Multinational Enterprise Management Practice Exam
Course Introduction
Multinational Enterprise Management explores the strategies, structures, and operations of firms conducting business across national borders. This course examines how multinational corporations adapt to varying economic, political, legal, and cultural environments, manage international value chains, and develop competitive advantages in global markets. Students will analyze key topics such as international market entry, cross-cultural communication, global leadership, risk assessment, and ethical issues. Through case studies and practical exercises, participants gain insights into decision-making processes and effective management practices for successful international business operations.
Recommended Textbook
Global Business Today 4th Edition by
Charles W. L. Hill
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16 Chapters
2040 Verified Questions
2040 Flashcards
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Page 2
Chapter 1: Globalization
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) The International Monetary Fund and the World Bank were both created in 1944 by 44 nations that met at Bretton Woods,New Hampshire.
A)True
B)False
Answer: True
Q2) Although most international trade and investment is still conducted by large firms,small to medium sized firms are increasingly involved in international trade and investment.
A)True
B)False Answer: True
Q3) It is commonly believed that globalization stimulates economic growth,creates jobs,and raises income levels.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Country Differences in Political Economy
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) When public officials such as politicians and government bureaucrats,extort income or resources from property holders,this can be described as a(n)
A) patents.
B) public action.
C) warrants.
D) private action.
E) nationalization
Answer: B
Q2) Bill S-21 entered into force in 1999 to prevent foreign companies from paying bribes to Canadian government officials for lucrative contracts.
A)True
B)False
Answer: False
Q3) Command economies are relatively common among the states of Western Europe,although they are becoming less so.France,Italy,and Canada can all be classified as command economies.
A)True
B)False
Answer: False
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Page 4
Chapter 3: The Cultural Environment
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) Canada's masculinity rating is 52 as compared to Japan's which is 95.This means that Canada ___________________ than Japan.
A) has many more women staying at home in the traditional role of housewife and mother
B) accepts males as being better adapted to be supervisors and managers
C) is less willing to accept high levels of risk
D) is more focused on saving money and sticking to a task
E) is more liberated and sex roles are not as sharply defined
Answer: E
Q2) __________ was founded in India in the sixth century BC by Shiddhartha Gautama,an Indian prince who renounced his wealth to pursue an ascetic lifestyle and spiritual perfection.
A) Confucianism
B) Islam
C) Christianity
D) Hinduism
E) Buddhism
Answer: E
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Page 5
Chapter 4: Ethics in International Business
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) Home-country managers working abroad in multinational organizations may experience _________ than the usual degree of pressure to violate their personal ethics.
A) less
B) more C) lower
D) fewer E) a smaller amount
Q2) Identify and discuss the ethics theory that is attributed to philosopher John Rawls.In which category is this theory placed when discussing ethical conduct? Discuss the two fundamental principles of this theory of justice.
Q3) Some economists have argued that corruption reduces the returns on business investment and leads to low economic growth.
A)True
B)False
Q4) The ethical obligations of a multinational corporation toward employment conditions,human rights,and corruption are not always clear-cut.
A)True
B)False
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Chapter 5: International Trade Theories
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) _______,according to Michael Porter,are a nation's position in factors of production such as skilled labour or the infrastructure necessary to compete in a given industry.
A) Demand endowments
B) Factor endowments
C) Factor competencies
D) Demand conditions
E) National resources
Q2) Which of the following international management scholars first argued that countries differ in their ability to produce goods efficiently?
A) David Ricardo
B) Eli Heckscher
C) Michael Porter
D) Adam Smith
E) Raymond Vernon
Q3) Describe the Heckscher-Ohlin theory of international trade.Is the Heckscher-Ohlin theory consistent with the notion of free trade? Why or why not?
Q4) Describe the central tenant of the product life-cycle theory.
Q5) Describe Adam Smith's concept of absolute advantage.
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Chapter 6: The Political Economy of International Trade
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) Consumers are benefited by quotas.
A)True
B)False
Q2) Which of the following is a government payment to a domestic producer?
