GBS

What is the best definition of globalisation?

A. The process of countries reducing international trade
B. Growing interconnectedness and integration of countries and economies
C. The shift of all manufacturing to low-income countries
D. A cultural process limited to Western countries

B. Growing interconnectedness and integration of countries and economies

Which example best illustrates globalisation?

A. Local farmers selling only within their village
B. An iPhone designed in the US, using Asian components, and assembled in China
C. A company moving its factory to a nearby town
D. A country closing its borders

B. An iPhone designed in the US, using Asian components, and assembled in China

According to the documents, what major force distinguishes modern globalisation from earlier trading eras?

A. Religion
B. Colonialism alone
C. Capitalism and the reinvestment of surplus value
D. Lack of technology

C. Capitalism and the reinvestment of surplus value

4. In the context of capitalism, what is considered productive?

A. All forms of labour
B. Only government labour
C. Labour that adds monetary value during production
D. Any unpaid work

C. Labour that adds monetary value during production

5. Which company is an example of capitalism driving globalisation?

A. Tesco
B. Amazon reinvesting profits to expand globally
C. McDonald's selling only locally
D. A small craft shop

B. Amazon reinvesting profits to expand globally

6. Which technological innovation belongs to the first phase of globalisation?

A. Satellites
B. Microchips
C. Steam engine and telegraph
D. Internet browsers

C. Steam engine and telegraph

7. Which innovation enabled global satellite communication?

A. Steam power
B. Rocket propulsion (V2 project)
C. Fibre-optic cables
D. Blockchain

B. Rocket propulsion (V2 project)

8. Why were organisations like the IMF and UN created after WWII?

A. To end all capitalism
B. To promote military alliances
C. To encourage international cooperation and prevent future wars
D. To reduce global trade

C. To encourage international cooperation and prevent future wars

9. What is a key limitation of nation-states in globalisation?

A. They control MNEs fully
B. They have reduced influence compared to global capitalism
C. They dominate all global markets
D. They do not participate in trade

B. They have reduced influence compared to global capitalism

10. What is a major characteristic of emerging economies?

A. Declining populations
B. Low growth potential
C. Rapid industrialisation and expanding middle class
D. Minimal foreign investment

C. Rapid industrialisation and expanding middle class

11. Which country is part of the “E7” emerging economies group?

A. France
B. India
C. Canada
D. Australia

B. India

12. Which is an example of an Emerging Market MNE (EMNE)?

A. BMW
B. BYD (Chinese EV manufacturer)
C. Microsoft
D. Coca-Cola

B. BYD (Chinese EV manufacturer)

13. What best defines a Multinational Enterprise (MNE)?

A. A company operating in a single country
B. A firm producing goods/services in more than one country
C. A government agency
D. A non-profit charity

B. A firm producing goods/services in more than one country

14. Which company exemplifies an MNE adapting its products to local markets?

A. A local bakery
B. A domestic bank
C. Unilever
D. A university

C. Unilever

15. What is a global supply chain?

A. A local distribution network
B. A national production system
C. Production stages spread across multiple countries
D. A system where goods are only produced domestically

C. Production stages spread across multiple countries

16. Which is a real-world example of a global supply chain?

A. A shoe made entirely in Italy
B. Smartphone processors designed in the US/EU, manufactured in Asia, assembled in China
C. Local restaurant ingredients
D. A single-country car factory

B. Smartphone processors designed in the US/EU, manufactured in Asia, assembled in China

17. What is “slowbalisation”?

A. Increasing global trade faster than before
B. A slowdown in global integration since 2008
C. Ending all global trade
D. The collapse of digital markets

B. A slowdown in global integration since 2008

18. Which indicator shows slowbalisation?

A. Rising global trade growth vs. GDP
B. Declining cross-border investment
C. Increase in manufacturing in the West
D. Closure of digital platforms

