QUESTION 1 The term VUCA has become a popular managerial acronym for the challenges that are faced in the world today. Which of the following is the correct explanation of VUCA: A. Versatile, Uncertain, Complex & Ambiguous. B. Versatile, Unambiguous, Complex & Assertive C. Volatile, Uncertain, Complex & Ambiguous. D. Volatile, Unambiguos, Complex & Assertive. 1 points
QUESTION 2 The franchise arrangement offers the entrepreneur which one of the following benefits? a. Abundant funding b. The attraction of a well known brand c. Complete control of the business d. Lower taxes 1 points
QUESTION 3 The multinational enterprise (MNE) is characterized by all but which one of the following attributes? a. It is able to co-ordinate activities of affiliates globally b. It has ownership stakes in key strategic businesses c. It is invariably a public company d. It adapts to new markets 1 points
QUESTION 4 Which one of the following is a principle of good practice in corporate governance? a. Appoint a number of non-executive directors b. Adopt a dual-class share structure c. Appoint a CEO who has been with the company a long time d. Promote the interests of dominant shareholders 1 points
QUESTION 5 Which one of the following sets of goals best describes the sustainable business? a. Promoting environmental protection, societal well-being and human rights b. Obeying the law, paying taxes and adhering to national environmental law c. Complying with national law, giving to charity and maximizing shareholder value d. Paying the minimum wage, obeying the law and building innovative capacity 1 points
QUESTION 6 Advocates of ‘hyperglobalization’ point to all but which one of the following phenonena? a. The breaking down of borders between countries b. The spread of market values globally c. The persistence of national cultures d. The empowerment of individuals 1 points QUESTION 7 Which one of the following is associated with globalisation? a. Interdependence of countries in the global economy b. National governments controlling national markets c. Interconnectedness facilitated by new technology d. Global financial flows 1 points QUESTION 8 Which one of the following is a ‘pull’ factor encouraging companies to internationalize? a. High costs in the home market b. Government incentives in the host country c. Large potential markets in the emerging economies d. High wages in the home country 1 points QUESTION 9 All but which one of the following is an advantage of greenfield FDI? a. New manufacturing site b. Government incentives in the host country c. Access to low labour d. Little prospect of immediate profits 1 points QUESTION 10 Which of the following characterizes a business person from a high-context culture? a. Giving forthright opinions in a business meeting b. Asking direct question in a business meeting c. Expressing view in an ambiguous way d. Demanding a written agreement on all contractual issues 1 points QUESTION 11 In Hofstede’s theory of cultural dimensions, power distance signifies which of the following in an organization? a. The bosses of the organization feel they own it b. A person at the lower end of the organization’s hierarchy feels remote from those at the top c. The workers in the organization look on each other as equals d. The workers in the organization are invariably poorly treated 1 points QUESTION 12 Organizational culture is exemplified in all but which of the following ways? a. Degrees of formality in the oraganization b. Degrees of empowerment of staff c. Application of employment law d. Adherence to ethical standards 1 points QUESTION 13 Which one of the following best describes ‘inclusive growth’? a. Economic growth that offers lots of jobs in prosperous sectors of the economy b. Economic growth that enriches investors in key industries c. Economic growth that reduces poverty d. Economic growth that benefits all in society 1 points QUESTION 14 Unemployment tends to rise in all but which one of the following situations? a. When companies outsource manufacturing to lower-cost locations b. When governments relax employment protection laws c. When companies using outdated technology cease to be competitive d. When there is a financial crisis 1 points QUESTION 15 Which one of the following best describes the foundation principles of the liberal market economy? a. Socialism b. Laissez-faire capitalism c. American capitalism d. English capitalism 1 points QUESTION 16 How can MNEs promote sustainable growth in the economies where they operate? a. By adhering to principles of maximizing shareholder returns b. By paying taxes in the countries where they operate c. By adopting a CSR approach to social well-being in each location d. By negotiating the most advantageous deal possible with governments of host countries 1 points QUESTION 17 Which one of the following is not a source of internal political risk? a. Social unrest b. Conflict with a neighbouring country c. High inequality d. Industrial unrest 1 points QUESTION 18 Democracy rests on all but which one of the following? a. Free and fair elections b. A written constitution c. Rule of law d. Majority rule and minority rights 1 points QUESTION 19 Which one of the following is a legitimate lobbying activity by a business? a. Funding a member of staff working in the office of an elected legislator b. Paying a legislator to vote a particular way c. Paying a government official to introduce regulations that favour the company’s business d. Providing information to legislators on the company’s business 1 points QUESTION 20 Which one of the following characterizes a civil law system? a. Codified law b. Reliance on case law c. System of precedence d. Judge-made law 1 points QUESTION 21 The function of the European Court of Justice is best described by which one of the following? a. Settling disputes between citizens of EU countries b. Interpretation of EU laws c. Resolving disputes between EU countries d. Settling disputes between companies in different EU member states 1 points QUESTION 22 Competition law aims to control which one of the following phenomena? a. The existence of large companies b. Cartels among companies that aim to rig prices c. The terms imposed by large suppliers against small retailers d. Global companies that have large market shares in numerous countries 1 points QUESTION 23 The theory of comparative advantage stresses which of the following? a. Countries should export products which they can produce more cheaply than other countries b. Countries should specialize in industries in which they can produce goods more efficiently than any other country c. Countries should aim to be self-sufficient in all industries d. Countries should specialize in industries in which they hold the greatest advantage in comparison with other countries 1 points QUESTION 24 Product life cycle theory helps to explain which one of the following phenomena? a. The continued status of the US as a manufacturing superpower b. The expansion of markets in developing countries c. The shift in manufacturing of consumer goods to low-cost countries d. The dominance of the US in launching new products 1 points QUESTION 25 Which one of the following describes first mover advantages? a. A company should launch a new product in all markets simultaneously b. A company that is first in a market can establish a lead such that others are unable to catch up c. A company that is first in a market is likely to be caught by more nimble competitors d. A company that falls behind in a market can never recover 1 points QUESTION 26 A country’s exporters favour all but which one of the following? a. A weak domestic currency b. A strong domestic currency c. A stable currency market d. A well regulated currency market 1 points QUESTION 27 Why has globalization increased financial risks? a. Global production now involves many countries b. Global supply chains need increased sources of capital c. Global companies seek differing locations as part of their financial strategy d. Global capital flows can be highly volatile 1 points QUESTION 28 All but which one of the following was a cause of the global financial crisis 2008? a. The collapse of the US housing market b. Risky activities of global banks c. Regulatory failures d. Too much government regulation of financial services 1 points QUESTION 29 To obtain a patent, the applicant must meet all but which one of the following requirements? a. The product must be new b. The product must have a useful or applied dimension c. The idea must not be a scientific discovery d. The idea must be a product rather than process 1 points QUESTION 30 Which of the following is not a means of technology diffusion? a. Technology licensing b. FDI c. In-house R&D d. Collaborative R&D 1 points QUESTION 31 In what way can the digital era be said to have promoted empowerment of people? a. Giving governments the power to censor the internet b. Giving companies the means to collect personal data c. Giving governments the ability to collect personal data d. Giving ordinary people access to knowledge from open sources 1 points QUESTION 32 Where does climate change have the most damaging impacts? a. Disadvantaged communities everywhere b. Developing countries c.
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