A) duty
B) subsidy
C) quota
D) tariff
E) grant
Q3) The Corn Laws:
A) were repealed after record harvests in Britain
B) placed a high tariff on corn imported into Britain
C) were repealed after a stinging speech in parliament by David Ricardo where he outlined the theory of comparative advantage
D) were enacted by Britain after the shortages of corn during the Crimean War
E) were repealed to reduce the production of non-quota corn
Q4) GATT rules had applied only to manufactured goods and commodities until the Uruguay Round.
A)True
B)False
Page 8
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Chapter 7: Foreign Direct Investment
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) The _______________ view of FDI traces its roots to Marxist political and economic theory.
A) radical
B) free market
C) pragmatic nationalism
D) conservative
E) social democratic
Q2) If a Canadian corporation decides to create FDI in Mexico because the new plant site has lower costs,this can cause Canada to:
A) lose out on taxes because Mexico will receive them for the new site.
B) deteriorate its trade position.
C) have an increase in its unemployment rate.
D) have a decrease in its unemployment rate.
E) experience increased corporate profits.
Q3) Despite its advantages,FDI has been described as an "expensive" and "risky" international growth strategy.Other things being equal,why is FDI expensive and risky? Compare the risks involved with FDI to the risks involved with exporting and licensing.
Q4) Name three reasons that licensing may not be an attractive option.
Q5) How do transportation costs affect the attractiveness of exporting?
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Chapter 8: Regional Economic Integration
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) You run a small company that manufactures plastic injection molded pieces for the construction industry.Currently,you manufacture your product in Windsor,Ontario and a small plant in Texas.You sell your products in both Canada and the United States.You are aware that NAFTA presented your company with increased access to the American market.You want to expand,and are aware of something called the "European Union",but are unsure of what it means,whether Canada can join (or has joined)and what your firm can do to get access to this large market.You are also interested to know whether there are other "groups of countries like NAFTA or the EU" out there. According to reports from the Canadian Embassy in Mexico,one of the major reasons for the growth of plastics and plastic products in Mexico is the increase in per capita consumption of plastic products and the substitution of parts in products such as household appliances,electronics products,vehicles,and machinery.If local production grows at a rate of five percent in the next three years,Mexico will still have to import injection moulded,extruded and blow moulded parts and packaging,as well as molds,to accommodate the substitution of metal,glass,and other materials.How does this report by the Canadian embassy in Mexico relate to the arguments in favour of lowering trade barriers within a regional trade agreement? Explain.
Q2) Describe the difference between a free trade area and a common market.
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Chapter 9: The Foreign Exchange Market
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) A less extreme version of the PPP theory state that given _____________ the price of a "basket of goods" should be roughly equivalent in each country.
A) tolerant markets
B) relatively efficient markets
C) classical markets
D) closed markets
E) free markets
Q2) According to the International Fisher Effect,for any two countries,the spot exchange rate should change in an equal amount but in the opposite direction to the difference in the nominal interest rates between the two countries.
A)True
B)False
Q3) A forward exchange occurs when two parties agree to exchange currency and execute the deal at some specific date in the future.
A)True
B)False
Q4) Where is the foreign exchange market located? What is the nature of the market? Is the market growing or shrinking on a global basis?
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Chapter 10: The Global Monetary System
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) What is the difference between a free floating exchange rate and a managed or dirty float system?
Q2) The acronym IMF stands for:
A) International Monopoly Function
B) Interval Monetary Fluctuations
C) Interagency Monetary Function
D) International Monetary Fund
E) International Monetary Formation
Q3) The IMF Articles of Agreement were heavily influenced by all of the following except A) the worldwide financial boom.
B) competitive devaluations.
C) trade wars.
D) high unemployment.
E) hyperinflation.
Q4) Explain the reasons behind the collapse of the South Korean Won during the Asian financial crisis.
Q5) By 1980 most of the world's trading nations had adopted the gold standard. A)True
B)False
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Chapter 11: Global Strategy
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) Pursuing a(n)_______________ strategy involves a simultaneous focus on reducing costs,transferring skills and products,and being locally responsive.