B. Declining cross-border investment

19. What characterises “deglobalisation”?

A. Expansion of global supply chains
B. Active reversal of global integration (e.g., reshoring, tariffs)
C. Growth in free-trade agreements
D. Increased migration

B. Active reversal of global integration (e.g., reshoring, tariffs)

20. What is “digibalisation”?

A. The decline of the internet
B. A shift back to physical trade
C. Globalisation driven by digital services, data flows, and e-commerce
D. A slowdown of digital innovation

C. Globalisation driven by digital services, data flows, and e-commerce

1. The strategy framework illustrates the organisation’s strategic position as influenced by:

A. Only internal culture
B. Only industry forces
C. Macro-environment, industry, resources, stakeholders
D. Government policies alone

C. Macro-environment, industry, resources, stakeholders

2. The macro-environment is best analysed using:

A. The BCG Matrix
B. Porter’s Diamond
C. PESTEL
D. VRIO

C. PESTEL

In PESTEL, “Technological” factors include:

A. Consumer tastes
B. Level of automation and R&D activity
C. Government taxation
D. Industry rivalry

B. Level of automation and R&D activity

4. Which macro variable is listed under “Political” in PESTEL?

A. Inflation rates
B. Age demographics
C. Corruption
D. Cultural barriers

C. Corruption

5. Which of these belongs to the meso/industry layer of the business environment?

A. National culture
B. Competitors and customers
C. Government legislation
D. Planetary boundaries

B. Competitors and customers

6. Porter’s Five Forces includes all of the following except:

A. Threat of substitutes
B. Bargaining power of suppliers
C. Bargaining power of governments
D. Rivalry among incumbents

C. Bargaining power of governments

7. Complementors are companies that:

A. Reduce industry rivalry
B. Compete in the same segment
C. Increase value when used with your product
D. Regulate demand

C. Increase value when used with your product

8. Network effects occur when:

A. A firm grows internationally
B. Industry rivalry decreases
C. A product becomes more valuable as more users adopt it
D. Production costs decline due to scale

C. A product becomes more valuable as more users adopt it

9. A strategic group is defined as:

A. A cluster of employees with similar skills
B. Firms in an industry following similar strategies
C. A set of government regulators
D. Firms using the same suppliers

B. Firms in an industry following similar strategies

10. Industry life cycle models help firms understand:

A. How to hire new employees
B. Market segmentation
C. The stages of introduction, growth, maturity, decline
D. How to perform VRIO

C. The stages of introduction, growth, maturity, decline

11. A key example of network effects used in the lecture is:

A. Coca-Cola
B. Samsung
C. WhatsApp
D. Toyota

C. WhatsApp

12. In the Tesla environment layers example, competitors such as BMW, Kia, Nissan represent:

A. Macro environment
B. Micro/competitors layer
C. Internal capabilities
D. Mission and vision elements

B. Micro/competitors layer

13. A smartphone company working with app developers represents:

A. A regulator
B. A buyer
C. A complementor
D. A supplier

C. A complementor

14. The airline industry is often cited as having:

A. Low rivalry
B. High profit margins
C. High buyer power and high rivalry
D. No substitutes

C. High buyer power and high rivalry

15. Smart TV manufacturers and Netflix are examples of:

A. Substitutes
B. Network competitors
C. Complementors
D. Buyers

C. Complementors

16. In the PESTEL diagram, “Environmental” factors include:

A. Age demographics
B. Climate change and weather
C. Legal systems
D. Political corruption

B. Climate change and weather

17. If a major new regulation increases compliance costs for all firms, it is:

A. A micro-level force
B. A strategic group factor
C. A macro-environmental political/legal factor
D. A supplier threat

C. A macro-environmental political/legal factor

18. In Porter’s Five Forces, high threat of substitutes leads to:

A. Higher industry profitability
B. Lower buyer power
C. Reduced pressure on firms
D. A ceiling on prices firms can charge

