos, Myanmar, and Vietnam, is referred to as the
A) Association of Southeast Asian Nations (ASEAN).
B) South Asian Free Trade Area (SAFTA).
C) Southeast Asia Common Market.
D) Asian Economic Union.

15) A method that adjusts GDP to account for different prices in countries is called
A) cumulative distribution function.
B) nominal GDP.
C) current currency exchange rate.
D) purchasing power parity.
16) Unlike the Group of Seven (G7) economies, the Emerging Seven (E7) economies are
A) primarily located in North America and Europe.
B) located throughout Latin America and Asia.
C) mature economies in which economic growth is slow.
D) incentivizing citizens to have more children.

Chapter 5

17) In the context of the smartphone industry, which of the following helps Apple differentiate
itself from its competitors?
A) product innovation
B) low-cost strategy
C) group achievement
D) collective approach to design

18) In the context of Xiaomi's unconventional approach to design, which of the following is a
key element of its strategy?
A) personal excellence
B) patent-protected technology
C) long-term inventory holding
D) crowd-sourcing

19) In the context of product focus in the smartphone industry, which of the following
approaches is used by Apple to achieve success?
A) maintaining first-mover advantage
B) celebrating collaboration between employees and the public
C) adjusting production to meet demand
D) imitating patent-protected technology

20) A company with a(n)_________ predisposition tries to integrate a global systems approach to
decision-making.
A) ethnocentric
B) polycentric
C) geocentric
D) regiocentric
21) A firm with a(n)_________ predisposition lets the culture of the parent company's home
country guide strategic decisions.
A) polycentric
B) geocentric
C) ethnocentric
D) regiocentric

22) Firms with a(n)_________ predisposition make strategic decisions tailored to suit the
cultures of the countries where the MNC operates.
A) polycentric
B) ethnocentric
C) regiocentric
D) geocentric

23) A(n)_________ predisposition leads a firm to try to blend its own interests with those of its
subsidiaries on a regional basis.
A) geocentric
B) polycentric
C) ethnocentric
D) regiocentric

24) _________ is a belief that one worldwide approach to doing business is the key to both
efficiency and effectiveness.
A) International complacency
B) Globalization imperative
C) Worldwide indifference
D) Cross-cultural contentment

25) Firms with a polycentric predisposition have a strategy of_________.

A) global integration and national responsiveness
B) national responsiveness
C) global integration
D) regional integration and national responsiveness

26) Firms with a geocentric predisposition have a_________ culture.

A) home country
B) global
C) host country
D) regional
27) A firm with an ethnocentric orientation
A) redistributes profits globally.
B) redistributes profits within region.
C) repatriates profits to home country.
D) retains profits in host country.

28) Which of the following predispositions is most likely to have a top-down governance?
A) a regiocentric predisposition
B) a polycentric predisposition
C) an ethnocentric predisposition
D) a geocentric predisposition

29) In the context of personnel practices, geocentric firms prefer

A) people of local nationality developed for critical roles in their own country.
B) best people everywhere in their home country developed for critical roles everywhere
in the world.
C) best people everywhere in the world developed for critical roles everywhere in the
world.
D) regional people developed for critical roles anywhere in the region.

30) Which of the following predispositions is most likely to adopt a mass production technology?
A) a regiocentric predisposition
B) a polycentric predisposition
C) an ethnocentric predisposition
D) a geocentric predisposition

31) Advertising in_________ is predominantly emotional, dramatic, and symbolic.

A) the United States
B) Britain
C) Germany
D) France

32) Which of the following countries prefers advertising that is factual and rational?
A) India
B) Britain
C) Germany
D) France
33) The typical broad, self-deprecating_________ commercial amuses by mocking both the
advertiser and consumer.
A) British
B) Chinese
C) Japanese
D) French

34) In_________, spots are viewed as cultural events and reviewed as if they were literature or
films.
A) India
B) China
C) Germany
D) France

35) Which of the following is a factor that is moving companies to facilitate the development of
unique strategies for different cultures?
A) the lack of diversity of worldwide industry standards
B) a continual demand by local customers for differentiated products
C) the importance of being an outsider
D) the need to restrain subsidiaries from using their own abilities and talents

36) Which of the following is a characteristic of a high-context culture?

A) Deep personal involvement with others is not valued greatly.
B) Individuals are taught from a very early age to say exactly what they mean.
C) Insiders and outsiders are not readily distinguishable.
D) Agreements tend to be spoken rather than written.

37) Which of the following is a characteristic of low-context cultures?

A) Authority is diffused throughout the bureaucratic system.
B) Insiders and outsiders are easily distinguishable.
C) Relationships between people are relatively long-lasting.
D) People in authority are personally responsible for the actions of their subordinates.