A) global
B) multidomestic
C) transnational
D) international
E) multinational
Q2) Which of the following is not one of the four safeguards against opportunism by alliance partners mentioned in our textbook?
A) seeking credible commitments
B) establishing contractual safeguards
C) avoiding the practice of swapping valuable skills and technologies
D) walling off critical technologies
E) none of these answers is correct
Q3) Describe the concept of "core competence." What types of core competencies are the most valuable for penetrating foreign markets?
Q4) What is the experience curve? How can an involvement in overseas markets help a firm capture experience curve advantages more rapidly?
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Chapter 12: Entering Foreign Markets
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) A joint venture entails establishment of a firm that is jointly owned by two or more otherwise independent companies.
A)True
B)False
Q2) Turnkey projects are a means of exporting ____________ to other countries.
A) commodities
B) the manufacturing of goods
C) process technology
D) the provision of services
E) the production of automobiles
Q3) Pioneering costs are costs that an early entrant has to bear that a later entrant can avoid.
A)True
B)False
Q4) One of the primary advantages of a wholly owned subsidiary is that it gives the firm tight control over operations in different countries that are necessary for engaging in global strategic coordination.
A)True B)False
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Chapter 13: Exporting,Importing,and Countertrade
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110 Verified Questions
110 Flashcards
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Sample Questions
Q1) What is countertrade? Give an example of when it can be used.
Q2) Exporters are typically faced with what problems?
A) lots of paperwork
B) complex formalities
C) many potential delays
D) potential errors
E) all of these answers are correct
Q3) Exporting is:
A) profitable if little investment is needed
B) an end in itself
C) a resource drainer for small businesses and therefore should be avoided
D) successful when used on a "shot gun" approach
E) merely a step on the road toward establishment of foreign production
Q4) There is more than one type of countertrade.
A)True
B)False
Q5) A large vertically integrated Japanese trading house is known as a sogo shosha. A)True
B)False
Q6) What is the BDC? What is its mission? How does it pursue its mission?
Page 15
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Chapter 14: Global Marketing and Randd
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) The current consensus among academics,in regard to Theodore Levitt's arguments on the globalization of markets,is that Levitt overstates his case.
A)True
B)False
Q2) Countries where new-product development is strong have all of the following characteristics except what?
A) competition is intense
B) more money is spent on basic and applied research and development than in countries where new-product development is weak
C) consumers are affluent
D) demand is strong
E) trade barriers are moderate
Q3) A recent study found that _____________ percent of new products did not meet their profitability goals.
A) 17
B) 63
C) 45
D) 90
E) 28
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Page 16
Chapter 15: Global Manufacturing and Materials Management
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) Although vertical integration is often undertaken to ____________,it may have the opposite effect.
A) increase customers
B) lower costs
C) find new suppliers
D) market internationally
E) improve quality
Q2) Make-or-buy decisions are even more problematic for international businesses.
A)True
B)False
Q3) The concept of economies of scale tells us that as plant output expands unit costs do what?
A) increase
B) decrease
C) remain the same
D) expand exponentially
E) decrease exponentially
Q4) Define the term "total quality management (TQM)." What is the relationship between TQM and manufacturing?
Q5) Describe the terms flexible manufacturing and mass customization.
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Chapter 16: Global Human Resource Management
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) Adam Cowgill works for Dell Computer (a U.S.based firm)but is assigned to Dell's sales office in Germany.Under these circumstances,Mr.Cowgill would be called a(n)_____ manager.
A) ethnocentric
B) cross-cultural
C) expatriate
D) cross-divisional
E) foreign
Q2) The activities which include determining the firm's human resource strategy,staffing,performance evaluation,management development,compensation,and labour relations are referred to as what?
A) personnel psychology management
B) stakeholder management
C) human resource management
D) positive-sum management
E) employee relations management
Q3) Define and describe the balance sheet approach used by many MNCs to calculate the compensation they wish to offer to their expatriates.
Q4) Explain the impact of unionization on HRM.
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