D. A ceiling on prices firms can charge

19. If suppliers are few and control scarce materials, then:

A. Buyer power increases
B. Substitute threat declines
C. Supplier power increases
D. Industry rivalry disappears

C. Supplier power increases

20. When macro variables are not prioritised correctly, firms risk:

A. Clear threat identification
B. Efficient opportunity mapping
C. Information overload and missing pivotal variables
D. Improved forecasting

C. Information overload and missing pivotal variables

1. According to the RBV, competitive advantage primarily comes from:

A. Unique resources and capabilities
B. Market growth rates
C. Government incentives
D. The number of employees

A. Unique resources and capabilities

2. Threshold capabilities refer to:

A. Capabilities that exceed all competitors
B. Innovation processes that disrupt industries
C. The minimum required to compete in a market
D. Capabilities impossible to imitate

C. The minimum required to compete in a market

Distinctive capabilities are also called:

A. Functional routines
B. Mission-related capabilities
C. Generic resources
D. Core competences

D. Core competences

In the VRIO framework, “R” stands for:

A. Rigidity
B. Rarity
C. Return
D. Reliability

D. Reliability

Inimitability is influenced by:

A. Market entry barriers
B. Wage levels
C. Supplier concentration
D. Path dependency and causal ambiguity

D. Path dependency and causal ambiguity

The value chain is a tool that analyses:

A. Cash flow statements
B. Activities that add value inside the organisation
C. The external macro-environment
D. Market segmentation

B. Activities that add value inside the organisation

A SWOT analysis integrates:

A. Industry rivalry and organisational culture
B. Value chain and VRIO
C. Internal (S & W) and external (O & T) analysis
D. Only internal capabilities

C. Internal (S & W) and external (O & T) analysis

A TOWS SO strategy means:

A. Using strengths to minimise threats
B. Using opportunities to reduce weaknesses
C. Matching strengths with opportunities
D. Matching weaknesses with threats

C. Matching strengths with opportunities

Porter’s cost leadership strategy emphasises:

A. Superior uniqueness
B. Targeting narrow segments only
C. Achieving the lowest cost position in industry
D. Avoiding economies of scale

C. Achieving the lowest cost position in industry

Bowman’s Strategy Clock position 5 (focused differentiation) represents:

A. Low value, low price
B. Medium value, low price
C. High price, low value
D. High value, high price

High value, high price

11. Dyson is an example of which business-level strategy?

A. Differentiation
B. Cost leadership
C. Cost focus
D. Hybrid

A. Differentiation

Aldi’s efficient logistics and limited range illustrate:

A. Hybrid strategy
B. Diversification
C. Distinctive capability
D. Market penetration

C. Distinctive capability

Amazon’s optimisation of inbound logistics shows effective use of:

A. VRIO
B. Value chain primary activities
C. Stakeholder analysis
D. Portfolio matrices

B. Value chain primary activities

Tesla’s software capability is an example of:

A. Threshold resource
B. Substitute force
C. Rare but imitable capability
D. Valuable and inimitable capability

D. Valuable and inimitable capability

15. Apple’s tight hardware–software integration is an example of:

A. Diversification
B. Related outsourcing
C. Core competence
D. Political advantage

C. Core competence

16. In the VRIO diagram, a resource that is valuable and rare but not organised yields:

A. Competitive disadvantage
B. Competitive parity
C. Temporary competitive advantage
D. Sustained competitive advantage

C. Temporary competitive advantage

In the value chain, technology development is part of:

A. Primary activities
B. Support activities
C. Marketing activities
D. Supplier activities

B. Support activities

A firm with strong brand reputation (valuable, rare, inimitable, organised) achieves:

A. Low-cost parity
B. Sustained competitive advantage
C. Temporary advantage
D. Competitive disadvantage

B. Sustained competitive advantage

A TOWS WT strategy means:

A. Using strengths to exploit opportunities
B. Using opportunities to reduce weaknesses
C. Minimising weaknesses and avoiding threats
D. Using strengths to counter threats

C. Minimising weaknesses and avoiding threats

According to the internal analysis diagram, resources feed into:

A. Strategy in action
B. Strategic position
C. Market selection
D. International strategy

B. Strategic position

Corporate strategy is primarily concerned with:

A. How to compete within one business unit
B. Day-to-day operations
C. Which industries or markets to compete in
D. Employee behaviour management

C. Which industries or markets to compete in

In Ansoff’s matrix, developing new products for existing markets is:

A. Market penetration
B. Market development
C. Product development
D. Diversification

Product development

Diversification is most successful when:

A. Capabilities transfer between businesses
B. Products have nothing in common
C. Market growth is low
D. Firms avoid synergies

A. Capabilities transfer between businesses

Vertical integration occurs when:

A. Firms acquire firms at the same stage of value chain
B. Firms expand into unrelated industries
C. Firms control earlier or later stages of production
D. Firms outsource more processes

C. Firms control earlier or later stages of production

Transaction Cost Theory suggests firms integrate when:

A. Market transactions are cheaper
B. External suppliers are highly reliable
C. Outsourcing risk is low
D. Outsourcing is costly and risky

D. Outsourcing is costly and risky

In the BCG matrix, “Stars” have:

A. High growth, high market share
B. Low growth, high share
C. High growth, low share
D. Low growth, low share

A. High growth, high market share

A merger differs from an acquisition because:

A. It is always hostile
B. Two firms combine to form a new entity
C. Only one firm survives
D. It never produces synergy

B. Two firms combine to form a new entity

A joint venture is:

A. A non-equity alliance
B. A full acquisition
C. An equity alliance
D. A licensing agreement

C. An equity alliance

Post-acquisition integration “preservation” means:

A. Full absorption
B. Minimal integration; the firm keeps autonomy
C. Transfer of all systems
D. Immediate restructuring

B. Minimal integration; the firm keeps autonomy

Strategic alliances are formed primarily to:

A. Increase internal bureaucracy
B. Reduce negotiation with regulators
C. Share resources, risks, and knowledge
D. Eliminate all competition

C. Share resources, risks, and knowledge

Disney expanding into theme parks and streaming is an example of:

A. Unrelated diversification
B. Backward integration
C. Related diversification
D. Market penetration

C. Related diversification

Apple designing its own chips represents:

A. Forward integration
B. Backward integration
C. Horizontal integration
D. Diversification

Backward integration

Boeing’s 787 outsourcing issues demonstrate:

A. Successful cost savings
B. The benefits of extreme outsourcing
C. Transaction Cost Theory risks
D. Lack of market demand

C. Transaction Cost Theory risks

Starbucks and Tata forming a joint venture represents:

A. Franchising
B. Licensing
C. Equity alliance
D. Turnkey project

C. Equity alliance

Microsoft acquiring LinkedIn shows:

A. A conglomerate merger
B. M&A to gain new markets and synergies
C. A divestment
D. Backward integration

M&A to gain new markets and synergies

In Ansoff’s matrix, entering a new country with an existing product is:

A. Market development
B. Product development
C. Diversification
D. Market penetration

A. Market development

In the BCG matrix, cash cows should:

A. Be heavily invested in
B. Be divested immediately
C. Generate stable returns to fund other units
D. Be treated as stars

C. Generate stable returns to fund other units

High supplier risk, high process complexity, and knowledge leakage risk indicate:

A. Outsourcing is ideal
B. Vertical integration is preferable
C. Market development is needed
D. Hybrid strategy

B. Vertical integration is preferable

A licensing agreement is best when:

A. A firm wants ownership control
B. A firm wants minimal risk and low investment
C. A firm seeks horizontal integration
D. A firm needs full global standardisation

B. A firm wants minimal risk and low investment

In the corporate strategy triangle, “scope” refers to:

A. Daily operational tasks
B. The number of employees
C. Breadth of markets/products in the portfolio
D. Number of international suppliers

C. Breadth of markets/products in the portfolio

Market-seeking motives include:

A. Reducing taxes
B. Accessing raw materials
C. Being closer to customers
D. Lowering operational autonomy

C. Being closer to customers

Resource-seeking motives include:

A. Accessing natural resources
B. Expanding product lines
C. Reducing buyer power
D. Increasing cultural distance

A. Accessing natural resources

Efficiency-seeking motives aim to:

A. Increase rivalry
B. Reduce sourcing and production costs
C. Increase psychic distance
D. Promote mergers only

B. Reduce sourcing and production costs

Porter’s Diamond explains:

A. Industry attractiveness
B. Country-specific competitive advantage
C. Company mission statements
D. Transaction costs

B. Country-specific competitive advantage

In the Diamond model, “Demand conditions” refer to:

A. Government subsidies
B. Domestic customer sophistication
C. Global price levels
D. Exchange rates

B. Domestic customer sophistication

Global integration favours:

A. Standardisation across markets
B. High local adaptation
C. Fully decentralised operations
D. High product variation

A. Standardisation across markets

Local responsiveness requires:

A. Minimal local adaptation
B. Centralised decision-making
C. High adaptation to local markets
D. Full global standardisation

C. High adaptation to local markets

The transnational strategy attempts to:

A. Maximise only local responsiveness
B. Maximise only global integration
C. Balance both integration and responsiveness
D. Eliminate international activities

C. Balance both integration and responsiveness

The Uppsala model suggests firms internationalise:

A. Immediately into distant markets
B. In large equity commitments at once
C. Gradually, starting with psychically close countries
D. Only through acquisitions

Gradually, starting with psychically close countries

Born Globals are characterised by:

A. Slow, sequential internationalisation
B. Reliance on domestic markets only
C. Rapid internationalisation via networks
D. High caution and limited exports

C. Rapid internationalisation via networks

Toyota producing in the UK to serve Europe is:

A. Efficiency-seeking
B. Market-seeking
C. Horizontal integration
D. Diversification

B. Market-seeking

India’s IT industry benefits from:

A. Weak education
B. High wages
C. Skilled labour clusters
D. Limited infrastructure

C. Skilled labour clusters

Germany’s automotive cluster is driven by:

A. Low demand
B. Weak suppliers
C. Strong related industries
D. Limited innovation

C. Strong related industries

14. McDonald’s adapting menus locally represents:

A. Pure global strategy
B. Multi-domestic responsiveness
C. No adaptation
D. Licensing breakdown

B. Multi-domestic responsiveness

Mojang (Minecraft) selling globally from inception reflects:

A. Uppsala gradualism
B. Export-only strategy
C. Born Global behaviour
D. Domestic saturation

C. Born Global behaviour

In Porter’s Diamond, “Related and supporting industries” strengthen competitiveness by:

A. Increasing tariffs
B. Providing world-class suppliers
C. Reducing consumer demand
D. Eliminating innovation

B. Providing world-class suppliers

A firm that standardises globally but allows minor local adjustments aligns with:

A. Multidomestic strategy
B. Global strategy
C. International strategy
D. Transnational strategy

D. Transnational strategy

Exporting is best suited when:

A. Firms want full control abroad
B. Firms want low-risk, low-commitment entry
C. Firms need strong local responsiveness
D. Firms must control raw materials

B. Firms want low-risk, low-commitment entry

Licensing is risky when:

A. IP can be easily copied
B. Market entry is cheap
C. Political risk is low
D. Cultural distance is small

A. IP can be easily copied

A BOT (Build-Operate-Transfer) model means:

A. Firm never transfers ownership
B. Firm builds and immediately exits
C. Firm builds, operates for a period, then hands over
D. Firm acts only as a subcontractor

C. Firm builds, operates for a period, then hands over